Exhibit 10.3

 

 

[ * ] = Certain confidential information contained in this document, marked by
brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as
amended.

 

Agreement No. AR-63645-04

 

PRODUCT SUPPLEMENT/AWARD LETTER (SATA)

 

This Product Supplement/Award Letter (this “Award Letter”) is made on and as of
the         day of March, 2004 (“Effective Date”) by and between Sun
Microsystems, Inc. (“Sun”) and Dot Hill Systems Corporation (“Supplier”),
pursuant to the Product Purchase Agreement, dated as of May 22, 2002, Agreement
No. AR-63645, as amended, made between the parties (the “Agreement”). 
Capitalized terms not defined in this Award Letter have the meanings set forth
in the Agreement.  The parties agree as follows:

 

1  SCOPE:  Neither this Award Letter nor the Agreement constitutes a commitment
by Sun to purchase Products unless Sun, in its sole discretion, issues one or
more P.O.’s in the manner described in the Agreement.  The terms and conditions
of the Agreement are incorporated herein by reference as if set forth in full.

 

2  PRODUCT DESCRIPTIONS AND PRICING/COST REDUCTIONS:  Product descriptions and
pricing are set forth in Exhibit A to this Award Letter.

 

3  MINIMUM PURCHASE RIGHTS PERIOD:  Pursuant to the terms of Section 2.1 of the
Agreement, the Minimum Purchase Rights Period (as defined therein) is [ * ].

 

4  UPSIDE SUPPORT:  Sun may request all or any part of Upside Support quantities
at anytime during the applicable quarter up to the maximum amount indicated
beginning with Sun’s GA of the Sun product or system that incorporates the
Product(s).  Requests for Upside Support, above the percentages listed below or
within less Days Advance Notice for the listed percentage below, may be subject
to additional charges actually incurred by Supplier and other requirements
related to manufacturing and materials cycle lead time, availability of
personnel and manufacturing capacity.  Supplier will inform Sun in writing of
any additional charges and requirements that apply to delivery of Product for
this additional Upside Support and obtain approval from Sun to such additional
charges and requirements prior to implementing such Upside Support. Supplier
shall use commercially reasonable efforts to sell, manufacture and ship such
Upside Support quantities to Sun on a “first-in, first-out” basis within five
(5) business days after Sun’s written request.

 

Timeframe

 

Days Advance Notice

 

Upside Max. Percentage Increase

 

 

 

 

 

[ * ]

 

 

 

 

 

Supplier shall use reasonable efforts to accommodate any request from Sun to
accelerate delivery of Upside quantities of Products within the timeframes
indicated above.  With respect to any request for quantities in excess of Upside
Support described above, the parties shall negotiate in good faith acceptable
delivery dates.

 

5    SUN-UNIQUE COMPONENTS:  The initial List of Sun-unique Components,
Leadtimes and MOQs is set forth as Exhibit B.

 

6  SPECIFICATION:  The Product Specification is set forth as Exhibit C.

 

7  EXTERNAL MANUFACTURERS:  The list of External Manufacturers, if any, is set
forth in Exhibit D.

 

8 BUSINESS CONTINUITY PLAN: Supplier’s business continuity plan for the Product
is set forth in Exhibit E.

 

9 LICENSED SOFTWARE: The Licensed Software shall mean the most current version
of [ * ].

 

10 QUALITY:  In addition to the quality requirements in Exhibit C of the
Agreement, Exhibit F of this Award Letter, which is attached hereto and
incorporated by reference, contains component-specific requirements.

 

11  AWARD LETTER COMPONENTS:  The parties agree to be bound by these terms and
conditions which consists of the Award Letter and the Exhibits indicated below:

 

ý

 

Exhibit A (Product Descriptions and Pricing)

ý

 

Exhibit B (Sun-unique Components, Leadtimes and MOQs)

ý

 

Exhibit C (Specification)

 

1

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ý

 

Exhibit D (External Manufacturers)

ý

 

Exhibit E (Business Continuity Plan)

ý

 

Exhibit F (Component Quality Requirements)

 

The undersigned duly authorized representatives of the parties have executed and
delivered this Award Letter as of the Effective Date.

 

Sun Microsystems, Inc.

Dot Hill Systems Corporation

 

 

By:

/s/ Marcy Alstott

 

By:

/s/ Jim Lambert

 

 

 

Name:

Marcy Alstott

 

Name:

Jim Lambert

 

 

 

Title:

VP, Worldwide Operations

 

Title:

President & CEO

 

 

 

Date:

19 March 2004

 

Date:

17 Mar 2004

 

 

Sun Microsystems International B.V.

Dot Hill Systems BV

 

 

By:

/s/ Tymen Kos

 

By:

/s/ BHM van der Woning

 

 

 

Name:

Tymen Kos

 

Name:

BHM van der Woning

 

 

 

Title:

Director

 

Title:

Managing Director

 

 

 

Date:

22 March 2004

 

Date:

14 March 2004

 

 

[ * ] = Certain confidential information contained in this document, marked by
brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as
amended.

 

2

--------------------------------------------------------------------------------

 

EXHIBIT A

 

PRODUCT DESCRIPTIONS AND PRICING

 

[ * ]

 

[ * ] = Certain confidential information contained in this document, marked by
brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as
amended.

 

3

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EXHIBIT B

SUN-UNIQUE COMPONENTS, LEADTIMES AND MOQs

 

[ * ]

 

[ * ] = Certain confidential information contained in this document, marked by
brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as
amended.

 

4

--------------------------------------------------------------------------------

 

EXHIBIT C

SPECIFICATION

 

(To be attached)

 

5

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EXHIBIT D

 

EXTERNAL MANUFACTURERS

Solectron Corporation

847 Gibraltar Drive

Building 5

Milpitas, CA 95035

 

Solectron Technology Sdn. Blvd.

Plot 13 Phase IV

Prai Industrial Estate

13600 Prai

Penang.  Malaysia

 

Solectron Hungary
 Hangár Utca 5-37
H-1183 Budapest

 Hungary

6

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[ * ] = Certain confidential information contained in this document, marked by
brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as
amended.

 

EXHIBIT E

 

BUSINESS CONTINUITY PLAN

 

DOT HILL SYSTEMS CORP.

DISASTER RECOVERY AN BUSINESS CONTINUITY PLAN

 

January 19, 2004

 

This package is to document Dot Hill’s current disaster recovery and business
continuity plan.  This package will be updated periodically on an as needed
basis.  This package contemplates that products will be manufactured at
Solectron Corporation, and therefore, includes Solectron’s Corporate Disaster
Response and Recovery Document as part of the overall plan.

 

[ * ]

 

 

[ * ] = Certain confidential information contained in this document, marked by
brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as
amended.

 

7

--------------------------------------------------------------------------------

 

[ * ] = Certain confidential information contained in this document, marked by
brackets, has been omitted and filed separately with the Securities and Exchange
Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as
amended.

 

EXHIBIT F

 

[ * ]

 

8

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