Document:

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Exhibit 10(m)

February 4, 2003

Mr. Lawrence Kraft

3108 2nd Street North

Arlington, VA 22201

Dear Larry,

On behalf of Digi International Inc., I am pleased to offer you employment as Vice President,
Americas Sales & Marketing reporting to Joe Dunsmore.

Compensation

Your annualized total compensation target for this position is $300,000. The annualized base
salary is $165,000 with an annualized incentive target of $135,000.

You will participate in Digi International’s Executive Incentive Plan. For the current fiscal
year, your plan will contain the following components:

Quarterly Performance: 37.5% of your incentive target will be based on achievement of
quarterly revenue and profitability targets.

Annual Performance “At Plan”: 12.5% of your incentive target will be based on achievement
of the annual revenue and profitability plan.

Increasing Annual Profitability: 50% of your incentive target will be based on the
company’s exceeding the annual profitability and revenue plan. There is a provision for partial
payment under this component based on level of achievement.

Please see the attached worksheet for more information on the Executive Incentive Plan. All
payments are pro-rated based on length of service in the quarter/fiscal year.

Stock Options

We will recommend to the Board of Directors an initial grant of 75,000 stock options. Your options
will be at the market price at the time the board approves your grant and will vest over four years
at a rate of 25% (18,750 shares) upon completion of one year, then proportionate monthly vesting
thereafter. This option request will be brought to the Board of Directors on your start date.

Benefits

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’s health insurance programs on the first day 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 date
of hire. Stock Purchase Plan participation eligibility begins on the first of January, April, July and October
following date of hire.

 

 

You will be eligible to participate in Digi’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.

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.

Relocation

Digi will cover the full cost of your relocation to Minnesota. This will include:

	•	 	Professional relocation assistance by our corporate provider, Relocation Today. You
can utilize a realtor that they recommend or work with one outside of their referral
group.
	 
	•	 	Commuting expenses for a period of eight (8) months. This includes one roundtrip
airfare per week for either you or your wife.
	 
	•	 	The company will secure temporary housing for a period of eight (8) months. If you
elect an alternative termporary housing arrangement, we will reimburse your expenses
for a period of four (4) months.
	 
	•	 	Automobile expenses for the first 30 days in Minnesota.
	 
	•	 	Shipment and temporary storage of household goods.
	 
	•	 	Realtor fees and closing costs on the sale of your existing home.
	 
	•	 	Closing costs on the purchase of your new home. This will not include “points” paid
on the purchase of a new home, real estate taxes or any other extraordinary closing
costs.
	 
	•	 	Reimbursement of any other reasonable expenses not listed above as approved by myself.
	 
	•	 	A “gross-up” of all taxable relocation expenses.

If you should voluntarily leave Digi International before twelve months of employment, all
relocation costs paid on your behalf or to you must be repaid to the company. Your signature on
this offer letter indicates your agreement to this provision and authorizes Digi International to
deduct any amount due from any final payments owed to you. This provision will not be enforced in
the event that Digi International experiences a change of control during the first twelve months of
your employment.

Other

If Digi International should involuntarily terminate your employment at any time in the future, you
will be provided with six months of severance pay (based on your base salary) as consideration for
a Release of Claims against the Company. You will be considered an active employee for the
purposes of health, dental, life, 401(k) and stock option plan participation during the severance
period if you elect bi-weekly severance payments. If you elect a lump sum payment, the Company
will pay the first six months of COBRA premiums for health and dental continuation. You will
receive a pro-rated bonus for the applicable period worked calculated on the company’s achievement
levels at the time of the event.

 

 

This does not include any situations where you were involuntarily terminated for cause (performance or
misconduct). In the event of a change of control, you will be provided with the six months of
severance pay for either an involuntary or voluntary termination. Severance pay will be taxed per
applicable tax regulations without any “gross up” or other provision for the taxation of your
payment.

Digi International Employment Agreement

This offer of employment is contingent upon your signature on the enclosed Digi International
Employment Agreement. Your signature constitutes acceptance of the terms and conditions contained
in the Agreement, so please read it thoroughly prior to signing. This offer is also conditioned
upon Digi’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 Vice President, Americas Sales
& Marketing. If at any time in the future the Company determines that you are subject to an
agreement that, in Digi’s sole discretion, would prohibit your employment by Digi, Digi may
withdraw this offer of employment or terminate your employment with the Company.

Employment with Digi International Inc. is “at will,” 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. I
understand, agree, and acknowledge that any reliance on any statements by any representative of the
company contrary to this “at will” arrangement is unreasonable and may not form any basis for my
reliance thereon.

Your start date will be February 10, 2003. Please inform me of your acceptance of this offer by
February 5, 2003 and acknowledge your acceptance by signing one of the enclosed copies and
returning it to me along with your signed Employment Agreement prior to your first day of
employment.

Larry, we are fortunate and excited to have you join the “Digi Team”. I look forward to working
with you.

Sincerely,

Digi International Inc.

Tracy Roberts

Director, Human Resources

/s/ Tracy Roberts

Offer accepted:

	 	 	 	 	 
	/s/ Lawrence A. Kraft

	 	2/5/03	 	2/10/03
	 

	 	 
	 	 
	Lawrence A. Kraft

	 	Date
	 	Start Date<PAGE>

                                                                   EXHIBIT 10.34

                          HILLENBRAND INDUSTRIES, INC.
                                 (THE "COMPANY")

                         CORPORATE GOVERNANCE STANDARDS
                                       FOR
                               BOARD OF DIRECTORS

            (As approved by Board of Directors on September 14, 2006)

The following corporate governance standards established by the Board of
Directors provide a structure within which directors and management can
effectively pursue the Company's objectives for the benefit of its shareholders
and other constituencies. The Company's business is managed under the direction
of the Board, but the conduct of the Company's business has been delegated by
the Board to the Company's senior management team.

      1. The Board will consider all major decisions of the Company. However,
the Board has established the following standing Committees so that certain
important areas can be addressed in more depth than may be possible in a full
Board meeting: Audit Committee, Nominating/Corporate Governance Committee,
Compensation and Management Development Committee and Finance Committee. Each
standing Committee has a specific written charter that has been approved by the
Board.

      2. At all times, at least a majority of the directors of the Company shall
be independent, as determined pursuant to numbered paragraph 3 below.

      3. The Board, after receiving a recommendation from the
Nominating/Corporate Governance Committee, must determine annually, based on a
consideration of all relevant facts and circumstances, whether each director is
independent. A director does not qualify as independent unless the Board has
affirmatively determined that the director has no material relationship with the
Company(1) (either directly or as a partner, shareholder or officer of an
organization that has a relationship with the Company). In assessing the
materiality of a director's relationship with the Company and each director's
independence, the Board shall consider the issue of materiality not only from
the standpoint of the director but also from that of the persons or
organizations with which the director has an affiliation and shall consider
whether the relationship represents a potential conflict of interest or
otherwise interferes with the director's exercise of his or her independent
judgment from management and the Company. Material relationships can include,
among others, commercial, industrial, banking, consulting, legal, accounting,
charitable and familial relationships. In assessing a director's independence,
the Board shall also consider the director's ownership, or affiliation with the
owner, of less than a controlling amount of voting securities of the Company.
The basis for the Board's determination that a relationship is not material
shall be disclosed in the Company's annual proxy statement.

(1) For purposes of this numbered paragraph 3, all references to the Company
    include the Company's subsidiaries.

<PAGE>

      Further, the Board cannot conclude that a director is independent if:

      -     The director is, or has been within the last three years, an
            employee of the Company, or an immediate family member(2) of the
            director is, or has been within the last three years, an executive
            officer of the Company. Employment as an interim Chairman or CEO or
            other executive officer shall not disqualify a director from being
            considered independent following that employment.

      -     The director has received, or has an immediate family member who has
            received, during any twelve-month period within the last three
            years, more than $100,000 per year in direct compensation from the
            Company, other than director and committee fees and pension or other
            forms of deferred compensation for prior service (provided such
            compensation is not contingent in any way on continued service).
            Compensation received by a director for former service as an interim
            Chairman or CEO or other executive officer need not be considered in
            determining independence under this test. Compensation received by
            an immediate family member for service as an employee of the Company
            (other than an executive officer) need not be considered in
            determining independence under this test.

      -     (A) The director or an immediate family member of the director is a
            current partner of a firm that is the Company's internal or external
            auditor; (B) the director is a current employee of such a firm; (C)
            the director has an immediate family member who is a current
            employee of such a firm and who participates in the firm's audit,
            assurance or tax compliance (but not tax planning) practice; or (D)
            the director or an immediate family member was within the last three
            years (but is no longer) a partner or employee of such a firm and
            personally worked on the Company's audit within that time.

      -     The director or an immediate family member of the director is, or
            has been within the last three years, employed as an executive
            officer of another company where any of the Company's present
            executives at the same time serves or served on that company's
            compensation committee.

      -     The director is a current employee, or an immediate family member of
            the director is a current executive officer, of a company that has
            made payments to, or received payments from, the Company for
            property or services in an amount which, in any of the last three
            fiscal years, exceeds the greater of $1 million, or 2% of such other
            company's consolidated gross revenues. The look-back provision for
            this test applies solely to the financial relationship between the

      (2) As used in these Corporate Governance Standards, "immediate family
          member" includes a person's spouse, parents, children, siblings,
          mothers and fathers-in-law, sons and daughters-in-law, brothers and
          sisters-in-law, and anyone (other than domestic employees) who shares
          such person's home. When applying the three-year lookback provisions
          described in this numbered paragraph 3, the Board need not consider
          individuals who are no longer immediate family members of the director
          as a result of legal separation or divorce, or those who have died or
          become incapacitated.

                                      -2-

<PAGE>

            Company and the director or immediate family member's current
            employer; the Board need not consider former employment of the
            director or immediate family member. Contributions to tax exempt
            organizations shall not be considered "payments" for purposes of
            this provision, but the Company shall disclose in its annual proxy
            statement any such contributions made by the Company to any tax
            exempt organization in which any independent director serves as an
            executive officer if, within the preceding three years,
            contributions in any single fiscal year exceeded the greater of $1
            million, or 2% of such tax exempt organization's consolidated gross
            revenues. In addition, the Board must consider the materiality of
            any such relationship in making its determination of independence.

      -     A director who owns, or is affiliated with the owner, of a
            controlling amount of voting stock of the Company may not be
            considered independent.

The disqualification of one director from being independent pursuant to these
provisions shall not automatically disqualify any other director on the Board
who is an immediate family member of such disqualified director but the
disqualification of an immediate family member shall be one of the facts and
circumstances considered by the Board in assessing such other director's
independence.

Moreover, the Board discourages the following types of transactions with or on
behalf of non-officer directors:

            -     the making of substantial charitable contributions to any
                  organization in which a director is affiliated;

            -     the entering into of consulting contracts with (or providing
                  other indirect forms of compensation to) directors; or

            -     the entering into of other compensatory arrangements with
                  directors that may raise questions about their independence.

      4. The Audit Committee, the Nominating/Corporate Governance Committee and
the Compensation and Management Development Committee of the Board will consist
entirely of independent directors.

      5. Each member of the Board will act in accordance with the criteria for
selection and discharge the responsibilities set forth in the Position
Specifications(3) for a director of the Company.

      6. In addition to evaluations to be performed by the Compensation and
Management Development Committee, the Board will evaluate the performance of the
Company's Chief Executive Officer and certain other senior management positions
at least annually in meetings of independent directors that are not attended by
the Chief Executive Officer. As a general rule, the Chief Executive Officer
should not also hold the position of Chairman of

(3) See Position Specification for Member of Board of Directors of Hillenbrand
    Industries, Inc.

                                      -3-

<PAGE>

the Board. However, if, with the Board's approval, the Chief Executive Officer
also holds the position of Chairman of the Board, the Board will elect a
non-executive Vice Chairman (or a non-executive director who is the Lead
Director). The Vice Chairman or Lead Director will preside at meetings to
evaluate the performance of the Chief Executive Officer.

      7. Every year the Board will engage management in a discussion of the
Company's strategic direction and, based on that discussion, set the Company's
strategic direction and review and approve a three-year strategic framework and
a one-year business plan.

      8. On an ongoing basis during each year, the Board will monitor the
Company's performance against its annual business plan and against the
performance of its peers. In this connection, the Board will assess the impact
of emerging political, regulatory and economic trends and developments on the
Company. The Board will hold periodic meetings devoted primarily to the review
of the Company's strategic plan and business plan and its performance against
them.

      9. The Nominating/Corporate Governance Committee will annually assess the
Board's effectiveness as a whole as well as the effectiveness of the individual
directors and the Board's various Committees, including a review of the mix of
skills, core competencies and qualifications (including independence under
applicable standards) of members of the Board and its various committees, which
should reflect expertise in one or more of the following areas: accounting and
finance, product and technology development, healthcare, death care or other low
growth industry, manufacturing, services businesses, sales and market
development, international operations, international governance, mergers and
acquisitions related business development, , strategic oversight, government
relations, investor relations, executive leadership development, public company
governance, and executive compensation design and processes. In order to make
these assessments, the Nominating/Corporate Governance Committee shall solicit
annually the opinions of each director regarding the foregoing matters. The
Nominating/Corporate Governance Committee shall present its findings and
recommendations to the Board of Directors for appropriate corrective action by
the Board. Ineffective directors shall be replaced as promptly as practicable
and inefficient Committees of the Board shall be restructured or eliminated
promptly.

      10. Directors are expected to own shares of common stock of the Company.
The Board of Directors may from time to time adopt, revise or terminate director
stock ownership guidelines. Specifically, any non-employee director who from and
after October 1, 2003 is awarded restricted shares of the Company's common stock
or restricted stock units (otherwise known as deferred stock awards) with
respect to shares of the Company's common stock shall be required to hold any
vested shares of the Company's common stock under such awards until at least the
six month anniversary from the date such director ceases to be a director of the
Company.

Directors are encouraged to limit the number of directorships that they hold in
public companies so that they can devote sufficient time to the discharge of
their responsibilities to each public company for which they serve as a
director, including the Company. The Nominating/Corporate Governance Committee
shall make recommendations to the Board regarding the membership of the several
Board committees and the chairs of such committees. The members of the several
Board committees shall be elected by the Board, after consideration of the
recommendation of

                                      -4-

<PAGE>

the Nominating/Corporate Governance Committee, at the annual meeting of the
Board to serve until the next annual meeting of the Board or until their
successors shall be duly elected and qualified. Unless the Chair of any
Committee is elected by the Board, after consideration of the recommendation of
the Nominating/Corporate Governance Committee, the members of the Committee may
designate a Chair by majority vote of the Committee membership. The several
Committee Chairs will periodically report the Committee's findings and
conclusions to the Board. When any director intends to become a director of
another board of directors, that director shall provide advance notice to the
Chairman of the Board and the Secretary. Upon termination of or significant
change in a member of the Board's principal employment or acceptance of a
position as a director on a public company board that results in a director
serving on more than four more public company boards he or she shall notify the
Chairman of the Board and tender his or her resignation from the Board, which
may be rejected by the Board if the change in status is satisfactory and the
Board believes that the director will continue to be a valuable contributor to
the Board. No more than half the members of the Board may be over seventy years
of age.

      11. Succession planning and management development will be reviewed
annually by the Chief Executive Officer with the Board. The Board will review at
least annually the succession plan for the Company's Chief Executive Officer.

      12. All executive officers and designated members of management are
expected to own shares of the Company's common stock. Specifically, the Chief
Executive Officer of the Company, his or her executive officer or Grade Level V
Employee direct reports, each of their direct reports who are officers or Grade
Level V Employees of the Company or any of its subsidiaries, and all other Grade
V level employees of the Company or any of its subsidiaries from and after the
later to occur of (i) February 13, 2006 or (ii) the date on which any such
individual first became an officer or Grade Level V Employee of the Company or
any of its subsidiaries ("Start Date") shall be required to hold shares of the
Company's common stock or equivalents described below at the following levels
("Required Ownership Level"):

<TABLE>
<CAPTION>
POSITION                                    REQUIRED OWNERSHIP LEVEL (EXPRESSED AS
                                            BASE ANNUAL SALARY MULTIPLE)

<S>                                         <C>
Company Chief Executive Officer ("CEO")     4 x Base Annual Salary

CEO Executive Officer Direct Reports who
are Officers or Grade Level V Employees     2 x Base Annual Salary

Officer or Grade V Level Direct Reports of
CEO Executive Officer or Grade Level V
Direct Reports                              1 x Base Annual Salary

Other Grade V level Employees               0.75 x Base Annual Salary
</TABLE>

                                      -5-

<PAGE>

Shares owned outright (including vested deferred shares) and restricted stock
units (otherwise known as deferred stock awards under the Company's Stock
Incentive Plan ("RSUs")) with respect to shares of the Company's common stock
(whether vested or unvested) will count as share equivalents towards the
Required Ownership Level. The Required Ownership Level must be achieved within
five years from the Start Date.

Failure to achieve or maintain the Required Ownership Level may result in (i)
the applicable individual being required to hold all after tax vested RSU's and
shares acquired upon exercise of stock options or (ii) suspension of future
restricted stock or RSU grants until the Required Ownership Level is achieved.
The Compensation and Management Development Committee (or its designee) may make
exceptions, in its (his or her) sole discretion, in the event of disability or
great financial hardship.

      13. Shareholders of the Company will be given an opportunity to vote on
the adoption of all equity-compensation plans and any material revisions to such
plans. Brokers may not vote a customer's shares on any equity compensation plan
unless the broker has received that customer's instructions to do so.

      14. Subject to limited exceptions permitted by law, the Company will not
directly or indirectly grant loans to executive officers or directors of the
Company that are not available to outsiders.

      15. Stock options will not be repriced, that is, the exercise price for
options will not be lowered even if the current fair market value of the
underlying shares is below their exercise price.

      16. Analyses and empirical data that are important to the directors'
understanding of the business to be conducted at a meeting of the Board or any
Committee will be distributed, to the extent practicable, in writing to all
members in advance of the meeting. Management will make every reasonable effort
to assure that this material is both concise and in sufficient detail to provide
a reasonable basis upon which directors may make an informed business decision.
In many cases, significant items requiring Board or Committee approval may be
reviewed in one or more meetings, with the intervening time being used for
clarification and discussion of relevant issues. Outside directors shall be
encouraged to provide input into the development of Board and Committee meeting
agenda.

      17. Directors shall have complete access to the Company's management. It
is assumed that directors will exercise reasonable judgment to assure that
contact of this sort is not distracting to the business operations of the
Company and that any such contact, if in writing, will be copied to the Chief
Executive Officer and the Chairman of the Board. Furthermore, the Board
encourages the Chief Executive Officer to bring managers into Board meetings
from time to time who: (a) can provide additional insight into the items being
discussed because of personal involvement in these areas, and/or (b) represent
potential members of future senior management that the Chief Executive Officer
believes should be given exposure to the Board.

      18. The Nominating/Corporate Governance Committee shall assess, from time
to time, the adequacy and suitability of the compensation package for members of
the Company's

                                      -6-

<PAGE>

Board of Directors in relation to competitive market and sound corporate
governance practices. The Chief Executive Officer or other members of the senior
management team or other persons appointed by the Nominating/Corporate
Governance Committee shall report to the Nominating/Corporate Governance
Committee from time to time regarding the adequacy and suitability of the
Company's Board compensation package in relation to other comparable U.S.
companies. Changes in Board compensation, if any, should be suggested by the
Nominating/Corporate Governance Committee and approved only after a full
discussion among the members of the Board.

      19. The Board, with the recommendation of the Nominating/Corporate
Governance Committee, will modify from time to time the compensatory
arrangements with the Company's non-officer, non-employee directors.

      20. The Board is responsible for the enactment and approval of changes in
the Company's Code of Business Conduct and Ethics ("Policy Statement"). The
Board's Audit Committee has responsibility for the oversight of the
implementation and administration of the Policy Statement, the review and
assessment at least annually of the effectiveness of the Policy Statement and
the recommendation to the Board of suggested changes in the Policy Statement.

      21. The Board will consider from time to time its optimum size and will
increase or decrease from time to time, as appropriate, the number of its
members.

      22. Proposed agendas for each regularly scheduled Board meeting shall be
developed by the Chairman of the Board, Chief Executive Officer and Secretary,
revised, as appropriate after joint review by those individuals together with
the Chairs of each Board committee, and revised again, as appropriate after
review by each member of the Board. Likewise, proposed agendas for each
regularly scheduled Board committee meeting shall be developed by the Chair of
the applicable Board committee, management liaison and Secretary, revised, as
appropriate after joint review by those individuals together with the Chairman
of the Board and Chairs of each other Board committee, and revised again, as
appropriate after review by each member of the Board.

      23. The Board is committed to the continuing orientation and training of
new and incumbent directors at the Board and Committee levels.

      24. Any related party transactions between the Company or any of its
subsidiaries and any director or executive officer of the Company shall be
reviewed and preapproved by the Nominating/Corporate Governance Committee.

      25. The non-management directors regularly shall conduct executive
sessions without participation by any employees of the Company. The Chairman of
the Board, or, in his or her absence, the Vice Chairman of the Board, shall
preside over such executive sessions at each regularly scheduled meeting of the
Board of Directors. The Chairman of each of the Nominating/Corporate Governance,
Compensation and Management Development and Audit Committees of the Board, or,
in his or her absence, the Vice Chairman of each of those committees, shall
preside over executive sessions of those committees without participation by any
employees of the Company at each regularly scheduled meeting of those
committees. The

                                      -7-

<PAGE>

names of the directors who will preside at those regularly scheduled executive
sessions shall be publicly disclosed.

      26. While the information needed for the Board's decision making generally
will be found within the Company, from time to time the Board may seek legal or
other expert advise from sources independent of management. Generally such
advice will be sought with the knowledge and concurrence of the Chief Executive
Officer. Accordingly, the Board shall have the sole authority to engage,
compensate, oversee and terminate external independent consultants, counsel and
other advisors as it determines necessary to carry out its responsibilities. The
Company shall provide appropriate funding (as determined by each committee) for
payment of compensation to advisors engaged by the Board.

      27. Likewise, each committee of the Board shall have the sole authority to
engage, compensate, oversee and terminate external independent consultants,
counsel and other advisors as it determines necessary to carry out its duties,
including the resolution of any disagreements between management and the auditor
regarding financial reporting. The Company shall provide appropriate funding (as
determined by each committee) for payment of compensation to advisors engaged by
the committees.

      28. These Corporate Governance Standards have been developed and approved
by the Board. The Board will review at least annually the practices incorporated
into these Corporate Governance Standards by comparing them to the standards
identified by leading governance authorities and the evolving needs of the
Company and determine whether these Corporate Governance Standards should be
updated. These Corporate Governance Standards shall be published on the
Company's website.

                                      -8-

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