EXHIBIT 10(K) SEVERANCE AGREEMENT BETWEEN THE COMPANY AND SUBRAMANIAN KRISHNAN DATED MARCH 26, 1999 March 26, 1999 PERSONAL AND CONFIDENTIAL Mr. Subramanian Krishnan Digi International Inc. 11001 Bren Road East Minnetonka, MN 55343 Dear Kris: This letter confirms the terms of your agreement with the Company regarding severance compensation. If you are terminated by the Company without "cause" on or before September 30, 1999, you would be entitled to severance equal to one year's base salary and a bonus (if earned) to the extent that such bonus is not guaranteed), based on your cash bonus target that would be pro-rated for the portion of the fiscal year through the termination date. The definition of "cause" for purposes of this letter agreement shall be the definition contained in the terms and conditions of your Nonstatutory Stock Option Agreement with the Company dated February 24, 1999. The letter agreement constitutes the entire agreement between you and the Company regarding the subject matter contained herein and supersedes all prior agreements and understandings relating thereto. If the terms outlined above are acceptable, please confirm by signing the enclosed copy below and returning it to me. Very truly yours, DIGI DIGINTERNATIONAL INC. /s/ John P. Schinas By John P. Schinas Chairman of the Board ACCEPTED: /s/ SUBRAMANIAN KRISHNAN ---------------------------------- Subramanian Krishnan