JNI Corporation 2000 Non-Qualified Stock Option Plan



 EXHIBIT 10.44 
  
 JNI CORPORATION 
  
 2000 NON-QUALIFIED STOCK OPTION PLAN 
  
 1. ESTABLISHMENT, PURPOSE AND TERM OF PLAN. 
  
 1.1 Establishment. This JNI Corporation 2000 Non-Qualified Stock Option Plan (the “Plan”) is hereby established effective as of August
25, 2000. 
  
 1.2 Purpose. The purpose of the Plan is to
advance the interests of the Participating Company Group and its stockholders by providing an incentive to attract, retain and reward persons performing services for the Participating Company Group and by motivating such persons to contribute to the
growth and profitability of the Participating Company Group. 
  
 1.3 Term of Plan. The Plan shall continue in effect until the earlier of its termination by the Board or the date on which all of the shares of Stock available for issuance under the Plan have been issued and all restrictions on such
shares under the terms of the Plan and the agreements evidencing Options granted under the Plan have lapsed. However, all Options shall be granted, if at all, within ten (10) years from the date the Plan is adopted by the Board. 
  
 2. DEFINITIONS AND CONSTRUCTION. 
  
 2.1 Definitions. Whenever used herein, the following terms shall have
their respective meanings set forth below: 
  
 (a)
“Board” means the Board of Directors of the Company. If one or more Committees have been appointed by the Board to administer the Plan, “Board” also means such Committee(s). 
  
 (b) “Code” means the Internal Revenue Code of 1986, as amended,
and any applicable regulations promulgated thereunder. 
  
 (c)
“Committee” means the Compensation Committee or other committee of the Board duly appointed to administer the Plan and having such powers as shall be specified by the Board. The Committee shall consist solely of two or more Directors
appointed by and holding office at the pleasure of the Board, each of whom is a “non-employee director” as defined by Rule 16b-3. Unless the powers of the Committee have been specifically limited, the Committee shall have all of the powers
of the Board granted herein, including, without limitation, the power to amend or terminate the Plan at any time, subject to the terms of the Plan and any applicable limitations imposed by law. 
  
 (d) “Company” means JNI Corporation, a Delaware corporation, or
any successor corporation thereto. 
  
 (e) “Consultant”
means any person, including an advisor, engaged by a Participating Company to render bona fide services to the Participating Company, other than as an Employee or a Director, where such services are not in connection with the offer or sale of








 securities in a capital-raising transaction and do not directly or indirectly promote or maintain a market for the
registrant’s securities. 
  
 (f) “Director” means a
member of the Board or of the board of directors of any other Participating Company. Directors are not eligible to receive grants of Options under this Plan. 
  
 (g) “Disability” means the inability of the Optionee, in the opinion of a qualified physician acceptable to the Company, to perform the major
duties of the Optionee’s position with the Participating Company Group because of the sickness or injury of the Optionee. 
  
 (h) “Employee” means any person, including an Officer or Director, who is an employee (as defined in accordance with Section 3401(c) of the
Code) of a Participating Company. 
  
 (i) “Exchange Act”
means the Securities Exchange Act of 1934, as amended. 
  
 (j)
“Fair Market Value” means, as of any date, the value of a share of Stock or other property as determined by the Board, in its discretion, or by the Company, in its discretion, if such determination is expressly allocated to the Company
herein, subject to the following: 
  
 (i) If, on such date, the
Stock is listed on a national or regional securities exchange or market system, the Fair Market Value of a share of Stock shall be the closing price of a share of Stock (or the mean of the closing bid and asked prices of a share of Stock if the
Stock is so quoted instead) as quoted on the Nasdaq National Market, The Nasdaq SmallCap Market or such other national or regional securities exchange or market system constituting the primary market for the Stock, as reported in The Wall Street
Journal or such other source as the Company deems reliable. If the relevant date does not fall on a day on which the Stock has traded on such securities exchange or market system, the date on which the Fair Market Value shall be established shall be
the last day on which the Stock was so traded prior to the relevant date, or such other appropriate day as shall be determined by the Board, in its discretion. 
  

(ii) If, on such date, there is no public market for the Stock, the Fair Market Value of a share of Stock shall be as determined by the Board in good
faith without regard to any restriction other than a restriction which, by its terms, will never lapse. 
  
 (k) “Incentive Stock Option” means an Option intended to be and which qualifies as an incentive stock option within the meaning of Section
422(b) of the Code. Incentive Stock Options may not be granted under this Plan. 
  
 (l) “Insider” means an officer of the Company or any other person whose transactions in Stock are subject to Section 16 of the Exchange Act. 
  

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 (m) “Nonstatutory Stock Option” means an Option not intended to be (as set forth in the Option
Agreement) or which does not qualify as an Incentive Stock Option. 
  
 (n) “Officer” means a President, Secretary, Treasurer, Chairman of the Board, Vice President, Assistant Secretary or Assistant Treasurer of the Company, as such positions are described in the Company’s Bylaws, any other
person designated an “officer” of the Company by the Board of Directors in accordance with the Company’s Bylaws or any person who is an “officer” within the meaning of Rule 16a-1(f) under the Exchange Act or Nasdaq Rule
4460(i). 
  
 (o) “Option” means a Nonstatutory Stock
Option to purchase Stock (subject to adjustment as provided in Section 4.2) pursuant to the terms and conditions of the Plan. 
  
 (p) “Option Agreement” means a written agreement, including any related form of stock option grant agreement, between the Company and an
Optionee setting forth the terms, conditions and restrictions of the Option granted to the Optionee and any shares acquired upon the exercise thereof. 
  
 (q) “Optionee” means a person who has been granted one or more Options. 
  
 (r) “Parent Corporation” means any present or future “parent corporation” of the Company, as defined in
Section 424(e) of the Code. 
  
 (s) “Participating
Company” means the Company or any Parent Corporation or Subsidiary Corporation. 
  
 (t) “Participating Company Group” means, at any point in time, all corporations collectively which are then Participating Companies. 
  
 (u) “Rule 16b-3” means Rule 16b-3 under the Exchange Act, as amended from time to time, or any successor rule or
regulation. 
  
 (v) “Securities Act” means the
Securities Act of 1933, as amended. 
  
 (w) “Service”
means an Optionee’s employment or service with the Participating Company Group, whether in the capacity of an Employee or a Consultant. The Optionee’s Service shall not be deemed to have terminated merely because of a change in the
capacity in which the Optionee renders Service to the Participating Company Group or a change in the Participating Company for which the Optionee renders such Service, provided that there is no interruption or termination of the Optionee’s
Service. Furthermore, an Optionee’s Service with the Participating Company Group shall not be deemed to have terminated if the Optionee takes any military leave, sick leave, or other bona fide leave of absence approved by the Company; provided,
however, that if any such leave exceeds ninety (90) days, on the ninety-first (91st) day of such leave the Optionee’s Service shall be deemed to have terminated unless the Optionee’s right to return to Service with the Participating
Company Group is guaranteed by statute or 
  

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 contract. Notwithstanding the foregoing, unless otherwise designated by the Company or required by law, a leave of
absence shall not be treated as Service for purposes of determining vesting under the Optionee’s Option Agreement. The Optionee’s Service shall be deemed to have terminated either upon an actual termination of Service or upon the
corporation for which the Optionee performs Service ceasing to be a Participating Company. Subject to the foregoing, the Company, in its discretion, shall determine whether the Optionee’s Service has terminated and the effective date of such
termination. 
  
 (x) “Stock” means the common stock of
the Company, as adjusted from time to time in accordance with Section 4.2. 
  
 (y) “Subsidiary Corporation” means any present or future “subsidiary corporation” of the Company, as defined in Section 424(f) of the Code. 
  
 (z) “Termination of Employment” shall mean the time when the
employee-employer relationship between an Optionee and the Participating Company is terminated for any reason, with or without cause, including, but not by way of limitation, a termination by resignation, discharge, death, Disability or retirement;
but excluding (i) terminations where there is a simultaneous reemployment or continuing employment of an Optionee by any Participating Company, (ii) at the discretion of the Board, terminations which result in a temporary severance of the
employee-employer relationship, and (iii) at the discretion of the Board, terminations which are followed by the simultaneous establishment of a consulting relationship by a Participating Company with the former employee. The Board, in its absolute
discretion, shall determine the effect of all matters and questions relating to Termination of Employment, including, but not by way of limitation, the question of whether a Termination of Employment resulted from a discharge for good cause, and all
questions of whether particular leaves of absence constitute Terminations of Employment; provided, however, that, unless otherwise determined by the Board in its discretion, a leave of absence, change in status from an employee to an independent
contractor or other change in the employee-employer relationship shall constitute a Termination of Employment if, and to the extent that, such leave of absence, change in status or other change interrupts employment for the purposes of Section
422(a)(2) of the Code and the then applicable regulations and revenue rulings under said Section. Notwithstanding any other provision of this Plan, each Participating Company has an absolute and unrestricted right to terminate an Employee’s
employment at any time for any reason whatsoever, with or without cause, except to the extent expressly provided otherwise in writing. 
  
 (aa) “Termination without Cause” shall mean the time when the employee-employer relationship between an Optionee and the Company or any other
Participating Company is terminated without cause, as termination without cause is defined in the Optionee’s employment agreement; provided however, that if termination without cause is not therein defined, it shall have such meaning, in
conformance with applicable law, as the Board shall determine is appropriate. 
  
 2.2 Construction. Captions and titles contained herein are for convenience only and shall not affect the meaning or interpretation of any provision of the Plan. Except when otherwise indicated by the context,
the singular shall include the plural and the plural shall 
  

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 include the singular. Use of the term “or” is not intended to be exclusive, unless the context clearly requires
otherwise. 
  
 3. ADMINISTRATION. 
  
 3.1 Administration by the Board. The Plan shall be administered by
the Board. All questions of interpretation of the Plan or of any Option shall be determined by the Board, and such determinations shall be final and binding upon all persons having an interest in the Plan or such Option. 
  
 3.2 Authority of Officers. Any officer of a Participating Company
shall have the authority to act on behalf of the Company with respect to any matter, right, obligation, determination or election which is the responsibility of or which is allocated to the Company herein, provided the officer has apparent authority
with respect to such matter, right, obligation, determination or election. 
  
 3.3 Administration with Respect to Insiders. With respect to participation by Insiders in the Plan, at any time that any class of equity security of the Company is registered pursuant to Section 12 of the
Exchange Act, the Plan shall be administered in compliance with the requirements, if any, of Rule 16b-3. 
  
 3.4 Powers of the Board. In addition to any other powers set forth in the Plan and subject to the provisions of the Plan, the Board shall have the
full and final power and authority, in its discretion: 
  
 (a)
subject to Section 5, to determine the persons to whom, and the time or times at which, Options shall be granted and the number of shares of Stock to be subject to each Option; 
  
 (b) to determine the Fair Market Value of shares of Stock or other property; 
  
 (c) to determine the terms, conditions and restrictions applicable to each
Option (which need not be identical) and any shares acquired upon the exercise thereof, including, without limitation, (i) the exercise price of the Option, (ii) the method of payment for shares purchased upon the exercise of the Option, (iii) the
method for satisfaction of any tax withholding obligation arising in connection with the Option or such shares, including by the withholding or delivery of shares of stock, (iv) the timing, terms and conditions of the exercisability of the Option or
the vesting of any shares acquired upon the exercise thereof, (v) the time of the expiration of the Option, (vi) the effect of the Optionee’s termination of Service with the Participating Company Group on any of the foregoing, and (vii) all
other terms, conditions and restrictions applicable to the Option or such shares not inconsistent with the terms of the Plan; 
  
 (d) to approve one or more forms of Option Agreement; 
  

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 (e) to amend, modify, extend, cancel or renew any Option or to waive any restrictions or conditions
applicable to any Option or any shares acquired upon the exercise thereof; 
  
 (f) to accelerate, continue, extend or defer the exercisability of any Option or the vesting of any shares acquired upon the exercise thereof, including with respect to the period following an Optionee’s
termination of Service with the Participating Company Group; 
  
 (g) to prescribe, amend or rescind rules, guidelines and policies relating to the Plan, or to adopt supplements to, or alternative versions of, the Plan, including, without limitation, as the Board deems necessary or desirable to comply
with the laws of, or to accommodate the tax policy or custom of, foreign jurisdictions whose citizens may be granted Options; and 
  
 (h) to correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Option Agreement and to make all other determinations and
take such other actions with respect to the Plan or any Option as the Board may deem advisable to the extent consistent with the Plan and applicable law. 
  
 4. SHARES SUBJECT TO PLAN. 
  
 4.1 Maximum Number of Shares Issuable. Subject to adjustment as provided in Section 4.2, the maximum aggregate number of shares of Stock that may
be issued under the Plan shall be one million four hundred thousand (1,400,000) and shall consist of authorized but unissued or reacquired shares of Stock or any combination thereof. If an outstanding Option for any reason expires or is terminated
or canceled or if shares of Stock are acquired upon the exercise of an Option subject to a Company repurchase option and are repurchased by the Company at the Optionee’s exercise price, the shares of Stock allocable to the unexercised portion
of such Option or such repurchased shares of Stock shall again be available for issuance under the Plan. 
  
 4.2 Adjustments for Changes in Capital Structure. In the event of any stock dividend, stock split, reverse stock split, recapitalization,
combination, reclassification or similar change in the capital structure of the Company, appropriate adjustments shall be made in the number and class of shares subject to the Plan and to any outstanding Options and in the exercise price per share
of any outstanding Options. If a majority of the shares which are of the same class as the shares that are subject to outstanding Options are exchanged for, converted into, or otherwise become (whether or not pursuant to an Ownership Change Event,
as defined in Section 8.1) shares of another corporation (the “New Shares”), the Board may unilaterally amend the outstanding Options to provide that such Options are exercisable for New Shares. In the event of any such amendment, the
number of shares subject to, and the exercise price per share of, the outstanding Options shall be adjusted in a fair and equitable manner as determined by the Board, in its discretion. Notwithstanding the foregoing, any fractional share resulting
from an adjustment pursuant to this Section 4.2 shall be rounded down to the nearest whole number, and in no event may the exercise price of any Option be decreased to an amount less than the par value, if any, of 
  

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 the stock subject to the Option. The adjustments determined by the Board pursuant to this Section 4.2 shall be final,
binding and conclusive. 
  
 5. ELIGIBILITY AND OPTION
LIMITATIONS. 
  
 Notwithstanding anything herein to the
contrary, only the following classes of persons shall be eligible to receive grants of Options under this Plan: (i) except as provided in (ii) below, key Employees and Consultants who are not Officers or Directors of the Company, and (ii) newly
hired Employees (including Employees who will become Officers or Directors of the Company) who have not previously been employed by the Company and with respect to whom Options are to be granted as an inducement essential to such Employees’
entering into employment contracts with the Company. Notwithstanding the foregoing, a Consultant shall not be eligible for the grant of an Option if, at the time of grant, a Form S-8 Registration Statement under the Securities Act (“Form
S-8”) is not available to register either the offer or the sale of the Company’s securities to such Consultant because of the nature of the services that the Consultant is providing to the Company, or because the Consultant is not a
natural person, or as otherwise provided by the rules governing the use of Form S-8, unless the Company determines both (i) that such grant (A) shall be registered in another manner under the Securities Act (e.g., on a Form S-3 Registration
Statement) or (B) does not require registration under the Securities Act in order to comply with the requirements of the Securities Act, if applicable, and (ii) that such grant complies with the securities laws of all other relevant jurisdictions.

  
 6. TERMS AND CONDITIONS OF OPTIONS. 
  
 Options shall be evidenced by Option Agreements specifying the number of
shares of Stock covered thereby, in such form as the Board shall from time to time establish. No Option or purported Option shall be a valid and binding obligation of the Company unless evidenced by a fully executed Option Agreement. Option
Agreements may incorporate all or any of the terms of the Plan by reference and shall comply with and be subject to the following terms and conditions: 
  
 6.1 Exercise Price. The exercise price for each Option shall be established in the discretion of the Board. Notwithstanding the foregoing, an
Option may be granted with an exercise price lower than the minimum exercise price set forth above if such Option is granted pursuant to an assumption or substitution for another option in a manner qualifying under the provisions of Section 424(a)
of the Code. 
  
 6.2 Exercise Period. Options shall be
exercisable at such time or times, or upon such event or events, and subject to such terms, conditions, performance criteria, and restrictions as shall be determined by the Board and set forth in the Option Agreement evidencing such Option;
provided, however, that (a) no Option shall be exercisable after the expiration of ten (10) years after the effective date of grant of such Option and (b) no Option granted to a prospective Employee, prospective Consultant or prospective Director
may become exercisable prior to the date on which such person commences Service with a Participating Company. Subject to the foregoing, unless otherwise specified by the Board in the grant of an Option, any Option granted hereunder shall have a term
of ten (10) years from the effective date of grant of the Option. 
  

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 6.3 Payment of Exercise Price. 
  
 (a) Forms of Consideration Authorized. Except as otherwise provided below, payment of the exercise price for the
number of shares of Stock being purchased pursuant to any Option shall be made (i) in cash, by check or cash equivalent, (ii) by tender to the Company, or attestation to the ownership, of shares of Stock owned by the Optionee having a Fair Market
Value (as determined by the Company without regard to any restrictions on transferability applicable to such stock by reason of federal or state securities laws or agreements with an underwriter for the Company) not less than the exercise price,
(iii) by the assignment of the proceeds of a sale or loan with respect to some or all of the shares being acquired upon the exercise of the Option (including, without limitation, through an exercise complying with the provisions of Regulation T as
promulgated from time to time by the Board of Governors of the Federal Reserve System) (a “Cashless Exercise”), (iv) by the Optionee’s promissory note in a form approved by the Company, (v) by such other consideration as may be
approved by the Board from time to time to the extent permitted by applicable law, or (vi) by any combination thereof. The Board may at any time or from time to time, by adoption of or by amendment to the standard forms of Option Agreement described
in Section 7, or by other means, grant Options which do not permit all of the foregoing forms of consideration to be used in payment of the exercise price or which otherwise restrict one or more forms of consideration. 
  
 (b) Limitations on Forms of Consideration. 
  
 (i) Tender of Stock. Notwithstanding the foregoing, an Option may not be
exercised by tender to the Company, or attestation to the ownership, of shares of Stock to the extent such tender or attestation would constitute a violation of the provisions of any law, regulation or agreement restricting the redemption of the
Company’s stock. Unless otherwise provided by the Board, an Option may not be exercised by tender to the Company, or attestation to the ownership, of shares of Stock unless such shares either have been owned by the Optionee for more than six
(6) months or were not acquired, directly or indirectly, from the Company. 
  
 (ii) Cashless Exercise. The Company reserves, at any and all times, the right, in the Company’s sole and absolute discretion, to establish, decline to approve or terminate any program or procedures for the
exercise of Options by means of a Cashless Exercise. 
  
 (iii)
Payment By Promissory Note. No promissory note shall be permitted if the exercise of an Option using a promissory note would be a violation of any law. Any permitted promissory note shall be on such terms as the Board shall determine at the time the
Option is granted. The Board shall have the authority to permit or require the Optionee to secure any promissory note used to exercise an Option with the shares of Stock acquired upon the exercise of the Option or with other collateral acceptable to
the Company. Unless otherwise provided by the Board, if the Company at any time is subject to the regulations promulgated by the Board of Governors of the Federal Reserve System or any other governmental entity affecting the extension of credit in
connection with the Company’s securities, any promissory note shall comply with such applicable regulations, and the Optionee shall pay the unpaid principal and accrued interest, if any, to the extent necessary to comply with such applicable
regulations. 
  

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 6.4 Tax Withholding. The Company shall have the right, but not the obligation, to deduct from the
shares of Stock issuable upon the exercise of an Option, or to accept from the Optionee the tender of, a number of whole shares of Stock having a Fair Market Value, as determined by the Company, equal to the minimum amount required to be withheld
based on the statutory withholding rates for federal and state tax purposes that apply to supplemental taxable income. The Fair Market Value of the shares of Stock to be withheld shall be determined on the date that the amount of tax to be withheld
is to be determined. Alternatively or in addition, in its discretion, the Company shall have the right to require the Optionee, through payroll withholding, cash payment or otherwise, including by means of a Cashless Exercise, to make adequate
provision for any such tax withholding obligations of the Participating Company Group arising in connection with the Option or the shares acquired upon the exercise thereof. The Company shall have no obligation to deliver shares of Stock or to
release shares of Stock from an escrow established pursuant to the Option Agreement until the Participating Company Group’s tax withholding obligations have been satisfied by the Optionee. 
  
 6.5 Effect of Termination of Service. 
  
 (a) Option Exercisability. Subject to earlier termination of the
Option as otherwise provided herein, an Option shall be exercisable after an Optionee’s termination of Service as follows: 
  
 (i) Disability. If the Optionee’s Service with the Participating Company Group is terminated because of the Disability of the Optionee, the Option,
to the extent unexercised and exercisable on the date on which the Optionee’s Service terminated, may be exercised by the Optionee (or the Optionee’s guardian or legal representative) at any time prior to the expiration of twelve (12)
months (or such longer period of time as determined by the Board, in its discretion) after the date on which the Optionee’s Service terminated, but in any event no later than the date of expiration of the Option’s term as set forth in the
Option Agreement evidencing such Option (the “Option Expiration Date”). 
  
 (ii) Death. If the Optionee’s Service with the Participating Company Group is terminated because of the death of the Optionee, the Option, to the extent unexercised and exercisable on the date on which the
Optionee’s Service terminated, may be exercised by the Optionee’s legal representative or other person who acquired the right to exercise the Option by reason of the Optionee’s death at any time prior to the expiration of twelve (12)
months (or such longer period of time as determined by the Board, in its discretion) after the date on which the Optionee’s Service terminated, but in any event no later than the Option Expiration Date. The Optionee’s Service shall be
deemed to have terminated on account of death if the Optionee dies within thirty (30) days (or such longer period of time as determined by the Board, in its discretion) after the Optionee’s termination of Service. 
  
 (iii) Other Termination of Service. If the Optionee’s Service with the
Participating Company Group terminates for any reason, except Disability or death, the Option, to the extent unexercised and exercisable by the Optionee on the date on which the Optionee’s Service terminated, may be exercised by the Optionee
within three (3) months (or 
  

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 such longer period of time as determined by the Board, in its discretion) after the date on which the Optionee’s
Service terminated, but in any event no later than the Option Expiration Date. 
  
 (b) Extension if Exercise Prevented by Law. Notwithstanding the foregoing, if the exercise of an Option within the applicable time periods set forth in Section 6.6(a) is prevented by the provisions of Section
11 below, the Option shall remain exercisable until thirty (30) days (or such longer period of time as determined by the Board, in its discretion) after the date the Optionee is notified by the Company that the Option is exercisable, but in any
event no later than the Option Expiration Date. 
  
 (c)
Extension if Optionee Subject to Section 16(b). Notwithstanding the foregoing, if a sale within the applicable time periods set forth in Section 6.5(a) of shares acquired upon the exercise of the Option would subject the Optionee to suit
under Section 16(b) of the Exchange Act, the Option shall remain exercisable until the earliest to occur of (i) the tenth (10th) day following the date on which a sale of such shares by the Optionee would no longer be subject to such suit, (ii) the
one hundred and ninetieth (190th) day after the Optionee’s termination of Service, or (iii) the Option Expiration Date. 
  
 7. STANDARD FORMS OF OPTION AGREEMENT. 
  
 7.1 General. Unless otherwise provided by the Board at the time the Option is granted, an Option shall comply with and be subject to the terms and
conditions set forth in the standard form of Option Agreement adopted by the Board concurrently with its adoption of the Plan and as amended from time to time. 
  

7.2 Authority to Vary Terms. The Board shall have the authority from time to time to vary the terms of any of the standard form of Option
Agreement described in this Section 7 either in connection with the grant or amendment of an individual Option or in connection with the authorization of a new standard form or forms; provided, however, that the terms and conditions of any such new,
revised or amended standard form or forms of Option Agreement are not inconsistent with the terms of the Plan. 
  
 8. CHANGE IN CONTROL. 
  
 8.1 Definitions. 
  
 (a) An “Ownership Change Event” shall be deemed to have occurred if any of the following occurs with respect to the Company: (i) the direct or
indirect sale or exchange in a single or series of related transactions by the stockholders of the Company of more than fifty percent (50%) of the voting stock of the Company; (ii) a merger or consolidation in which the Company is a party; (iii) the
sale, exchange, or transfer of all or substantially all of the assets of the Company; or (iv) a liquidation or dissolution of the Company. 
  
 (b) A “Change in Control” shall mean an Ownership Change Event or a series of related Ownership Change Events (collectively, a
“Transaction”) wherein the stockholders of the Company immediately before the Transaction do not retain immediately after the Transaction, in substantially the same proportions as their ownership of shares of the 
  

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 Company’s voting stock immediately before the Transaction, direct or indirect beneficial ownership of more than
fifty percent (50%) of the total combined voting power of the outstanding voting stock of the Company or the corporation or corporations to which the assets of the Company were transferred (the “Transferee Corporation(s)”), as the case may
be. For purposes of the preceding sentence, indirect beneficial ownership shall include, without limitation, an interest resulting from ownership of the voting stock of one or more corporations which, as a result of the Transaction, own the Company
or the Transferee Corporation(s), as the case may be, either directly or through one or more subsidiary corporations. The Board shall have the right to determine whether multiple sales or exchanges of the voting stock of the Company or multiple
Ownership Change Events are related, and its determination shall be final, binding and conclusive. 
  
 8.2 Effect of Change in Control on Options. In the event of a Change in Control, the surviving, continuing, successor, or purchasing corporation or
parent corporation thereof, as the case may be (the “Acquiring Corporation”), may either assume the Company’s rights and obligations under outstanding Options or substitute for outstanding Options substantially equivalent options for
the Acquiring Corporation’s stock. For purposes of this Section 8.2, an Option shall be deemed assumed if, following the Change in Control, the Option confers the right to purchase in accordance with its terms and conditions, for each share of
Stock subject to the Option immediately prior to the Change in Control, the consideration (whether stock, cash or other securities or property) to which a holder of a share of Stock on the effective date of the Change in Control was entitled. Any
Options which are neither assumed or substituted for by the Acquiring Corporation in connection with the Change in Control nor exercised as of the date of the Change in Control shall terminate and cease to be outstanding effective as of the date of
the Change in Control. Notwithstanding the foregoing, shares acquired upon exercise of an Option prior to the Change in Control and any consideration received pursuant to the Change in Control with respect to such shares shall continue to be subject
to all applicable provisions of the Option Agreement evidencing such Option except as otherwise provided in such Option Agreement. 
  
 8.3 Acceleration of Vesting Upon Certain Events Following Change of Control. In the event of a Change in Control wherein the Acquiring Corporation
does assume such Options or substitutes for outstanding Options substantially equivalent options for the Acquiring Corporation’s stock, then, with respect to each Option held by persons then performing services as Employees, the vesting of each
Option (and, if applicable, the time during which such Option may be exercised) shall be accelerated and such Option shall become vested and exercisable with respect to fifty percent (50%) of the unvested portion of such Option, if, within one (1)
year from the date of such Change in Control, either of the following events occurs: (1) a Termination without Cause of an Optionee by the Participating Company or the Acquiring Corporation or (2) the Employee holding such Option effects a
Termination of Employment due to the fact that there is a material reduction in such Employee’s salary (excluding bonuses (whether or not payable in cash), employee benefits or other non-cash compensation) without the Employee’s express
consent. 
  

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 9. PROVISION OF INFORMATION. 
  
 To the extent required by applicable securities laws and regulations, each Optionee shall receive financial statements of
the Company at least annually. 
  
 10. NONTRANSFERABILITY OF
OPTIONS. 
  
 During the lifetime of the Optionee, an Option
shall be exercisable only by the Optionee or the Optionee’s guardian or legal representative. No Option shall be assignable or transferable by the Optionee, except by will or by the laws of descent and distribution. 
  
 11. COMPLIANCE WITH SECURITIES LAW. 
  
 The grant of Options and the issuance of shares of Stock upon exercise of
Options shall be subject to compliance with all applicable requirements of federal, state and foreign law with respect to such securities. Options may not be exercised if the issuance of shares of Stock upon exercise would constitute a violation of
any applicable federal, state or foreign securities laws or other law or regulations or the requirements of any stock exchange or market system upon which the Stock may then be listed. In addition, no Option may be exercised unless (a) a
registration statement under the Securities Act shall at the time of exercise of the Option be in effect with respect to the shares issuable upon exercise of the Option or (b) in the opinion of legal counsel to the Company, the shares issuable upon
exercise of the Option may be issued in accordance with the terms of an applicable exemption from the registration requirements of the Securities Act. The inability of the Company to obtain from any regulatory body having jurisdiction the authority,
if any, deemed by the Company’s legal counsel to be necessary to the lawful issuance and sale of any shares hereunder shall relieve the Company of any liability in respect of the failure to issue or sell such shares as to which such requisite
authority shall not have been obtained. As a condition to the exercise of any Option, the Company may require the Optionee to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any applicable law or
regulation and to make any representation or warranty with respect thereto as may be requested by the Company. 
  
 12. INDEMNIFICATION. 
  
 In addition to such other rights of indemnification as they may have as members of the Board or officers or employees of the Participating Company Group,
members of the Board and any officers or employees of the Participating Company Group to whom authority to act for the Board or the Company is delegated shall be indemnified by the Company against all reasonable expenses, including attorneys’
fees, actually and necessarily incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure to act under or
in connection with the Plan, or any right granted hereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by independent legal counsel selected by the Company) or paid by them in satisfaction of a
judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that such person is liable for gross negligence, bad faith or intentional misconduct in 
  

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 duties; provided, however, that within sixty (60) days after the institution of such action, suit or proceeding, such
person shall offer to the Company, in writing, the opportunity at its own expense to handle and defend the same. 
  
 13. TERMINATION OR AMENDMENT OF PLAN. 
  
 The Board may terminate or amend the Plan at any time. However, subject to changes in applicable law, regulations or rules that would permit otherwise,
without the approval of the Company’s stockholders, there shall be no amendment of the Plan that would require approval of the Company’s stockholders under any applicable law, regulation or rule. No termination or amendment of the Plan may
adversely affect any then outstanding Option or any unexercised portion thereof, without the consent of the Optionee, unless such termination or amendment is required to comply with any applicable law, regulation or rule. 
  
 IN WITNESS WHEREOF, the undersigned Secretary of the Company certifies that
the JNI Corporation 2000 Non-Qualified Stock Option Plan was duly adopted by the Board on August 25, 2000. 
  

									
	 Dated: September 13, 2000.
	 	 	 	 
					
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	Secretary

  

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 JNI Corporation 
  
 Terms Of Stock Option Agreement 
  
 The Company has granted to the Optionee, pursuant to a Stock Option Grant Agreement (the “Grant Agreement”) and
the JNI Corporation 2000 Non-Qualified Stock Option Plan (the “Plan”), an Option to purchase certain shares of Stock, upon the terms and conditions set forth in this Agreement (the “Option Agreement”). The Option shall in all
respects be subject to the terms and conditions of the Grant Agreement and the Plan, the provisions of which are incorporated herein by reference. 
  
 1. DEFINITIONS AND CONSTRUCTION. 
  
 1.1 Definitions. Unless otherwise defined herein, capitalized terms shall have the meanings assigned to such terms in the Grant Agreement or the
Plan. 
  
 1.2 Construction. Captions and titles contained
herein are for convenience only and shall not affect the meaning or interpretation of any provision of this Agreement. Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include the singular.
Use of the term “or” is not intended to be exclusive, unless the context clearly requires otherwise. 
  
 2. TAX CONSEQUENCES. 
  
 As indicated in the Grant Agreement, this Option is intended to be a Nonstatutory Stock Option, which is not intended to qualify as an Incentive Stock
Option. The Optionee should consult with the Optionee’s own tax advisor regarding the tax effects of this Option. 
  
 3. EXERCISE OF THE OPTION. 
  
 3.1 Right to Exercise. Except as otherwise provided herein, the Option shall be exercisable on and after the first anniversary of the Date of
Option Grant and prior to the termination of the Option (as provided in Section 5) in an amount not to exceed the Number of Option Shares multiplied by the Vested Ratio less the number of shares previously acquired upon exercise of the Option.

  
 3.2 Method of Exercise. Exercise of the Option shall be
by written notice to the Company which must state the election to exercise the Option, the number of whole shares of Stock for which the Option is being exercised and such other representations and agreements as to the Optionee’s investment
intent with respect to such shares as may be required pursuant to the provisions of this Agreement. The written notice must be signed by the Optionee and must be delivered in person, by certified or registered mail, return receipt requested, by
confirmed facsimile transmission, or by such other means as the Company may permit, to the Chief Financial Officer of the Company, or other authorized representative of the Company, prior to the termination of the Option as set forth in Section 5,
accompanied by full payment of the 







 aggregate Exercise Price for the number of shares of Stock being purchased. The Option shall be deemed to be exercised
upon receipt by the Company of such written notice and the aggregate Exercise Price. 
  
 3.3 Payment of Exercise Price. 
  
 (a) Forms of Consideration Authorized. Except as otherwise provided below, payment of the aggregate Exercise Price for the number of shares of Stock for which the Option is being exercised shall be made (i) in cash, by check, or cash
equivalent, (ii) by tender to the Company, or attestation to the ownership, of whole shares of Stock owned by the Optionee having a Fair Market Value (as determined by the Company without regard to any restrictions on transferability applicable to
such stock by reason of federal or state securities laws or agreements with an underwriter for the Company) not less than the aggregate Exercise Price, (iii) by means of a Cashless Exercise, as defined in Section 3.3(b), or (iv) by any combination
of the foregoing. 
  
 (b) Limitations on Forms of
Consideration. 
  
 (i) Tender of Stock. Notwithstanding the
foregoing, the Option may not be exercised by tender to the Company, or attestation to the ownership, of shares of Stock to the extent such tender, or attestation to the ownership, of Stock would constitute a violation of the provisions of any law,
regulation or agreement restricting the redemption of the Company’s stock. The Option may not be exercised by tender to the Company, or attestation to the ownership, of shares of Stock unless such shares either have been owned by the Optionee
for more than six (6) months or were not acquired, directly or indirectly, from the Company. 
  
 (ii) Cashless Exercise. A “Cashless Exercise” means the assignment in a form acceptable to the Company of the proceeds of a sale or loan with respect to some or all of the shares of Stock acquired upon the
exercise of the Option pursuant to a program or procedure approved by the Company (including, without limitation, through an exercise complying with the provisions of Regulation T as promulgated from time to time by the Board of Governors of the
Federal Reserve System). The Company reserves, at any and all times, the right, in the Company’s sole and absolute discretion, to decline to approve or terminate any such program or procedure. Generally, and without limiting the Company’s
absolute discretion, a “cashless exercise” will only be permitted at such times in which the shares underlying this Option are publicly traded. 
  
 3.4 Tax Withholding. At the time the Option is exercised, in whole or in part, or at any time thereafter as requested by the Company, the Optionee
hereby authorizes withholding from payroll and any other amounts payable to the Optionee, and otherwise agrees to make adequate provision for (including by means of a Cashless Exercise to the extent permitted by the Company), any sums required to
satisfy the federal, state, local and foreign tax withholding obligations of the Company, if any, which arise in connection with the Option, including, without limitation, obligations arising upon (i) the exercise, in whole or in part, of the
Option, (ii) the transfer, in whole or in part, of any shares acquired upon exercise of the Option, (iii) the operation of any law or regulation providing for the imputation of interest, or (iv) the lapsing of any restriction with respect to any
shares acquired upon exercise of the Option. The Optionee is 
  

 2 








 cautioned that the Option is not exercisable unless the tax withholding obligations of the Company are satisfied.
Accordingly, the Optionee may not be able to exercise the Option when desired even though the Option is vested, and the Company shall have no obligation to issue a certificate for such shares. 
  
 3.5 Certificate Registration. Except in the event the Exercise Price
is paid by means of a Cashless Exercise, the certificate for the shares as to which the Option is exercised shall be registered in the name of the Optionee, or, if applicable, the Optionee’s heirs. 
  
 3.6 Restrictions on Grant of the Option and Issuance of Shares. The
grant of the Option and the issuance of shares of Stock upon exercise of the Option shall be subject to compliance with all applicable requirements of federal, state or foreign law with respect to such securities. The Option may not be exercised if
the issuance of shares of Stock upon exercise would constitute a violation of any applicable federal, state or foreign securities laws or other law or regulations or the requirements of any stock exchange or market system upon which the Stock may
then be listed. In addition, the Option may not be exercised unless (i) a registration statement under the Securities Act shall at the time of exercise of the Option be in effect with respect to the shares issuable upon exercise of the Option or
(ii) in the opinion of legal counsel to the Company, the shares issuable upon exercise of the Option may be issued in accordance with the terms of an applicable exemption from the registration requirements of the Securities Act. The Optionee is
cautioned that the Option may not be exercised unless the foregoing conditions are satisfied. Accordingly, the Optionee may not be able to exercise the Option when desired even though the Option is vested. The inability of the Company to obtain
from any regulatory body having jurisdiction the authority, if any, deemed by the Company’s legal counsel to be necessary to the lawful issuance and sale of any shares subject to the Option shall relieve the Company of any liability in respect
of the failure to issue or sell such shares as to which such requisite authority shall not have been obtained. As a condition to the exercise of the Option, the Company may require the Optionee to satisfy any qualifications that may be necessary or
appropriate, to evidence compliance with any applicable law or regulation and to make any representation or warranty with respect thereto as may be requested by the Company. 
  
 3.7 Fractional Shares. The Company shall not be required to issue fractional shares upon the exercise of the Option.

  
 4. NONTRANSFERABILITY OF THE OPTION. 
  
 The Option may be exercised during the lifetime of the Optionee only by the
Optionee or the Optionee’s guardian or legal representative and may not be assigned or transferred in any manner except by will or by the laws of descent and distribution. Following the death of the Optionee, the Option, to the extent provided
in Section 6, may be exercised by the Optionee’s legal representative or by any person empowered to do so under the deceased Optionee’s will or under the then applicable laws of descent and distribution. 
  

 3 








 5. TERMINATION OF THE OPTION. 
  
 The Option shall terminate and may no longer be exercised on the first to occur of (a) the Option Expiration Date, (b) the
last date for exercising the Option following termination of the Optionee’s Service as described in Section 6, or (c) pursuant to a Change in Control, to the extent provided in the Plan. 
  
 6. EFFECT OF TERMINATION OF SERVICE. 
  
 6.1 Option Exercisability. 
  
 (a) Disability. If the Optionee’s Service with the Company is terminated
because of the Disability of the Optionee, the Option, to the extent unexercised and exercisable on the date on which the Optionee’s Service terminated, may be exercised by the Optionee (or the Optionee’s guardian or legal representative)
at any time prior to the expiration of twelve (12) months after the date on which the Optionee’s Service terminated, but in any event no later than the Option Expiration Date. 
  
 (b) Death. If the Optionee’s Service with the Company is terminated because of the death of the Optionee, the Option,
to the extent unexercised and exercisable on the date on which the Optionee’s Service terminated, may be exercised by the Optionee’s legal representative or other person who acquired the right to exercise the Option by reason of the
Optionee’s death at any time prior to the expiration of twelve (12) months after the date on which the Optionee’s Service terminated, but in any event no later than the Option Expiration Date. The Optionee’s Service shall be deemed to
have terminated on account of death if the Optionee dies within thirty (30) days after the Optionee’s termination of Service. 
  
 (c) Other Termination of Service. If the Optionee’s Service with the Company terminates for any reason, except Disability, or death, the Option, to
the extent unexercised and exercisable by the Optionee on the date on which the Optionee’s Service terminated, may be exercised by the Optionee within three (3) months (or such other longer period of time as determined by the Board, in its sole
discretion) after the date on which the Optionee’s Service terminated, but in any event no later than the Option Expiration Date. 
  
 6.2 Extension if Exercise Prevented by Law. Notwithstanding the foregoing, if the exercise of the Option within the applicable time periods set
forth in Section 6.1 is prevented by the provisions of Section 3.6, the Option shall remain exercisable until thirty (30) days after the date the Optionee is notified by the Company that the Option is exercisable, but in any event no later than the
Option Expiration Date. The Company makes no representation as to the tax consequences of any such delayed exercise. The Optionee should consult with the Optionee’s own tax advisor as to the tax consequences of any such delayed exercise.

  
 6.3 Extension if Optionee Subject to Section 16(b).
Notwithstanding the foregoing, if a sale within the applicable time periods set forth in Section 6.1 of shares acquired upon the exercise of the Option would subject the Optionee to suit under Section 16(b) of the Exchange Act, the Option shall
remain exercisable until the earliest to occur of (i) the tenth 
  

 4 








 (10th) day following the date on which a sale of such shares by the Optionee would no longer be subject to such suit,
(ii) the one hundred and ninetieth (190th) day after the Optionee’s termination of Service, or (iii) the Option Expiration Date. The Company makes no representation as to the tax consequences of any such delayed exercise. The Optionee should
consult with the Optionee’s own tax advisor as to the tax consequences of any such delayed exercise. 
  
 7. RIGHTS AS A STOCKHOLDER, EMPLOYEE OR CONSULTANT. 
  
 The Optionee shall have no rights as a stockholder with respect to any shares covered by the Option until the date of the issuance of a certificate for
the shares for which the Option has been exercised (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company). No adjustment shall be made for dividends, distributions or other rights
for which the record date is prior to the date such certificate is issued, except as provided in Section 4.2 of the Plan. If the Optionee is an Employee, the Optionee understands and acknowledges that, except as otherwise provided in a separate,
written employment agreement between the Company and the Optionee, the Optionee’s employment is “at will” and is for no specified term. Nothing in this Agreement shall confer upon the Optionee any right to continue in the Service of
the Company or interfere in any way with any right of the Company to terminate the Optionee’s Service as an Employee or Consultant, as the case may be, at any time. 
  
 8. PUBLIC OFFERING. 
  
 The Optionee hereby agrees that in the event of any underwritten public offering of stock made by the Company pursuant to an effective registration
statement filed under the Securities Act, the Optionee shall not offer, sell, contract to sell, pledge, hypothecate, grant any option to purchase or make any short sale of, or otherwise dispose of any shares of stock of the Company or any rights to
acquire stock of the Company for such period of time from and after the effective date of such registration statement as may be established by the underwriter for such public offering; provided, however, that such period of time shall not exceed one
hundred eighty (180) days from the effective date of the registration statement to be filed in connection with such public offering. The foregoing limitation shall not apply to shares registered in the public offering under the Securities Act. The
Optionee shall be subject to this Section provided and only if the officers and directors of the Company are also subject to similar arrangements. 
  
 9. RESTRICTIONS ON TRANSFER OF SHARES. 
  
 No shares acquired upon exercise of the Option may be sold, exchanged, transferred (including, without limitation, any transfer to a nominee or agent of
the Optionee), assigned, pledged, hypothecated or otherwise disposed of, including by operation of law, in any manner which violates any of the provisions of this Agreement, and any such attempted disposition shall be void. The Company shall not be
required (a) to transfer on its books any shares which will have been transferred in violation of any of the provisions set forth in this Agreement or (b) to treat as owner of such shares or to accord the right to vote as such owner or to pay
dividends to any transferee to whom such shares will have been so transferred. 
  

 5 








 10. BINDING EFFECT. 
  
 Subject to the restrictions on transfer set forth herein, this Option Agreement shall inure to the benefit of and be binding
upon the parties hereto and their respective heirs, executors, administrators, successors and assigns. 
  
 11. TERMINATION OR AMENDMENT. 
  
 The Board may terminate or amend the Plan or the Option at any time; provided, however, that except in connection with a Change in Control, no such
termination or amendment may adversely affect the Option or any unexercised portion hereof without the consent of the Optionee unless such termination or amendment is necessary to comply with any applicable law or government regulation. No amendment
or addition to this Option Agreement shall be effective unless in writing. 
  
 12. NOTICES. 
  
 Any
notice required or permitted hereunder shall be given in writing and shall be deemed effectively given (except to the extent that this Option Agreement provides for effectiveness only upon actual receipt of such notice) upon personal delivery or
upon deposit in the United States Post Office, by registered or certified mail, with postage and fees prepaid, addressed to the other party at the address shown on the Grant Agreement or at such other address as such party may designate in writing
from time to time to the other party. 
  
 13. INTEGRATED
AGREEMENT. 
  
 The Grant Agreement, this Option Agreement and
the Plan constitute the entire understanding and agreement of the Optionee and the Company with respect to the subject matter contained herein and therein and there are no agreements, understandings, restrictions, representations, or warranties
among the Optionee and the Company with respect to such subject matter other than those as set forth or provided for herein or therein. To the extent contemplated herein or therein, the provisions of the Grant Agreement and this Option Agreement
shall survive any exercise of the Option and shall remain in full force and effect. 
  
 14. APPLICABLE LAW. 
  
 This Agreement shall be governed by the laws of the State of California as such laws are applied to agreements between California residents entered into and to be performed entirely within the State of California. 
  

			
	 
		
	 Optionee:
	 	 
		
	 Date:
	 	 


  

 6 








 THE JNI CORPORATION 
 2000 NON-QUALIFIED STOCK OPTION PLAN 
  
 EXERCISE NOTICE 
  
 JNI Corporation 
 9775 Towne Centre Drive 
 San Diego, CA 92121 
 Attention: Chief Financial Officer 
  
 Ladies and Gentlemen: 
  
 1. Exercise of Option. I
was granted a stock option (the “Option”) to purchase shares of the common stock of JNI Corporation (the “Company”) on
                    , 20        , pursuant to the JNI Corporation 2000 Non-Qualified Stock
Option Plan (the “Plan”) and pursuant to the Stock Option Grant Agreement dated                     ,
20         and the related Terms of Stock Option Agreement (together, the “Option Agreement”). I hereby elect to exercise the Option as to a total of
                     shares of the common stock of the Company (the “Shares”), all of which have vested in accordance with the
Option Agreement. 
  
 2. Payment. Enclosed herewith is full
payment in the aggregate amount of $             (representing $             per share) for the Shares in the
manner set forth in the Option Agreement. I authorize payroll withholding and otherwise will make adequate provision for federal, state, local and foreign tax withholding obligations of the Company, if any. 
  
 3. Binding Effect. I agree that the Shares are being acquired in
accordance with and subject to the terms, provisions and conditions of the Option Agreement, to all of which I hereby expressly assent. This Agreement shall inure to the benefit of and be binding upon my heirs, executors, administrators, successors
and assigns. I agree to deposit the certificate(s) evidencing the Shares, along with a blank stock assignment separate from certificate executed by me, with an escrow agent designated by the Company, to be held by such escrow agent pursuant to the
Option Agreement. 
  
 4. Transfer. I am aware that Rule
144, promulgated under the Securities Act, which permits limited public resale of securities acquired in a nonpublic offering, is not currently available with respect to the Shares and, in any event, is available only if certain conditions are
satisfied. I understand that any sale of the Shares that might be made in reliance upon Rule 144 may only be made in limited amounts in accordance with the terms and conditions of such rule and that a copy of Rule 144 will be delivered to me upon
request. 







 My address of record is: 
  

	 	


  

	 	


  
 My Social Security Number is:  
  
 I understand that I am purchasing the Shares pursuant to the terms of the Plan, the Option Agreement and my Grant Agreement, copies of which I have received and carefully read and understand. 
  

			
	 	 	Very truly yours
		
	 	 	 
	 	 	 


  
 Receipt of the above is hereby
acknowledged. 
  
 JNI Corporation 

			
		
	 By:
	 	

		
	 Title:
	 	

	
	 Dated:
                                        
                    , 20        


  

 2 








 JNI CORPORATION 
  
 STOCK OPTION GRANT AGREEMENT 
  

                        
(the “Optionee”) has been granted an option (the “Option”) to purchase shares of the Common Stock of JNI Corporation, a Delaware corporation (the “Company”) pursuant to this Stock Option Grant Agreement (the “Grant
Agreement”), the JNI Corporation 2000 Non-Qualified Stock Option Plan (the “Plan”) and the attached Terms of Stock Option Agreement (the “Option Agreement”), the provisions of which are incorporated herein by reference.

  
 Type of Option: Non-Qualified Stock Option 

 
 The following terms shall have their respective meanings as set forth
below or in the Plan: 
  
 “Date of Option Grant”
means                     , 20        . 
  
 “Number of Option Shares” means
                     shares of Stock. 
  
 “Exercise Price” means $             per share of Stock. 

 
 “Option Expiration Date” means the date ten (10) years
after the Date of Option Grant. 
  
 “Vested
Ratio” means, on any relevant date, the ratio determined as follows: 
  
 (a) Prior to the first anniversary of the Date of Option Grant, the Vested Ratio shall be zero. 
  
 (b) On the first anniversary of the Date of Option Grant, the Vested Ratio shall be 1/4, provided the Optionee’s Service has not terminated prior to
the first anniversary of the Date of Option Grant. 
  
 (c) For
each full month of Optionee’s Service from the first anniversary of the Date of Option Grant until the Vested Ratio equals 1/1, the Vested Ratio shall be increased by 1/48. 
  
 By their signatures below, the parties hereto agree that the Option is governed by the terms and conditions of the Plan as
in effect on the Date of Option Grant and the Option Agreement, both of which are attached hereto. The Optionee acknowledges receipt of a copy of the Plan and the Option Agreement, represents that he or she is familiar with the provisions contained
therein, and hereby accepts the Option subject to all of the terms and conditions thereof. 








			
	JNI Corporation
		
	 By:
	 	  


	 	 	 Gloria Purdy
 Chief Financial
Officer

		
	 Address:
	 	 9775 Towne Centre Drive
 San Diego, CA 92121



  

			
	Optionee
		
	 By:
	 	  


	 	 	 (Please sign)

		
	 Name:
	 	  


	 	 	 (Please print)



  
  

 2