<SEC-DOCUMENT>0001299933-15-000448.txt : 20150326
<SEC-HEADER>0001299933-15-000448.hdr.sgml : 20150326
<ACCEPTANCE-DATETIME>20150326113538
ACCESSION NUMBER:		0001299933-15-000448
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20150322
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
FILED AS OF DATE:		20150326
DATE AS OF CHANGE:		20150326

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DIGI INTERNATIONAL INC
		CENTRAL INDEX KEY:			0000854775
		STANDARD INDUSTRIAL CLASSIFICATION:	COMPUTER COMMUNICATIONS EQUIPMENT [3576]
		IRS NUMBER:				411532464
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-34033
		FILM NUMBER:		15726739

	BUSINESS ADDRESS:	
		STREET 1:		11001 BREN ROAD EAST
		CITY:			MINNETONKA
		STATE:			MN
		ZIP:			55343
		BUSINESS PHONE:		(952) 912-3444

	MAIL ADDRESS:	
		STREET 1:		11001 BREN ROAD EAST
		CITY:			MINNETONKA
		STATE:			MN
		ZIP:			55343
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>htm_51504.htm
<DESCRIPTION>LIVE FILING
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<TITLE> Digi International Inc. (Form: 8-K) </TITLE>
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		UNITED STATES<BR>
	SECURITIES AND EXCHANGE COMMISSION
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	WASHINGTON, D.C. 20549
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	FORM 8-K
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	CURRENT REPORT
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	Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934
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	Date of Report (Date of Earliest Event Reported):
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	March 22, 2015
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	Digi International Inc.
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<BR>__________________________________________<BR>
	(Exact name of registrant as specified in its charter)
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	Delaware
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	001-34033
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	41-1532464
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_____________________<BR>
	(State or other jurisdiction
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_____________<BR>
	(Commission
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______________<BR>
	(I.R.S. Employer
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	of incorporation)
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	File Number)
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	Identification No.)
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	&nbsp;&nbsp;
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	11001 Bren Road East, Minnetonka, Minnesota
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	55343
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_________________________________<BR>
	(Address of principal executive offices)
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	&nbsp;
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___________<BR>
	(Zip Code)
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	Registrant&#146;s telephone number, including area code:
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	952-912-3444
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	Not Applicable
<BR>______________________________________________<BR>
	Former name or former address, if changed since last report
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	&nbsp;
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Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions:</FONT>
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<P><FONT SIZE="2">
[&nbsp;&nbsp;]&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<br>
[&nbsp;&nbsp;]&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<br>
[&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<br>
[&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<br>
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<B>
	Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
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On March 25, 2015, we announced that Steven E. Snyder plans to retire from his position as Senior Vice President, Chief Financial Officer and Treasurer effective as of the end of the day on April 19, 2015.  We plan to retain Mr. Snyder as an employee through October 31, 2015.  He is expected to devote his full time and attention to our business through July 31, 2015 (the "Initial Transition Period") and then be available to provide consultation and assistance as reasonably requested by us through October 31, 2015.   <br><br>In exchange for his continued service, we have agreed to provide the following compensation and benefits to Mr. Snyder:  (i) a lump sum payment of  $217,500 which is equal to nine months of Mr. Snyder&#x2019;s current annualized salary and is to be paid as soon as practicable following the end of Mr. Snyder&#x2019;s service to the company, and (ii) a pro rata bonus  under our fiscal 2015 cash incentive compensation plan based on the number of months Mr. Snyder works for us during the fiscal year through the Initial Transition Period, such bonus to be calculated and paid within 2.5 months following the end of the fiscal year on September 30, 2015.  In addition, if Mr. Snyder elects to continue his group medical and dental insurance coverage pursuant to the terms of our plans and applicable laws, we will pay his premiums for such coverage at the same level of coverage in effect on the date of his termination of employment with us for up to three months  A copy of the Transition Agreement entered into with Mr. Snyder is attached hereto as Exhibit 10.1.<br><br>Our Board of Directors has elected Michael C. Goergen to serve as Senior Vice President, Chief Financial Officer and Treasurer, effective April 20, 2015.  Mr. Goergen, age 47, most recently served as Senior Vice President &#x2013;Finance of the Transport &#x2013; Logistics division of Trimble Navigation Limited from April, 2013 to March, 2015.  From June 2007 to April, 2013, Mr. Goergen served as Chief Financial Officer or PeopleNet Communications.  PeopleNet was acquired by Trimble in 2011.  Prior to his role as Chief Financial Officer of PeopleNet, he served since 1997 in various financial roles at PeopleNet.  A copy of our Press Release announcing Mr. Goergen&#x2019;s appointment is attached hereto as Exhibit 99.1.  <br><br>In connection with his appointment, our Board of Directors approved a compensatory arrangement for Mr. Goergen to be effective upon his employment with Digi. Mr. Goergen will receive an annual base salary equal to $290,000 with an annual incentive target of $174,000. Payment of the incentive target will be pro-rated based on length of his service in the applicable quarter or fiscal year. Forty percent (40%) of the annual incentive target will be based on achievement of quarterly revenue and profitability targets and sixty percent (60%) of the annual incentive target will be based on achievement of annual revenue and profitability targets.  <br><br>The Board also has indicated that following the commencement of Mr. Goergen's employment with us it will consider the approval of (i) an initial grant of options to purchase 100,000 shares of Digi common stock at an exercise price equal to the closing market price of our common stock on the grant date, and (ii) an initial grant of restricted stock units for 50,000 shares of Digi common stock.  The options would expire after eight years from the grant date and will vest 25% after one year and in equal proportions each month thereafter for three years, resulting in a total vesting period of four years.   The restricted stock units would vest 25% on each of the first, second, third and fourth anniversaries of the grant date.  <br><br>In the event within one year following a change in control Mr. Goergen&#x2019;s employment is terminated by the company without cause or by Mr. Goergen for good reason, then any above described unvested stock options or restricted stock units shall vest.  In addition, if the company terminates Mr. Goergen&#x2019;s employment for reasons other than cause (as defined in the Offer Letter) and he agrees to execute a release of claims, he will be entitled to receive (i) twelve months of base salary in effect at the time of termination, payable in a lump sum, and (ii) a pro-rata bonus based on the number of months worked in the fiscal year prior to termination and the company&#x2019;s actual performance.<br><br>Mr. Goergen will also be eligible to participate in other compensation and benefit programs generally available to our executive officers.<br><br>A copy of the Offer Letter is attached hereto as Exhibit 10.2 and is incorporated herein by reference.<br>
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	SIGNATURES
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	Pursuant to the requirements of the Securities Exchange Act of 1934, the
	registrant has duly caused this report to be signed on its behalf by the
	undersigned hereunto duly authorized.
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	Digi International Inc.
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	&nbsp;&nbsp;
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<I>
	March 26, 2015
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<I>
	By:
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<I>
	David H. Sampsell
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	Name: David H. Sampsell
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<I>
	Title: Vice President of Corporate Development, General Counsel & Corporate Secretary
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	Exhibit&nbsp;Index
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	Exhibit No.
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	Description
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	10.1
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	&nbsp;
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Transition Agreement dated March 25, 2015 between Digi International Inc. and Steven E. Snyder
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	10.2
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	&nbsp;
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Offer Letter dated March 6, 2015 between Digi International Inc. and Michael C. Goergen
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	99.1
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	&nbsp;
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Press Release dated March 26, 2015 Announcing Appointment of Michael C. Goergen as Chief Financial Officer and Retirement of Steven E. Snyder
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<TYPE>EX-10.1
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<FILENAME>exhibit1.htm
<DESCRIPTION>EX-10.1
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<P align="center" style="font-size: 10pt"><FONT style="font-size: 12pt"><B>TRANSITION AGREEMENT</B></FONT>



<P align="left" style="font-size: 12pt; text-indent: 4%">This Transition Agreement is made as of March&nbsp;25, 2015 (the &#147;<U>Effective Date</U>&#148;) by and
between DIGI INTERNATIONAL INC., a Delaware corporation (the &#147;<U>Company</U>&#148;), and Steven Snyder
(&#147;<U>Executive</U>&#148;).


<P align="left" style="font-size: 12pt; text-indent: 4%">WHEREAS, Executive is currently employed as Sr. Vice President, and Chief Financial Officer of
the Company, pursuant to an offer letter dated October&nbsp;28, 2010 (the &#147;<U>Letter Agreement</U>&#148;);


<P align="left" style="font-size: 12pt; text-indent: 4%">WHEREAS, in connection with, and as a condition of the Letter Agreement, Executive and the
Company entered into a DIGI International Employment, Confidential Information, and Arbitration
Agreement, signed by Executive on November&nbsp;7, 2010 (the &#147;<U>Confidential Information
Agreement</U>&#148;);


<P align="left" style="font-size: 12pt; text-indent: 4%">WHEREAS, Executive and the Company are parties to certain stock option agreements, which grant
to Executive certain options to purchase shares of the Company&#146;s common stock under certain
circumstances specified in the option agreements;


<P align="left" style="font-size: 12pt; text-indent: 4%">WHEREAS, Executive and the Company are parties to certain stock restricted stock unit
agreements, which grant to Executive certain restricted stock units options in accordance with the
plans under which the units were granted and the related restricted stock unit agreement; and&nbsp;


<P align="left" style="font-size: 12pt; text-indent: 4%">WHEREAS, Executive and the Company have agreed upon a smooth transition of Executive&#146;s
employment with the Company, according to the terms and conditions of this Agreement, with both the
Company and Executive desiring Executive to remain employed by the Company through October&nbsp;31,
2015.


<P align="left" style="font-size: 12pt; text-indent: 4%">NOW THEREFORE, in consideration of the mutual promises and provisions contained in this
Agreement, the parties, intending to be legally bound, agree as follows:


<P align="left" style="font-size: 12pt"><B>1.&nbsp;</B><U><B>Transition</B></U><B>.</B>


<P align="left" style="font-size: 12pt; text-indent: 4%"><B>(a)&nbsp;Employment. </B>Subject to the terms and conditions of this Agreement, the Company hereby
agrees to continue Executive&#146;s employment, and Executive hereby accepts continued employment by the
Company, for the period (the &#147;<U>Transition Period</U>&#148;) commencing on the Effective Date and
continuing until the earlier of (a)&nbsp;October&nbsp;31, 2015 (the &#147;<U>Anticipated Separation Date</U>&#148;),
or (b)&nbsp;the date on which Executive&#146;s employment is earlier terminated under <U>Section&nbsp;6</U>. The
effective date of the termination of Executive&#146;s employment with the Company for any reason is
referred to herein as the &#147;<U>Termination Date</U>.&#148; For purposes of <U>Section&nbsp;7</U> of this
Agreement only, with respect to the timing of any payments thereunder, the Termination Date shall
mean the date on which a &#147;separation from service&#148; has occurred for purposes of Section&nbsp;409A of the
Internal Revenue Code and the regulations and guidance thereunder (the &#147;<U>Code</U>&#148;).


<P align="left" style="font-size: 12pt; text-indent: 4%"><B>(b)&nbsp;Officer Role. </B>Executive hereby resigns from his positions as Sr. Vice President, and
Chief Financial Officer of the Company, and as an officer or director of any subsidiary of the
Company, effective as of the earlier of (i)&nbsp;the date requested by the Chief Executive Officer due
to commencement of his successor&#146;s employment, and (ii)&nbsp;the Termination Date. The effective date
of Executive&#146;s resignation as Sr. Vice President, and Chief Financial Officer is referred to herein
as the &#147;<U>Officer Resignation Date</U>.&#148; If the Officer Resignation Date occurs prior to the
Termination Date, Executive will continue to be an employee of the Company through the Termination
Date and will continue to receive his salary and benefits through the Termination Date.


<P align="left" style="font-size: 12pt; text-indent: 4%"><B>(c)&nbsp;Conduct During Transition. </B>Executive shall follow all applicable policies and procedures
previously adopted by the Company or adopted by the Company during the Transition Period,
including, without limitation, policies related to business ethics, non-discrimination, conflict of
interest, confidentiality and protection of trade secrets. Executive shall not engage in any
activity during the Transition Period that is detrimental or is reasonably likely to be detrimental
to the Company&#146;s best interests.


<P align="left" style="font-size: 12pt"><B>2.&nbsp;</B><U><B>Duties</B></U><B>. </B>While Executive is employed by the Company during the Transition Period,
Executive&#146;s responsibilities shall be as follows:


<P align="left" style="font-size: 12pt; text-indent: 4%"><B>(a)&nbsp;Initial Transition Period. </B>During the period from the Effective Date through July&nbsp;31,
2015 (the &#147;<U>Initial Transition Period</U>&#148;), Executive shall continue to devote his full time,
attention and energy to performing his duties and responsibilities to the Company. Executive&#146;s
responsibilities and duties during the Initial Transition Period shall include such duties as
requested by the Chief Executive Officer, which may include, without limitation, (i)&nbsp;assisting with
ongoing matters on which he worked prior to the Effective Date, (ii)&nbsp;facilitating the transition of
his prior responsibilities, and (iii)&nbsp;timely executing and delivering such acknowledgements,
instruments, certificates, and other ministerial documents (including without limitation,
certification as to specific actions performed by Executive in his capacity as an officer of the
Company) as may be necessary or appropriate to formalize and complete the applicable corporate
records. Notwithstanding the foregoing, during the Initial Transition Period, the Company will
permit Employee reasonable time to begin a search for other employment, including interviewing and
other activities associated with searching for and obtaining new employment.


<P align="left" style="font-size: 12pt; text-indent: 4%"><B>(b)&nbsp;Second Transition Period. </B>During the period from August&nbsp;1, 2015 through the Anticipated
Separation Date (the &#147;<U>Second Transition Period</U>&#148;), Executive shall at the Company&#146;s
reasonable request and upon reasonable notice, timely execute and deliver such acknowledgements,
instruments, certificates, and other ministerial documents (including without limitation,
certification as to specific actions performed by Executive in his capacity as an officer of the
Company) as may be necessary or appropriate to formalize and complete the applicable corporate
records. In addition, at the Company&#146;s reasonable request and upon reasonable notice, Executive
will, from time to time, discuss and consult with the Company regarding business matters that he
was directly and substantially involved with while employed by the Company. Executive shall not be
required to report to work on a regular basis during the Second Transition Period.


<P align="left" style="font-size: 12pt"><B>3.&nbsp;</B><U><B>Compensation and Benefits</B></U><B>. </B>While Executive is employed by the Company during the Initial
and Second Transition Period, Executive shall continue to receive his base salary as of the
Effective Date, and shall remain eligible to participate in all employee benefit plans and programs
generally available to employees of the Company, to the extent that Executive meets the eligibility
requirements for each individual plan or program. Executive shall continue to be eligible for
incentive compensation in accordance to the terms of his Employment Agreement and any annual cash
incentive plan in effect through the end of the Initial Transition Agreement.


<P align="left" style="font-size: 12pt"><B>4.&nbsp;</B><U><B>First Executive Release</B></U><B>. </B>At the same time Executive signs this Agreement, Executive
also will sign a release in the form attached to this Agreement as <B>Exhibit&nbsp;A </B>(the &#147;<U>First
Release</U>&#148;).


<P align="left" style="font-size: 12pt"><B>5.&nbsp;</B><U><B>Stock Options and Restricted Stock Unit</B></U><B>.&nbsp; </B>Executive acknowledges and agrees that the
stock options and restricted stock units listed in this <U>Section&nbsp;5</U> are his only stock
options, restricted stock units or other rights to purchase or acquire shares of the Company&#146;s
Common Stock and (i)&nbsp;that such stock options are exercisable, or will become exercisable, in
accordance with the plans under which the options were granted and the related option agreements
and only to the extent such options currently are vested, or become vested by virtue of Executive&#146;s
continued employment with the Company pursuant to this Agreement and (ii)&nbsp;that such restricted
stock units are vested, or will become vested, in accordance with the plans under which the units
were granted and the related restricted stock unit agreement.&nbsp; Executive further agrees and
acknowledges that all of such options to purchase the Company&#146;s Common Stock will expire and cease
to be outstanding in accordance with the plans under which the options were granted and the
applicable option agreements.&nbsp; Nothing in this Agreement is intended to modify in any way the terms
and conditions of the option agreements or restricted stock units and it is the intent of Executive
and the Company that the options and units continue to vest in accordance with the option
agreements and restricted stock agreement while Executive is employed pursuant to this Agreement.


<P align="center" style="font-size: 10pt; display: none">1
<!-- PAGEBREAK -->
<DIV align="center">
<TABLE style="font-size: 11pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="18%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
</TR>
<TR style="font-size: 11pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="5" style="border-bottom: 1px solid #000000"><B>Options Exercisable</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Option</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Option</B></TD>
</TR>
<TR style="font-size: 11pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="5" style="border-bottom: 1px solid #000000"><B>Assuming Employment Through</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Exercise</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Expiration</B></TD>
</TR>
<TR style="font-size: 11pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Grant Date</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Options</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>10/31/2015</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Price ($)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Date</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 11pt">
    <TD align="left" valign="top">11/30/10
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">150,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">150,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">9.60</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">11/30/20</TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD align="left" valign="top">11/22/11
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">60,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">58,750</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.63</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">11/22/21</TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD align="left" valign="top">11/20/12
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">55,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">40,104</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">9.35</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">11/20/22</TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD align="left" valign="top">11/20/13
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">55,000</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26,354</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.81</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">11/20/23</TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD align="left" valign="top">11/20/14
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">27,500</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">7.40</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">11/20/24</TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left"><B>Total</B><BR></TD>
    <TD>&nbsp;</TD>
    <TD colspan="9" nowrap valign="top" align="left"><B>Vested Units</B></TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD colspan="5" valign="top" align="left"><B>Grant Date</B></TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left"><B>Restricted Stock Units</B><BR></TD>
    <TD>&nbsp;</TD>
    <TD colspan="9" nowrap valign="top" align="left"><B>Through 10/31/2015</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;<BR></TD>
    <TD>&nbsp;</TD>
    <TD colspan="9" nowrap valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD colspan="5" valign="top" align="left">05/27/14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">12,500</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4,167</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD colspan="5" valign="top" align="left">11/20/14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">13,750</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">0</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 11pt"><FONT style="font-size: 12pt"><B>6. </B><U><B>Early Termination</B></U><B>. </B>Executive&#146;s employment with the Company may be terminated prior
to the Anticipated Separation Date for the following reasons:
</FONT>

<P align="left" style="font-size: 12pt; text-indent: 4%"><B>(a)&nbsp;</B>the Board terminates Executive&#146;s employment with the Company for Cause (as defined in
Section&nbsp;3.2 of the Employment Agreement, as amended by Section 8(b) of this Agreement) or due to
Executive&#146;s breach of this Agreement;


<P align="left" style="font-size: 12pt; text-indent: 4%"><B>(b)&nbsp;</B>Executive terminates his employment with the Company for any reason; or


<P align="left" style="font-size: 12pt; text-indent: 4%"><B>(c)&nbsp;</B>Executive&#146;s death.


<P align="left" style="font-size: 12pt">If Executive&#146;s employment terminates prior to the Anticipated Separation Date for any of the
reasons provided for in this <U>Section&nbsp;6</U>, then the Company&#146;s only obligations to Executive
shall be to pay Executive such compensation that has been earned but not paid to Executive as of
the Termination Date, including any earned but unused vacation pay.


<P align="left" style="font-size: 12pt"><B>7.&nbsp;</B><U><B>Separation Benefits</B></U><B>.</B>


<P align="left" style="font-size: 12pt; text-indent: 4%"><B>(a)&nbsp;Separation Benefits. </B>If Executive&#146;s Termination Date is the Anticipated Separation Date,
then the Company shall pay Executive such compensation that has been earned but not paid to
Executive as of the Termination Date, including any earned but unused vacation pay, and subject to
satisfaction of the conditions set forth below in <U>Section&nbsp;7(b)</U>, Executive shall receive the
following separation benefits (hereinafter the &#147;<U>Separation Benefits</U>&#148;):



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(i)&nbsp;The Company will pay to Executive a lump sum payment equal to nine (9)&nbsp;months of
Executive&#146;s base salary in effect immediately prior to the Termination Date, less applicable
withholdings, which shall be paid within 15 business days following expiration of the
rescission period provided for in the Second Release (defined below).



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(ii)&nbsp;The Company shall pay Executive a pro-rata bonus based on (x)&nbsp;the number of months
worked in the 2015 fiscal year as of the end of the Initial Transition Period; and (y)&nbsp;the
Company&#146;s actual performance against annual objectives. This pro-rata bonus shall be paid
no later than 2.5&nbsp;months after the close of the 2015 fiscal year.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(iii)&nbsp;If Executive elects to continue his group medical and dental insurance pursuant
to the terms of the applicable plans and laws (&#147;COBRA health coverage&#148;), the Company will
pay Executive&#146;s group medical and dental health premiums at the same level of coverage as in
effect as of the Termination Date, through the earliest of (a)&nbsp;three (3)&nbsp;months following
the Termination Date, (b)&nbsp;the date on which Executive becomes eligible for comparable group
medical or dental coverage from any other employer, or (c)&nbsp;the date that COBRA health
coverage ends under the applicable plan or laws.


<P align="left" style="font-size: 12pt; text-indent: 4%"><B>(b)&nbsp;Conditions. </B>Executive&#146;s receipt of the Separation Benefits is subject to the following
conditions: (i)&nbsp;on or within twenty-one (21)&nbsp;days after the Anticipated Separation Date, Executive
has signed a second release in the form attached to this Agreement as <B>Exhibit&nbsp;B </B>(the &#147;<U>Second
Release</U>&#148;), (ii)&nbsp;Executive has not rescinded the Second Release within the rescission period set
forth in the Second Release, and (iii)&nbsp;Executive has not breached Executive&#146;s obligations under
this Agreement or the Employment Agreement.


<P align="left" style="font-size: 12pt"><B>8.&nbsp;</B><U><B>Claims Involving the Company</B></U><B>. </B>Executive agrees that he will, at any future time, be
available upon reasonable notice from the Company, with or without subpoena, to be interviewed,
review documents or things, give depositions, testify, or engage in other reasonable activities in
connection with any litigation or investigation, with respect to matters that Executive has or may
have knowledge of by virtue of his employment by or service to the Company or any related entity.
In performing his obligations under this <U>Section&nbsp;8</U> to testify or otherwise provide
information, Executive will honestly, truthfully, forthrightly, and completely provide the
information requested. Executive will comply with this Agreement upon notice from the Company that
the Company or its attorneys believe that his compliance would be helpful in the resolution of an
investigation or the prosecution or defense of claims.


<P align="left" style="font-size: 12pt"><B>9.&nbsp;</B><U><B>Non-disparagement</B></U><B>. </B>Executive will not malign, defame, or disparage the reputation,
character, image, products, or services of the Company, or the reputation or character of the
Company&#146;s directors, officers, employees, or agents. The current members of the Board will not
disparage Executive&#146;s reputation, image or character, and neither the Board nor the Company will
authorize or encourage any employee of the Company to disparage Executive&#146;s reputation, image or
character. Nothing in this Agreement is intended to prevent or interfere with Executive or the
Company from making any required or reasonable communications with, or providing information to,
any governmental, law enforcement, or stock exchange agency or representative, or in connection
with any governmental investigation, court, administrative or arbitration proceeding.


<P align="left" style="font-size: 12pt"><B>10.&nbsp;</B><U><B>Interpretation of Releases</B></U><B>. </B>This Agreement will not be interpreted or construed to
limit the First Release or the Second Release in any manner. The existence of any dispute
respecting the interpretation of this Agreement or the alleged breach of this Agreement will not
nullify or otherwise affect the validity or enforceability of the First Release or the Second
Release.


<P align="left" style="font-size: 12pt"><B>11.&nbsp;</B><U><B>Time to Consider Agreement</B></U><B>. </B>Executive understands that he may take 21 calendar days
after the date on which Executive receives this Agreement and the First Release, not counting the
date on which Executive receives them, to decide whether to sign this Agreement and the First
Release. Executive represents that if he signs this Agreement and the First Release before the
expiration of the 21-day period, it is because he has decided that he does not need any additional
time to decide whether to sign this Agreement and the First Release. Executive agrees further that
any changes made to this Agreement or the First Release before Executive signs them, whether
material or immaterial, will not restart the 21-day consideration period. Executive understands
that his acceptance of this Agreement must be hand-delivered or mailed to the Company in the manner
set forth in the First Release. If Executive chooses not to sign this Agreement or the First
Release, Executive&#146;s employment will be terminated upon expiration of the 21-day consideration
period and Executive will not be entitled to the benefits provided for in this Agreement.


<P align="left" style="font-size: 12pt"><B>12.&nbsp;</B><U><B>Right to Rescind</B></U><B>. </B>Executive understands that he has the right to rescind this
Agreement and the First Release for any reason within fifteen (15)&nbsp;calendar days after he signs
them, not counting the date on which he signs the Agreement and the First Release. Executive
understands that this Agreement and the First Release will not become effective or enforceable
unless and until Executive has not rescinded them and the applicable rescission period has expired.
Executive understands that if he rescinds this Agreement or the First Release, the rescission must
be in writing and hand-delivered or mailed to the Company in the manner set forth in the First
Release.


<P align="left" style="font-size: 12pt"><B>13.&nbsp;</B><U><B>Advice of Counsel</B></U><B>. </B>Executive has been advised, and by this Agreement is again advised,
to consider this Agreement carefully and to review it with legal counsel of the Executive&#146;s choice.
Executive understands the provisions of this Agreement and has been given the opportunity to seek
independent legal advice before signing this Agreement.


<P align="left" style="font-size: 12pt"><B>14.&nbsp;</B><U><B>Miscellaneous</B></U><B>.</B>


<P align="left" style="font-size: 12pt; text-indent: 4%"><B>(a)&nbsp;Amendment. </B>This Agreement may be amended only in writing, signed by both parties and
approved by the Board.


<P align="left" style="font-size: 12pt; text-indent: 4%"><B>(b)&nbsp;Withholding and Tax Matters. </B>Executive acknowledges and agrees that neither the Company
nor anyone acting on the Company&#146;s behalf has made&nbsp;any representations to Executive concerning the
tax consequences of entering into this Agreement and receiving the Severance Benefits and that
Executive has not relied on any tax advice from the Company or anyone acting on the Company&#146;s
behalf. The Company may withhold from the Severance Benefits such federal, state and local income
and employment taxes as the Company may determine are required or authorized to be withheld
pursuant to any applicable law or regulation. Except for any tax amounts withheld by the Company
from the Severance Benefits and any employment taxes required to be paid by the Company, Executive
shall be responsible for payment of any and all taxes owed in connection with the Severance
Benefits.


<P align="left" style="font-size: 12pt; text-indent: 4%"><B>(c)&nbsp;Section&nbsp;409A. </B>The payments provided under this Agreement are intended to be exempt from
the requirements of Code Sections&nbsp;409A(a)(2), (3)&nbsp;and (4), including current and future guidance
and regulations interpreting such provisions, and it should be interpreted accordingly.


<P align="left" style="font-size: 12pt; text-indent: 4%"><B>(d)&nbsp;Entire Agreement. </B>This Agreement, the Confidential Information Agreement, the applicable
option and restricted stock unit agreements, and any qualified employee benefit plans sponsored by
the Company in which Executive is a participant are intended to define the full extent of the
legally enforceable undertakings of the parties, and no promises or representations, written or
oral, that are not set forth explicitly in this Agreement, the Confidential Information Agreement,
the applicable option and restricted stock unit agreements, the Indemnification Agreement, or any
qualified employee benefit plans sponsored by the Company in which Executive is a participant are
intended by either party to be legally binding. All other agreements and understandings between
Executive and the Company, including without limitation the Letter Agreement, are hereby cancelled,
terminated, and superseded.


<P align="left" style="font-size: 12pt; text-indent: 4%"><B>(e)&nbsp;Binding Effect; Assignment. </B>This Agreement shall inure to the benefit of and be binding
upon the Company, its successors and assigns, and shall inure to the benefit of and be binding upon
Executive and Executive&#146;s heirs, distributes and personal representatives. The rights and
obligations of the Company under this Agreement may be assigned to a successor without any further
consent from Executive. Executive&#146;s rights and obligations may not be assigned to any other person
or entity.


<P align="left" style="font-size: 12pt; text-indent: 4%"><B>(f)&nbsp;Governing Law; Jurisdiction and Venue. </B>All matters related to the interpretation,
construction, application, validity and enforcement of this Agreement (including its Exhibits)
shall be governed by the laws of the State of Minnesota without giving effect to any choice or
conflict of law provision or rule, whether of the state of Minnesota or any other jurisdiction,
that would otherwise cause the application of the laws of any jurisdiction other than the State of
Minnesota. Executive and the Company consent to jurisdiction of the courts of the State of
Minnesota and/or the federal district courts in Minnesota, for the purpose of resolving all issues
of law, equity, or fact, arising out of or in connection with this Agreement, the First Release or
the Second Release. Any action involving claims of a breach of this Agreement, the First Release
or the Second Release shall be brought in such courts. Each party consents to personal
jurisdiction over such party in the state and/or federal courts of Minnesota and hereby waives any
defense of lack of personal jurisdiction or inconvenient forum. Venue, for the purpose of all such
suits commenced in state court, shall be in Hennepin County, State of Minnesota.


<P align="left" style="font-size: 12pt; text-indent: 4%"><B>(g)&nbsp;Knowing and Voluntary Signature. </B>Executive acknowledges that he has carefully read this
Agreement (including its Exhibits) and that he is voluntarily agreeing to the terms of this
Agreement.


<P align="left" style="font-size: 12pt; text-indent: 4%"><B>(h)&nbsp;Captions and Headings. </B>The captions and section headings used in this Agreement are for
convenience of reference only, and shall not affect the construction or interpretation of this
Agreement or any of the provisions hereof.


<P align="left" style="font-size: 12pt; text-indent: 4%"><B>(i)&nbsp;Multiple Counterparts. </B>This Agreement may be executed in counterparts, each of which
shall be deemed an original and all of which shall constitute one instrument.


<P align="center" style="font-size: 10pt; display: none; text-indent: 4%">2
<!-- PAGEBREAK -->

<P align="left" style="font-size: 12pt">IN WITNESS WHEREOF, the parties have executed this Agreement as of the date set forth above.



<P align="left" style="margin-left:25%; font-size: 12pt">DIGI INTERNATIONAL INC.



<P align="left" style="margin-left:25%; font-size: 12pt; text-indent: 3%">/s/ Ronald Konezny<BR>
By:<BR>
Its: President & Chief Executive Officer<BR>



<P align="left" style="margin-left:25%; font-size: 12pt">EXECUTIVE



<P align="left" style="margin-left:25%; font-size: 12pt">/s/ Steven Snyder


<P align="center" style="font-size: 10pt; display: none">3
<!-- PAGEBREAK -->

<P align="center" style="font-size: 12pt"><U><B>EXHIBIT A</B></U>



<P align="center" style="font-size: 12pt"><B>FIRST RELEASE BY<BR>
STEVEN SNYDER</B>



<P align="left" style="font-size: 12pt"><U><B>Definitions</B></U><B>. </B>I intend all words used in this First Release to have their plain meanings in
ordinary English. Specific terms that I use in this First Release have the following meanings:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">A.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>I</U>, <U>me</U>, and <U>my</U> means Steven Snyder and anyone who has or
obtains any legal rights or claims through Steven Snyder.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">B.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Digi</U> means Digi International Inc., any entity related to Digi
International Inc. in the present or past (including without limitation, its
predecessors, parents, subsidiaries, members, affiliates, and divisions) and any
successors of Digi International Inc.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">C.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Company</U> means Digi; the present and past officers, directors, members,
committees, shareholders (together with any officers, partners, managers members,
employees, agents and affiliates of any such shareholder), agents, and employees of
Digi; any company providing insurance to Digi in the present or past; the present and
past employee benefit plans sponsored or maintained by Digi (other than multiemployer
plans) and the present and past fiduciaries of such plans; the attorneys for Digi; and
anyone who acted on behalf of Digi or on instructions from Digi.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Agreement</U> means the Transition Agreement between Digi and me that I am
executing on the same date on which I execute this First Release, including all of the
documents attached to the Agreement.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">E.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>My Claims</U> means all of my rights that I now have to any relief of any
kind from the Company, including without limitation:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all claims arising out of or relating to my employment with
Digi or the termination of that employment;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all claims arising out of or relating to the statements,
actions, or omissions of the Company;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all claims arising out of or relating to any agreements
(whether express or implied) to which I and the Company are parties;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all claims for any alleged unlawful discrimination, harassment,
retaliation or reprisal, or other alleged unlawful practices arising under any
federal, state, or local statute, ordinance, or regulation, including without
limitation, claims under Title VII of the Civil Rights Act of 1964 and 1991,
the Americans with Disabilities Act, the Rehabilitation Act of 1973, the Age
Discrimination in Employment Act, 42 U.S.C. &#167; 1981, the Employee Retirement
Income Security Act, the Equal Pay Act, the Family Medical Leave Act, the Lilly
Ledbetter Fair Pay Act of 2009, the Worker Adjustment and Retraining
Notification Act, the Fair Credit Reporting Act, the Genetic Information
Nondiscrimination Act, the Minnesota Human Rights Act and workers&#146; compensation
non-interference or non-retaliation statutes;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all claims for alleged wrongful discharge; breach of contract;
breach of implied contract; failure to keep any promise; breach of a covenant
of good faith and fair dealing; breach of fiduciary duty; estoppel; my
activities, if any, as a &#147;whistleblower&#148;; defamation; infliction of emotional
distress; fraud; misrepresentation; negligence; harassment; retaliation or
reprisal; constructive discharge; assault; battery; false imprisonment;
invasion of privacy; interference with contractual or business relationships;
any other wrongful employment practices; and violation of any other principle
of common law;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all claims for compensation of any kind, including without
limitation, bonuses, commissions, equity awards or equity-based compensation in
any form (including without limitation restricted units, unit options and any
other form of equity-based compensation), vacation pay, perquisites, and
expense reimbursements;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all claims for back pay, front pay, reinstatement, other
equitable relief, compensatory damages, damages for alleged personal injury,
liquidated damages, and punitive damages;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all claims that a past unlawful decision has or has had a
continuing effect on my compensation; and</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all claims for attorneys&#146; fees, costs, and interest.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:8%; font-size: 12pt">However, <U>My Claims</U> do not include (i)&nbsp;any claims that the law does not allow
to be waived, (ii)&nbsp;any claims that may arise after the date on which I sign this
First Release, (iii)&nbsp;any claims for unemployment benefits, or (iv)&nbsp;any claims for
breach of the Agreement.


<P align="left" style="font-size: 12pt"><U><B>Agreement to Release My Claims</B></U><B>. </B>I will receive consideration from Digi as set forth in the
Agreement if I sign and do not rescind this First Release as provided below. I understand and
acknowledge that that consideration is in addition to anything of value that I would be entitled to
receive from Digi if I did not sign this First Release or if I rescinded this First Release. In
exchange for that consideration I give up and release all of My Claims. I will not make any
demands or claims against the Company for compensation or damages relating to My Claims. The
consideration that I am receiving is a fair compromise for the release of My Claims.


<P align="left" style="font-size: 12pt"><U><B>Additional Agreements and Understandings</B></U><B>. </B>Even though Digi will provide consideration for
me to settle and release My Claims, the Company does not admit that it is responsible or legally
obligated to me. In fact, the Company denies that it is responsible or legally obligated to me for
My Claims, denies that it engaged in any unlawful or improper conduct toward me, and denies that it
treated me unfairly.


<P align="left" style="font-size: 12pt"><U><B>Advice to Consult with an Attorney</B></U><B>. </B>I understand and acknowledge that I am hereby being
advised by the Company to consult with an attorney prior to signing this First Release. My
decision whether to sign this First Release is my own voluntary decision made with full knowledge
that the Company has advised me to consult with an attorney.


<P align="left" style="font-size: 12pt"><U><B>Period to Consider the Release</B></U><B>. </B>I understand that I have 21&nbsp;days from the day that I
receive this First Release, not counting the day upon which I receive it, to consider whether I
wish to sign this First Release. If I sign this First Release before the end of the 21-day period,
it will be my voluntary decision to do so because I have decided that I do not need any additional
time to decide whether to sign this First Release. I also agree that any changes made to this
First Release or to the Agreement before I sign it, whether material or immaterial, will not
restart the 21-day period.


<P align="left" style="font-size: 12pt"><U><B>My Right to Rescind this Release</B></U><B>. </B>I understand that I may rescind this First Release at
any time within 15&nbsp;days after I sign it, not counting the day upon which I sign it. This First
Release will not become effective or enforceable unless and until the 15-day rescission period has
expired without my rescinding it.


<P align="left" style="font-size: 12pt"><U><B>Procedure for Accepting or Rescinding the Release</B></U><B>. </B>To accept the terms of this First
Release, I must deliver this First Release, after I have signed and dated it, to Digi&#146;s legal
counsel by hand or by mail within the 21-day period that I have to consider this First Release. To
rescind my acceptance, I must deliver a written, signed statement that I rescind my acceptance to
Digi by hand or by mail within the 15-day revocation period. All deliveries must be made to Digi&#146;s
legal counsel at the following address:



<P align="left" style="margin-left:15%; font-size: 12pt">Amy C. Seidel
<BR>
Faegre Baker Daniels LLP
<BR>
2200 Wells Fargo Center
<BR>
90 South Seventh Street
<BR>
Minneapolis, MN 55402-3901


<P align="left" style="font-size: 12pt">If I choose to deliver my acceptance or the rescission of my acceptance by mail, it must be
(1)&nbsp;postmarked within the period stated above; and (2)&nbsp;properly addressed to Digi&#146;s legal counsel
at the address stated above.


<P align="left" style="font-size: 12pt"><U><B>Interpretation of the Release</B></U><B>. </B>This First Release should be interpreted as broadly as
possible to achieve my intention to resolve all of My Claims against the Company. If this First
Release is held by a court to be inadequate to release a particular claim encompassed within My
Claims, this First Release will remain in full force and effect with respect to all the rest of My
Claims.


<P align="left" style="font-size: 12pt"><U><B>My Representations</B></U><B>. </B>I am legally able and entitled to receive the consideration being
provided to me in settlement of My Claims. I have not been involved in any personal bankruptcy or
other insolvency proceedings at any time since I began my employment with Digi. No child support
orders, garnishment orders, or other orders requiring that money owed to me by Digi be paid to any
other person are now in effect.


<P align="left" style="font-size: 12pt">I have read this First Release carefully. I understand all of its terms. In signing this First
Release, I have not relied on any statements or explanations made by the Company except as
specifically set forth in the Agreement. I am voluntarily releasing My Claims against the Company.
I intend this First Release and the Agreement to be legally binding.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Dated:</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
<BR>
Steven Snyder


<P align="center" style="font-size: 10pt; display: none">4
<!-- PAGEBREAK -->

<P align="center" style="font-size: 12pt"><U><B>EXHIBIT B</B></U>



<P align="center" style="font-size: 12pt"><B>SECOND RELEASE BY<BR>
STEVEN SNYDER</B>



<P align="left" style="font-size: 12pt"><U><B>Definitions</B></U><B>. </B>I intend all words used in this Second Release to have their plain meanings
in ordinary English. Specific terms that I use in this Second Release have the following meanings:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">A.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>I</U>, <U>me</U>, and <U>my</U> means Steven Snyder and anyone who has or
obtains any legal rights or claims through Steven Snyder.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">B.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Digi</U> means Digi International Inc., any entity related to Digi
International Inc. in the present or past (including without limitation, its
predecessors, parents, subsidiaries, members, affiliates, and divisions) and any
successors of Digi International Inc.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">C.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Company</U> means Digi; the present and past officers, directors, members,
committees, shareholders (together with any officers, partners, managers members,
employees, agents and affiliates of any such shareholder), agents, and employees of
Digi; any company providing insurance to Digi in the present or past; the present and
past employee benefit plans sponsored or maintained by Digi (other than multiemployer
plans) and the present and past fiduciaries of such plans; the attorneys for Digi; and
anyone who acted on behalf of Digi or on instructions from Digi.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">D.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Agreement</U> means the Transition Agreement between Digi and me that I
signed on <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>, including all of the documents attached to the Agreement.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">E.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>My Claims</U> means all of my rights that I now have to any relief of any
kind from the Company, including without limitation:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all claims arising out of or relating to my employment with
Digi or the termination of that employment;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all claims arising out of or relating to the statements,
actions, or omissions of the Company;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all claims arising out of or relating to any agreements
(whether express or implied) to which I and the Company are parties;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all claims for any alleged unlawful discrimination, harassment,
retaliation or reprisal, or other alleged unlawful practices arising under any
federal, state, or local statute, ordinance, or regulation, including without
limitation, claims under Title VII of the Civil Rights Act of 1964 and 1991,
the Americans with Disabilities Act, the Rehabilitation Act of 1973, the Age
Discrimination in Employment Act, 42 U.S.C. &#167; 1981, the Employee Retirement
Income Security Act, the Equal Pay Act, the Family Medical Leave Act, the Lilly
Ledbetter Fair Pay Act of 2009, the Worker Adjustment and Retraining
Notification Act, the Fair Credit Reporting Act, the Genetic Information
Nondiscrimination Act, the Minnesota Human Rights Act, the Minneapolis Civil
Rights Ordinance, the Minnesota Business Corporations Act, and workers&#146;
compensation non-interference or non-retaliation statutes;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all claims for alleged wrongful discharge; breach of contract;
breach of implied contract; failure to keep any promise; breach of a covenant
of good faith and fair dealing; breach of fiduciary duty; estoppel; my
activities, if any, as a &#147;whistleblower&#148;; defamation; infliction of emotional
distress; fraud; misrepresentation; negligence; harassment; retaliation or
reprisal; constructive discharge; assault; battery; false imprisonment;
invasion of privacy; interference with contractual or business relationships;
any other wrongful employment practices; and violation of any other principle
of common law;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all claims for compensation of any kind, including without
limitation, bonuses, commissions, equity awards or equity-based compensation in
any form (including without limitation restricted units, unit options and any
other form of equity-based compensation), vacation pay, perquisites, and
expense reimbursements;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all claims for back pay, front pay, reinstatement, other
equitable relief, compensatory damages, damages for alleged personal injury,
liquidated damages, and punitive damages;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all claims that a past unlawful decision has or has had a
continuing effect on my compensation; and</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all claims for attorneys&#146; fees, costs, and interest.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:8%; font-size: 12pt">However, <U>My Claims</U> do not include (i)&nbsp;any claims that the law does not allow
to be waived, (ii)&nbsp;any claims that may arise after the date on which I sign this
First Release, (iii)&nbsp;any claims for unemployment benefits, or (iv)&nbsp;any claims for
breach of the Agreement.


<P align="left" style="font-size: 12pt"><U><B>Agreement to Release My Claims</B></U><B>. </B>I will receive consideration from Digi as set forth in the
Agreement if I sign and do not rescind this Second Release as provided below. I understand and
acknowledge that that consideration is in addition to anything of value that I would be entitled to
receive from Digi if I did not sign this Second Release or if I rescinded this Second Release. In
exchange for that consideration I give up and release all of My Claims. I will not make any
demands or claims against the Company for compensation or damages relating to My Claims. The
consideration that I am receiving is a fair compromise for the release of My Claims.


<P align="left" style="font-size: 12pt"><U><B>Additional Agreements and Understandings</B></U><B>. </B>Even though Digi will provide consideration for
me to settle and release My Claims, the Company does not admit that it is responsible or legally
obligated to me. In fact, the Company denies that it is responsible or legally obligated to me for
My Claims, denies that it engaged in any unlawful or improper conduct toward me, and denies that it
treated me unfairly.


<P align="left" style="font-size: 12pt"><U><B>Confidentiality</B></U><B>. </B>I understand that the terms of this Second Release are confidential and
that I may not disclose those terms to any person except under the limited circumstances described
in the Agreement.


<P align="left" style="font-size: 12pt"><U><B>Advice to Consult with an Attorney</B></U><B>. </B>I understand and acknowledge that I am hereby being
advised by the Company to consult with an attorney prior to signing this Second Release and I have
done so. My decision whether to sign this Second Release is my own voluntary decision made with
full knowledge that the Company has advised me to consult with an attorney.


<P align="left" style="font-size: 12pt"><U><B>Period to Consider the Release</B></U><B>. </B>I understand that I have 21&nbsp;days after the day I receive
this Second Release or the last day of my employment with Digi, whichever is later, to consider
whether I wish to sign this Second Release. If I sign this Second Release before the end of the
21-day period immediately following the termination of my employment, it will be my voluntary
decision to do so because I have decided that I do not need any additional time to decide whether
to sign this Second Release. I also agree that any changes made to this Second Release or to the
Agreement before I sign it, whether material or immaterial, will not restart the 21-day period.


<P align="left" style="font-size: 12pt"><U><B>My Right to Rescind this Release</B></U><B>. </B>I understand that I may rescind this Second Release at
any time within 15&nbsp;days after I sign it, not counting the day upon which I sign it. This Second
Release will not become effective or enforceable unless and until the 15-day rescission period has
expired without my rescinding it.


<P align="left" style="font-size: 12pt"><U><B>Procedure for Accepting or Rescinding the Release</B></U><B>. </B>To accept the terms of this Second
Release, I must deliver this Second Release, after I have signed and dated it, to Digi by hand or
by mail within the 21-day period that I have to consider this Second Release. To rescind my
acceptance, I must deliver a written, signed statement that I rescind my acceptance to Digi by hand
or by mail within the 15-day revocation period. All deliveries must be made to Digi&#146;s legal
counsel at the following address:



<P align="left" style="margin-left:15%; font-size: 12pt">Amy C. Seidel
<BR>
Faegre Baker Daniels LLP
<BR>
2200 Wells Fargo Center
<BR>
90 South Seventh Street
<BR>
Minneapolis, MN 55402-3901


<P align="left" style="font-size: 12pt">If I choose to deliver my acceptance or the rescission of my acceptance by mail, it must be
(1)&nbsp;postmarked within the period stated above; and (2)&nbsp;properly addressed to Digi&#146;s legal counsel
at the address stated above.


<P align="left" style="font-size: 12pt"><U><B>Interpretation of the Release</B></U><B>. </B>This Second Release should be interpreted as broadly as
possible to achieve my intention to resolve all of My Claims against the Company. If this Second
Release is held by a court to be inadequate to release a particular claim encompassed within My
Claims, this Second Release will remain in full force and effect with respect to all the rest of My
Claims.


<P align="left" style="font-size: 12pt"><U><B>My Representations</B></U><B>. </B>I am legally able and entitled to receive the consideration being
provided to me in settlement of My Claims. I have not been involved in any personal bankruptcy or
other insolvency proceedings at any time since I began my employment with Digi. No child support
orders, garnishment orders, or other orders requiring that money owed to me by Digi be paid to any
other person are now in effect.


<P align="left" style="font-size: 12pt">I represent and confirm that I have been fully paid for all wages, overtime, commissions, bonuses,
and other compensation that I have earned through the date of this Second Release.


<P align="left" style="font-size: 12pt">I have read this Second Release carefully. I understand all of its terms. In signing this Second
Release, I have not relied on any statements or explanations made by the Company except as
specifically set forth in the Agreement. I am voluntarily releasing My Claims against the Company.
I intend this Second Release and the Agreement to be legally binding.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Dated: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>

</TABLE>



<P align="left" style="margin-left:24%; font-size: 12pt">Steven Snyder



<P align="center" style="font-size: 10pt; display: none">5




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<DESCRIPTION>EX-10.2
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<P align="left" style="font-size: 10pt"><FONT style="font-size: 11pt">March&nbsp;6, 2015
</FONT>

<P align="left" style="font-size: 11pt">Mr.&nbsp;Michael Goergen
<BR>
15710 &#150; 52<sup>nd</sup> Ave. N.
<BR>
Plymouth, MN 55446


<P align="left" style="font-size: 11pt">Dear Mike,


<P align="left" style="font-size: 11pt">On behalf of Digi International Inc., I am pleased to offer you employment as Sr. Vice President,
Chief Financial Officer and Treasurer reporting to Ron Konezny. The offer is subject to the terms
of the Contingent Offer section below.


<P align="left" style="font-size: 11pt"><U><B>Compensation</B></U>


<P align="left" style="font-size: 11pt">Your annualized total compensation target for this position is $464,000. The annualized base
salary is $290,000 with an annualized incentive target of $174,000.


<P align="left" style="font-size: 11pt">You will participate in Digi International&#146;s Executive Incentive Plan. For the current fiscal
year, your plan will contain the following components:


<P align="left" style="font-size: 11pt"><U><B>Quarterly Performance:</B></U> 40% of your incentive target will be based on achievement of
quarterly revenue and profitability targets of the Company.


<P align="left" style="font-size: 11pt"><U><B>Annual Performance:</B></U> 60% of your incentive target will be based on achievement of the
annual revenue and profitability targets of the Company.


<P align="left" style="font-size: 11pt">All payments will be pro-rated based on length of service in the quarter/fiscal year.


<P align="left" style="font-size: 11pt"><U><B>Initial Equity Award</B></U>


<P align="left" style="font-size: 11pt">We will recommend to the Board of Directors an initial grant of 100,000 stock options. The Options
will have a per share exercise price equal to the closing sale price of a share of common stock on
the Grant Date. Twenty-five percent of the Options will vest on the first anniversary date of the
Grant Date. Subsequent to the first anniversary date, your Options will vest monthly, with full
vesting at four years. If, within one year following a change in control, your employment is
terminated either by the Company without cause or by you for good reason then any unvested Options
shall be accelerated and immediately vested. The Options will have a term of eight years. The
Grant Date will be the first day that the Digi International trading window is open or or after
your start date.


<P align="left" style="font-size: 11pt">In addition, we will recommend to the Board of Directors a Restricted Stock award of 50,000 shares.
Twenty-five percent of the Restricted Stock Unit award will vest on each of the first four
anniversary dates of the Grant Date (except for such earlier vesting as is otherwise provided in
the Company&#146;s 2014 Omnibus Incentive Plan or in the applicable Restricted Stock Unit agreement
between you and the Company). If, within one year following a change in control, your employment
is terminated either by the Company without cause or by you for good reason, then any unvested
Restriced Stock Award shall be accelerated and immediately vested. The Grant Date will be the
first day that the Digi International trading window is open or or after your start date.


<P align="left" style="font-size: 11pt"><U><B>Benefits</B></U>


<P align="left" style="font-size: 11pt">Digi offers a comprehensive benefit program which includes Medical, Dental, Vision, Life and
Disability Insurance, Medical and Dependent Care Reimbursement Plans, 401(k) Savings Plan, Employee
Stock Purchase Plan, and a Tuition Reimbursement Program. You will be eligible for participation
in Digi&#146;s health insurance programs on the first day of active employment with the company and will
be eligible for participation in the 401(k) Savings Plan on the first day of the month following
such date of active employment. You are eligible to enroll in the Stock Purchase Plan on the first
of any January, April, July and October.


<P align="left" style="font-size: 11pt">You will be eligible to participate in Digi&#146;s $500,000 Executive Life Insurance program. If
accepted by the carrier, Digi International will pay the full annual premium. This is in
additional to the basic and optional life insurance programs offered to all employees.


<P align="left" style="font-size: 11pt">Vacation eligibility begins on the date of hire. Upon hire, you will receive four weeks of
vacation. You will not accrue above or below this amount regardless of time taken. Should you
leave the company at any point in the future, you will be paid for four weeks of accrued vacation.


<P align="left" style="font-size: 11pt"><U><B>Severance Agreement</B></U>


<P align="left" style="font-size: 11pt">If Digi International should terminate your employment at any time in the future for reasons other
than Cause, you will be provided with the following severance package in exchange for a full
release of claims against the Company:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 11pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Twelve months of base salary in effect at the time of termination. This shall
be paid in a lump sum as soon as administratively feasible after the later of the date
of termination or the date the release of claims has become irrevocable.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 11pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A pro-rata bonus based on number of months worked in the fiscal year prior to a
qualifying termination and the Company&#146;s actual performance against annual objections.
This pro-rata bonus shall be paid no later than 2.5&nbsp;months after the close of the
fiscal year in which the qualifying termination occurs.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 11pt">For purposes of this agreement, &#147;Cause&#148; shall mean only the following: (i)&nbsp;indictment or
conviction of, or a plea of nolo contendere to, (A)&nbsp;any felony (other than any felony arising out
of negligence), or any misdemeanor involving moral turpitude with respect to the Company, or (B)
any crime or offense involving dishonesty with respect to the Company; (ii)&nbsp;theft or embezzlement
of Company property or commission of similar acts involving dishonesty or moral turpitude; (iii)
material negligence in the performance of your job duties after notice; (iv)&nbsp;failure to devote
substantially all of his working time and efforts during normal business hours to the Company&#146;s
business; or (v)&nbsp;knowing engagement in conduct which is materially injurious to the Company.


<P align="left" style="font-size: 11pt"><U><B>Contingent Offer</B></U>


<P align="left" style="font-size: 11pt">This offer of employment is contingent upon the following:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 11pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Your signature on the enclosed Digi International Employment, Confidential Information,
and Arbitration Agreement. Your signature constitutes acceptance of the terms and
conditions contained in the Agreement, so please read it thoroughly prior to signing. This
agreement must be signed prior to your first day of employment.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 11pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A finding of &#147;no issue&#148; with your background and reference check. Digi International
has partnered with Verified Credentials, a background screening organization, to administer
confidential background checks. Within 48 hours, we ask that you visit Verified Credential
website at <U>http://myvci.com/digiinternationalinc</U> to complete a personal
questionnaire using your <B><I>full legal name including middle initial</I></B>. If you are unable to
access the internet within this timeframe, please contact me to further assist you in the
process. If information is revealed after your start date, Digi has the right to terminate
employment without prior notice.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 11pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Digi&#146;s determination that you are not subject to any agreement with any former employer
or any other party that would prohibit you from working in the position of Sr. Vice
President, Chief Financial Officer and Treasurer.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 11pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Your election as an officer by the Board of Directors.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 11pt"><U><B>At Will Employment</B></U>


<P align="left" style="font-size: 11pt">Employment with Digi International Inc. is &#147;at will,&#148; which means that it is for no definite period
and may be terminated by either you or Digi at any time for any reason without prior notice. Your
signature on this offer letter indicates that you understand, agree, and acknowledge that any
reliance on any statements by any representative of the company contrary to this &#147;at will&#148;
arrangement is unreasonable and may not form any basis for my reliance thereon.


<P align="left" style="font-size: 11pt"><U><B>Commencement Date and Offer Acceptance</B></U>


<P align="left" style="font-size: 11pt">We would like you to start on April&nbsp;6, 2015. Please inform me of your acceptance of this offer by
<U>March&nbsp;13, 2015</U> and acknowledge your acceptance by signing one of the enclosed copies.


<P align="left" style="font-size: 11pt">Sincerely,


<P align="left" style="font-size: 11pt"><B><I>Digi International Inc.</I></B>


<P align="left" style="font-size: 11pt">/s/ Tracy Roberts


<P align="left" style="font-size: 11pt">Tracy Roberts
<BR>
VP, Talent & Information Technology


<P align="left" style="font-size: 11pt"><B><I>Offer accepted:</I></B>

<DIV align="center">
<TABLE style="font-size: 11pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="43%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
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<TR valign="bottom" style="font-size: 11pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ Michael Goergen
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">March&nbsp;7, 2015
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">April&nbsp;13, 2015</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 11pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Michael Goergen
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Date
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Start Date</TD>
</TR>
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<P align="center" style="font-size: 10pt"><FONT style="font-size: 11pt"><B>DIGI INTERNATIONAL ANNOUNCES APPOINTMENT OF NEW CFO<BR>
Trimble executive Michael Goergen to replace retiring Steve Snyder</B></FONT>



<P align="left" style="font-size: 11pt"><B>MINNETONKA, MN, March&nbsp;26, 2015 &#150; </B>Digi International&#174; <B>, </B>(NASDAQ: <U>DGII</U>),</FONT><FONT style="font-size: 12pt"> </FONT><FONT style="font-size: 11pt">announced
today that Michael C. Goergen has been appointed as Senior Vice President, Chief Financial Officer
and Treasurer of the company effective April&nbsp;20, 2015.&nbsp;
</FONT>

<P align="left" style="font-size: 11pt">Goergen, most recently served as Senior Vice President of Finance for the Transport &#150; Logistics
division of Trimble Navigation Limited (NASDAQ:&nbsp; TRMB) from April&nbsp;2013 to March&nbsp;2015, where he was
instrumental in helping the division achieve consistent, profitable revenue growth.&nbsp;


<P align="left" style="font-size: 11pt">Prior to Trimble, Goergen served as Chief Financial Officer of PeopleNet, a leading provider of
Telematics solutions to the transportation industry. PeopleNet was acquired by Trimble in 2011.


<P align="left" style="font-size: 11pt">&#147;We are pleased to welcome Mike to Digi,&#148; said Digi President and CEO Ron Konezny. &#147;Mike has held
several challenging financial leadership roles and has an outstanding track record of managing
day-to-day financial and business operations.&nbsp; He is distinctly qualified to serve as our Chief
Financial Officer and we look forward to leveraging his expertise.&#148;


<P align="left" style="font-size: 11pt">Goergen replaces Steven E. Snyder, Senior Vice President, Chief Financial Officer and Treasurer,
who has announced his retirement.&nbsp; He will be leaving the company after a transition period. &#147;I
want to thank Steve for his leadership, efforts and many contributions to Digi and wish him all the
best in his retirement,&#148; said Konezny.


<P align="left" style="font-size: 11pt"><B>About Digi International&nbsp;</B>
<BR>
Digi International (NASDAQ:DGII) is the M2M solutions expert, combining products and services as
end-to-end solutions to drive business efficiencies. Digi provides the industry&#146;s broadest range of
wireless products, a cloud platform for device management, and development services to help
customers get to market fast with wireless devices and applications. Digi&#146;s entire solution set is
tailored to allow any device to communicate with any application, anywhere in the world. For more
information, visit Digi&#146;s website at </FONT><FONT style="font-size: 10pt"><U>www.digi.com</FONT><FONT style="font-size: 11pt"></U>, or call 877-912-3444 (U.S.) or
952-912-3444 (International).
</FONT>

<P align="left" style="font-size: 11pt">All brand names and product names are trademarks or registered trademarks of their respective
companies.



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