Document:

2014 10-K - EX 10.52

           Exhibit 10.52
***Text Omitted and Filed Separately
with the Securities and Exchange Commission.
Confidential Treatment Requested
Under 17 C.F.R. Sections 200.80(b)(4)
and 240.24b-2.

Amendment Seven to  
Manufacturing and Purchase Agreement Between 
Dot Hill Systems Corp. and Hon Hai Precision Industry Co. Ltd. 

This Amendment Seven (“Amendment”) is dated March 5, 2015 and is an amendment to the Manufacturing and Purchase Agreement dated September 2008 (the “Agreement”) between Dot Hill Systems Corp. and its subsidiaries (“Dot Hill”) and Hon Hai Precision Industry Ltd, and its parents, subsidiaries and affiliate companies (“Foxconn”). 

Except as expressly set forth herein, all other terms and conditions of the Agreement (including all amendments to the Agreement) and any other agreements between the parties shall continue in full force and effect.  Capitalized terms used but not defined herein shall have the meanings given thereto in the Agreement.  This Amendment shall become part of the Agreement and all applicable terms and conditions of the Agreement. 

Whereas, Dot Hill and Foxconn wish to extend the Term of the Agreement; and

Whereas, Dot Hill and Foxconn wish to set forth certain terms and conditions of the Agreement, with varying effective dates and periods of effectiveness as set forth herein;
Wherefore, the Agreement shall be revised as follows: 

		
	1.
	Section 14.1 shall be deleted in its entirety, and in its place the following shall be inserted:

“14.1 Term.  The Term of this Agreement shall be from the original Effective Date of the Agreement (in September 2008) until and through September 1, 2015 (without any interruption), unless and until terminated pursuant to the termination provisions of this Agreement (“Extension Term”).  From the signing of Amendment Seven until September 1, 2015, it is the intent of the parties to negotiate in good faith additional and/or modified terms and conditions to the Agreement, including a new Term. 

		
	2. 
	Effective March 12, 2015 and applying only to shipments made from March 12, 2015 through the Extension Term, section 6.4 shall be deleted in its entirety, and in its place the following shall be inserted:

6.4.  Payment Terms.  All payments shall be made in US dollars and will be due [...***...] days after Dot Hill receives the invoice from Supplier.  

		
	3.
	As of March 31, 2015, the following [...***...] described in Amendment Two of the Agreement are suspended and ineffective during the Extension Term: (a) Section 5.4.3 (describing a [...***...]); (b) Section 5.6.1 (describing a [...***...]); (c) Section 5.6.2 (describing a [...***...] on [...***...]); and (d) Section 5.6.3 (describing a [...***...]) (collectively “[...***...]”). For purposes of clarity, the aforementioned [...***...] will remain in place and binding until end of day March 31, 2015.  As of April 1, 2015 and through the remainder of the Extension Term, the following [...***...] shall commence and shall be binding upon the parties (“[...***...]”):

		
	•
	With respect to those [...***...] set forth on Exhibit 1 to this Amendment, made a part hereof by reference (“[...***...]”) [...***...] 

1     ***Confidential Treatment Requested

Exhibit 10.52

[...***...] under the Agreement in the [...***...] set forth on Exhibit 1.  If an [...***...] undergoes a revision or change in SKU number, Exhibit 1 shall automatically include such revised [...***...] (regardless of SKU number) and the [...***...] set forth on Exhibit 1 shall apply to such new revision.  Further, the parties expect to modify Exhibit 1, such as when [...***...] to the Agreement, and at such time the parties will mutually agree upon modifications to Exhibit 1 (including [...***...]) which shall automatically be made a part of this Amendment; plus  

		
	•
	At the end of each [...***...], the parties shall [...***...] between the [...***...] for that [...***...] and compare it to [...***...] during the [...***...] of the [...***...] (“[...***...]”). If the [...***...] is [...***...] (in other words, the [...***...]), then Foxconn shall [...***...] to Dot Hill [...***...] ([...***...]%) of the [...***...].  If the [...***...] is [...***...], then [...***...] shall be made with respect to that [...***...] and, in addition, the [...***...] will be applied to [...***...] until the [...***...] is exhausted.  For purposes of this Amendment, the term “[...***...]" (or “[...***...]”) shall be [...***...] by [...***...] (from the [...***...]) from the [...***...] for the product.

[...***...] of all Amendment 6 [...***...] shall be submitted to Dot Hill for review within [...***...] days of the end of the [...***...] during which [...***...] was made under the Agreement.  Dot Hill and Foxconn shall come to an [...***...] within [...***...] days after the submission from Foxconn. [...***...] will be sent to Dot Hill [...***...] days after the end of the [...***...]. In Dot Hill’s discretion, [...***...] may be made by [...***...] by Dot Hill to Foxconn, or by [...***...] to Dot Hill.

		
	4.
	Section 14.4 is hereby amended by deleting the period of one hundred and eight days (180) days, and in its place inserting the period of one (1) year, thereby extending the notice period required for termination for convenience.

In witness hereof, the parties have caused this Amendment to be executed by their duly authorized representatives as set forth below.
	
			
	Dot Hill Systems Corp.
	 
	Hon Hai Precision Industry Co. Ltd.

	/s/ Hanif Jamal
	 
	/s/ Peter Wu

	Name:  Hanif Jamal
	 
	Name:  Peter Wu

	Title: CFO
	 
	Title:  Director

	Date:  3-6-15
	 
	Date:  03/05/2015

2     ***Confidential Treatment Requested

Exhibit 10.52

EXHIBIT 1 TO AMENDMENT SEVEN

	
						
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3     ***Confidential Treatment Requestedexhibit_4a-90.htm

Exhibit 4.4.(a).90

     

The State of Israel

    Ministry of Communications

 

General License for Partner Communications Ltd. for the Provision of

Mobile Radio Telephone (MRT) Services using the Cellular Method

Amendment No. 74

 

By virtue of the authority of the Minister of Communications under Article 4 (e) of the Communications Law (Telecommunications and Broadcasts), 5742-1982, that have been delegated to us, by all our other powers under any law and after having considered the arguments of Partner Communications Company Ltd. (hereinafter: “Partner”), we hereby amend the General License for the provision of mobile radio telephone (MRT) services using the cellular method granted to Partner on 7 April 1998,  as follows:

Addition of Article 65B

 

	
1.  

	
After article 65A shall come:

 

"65B      "Personal Message Service"

 

	
  

	
65B.1

	
The Licensee shall provide a personal message service (in this section, the "Service"), at all times and free of charge, to all its subscribers, including to the subscribers of another licensee, users of handsets that support the Service (thereinafter in this section the "Subscribers"), and in accordance with the "personal service" service file.

 

In this section:

 

"Another Licensee" – another MRT licensee that receives service through national roaming or an MVNO that receives service through a hosting agreement on a licensee's network;

 

"Personal Message" – a message, warning and short explanation of the security forces that is sent immediately, selectively and focused to subscribers with MRT handsets that support the use of the cell broadcast ("CB") technology.

 

  

  

  

"Security Forces" – representatives of the Ministry of Defense and Home Front Command that are responsible for personal message system;

 

"Service File "Personal Message" – a service file approved by the Director, including amendments that will be executed in the service file;

 

	
  

	
65B.2

	
In order to execute the above mentioned in Article 65B.1, the licensee shall act as set forth in the First Appendix and in the service file regarding this service and as follows:

 

	 	
a) 

	
Adaption of the network and its components so that it will support the provision of the personal message service, excluding the network components that operate under the iDEN or CDMA technology;

 

	 	
b) 

	
Assistance and resource allocation to execute the access of the personal message service of the Security Forces to the network;

 

	 	
c) 

	
Operation and maintenance of the Service components in the network, in accordance with written directions that will be presented to the Security Forces; without derogating from the aforesaid, the Security Forces may instruct the Licensee to change the said instructions, however this will not derogate from the Licensee's responsibility to repair and access the network;

 

	 	
d) 

	
The execution of technical trials to examine the integration between the system and the network and the exercise of the network and system operation, in accordance with the instructions of the Office and the Security Forces.

 

	
  

	
65B.3

	
The Licensee shall report to the Security Forces any gap in the ability to supply the Service and will act to restore the ability as soon as possible, in accordance with the written operation instructions that it will formulate and present to the Security Forces.

 

Without derogating from the aforesaid, the Security Forces may instruct the licensees to change the operation instructions if they find them to be lacking, however this provision does not limit the responsibility of the aforesaid licensee.

 

  

2

  

	
  

	
65B.4

	
The Licensee shall notify the Security Forces in advance of any change to the network that may affect availability for provision of the Service.

 

	
  

	
65B.5

	
The Licensee may not make commercial use of the CB characteristic without the Security Forces' prior knowledge of at least 30 days before operating the Service and the Security Forces may notify him in writing within 15 days of their objection to the provision of the service or conditions for providing the said Service. In this case, the Licensee will not operate the Service or will only be able to operate it in accordance with the conditions determined by the Security Forces, according to the merits.

 

	
  

	
The aforesaid does not detract from the License's obligation to receive the Director's approval to the said service.

 

	
  

	
65B.6

	
The Licensee will assist in launching the Service for its subscribers in all of the following manners:

 

	
a)  

	
By written publicity on the company's website;

 

	
b)  

	
By direct mail to subscribers through the monthly bills upon launch of the Service;

 

	
c)  

	
By providing answers to subscribers that request the required definitions for the MRT handset of a subscriber;

 

	
d)  

	
The Licensee will allow the Security Forces to reasonably use its existing distribution channels in order to notify the subscribers of the Service.

Amendment of the First Appendix

	
2.  

	
In the First Appendix, under the list of services, after the last item shall come:

 

	
1

	
"Personal Message"

	
a message, warning and short explanation of the security forces that is sent immediately, selectively and focused to subscribers with MRT handsets that support the use of the cell broadcast ("CB") technology.

	
10/2014

	
As set out in the service file

	
In accordance with Article 65B and the "Personal Message" service file

____________________________________________

1 Numbering compatible to the existing numbering in the license

  

3

  

 

Commencement

	
3.  

	
This amendment will become effective by Sunday September 28, 2014.

 

(May 28, 2014)

     (sgd)                                           

_____________

Avi Berger

Director General

 

4

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