Document:

HILL - 2014.6.30 - EX 10.4

Exhibit 10.4
***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 FIVE
TO PRODUCT PURCHASE AGREEMENT NO. PR002542-060507

This Amendment No.5 ("Amendment Five") is dated December 16, 2008 (the "Amendment Five Effective Date") and is an amendment to the Product Purchase Agreement No.  PR002542- 060507 dated September 10, 2007, (the "Agreement") between DOT HILL SYSTEMS CORP. ("Supplier"), a Delaware corporation, with offices at 2200 Faraday Avenue, Suite 100, Carlsbad, CA 92008, and Hewlett-Packard Company ("HP"), a Delaware corporation, with offices at 3000 Hanover Street, Palo Alto, California 94304.  Supplier and HP may be referred to individually as a "Party" and collectively as "Parties."

WHEREAS, Supplier and HP have entered into that certain Agreement including all exhibits and amendments thereto, (collectively, the "Agreement"), whereby Supplier authorized HP to distribute and promote certain products and services pursuant to the terms and conditions contained therein;

WHEREAS, Supplier and HP each desires to amend the Agreement to include the production, associated maintenance, support, license and distribution of additional Data Management Software Products as specified herein;

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

TERMS

		
	1.
	§3.2.1 through 3.2.3. The following Sections 3.2.1, 3.2.2 and 3.2.3 shall be added to the Agreement for purposes of setting forth payment terms with respect to Software Products, as that term is defined, below.

3.2.1.    Payment Terms for Software Products. Notwithstanding the foregoing, the payment terms with respect to "Snapshot," "Volume Copy" and any other software packages that may be licensed under this Agreement as stand-alone Software that is licensed for a fee ("Software Products"), shall be as set forth in this paragraph. At the end of each [...***...], HP shall compile a report that sets forth the number of Software Products that have been newly licensed and/or supported during the [...***...] ("Data Management Software Report"). With respect to Software Products newly licensed during the [...***...], HP shall pay to Supplier the applicable [...***...].  With respect to [...***...] for Software Products that were sold during the [...***...], HP shall pay to Supplier the applicable, accrued portion of the [...***...] which accrual is further described in Exhibit E-5 under "Accrual of Maintenance Royalty."  Collectively, the [...***...] and [...***...] shall be referred to as the "License Charges"). HP shall send the Data Management Software Report, along with payment of the Licensed Charges to Dot Hill within [...***...] of the end of each [...***...]. The current 
[...***...] and [...***...] pricing is set forth on Exhibit E-5.

*** Confidential Treatment Requested

Exhibit 10.4

3.2.2    HP will pay to Supplier all amounts owed for License Charges through the end of the [...***...]. Thereafter, License Charges shall be paid pursuant to this Section 3.2.

		
	2.
	§7.2.4. The following shall be added to the Agreement as Section 7.2.4 for purposes of setting forth the warranty term s for Software Products:

7.2.4.    Notwithstanding the foregoing, in respects to section 7.1.5, Software Products shall be warranted against defects in design, material and workmanship for [...***...] following HP's shipment to each customer of the Software Products and, thereafter, support shall be provided in exchange for the payment of the applicable [...***...].

		
	3.
	Exhibit (B) (Product Description and Specifications) attached to the Agreement shall be amended by inclusion at the end of the current Exhibit (B) the new Exhibit (B-5) (Software Product Description and Specifications) attached hereto.

		
	4.
	Exhibit (E) (Pricing) attached to the Agreement shall be amended by inclusion at the end of the current Exhibit (E), the new Exhibit (E-5) (Software Product Pricing) attached hereto.

		
	5.
	Exhibit (V) (Software Product Requirements) attached hereto is hereby included in its entirety in the Agreement.

Except as expressly set forth herein, all other terms and conditions of the Agreement shall continue in full force and effect. Capitalized terms used but not defined herein shall have the meanings given thereto in the Agreement.

IN WITNESS WHEREOF, the parties have caused this Amendment Five to be executed by their duly authorized representatives on the dates indicated below.

	
					
	 
	HEWLETT-PACKARD COMPANY
	 
	 
	DOT HILL SYSTEMS CORP.

	By:
	/s/ Robin Hensley
	 
	By:
	/s/ Dana W. Kammersgard

	Name:
	Robin Hensley
	 
	Name:
	Dana W. Kammersgard

	Title:
	VP & General Manager, Entry Storage Division
	 
	Title:
	CEO

	DATE:
	12/17/08
	 
	DATE:
	12/17/08

            

*** Confidential Treatment Requested

Exhibit 10.4

EXHIBIT (B-5)

DATA MANAGEMENT SOFTWARE PRODUCT DESCRIPTION AND SPECIFICATIONS

The following additional software products listed and described in Tables (1) below in this Exhibit (B-5) shall be considered "Software Products" under the Agreement and are incorporated into the Agreement by reference. The parties may add additional data management software to this Exhibit, which software shall then be considered Software Products, from time to time, upon mutual written agreement:

Software Products:

Table (1)
	
		
	HP Part Number I
SKU
	Software Product Description

	[...***...]
	[...***...]

	[...***...]
	[...***...]

	[...***...]
	[...***...]

	[...***...]
	[...***...]

	[...***...]
	[...***...]

	[...***...]
	[...***...]

	[...***...]
	[...***...]

*** Confidential Treatment Requested

Exhibit 10.4

EXHIBIT (E-5)

SOFTWARE PRODUCT PRICING

Subject to the terms and conditions of the Agreement. per-copy license fees (“royalties”) for Software Products made available by Supplier to  HP as set  forth in  this Agreement  and  more particularly described in Exhibit (B-5), are as set forth below. All amounts from which royalties shall be calculated under this Agreement shall be in United States Dollars (USD). All fees paid to Supplier under this Agreement shall be paid by either bank transfer (ACH), check, or wire transfer, or in such other manner as otherwise mutually agreed by the parties. Prices paid by HP to Supplier for Software Products may be changed as per the terms of the Agreement, upon mutual written agreement through amendment to the Agreement.  The parties agree that Section 4.6.1 of the Agreement in Amendment Eight shall apply to the pricing set  forth  below, however, the automatic [...***...] Decreases in price shall continue to apply through to the end of [...***...]. Section 4.6.2, of the Agreement in Amendment Eight, and the concept of “[...***...],” shall not apply to pricing, below.

Per-copy Software Product Royalties ([...***...]). Except as otherwise set forth in this Exhibit (E-5) and subject to the terms and conditions of the Agreement, HP shall pay Supplier a [...***...] for each Software Product license sold by HP either directly or indirectly through its agents, employees, or channels and as bundled, integrated, or distributed as set forth in Table ( I) below:

Table (1)
	
							
	HP Part Number I
SKU
	Software Product
Description
	CYQ1
2008
	CY Q2
2008
	CYQ3
2008
	CYQ4
2008
	CY 01
2009

	[...***...]

	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]

	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]

	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]

	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]

	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]

	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]

	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]

	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]

	*Volume Copy Software pricing is for [...***...] per array

Each [...***...] shall include the right to reproduce and distribute all associated Documentation.

*** Confidential Treatment Requested

Exhibit 10.4

Customer Maintenance Royalty ([...***...]). Subject to Supplier's performance of its support obligations under the Agreement, for each sale by HP of a maintenance services subscription agreement entitling HP customers to annual maintenance including Supplier software releases, updates and related software support, HP shall pay Supplier a [...***...] royalty equivalent to 
[...***...] of HP's then-current worldwide reference list price for the maintenance services agreements sold ([...***...]). Such [...***...] royalty is incremental and in addition to the [...***...] and shall cover Level 3 backup support and HP's right to sublicense and distribute all Supplier software updates, enhancements, bug fixes, and related minor releases, as further described in Exhibit V (Software Product Requirements) of the Agreement. If HP decreases its worldwide reference list price (to HP's customers) for the maintenance service agreements by more than [...***...] in any [...***...] period, the [...***...] paid to Supplier shall not decrease by more than [...***...] during any [...***...] period.

No Other Payments. No royalty or fee ([...***...] or otherwise) shall be due for any license of the Software Products used by or distributed by HP or its distributors or contractors for reasonable non-production use, such as demonstration, training, integration, or support purposes. Notwithstanding the foregoing, such reasonable internal use shall not include the use by HP or its distributors or contractors to generate marketing collateral for use in selling HP products other than the Software Products or Integrated Products. Except as expressly provided otherwise in this Exhibit (B), no other fees or payments shall be payable by HP under or related to this Agreement.

Custom Enhancements or Acceleration of Product Development. HP may, from time to time, request custom enhancements to Software Products or for Supplier to accelerate certain planned development with respect to the Software Products. In such instances, the parties will mutually agree upon terms and conditions for such development, which may include the payment of Non­ Recurring Engineering Fees (NRE Fees).

Payment and Royalty Reports. [...***...] will accrue upon shipment to the receiving end user for copies of the Software Product distributed by HP (either directly or indirectly) to such end user. All accrued royalties (less any offset for fees previously paid to Supplier by HP for copies of the Software Product that were returned or subject to adjustment) will be paid by HP to Supplier.

Accrual of Maintenance Royalty.  For Customers who pay [...***...] (or on some other basis) under a [...***...], the appropriate HP's Worldwide Corporate Reference Price shall be used as the basis for calculating Service Fees (i.e., HP's Worldwide Corporate Reference Price for [...***...] payments) for Software Technical Support Services and Software Update Services. However, said [...***...] or other payments shall be deemed to accrue [...***...], and the amount accrued shall be equal to a [...***...] of the entire payment.  For example, an [...***...] payment shall be deemed to accrue in [...***...] installments.

*** Confidential Treatment Requested

Exhibit 10.4

License Granted to End-Users.  In exchange for payment of the [...***...], the end-user of the Software shall obtain a personal, non-sublicensable, non-transferable, non-exclusive license to use the Software (as well as any associated documentation) in object code only, in its unaltered form, on the specific hardware device upon which the Software was originally distributed. The license shall be perpetual provided that the end-user does not breach the end-user license agreement ("EULA") that accompanies the Software including, but not limited to, provisions that prohibit the end-user from decompiling, disassembling, reverse engineering or modifying the Software (except and only to the extent that applicable law expressly permits despite the limitations). The EULA shall also prohibit the end-user from reproducing the Software, except making one reproduction for archival purposes, which reproduction shall contain all legends and notices found on the original Software.  HP shall provide a copy of the EULA that will accompany the Software to Supplier for approval, which approval will not be unreasonably withheld, delayed or conditioned.

*** Confidential Treatment Requested

Exhibit 10.4

EXHIBIT (V)

SOFTWARE PRODUCT REQUIREMENTS

1.SOFTWARE AND DOCUMENTATION WARRANTIES

To the extent Products include or constitute Software and related Documentation, in addition to the warranties set forth in Article (7) of the Agreement, Supplier hereby warrants and represents to HP that:

1.1    Supplier has, as of date of delivery, clear title for sufficient proprietary rights in and to the Software and Documentation to grant HP any license, lease or other non-ownership rights granted in and to the Software and Documentation and that the Software and Documentation are free of any and all restrictions, settlements, judgments or adverse claims that might adversely affect any such right granted HP;

1.2    The software made by supplier will not (1) contain lock out devices or have any virus, disabling device, time bomb, Trojan horse, back door or any other harmful component, (2) replicate, transmit or activate itself without control of a person operating the computing equipment on which it resides, (3) alter, damage or erase any data or other computer programs without control of a person operating the computing equipment on which it resides or (4) contain any code, key, node lock, time-out or other function whether implemented by electronic, mechanical or other means which restricts or may restrict use or access to programs or data based on residency on a specific hard ware configuration, frequency or duration of use, or other limiting criteria. Notwithstanding the foregoing, the following features shall be allowed but only where the parties mutually agree to have the Software include such features: (a) a trial­ ware feature to allow customers to use a feature for a specific period of time on a trial basis, and then automatically shut-off the feature, and; (b) a licensing feature to enable specific software functions such as Snapshot and Volume Copy via an applied license certificate file, or in other words, a license key.

1.3    The Software and Documentation, including accompanying trademarks, copyrights and trade names, do not violate or infringe any US, EU, Canada, Israel, Australia, India, China and Japan patent, copy right, trademark, trade secret or other proprietary right of any third party, that Supplier is not aware of any facts upon which such a claim for infringement could be based and that Supplier will promptly notify HP if it becomes aware of any claim or any facts upon which a claim could be based.

Supplier hereby assigns to HP the benefits of all warranties applicable to any third-party software licensed or sublicensed by HP from Supplier.

2.SOFTWARE SUPPORT

2.1    General. Software supplied under this Agreement falls into two general categories: Software which is licensed for no extra fee other than the purchase price of the Product with which it is distributed (often imbedded on the Product automatically as firmware) (referred to herein as "Firmware" for purposes of this Section 2),  and;  Software which is licensed for an additional fee and marketed as a stand-alone product, such as for example, but not limited, Snapshot and Volume Copy described in Amendment 5 to the Agreement (referred to as "For-a-Fee Software Products" for purposes of this Section 2). To be clear, the Management GUI described in this Exhibit is "Firmware" of the base, hardware RAID System which it manages for purposes of this Exhibit. Firmware support also will comply with Exhibit  K-1 of this 

Exhibit 10.4

Agreement. All Software (Firmware as well as For-a-Fee Software Products) shall meet the requirements of its respective Specifications.

2.2    Support to HP. Supplier agrees to provide secondary support to HP with respect to all Software as further described herein. Support for Firmware shall be provided by Supplier for no additional fee other than the original purchase price of the hard ware Product with which the Firmware was distributed during the same warranty period as that of the hardware Product with which it is distributed. With respect to For-a-Fee Software Products, however, support will be provided for free during the [...***...] warranty period but, thereafter, support shall only be provided in exchange for HP's payment of the [...***...] fees described in Amendment 5. There shall be no support requirement for For-a-Fee Software Products (other than the [...***...] warranty) to HP on behalf of end-users who have not purchased an annual maintenance contract.

2.2    Support Terms. Supplier agrees to maintain such number of qualified personnel as is necessary to provide timely and knowledgeable maintenance and support service. Maintenance and support shall include, but not be limited to:

		
	(i)
	Supplier will provide "roadmap" (pursuant to confidentiality obligations) every [...***...] with visibility to their efforts [...***...] out;

		
	(ii)
	Receiving defect reports from HP and fixing defects or providing workarounds;

		
	(iii)
	Maintaining an electronic mail address and a telephone number for HP to report problems and receive assistance;

		
	(iv)
	Providing prompt communication and assistance to HP in the event Supplier determines a problem is related to the Software:

		
	(v)
	Providing updates, when appropriate, and instructions for implementation; and

		
	(vi)
	Providing a designated, knowledgeable support contact for providing technical support, which may be changed by written notice.

2.3    Response to Defects. Supplier agrees to take appropriate corrective action on any defect reports it receives, including report classifications of Escalation, Critical, Serious, Medium, and Low, after receipt of notice from HP. Supplier shall notify HP of the resolution and provide HP with the necessary data, equipment and/or software to allow HP to distribute the solution to its customers.

2.4    Response to Critical Defects. In the event a critical defect is discovered, Supplier agrees to use commercially reasonable efforts to correct the defect and provide such correction to HP within [...***...] from determination of root cause. A critical defect is generally defined as one which causes the system not to function or to lose data, and for which there is no known workaround. Reasonable, actual reproduction and shipping costs to HP shall be borne by Supplier for the Licensed Software.

2.5    Enhancement Requests. HP may from time to time request enhancements to a software package. Such enhancements, and any accompanying terms and conditions, shall be subject to the mutual agreement of the parties and may include new and incremental charges to HP.

2.6    Support Information. Supplier will provide HP information to enable HP to train its support personnel on the Licensed Software. This includes, but is not limited to, information on troubleshooting 

*** Confidential Treatment Requested

Exhibit 10.4

techniques and diagnostics, performance tuning, and software and internal data structure design overview.Supplier will provide ongoing information on known problems and open problems under investigation, bug fixes, and enhancement requests. Supplier will provide a summary of changes to software and documentation with updates. If HP requires Supplier to conduct training sessions, the parties will mutually agree upon terms, conditions, schedules and fees for such training.

1.DESCRIPTION OF SNAPSHOT AND VOLUME COPY

3.1    [...***...] (HP Part Number [...***...]) - a controller-based snapshot with the ability to perform,
schedule, maintain , manage up to [...***...] per [...***...]

3.2    Volume Copy (HP Part N umber [...***...]) - a controller-based clone with the ability to perform ,
schedule, maintain , manage up to [...***...] within [...***...]

3.3    [...***...] (HP Part Number [...***...])  - a controller-based snapshot with the ability to perform, schedule, maintain, manage up to [...***...] per [...***...]

3.4    Upgrade from [...***...] - (HP Part Number [...***...]) - a SKU for customers to upgrade from [...***...] to [...***...]

3.5    [...***...] Software LTU (HP Part Number [...***...]) - a controller-based snapshot with the ability to perform, schedule, maintain, manage up to [...***...] per [...***...]

3.6    [...***...] Upg Software LTU (HP Part Number [...***...]) - a SKU for customers to upgrade from [...***...] to 
[...***...]

3.7    [...***...] Software LTU (HP Part Number [...***...]) - a SKU for customers to upgrade from [...***...] to [...***...]

2.Requirements:

4.1    - a management GUI to create. delete, maintain , and schedule snapshots and clones
4.2    - HP branding where applicable with the management GUI, Snapshot, and Volume Copy software
4.3    - hot fixes, patches, or other maintenance to insure the products functions as needed
4.4    - a licensing mechanism that can be integrated into the HP Webware/OCS system

*** Confidential Treatment RequestedHILL - 2014.6.30 - EX 10.5

Exhibit 10.5
***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 SIX

TO PRODUCT PURCHASE AGREEMENT NO. PR002542-060507

This Amendment Six to the Product Purchase Agreement No. PR002542-060507 ("PPA") dated September 10, 2007, (the "Amendment Six") dated March 31, 2009, (the "Amendment Six Effective Date") is between DOT HILL SYSTEMS CORP. ("DOT HILL"), a Delaware corporation, with offices at 2200 Faraday Avenue, Suite 100, Carlsbad, CA 92008, and Hewlett-Packard Company ("HP"), a Delaware corporation, with offices at 3000 Hanover Street, Palo Alto, California 94304. DOT HILL and HP may be referred to individually as a "Party" and collectively as "Parties."

WHEREAS, DOT HILL and HP have entered into the PPA including all exhibits and amendments thereto, (collectively, the "Agreement"), whereby DOT HILL authorized HP to distribute and promote certain products and services pursuant to the terms and conditions contained therein;

WHEREAS, DOT HILL and HP each desires to amend the Agreement;

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

TERMS

		
	1.
	§22.16 The following paragraph shall be added as a new Section 22.16 to the Agreement:

"§22.16. AMD Chip [...***...]. Around March 2008, Supplier [...***...]. Supplier agrees that HP's liability for any excess inventory of the [...***...] as they relate to the [...***...] shall be limited to HP's forecasted amount of Product that use the [...***...] for the next [...***...] as of the then-current date and as per the then-current forecast. HP shall have no additional liability with respect to the [...***...] as they relate to the [...***...]. Notwithstanding the foregoing, Supplier shall have mitigation obligations, as set forth in the Agreement, with respect to the [...***...] liability.

		
	2.
	Exhibit (B) (Product Description and Specifications)  attached  to  the Agreement shall be amended by inclusion at the end of the current Exhibit (B) Exhibit (B-6) attached hereto.

		
	3.
	Exhibit (E) (Pricing) attached to the Agreement shall be amended by inclusion at the end of the current Exhibit (E) Exhibit (E-6) attached hereto.

		
	4.
	Exhibit (I) (Manufacturing Rights) attached to the Agreement is hereby replaced in its entirety with Exhibit (I) attached hereto.

*** Confidential Treatment Requested

Exhibit 10.5

		
	1.
	Exhibit (K-1) (Technical Support and Maintenance Requirements) attached to the Agreement is hereby replaced in its entirety with Exhibit (K-1B) attached hereto.

		
	2.
	Exhibit (M) (Flexibility Agreement) attached to the Agreement is hereby replaced in its entirety with Exhibit (M) attached hereto.

		
	3.
	Exhibit  (N)  (Quality  and  Compensation  Exhibit)  attached  to  the  Agreement  is hereby replaced in its entirety with Exhibit (N) attached hereto.

		
	4.
	Exhibit  (U)  (Training)  attached  hereto  is  hereby  included  in  its  entirety  in  the Agreement.

		
	5.
	Exhibit (X) (EMR) attached hereto is hereby included in its entirety in the Agreement. 

Except as expressly set forth herein, all other terms and conditions of the Agreement  shall continue in full force and effect.  Capitalized terms used but not defined herein shall have the meanings given thereto in the Agreement.

IN WITNESS WHEREOF, the parties have caused this Amendment Six to be executed by their duly authorized representatives on the dates indicated below.

	
					
	 
	DOT HILL SYSTEMS CORP.
	 
	 
	HEWLETT-PACKARD COMPANY

	By:
	/s/ Dana W. Kammersgard
	 
	By:
	/s/ Richard Gentilini

	Name:
	Dana W. Kammersgard
	 
	Name:
	Richard Gentilini

	Title:
	CEO
	 
	Title:
	Director, SWD Global Procurement

	Date:
	4-02-09
	 
	Date:
	6-10-09

Exhibit 10.5

EXHIBIT (B-6)

ADDITIONAL PRODUCT DESCRIPTION AND SPECIFICATIONS

The following statements of work ("SOWs") have been signed and finalized, and contain applicable Product descriptions and specifications.  These SOWs are made a part hereof by reference.

		
	1)
	[...***...].

		
	2)
	[...***...].

		
	3)
	[...***...].

		
	4)
	[...***...].

The parties agree to further amend this Exhibit for existing and/or follow on products as needed and as mutually agreed upon. As Statements of Work are finalized, they will be added to this Exhibit.

Detailed listings of Products with Product Numbers are set forth in the various pricing tables which have been attached to this Agreement as exhibits.

This Exhibit in no way alters or nullifies Amendment Three to the Product Purchase Agreement, effective August 25, 2008, which remains in full force and effect. The failure to list a SOW on this Exhibit, or anywhere else in the Agreement, does not in any way change the fact that all purchases by HP and its Eligible Purchasers from Supplier shall be governed by the terms of this Agreement, whether or not set forth in an Exhibit to this Agreement.

*** Confidential Treatment Requested

Exhibit 10.5

EXHIBIT (E-6)

[...***...] PRICING AND [...***...] PRICING

[...***...]
	
						
	HP PN
	Description
	CY Q1 '09
	CY Q2 '09
	CY Q3 '09
	CY Q4 '09

	[...***...]
	 
	 
	 
	 
	 

	[...***...]
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[...***...]
	
						
	HP PN
	Description
	CY Q1 '09
	CY Q2 '09
	CY Q3 '09
	CY Q4 '09

	[...***...]
	 
	 
	 
	 
	 

	[...***...]
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	[...***...]
	[...***...]
	[...***...]

	[...***...]
	 
	 
	 
	 
	 

	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]

	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]

	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]

*** Confidential Treatment Requested

Exhibit 10.5

	
						
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]

	[...***...]
	 
	 
	 
	 
	 

	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]

	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]

	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]

	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]

	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]

	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]

[...***...]:
[...***...]

[...***...]

*** Confidential Treatment Requested

Exhibit 10.5

EXHIBIT (I)

DISCONTINUANCE OF PRODUCT AND MANUFACTURING RIGHTS

		
	1.
	Discontinuance of Product.

		
	1.1
	Lifetime   Buy   Rights.    Unless otherwise agreed, Supplier may discontinue the manufacture or supply of any Product no earlier than [...***...] after date of first Delivery to HP of the Product. If thereafter Supplier determines to discontinue the manufacture or supply of the Product (a "Discontinued Product"), Supplier will give written notice to HP no less than [...***...] in advance of the last date the Discontinued Product can be ordered (the "Notice Period"). During the Notice Period, HP may (1) purchase from Supplier a commercially reasonable quantity of the Discontinued Product under the terms of this Exhibit I, and (2) manufacture and/or Support the Discontinued Product under the manufacturing rights granted in Section 1.3 of this Exhibit I.

		
	1.2
	Survival of Lifetime Buy Rights.  Supplier's obligations to provide lifetime buy rights as set forth in Section 1.1 [...***...] will continue and survive expiration or any termination of the Agreement for [...***...] after expiration or any termination of this Agreement, except for instances where HP terminates for convenience in which case they will not survive.  To be clear, the non-survival of the rights described here shall not affect any other rights that do survive termination of this Agreement even if based on HP's convenience such as, but not limited to, Supplier's obligation to provide Support and Spares after termination as described in Section 11.3 and Exhibit K. Notwithstanding any expiration or termination of this Agreement, Supplier may, at its discretion, provide lifetime buy rights as set forth in Section 1.1 for more than [...***...] following any such expiration or termination.

		
	1.3
	[...***...].

		
	1.3.1
	[...***...].

*** Confidential Treatment Requested

Exhibit 10.5

[...***...].

		
	1.3.2
	[...***...].

		
	1.3.3
	[...***...].

		
	1.4
	Supplier acknowledges that its obligations under Exhibit K, to provide Spares and associated services to repair in and out of warranty Spares, are not changed by this Exhibit I and that Supplier will continue to provide such Spares and services for Products sold to HP by Supplier (but not for Products that HP makes or has made for it under HP's right to manufacture) at pricing and for the Term of Availability agreed in Exhibit K.

*** Confidential Treatment Requested

Exhibit 10.5

EXHIBIT (K1-6)

TECHNICAL SUPPORT AND MAINTENANCE REQUIREMENTS

		
	1
	DEFINITIONS

In addition to the definitions set forth in the Agreement to which this exhibit is appended, the words below shall have the following meaning ascribed to them for the purposes of this Exhibit.  In the event there is a conflict of terms or definitions between the Agreement and this Exhibit, the terms contained herein shall have precedence only as they pertain to this Exhibit.

		
	1.1
	"Action Plan" means [...***...].

		
	1.2
	"Current Version" means that version of the Software which is currently qualified by HP and in production and generally available to Customers.   Examples: [...***...].

		
	1.3
	"HP Customer" means the entity to which Hewlett-Packard is obligated to provide Services for Product(s) under Service Agreement(s).

		
	1.4
	"Level 1 Support" [...***...].  Elevate to Level 2 as appropriate.

		
	1.5
	"Level 2 Support" [...***...].  Elevate to Level 3 as appropriate.

		
	1.6
	"Level 3 Support" [...***...].   Elevate to Supplier as needed for assistance.

		
	1.7
	"Level 4 Support" [...***...].

		
	1.8
	"Media" means material that is electronically encoded with the Software(s) binary data, Documentation and/or technical product information.

		
	1.9
	"Prior Version" means that HP qualified release of the Software that is one version (major or minor) removed from the Current Version. Examples: [...***...].

*** Confidential Treatment Requested

Exhibit 10.5

		
	1.10
	"Problem" means [...***...].

		
	1.11
	"Problem Resolution" means, [...***...]:

		
	1.11.1
	[...***...]; or

		
	1.11.2
	[...***...]; or

		
	1.11.3
	[...***...]; or

		
	1.11.4
	[...***...]; or

		
	1.11.5
	[...***...]; or

		
	1.11.6
	[...***...]; or

		
	1.11.7
	[...***...]; or

		
	1.11.8
	[...***...]; or

		
	1.11.9
	[...***...]; or

		
	1.11.10
	[...***...], or

		
	1.11.11
	[...***...].

		
	1.12
	"Software Information" means, [...***...].

		
	1.13
	"Supplier" shall include, when applicable, [...***...].

*** Confidential Treatment Requested

Exhibit 10.5

		
	1.14
	"Regions" means the three (3) groupings of countries where Hewlett-Packard does business (Americas, EMEA - Europe/Mid East/Africa, and AP/J - Asia Pacific/Japan).

		
	1.15
	"Revision" means any correction, modification, maintenance release, patch, bug fix, update, Upgrades, enhancement or new Version of the Software or Hardware.

		
	1.16
	"HP Services" means all services as provided by Hewlett-Packard Technology Services to its Customers under an HP Service Agreement related to the Products.

		
	1.17
	"HP Service Agreement(s)" means agreements between Hewlett-Packard and Customers for telephone support, rights to new Versions, and Update Services.

		
	1.18
	"Service Implementation Plan (SIP)" means [...***...].

		
	1.19
	"Survival Period" means [...***...].

		
	1.20
	"Update" means any new Version of the Software or Hardware.

		
	1.21
	"Version" means that software release identification scheme generally in the form of X.YY where X represents a major release or base level version, and YY represents a minor release level.

		
	2
	Severity Definitions and Response Requirements

Service requests to Supplier made by Hewlett-Packard will be handled in accordance with the following procedures and as may otherwise be specified in the Agreement.  Hewlett-Packard will provide [...***...] and Supplier shall provide [...***...].
Table 1 to this Exhibit summarizes the response requirements [...***...].
When   Hewlett-Packard   requires   backup   support   from   Supplier,   Hewlett-Packard   will   contact Supplier's service delivery organization that will accept responsibility for handling the call [...***...]. For the purposes of this exhibit, [...***...].

		
	2.1
	Severity 1 Definition

A Severity 1 problem [...***...].

		
	1.1.1
	[...***...]

[...***...].

*** Confidential Treatment Requested

Exhibit 10.5

		
	1.1.2
	[...***...]

[...***...].

		
	2.2
	Severity 2 Definition

A Severity 2 problem is [...***...].

		
	2.2.1
	[...***...]

[...***...].

		
	2.2.2
	[...***...]

[...***...].

		
	2.3
	Severity 3 Definition

A Severity 3 problem is [...***...].

		
	2.3.1
	[...***...]

[...***...].

		
	2.3.2
	[...***...]

[...***...].

*** Confidential Treatment Requested

Exhibit 10.5

		
	2.4
	Severity Level 4 Definition

"Severity 4" will be [...***...].

		
	2.4.1
	[...***...]

[...***...].

		
	2.4.2
	[...***...]

[...***...].

*** Confidential Treatment Requested

Exhibit 10.5

Table 1

Hewlett-Packard/Supplier Response Requirements

	
							
	Severity Level
	Supplier Response Requirements
	Joint Action Plan
	Status Updates
	Interim Fix Target*
	Resolution Target*
	Level of Effort

	1
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]

	2
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]

	3
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]
	[...***...]

	4
	[...***...]
	[...***...]
	[...***...]
	[...***...]

*- [...***...].

		
	3
	Additional Support

		
	3.1
	Contact Information.

Supplier will provide Supplier's point(s) of contact for Technical Support to HP as soon as practicable, but not more than [...***...] following the signing of this Agreement.

		
	3.2
	Product Materials.

Supplier will provide materials, including documentation, illustrations, and engineering updates/changes for the HP Product, as mutually agreed upon by the parties.  Supplier will provide these changes in a format mutually agreed upon by the parties.

*** Confidential Treatment Requested

Exhibit 10.5

		
	3.3
	Prompt Provision of Updates.

		
	3.3.1
	Subject to HP approval, Supplier will provide updates/replacements  for Software/Hardware, Maintenance Code, Documentation  and Support Tools if Supplier (i) implements updates/replacements  for its own similar products or (ii) if required to resolve Software and Hardware defects and keep Products current and functioning.

		
	3.3.2
	General Support.  Subject to HP approval, Supplier will provide (i) updates to Support Tools, (ii) new Support Tools, and (iii) access to technical bulletins, documentation, products fixes/enhancements and the like.  HP will have global access to any online resources available to Supplier's own support organization.

		
	3.4
	Software Support.

Supplier will support the Current Version of Software, [...***...].

		
	3.5
	Training.

Supplier will provide [...***...].

		
	3.6
	Failure Analysis.

Supplier will provide technical support for failure analysis [...***...].

		
	3.7
	HDD Support.

Supplier agrees to provide Level 4 support, as defined in this exhibit, for all hard disk drive (HDD) assemblies (including sleds and dongles) mutually approved for use in the enclosure products identified in exhibit B-6 but only in the following, limited manner: Supplier agrees to identify and resolve all quality and technical support issues related to the interoperability of the enclosure firmware and the qualified HDD assembly (including sleds and dongles) and HDD FW, including qualification and testing, as required, for those HDD assemblies that have been mutually approved for use.  Supplier shall have no support responsibilities with respect to the HDDs or the proper integration of the HDDs with the Products other than as aforementioned. Additionally Supplier agrees to identify and communicate any HDD hardware or other functional problems to HP so that HP may work with suppliers to help resolve the issue.

*** Confidential Treatment Requested

Exhibit 10.5

EXHIBIT M

TO PRODUCT PURCHASE AGREEMENT NO. PR002542-060507
BETWEEN HP AND DOT HILL SYSTEMS CORP.
DATED SEPTEMBER 10 2007

ASSURANCE OF SUPPLY AND FLEXIBILITY AGREEMENT

I.  Assurance of Supply Agreement.  [...***...]:

		
	1.
	[...***...].

		
	a.
	[...***...].

		
	b.
	[...***...]:

		
	i.
	[...***...]; and

		
	ii.
	[...***...]; and

		
	iii.
	[...***...].

		
	c.
	[...***...].

		
	d.
	[...***...].

		
	e.
	[...***...].

		
	f.
	[...***...]

*** Confidential Treatment Requested

Exhibit 10.5

[...***...].

		
	g.
	[...***...].

		
	2.
	Supplier Proposed Manufacturing Changes. [...***...]:

		
	a.
	[...***...];

		
	b.
	[...***...];

		
	c.
	[...***...];

		
	d.
	[...***...].

		
	3.
	Notice of Proposed Manufacturing Change.  [...***...].

		
	a.
	[...***...]:

		
	i.
	[...***...];

		
	ii.
	[...***...];

		
	iii.
	[...***...];

		
	iv.
	[...***...]; or

		
	v.
	[...***...],

[...***...]

*** Confidential Treatment Requested

Exhibit 10.5

[...***...].

		
	b.
	[...***...].

		
	c.
	[...***...].

		
	d.
	[...***...].

		
	e.
	[...***...].

		
	f.
	[...***...].

		
	4.
	Urgent Manufacturing Changes.  [...***...].

		
	5.
	Damages for Non-Delivery

[...***...]

*** Confidential Treatment Requested

Exhibit 10.5

[...***...].

		
	6.
	Assurance of Supply Recognition. [...***...].

II.    Flexibility Agreement. [...***...].

[...***...]:

		
	1.
	Liability period. [...***...].

		
	2.
	HP Liability. [...***...]:

		
	a.
	[...***...];

		
	b.
	[...***...];

		
	c.
	[...***...];

		
	d.
	[...***...];

		
	e.
	[...***...]; and

		
	g.
	[...***...]

*** Confidential Treatment Requested

Exhibit 10.5

[...***...].

[...***...].

		
	3.
	Supplier Flexibility. Supplier shall develop and implement internal processes to provide HP maximum flexibility and shall use reasonable efforts to maintain supply as set forth in the table below. The table below sets forth operating guidelines and is not a table of liability. HP's maximum percentage increase is not cumulative.

	
				
	Number of calendar days prior to scheduled demand dates
	HP's maximum %
increase (Upside flexibility). Percentage refers to
% of forecast for time period
	

HP's
maximum% decrease
	Comments

	 
	 
	 
	 

	[...***...]
	[...***...]
	[...***...]
	[...***...]

	 
	 
	 
	 

	[...***...]
	[...***...]
	[...***...]
	 

	 
	 
	 
	 

	[...***...]
	[...***...]
	[...***...]
	 

	 
	 
	 
	 

	[...***...]
	[...***...]
	[...***...]
	 

	 
	 
	 
	 

		
	a.
	[...***...].

		
	b.
	[...***...].

		
	c.
	[...***...].

		
	4.
	Supplier Managed Inventory.

*** Confidential Treatment Requested

Exhibit 10.5

		
	a.
	[...***...].

		
	b.
	[...***...].

		
	c.
	[...***...]:

		
	i)
	[...***...];

		
	ii)
	[...***...].

[...***...].

		
	d.
	[...***...]

		
	i)
	[...***...].

		
	ii)
	[...***...].

*** Confidential Treatment Requested

Exhibit 10.5

EXHIBIT (N)

QUALITY AND COMPENSATION

		
	1.
	Purpose of this Exhibit. Supplier's obligations under Section 7 (Warranties) ofthe Agreement to provide defect-free, conforming products to HP are primary and material obligations of Supplier, and are not in any way changed by this Exhibit N. The purpose of this Exhibit is to set forth HP requirements for compensation and additional corrective actions by Supplier in the event of failure of Product to conform to Section 7 (Warranties) as more fully described herein. The rights, remedies and obligations set forth in this Exhibit are in addition to, and are intended to supplement rights, remedies and obligations specified elsewhere in the Agreement and/or its Exhibits. Definitions for capitalized terms used in this Exhibit are to be found either where used in this Exhibit or in Section 6 of this Exhibit.

		
	2.
	Epidemic Failure. For a period of [...***...] after Delivery, Supplier represents and warrants all Products against Epidemic Failure.

		
	2.1
	"Epidemic Failure" means, [...***...]:

		
	2.1.1
	[...***...];

		
	2.1.2
	[...***...];

		
	2.1.3
	[...***...], or;

		
	2.1.4
	[...***...].

		
	2.2
	Any  failure  of Product  to  conform  to  Section 7 (Warranties)  constitutes  an occurrence  for purposes  of calculating Epidemic Failure.

*** Confidential Treatment Requested

Exhibit 10.5

		
	2.3
	If HP determines that an Epidemic Failure may occur, HP may require Supplier to provide additional engineering and technical services and take other appropriate action at Supplier's expense to prevent any such occurrence and mitigate foreseeable consequences.

		
	2.4
	Epidemic Failure Process. In the event HP or Supplier determines that there has been an Epidemic Failure, notice shall immediately be provided to the other party to resolve such situation, which shall at a minimum include the remedies set forth in this Exhibit. Supplier will provide HP a preliminary root cause analysis and proposed corrective action plan. HP will make available such information and assistance as may reasonably be required for Supplier to conduct its root cause analysis and propose corrective action.

		
	2.5
	Epidemic Failure Remedies. After joint review of all root cause analyses and the applicable corrective action plan ([...***...]), HP may determine, in its sole discretion, that the Epidemic Failure necessitates any individual action, or combination of, the following actions:

		
	2.5.1
	[...***...];

		
	2.5.2
	[...***...];

		
	2.5.3
	[...***...]; and/or

		
	2.5.4
	[...***...].

		
	2.6.
	HP may return affected Product to Supplier for correction, or HP may repair, rework or replace affected Product in the field, including affected Product in its reseller inventory and installed base. Supplier will provide credit, reshipment of corrected affected Product and/or replacement as indicated by HP. Within [...***...] days after completion of all recalls or retrofits, Supplier will reimburse [...***...] HP's actual out-of­ pocket losses, liabilities, costs and expenses reasonably incurred in responding to the Epidemic Failure, including, but not limited to, costs of any improvement or switch-over program, expenses of third parties and notification costs and return costs, cost of field recall, freight, labor cost, and rework; provided that HP will use commercially reasonable efforts to mitigate to the maximum extent feasible.

		
	3.
	Field Failure Metrics, Targets and Limits. To ensure that HP quality requirements are met, Supplier agrees to [...***...] comply with the applicable Failure Rate Metrics, Targets and Limits set forth in Table 1. HP may reasonably revise the Targets and Limits set forth in Table 1 annually.

*** Confidential Treatment Requested

Exhibit 10.5

Table 1: Failure Rate Metric Targets & Limits

	
			
	Metric
	Target
	Limit

	[...***...]
	[...***...]
	[...***...]

		
	3.1
	[...***...].

		
	4.
	DOA Process: DOA. Using the RMA Process mutually agreed by the parties, HP may return to Supplier for credit any proven Dead on Arrival (DOA) units within the first [...***...] after Delivery to HP. DOA units returned to Supplier from HP distribution centers will be returned via Supplier's specified carrier at Supplier's expense. A DOA is defined as one or more of the following issues: Wrong part in box, missing parts, physical damage incurred prior to Delivery, or non­ functional at installation.  For units that suffer from one or more of these issues prior to [...***...], but that are past the 

[...***...] DOA period, Supplier will use commercially reasonable efforts, on a case by case basis, to have its contract manufacturer treat such units as DOA.

		
	4.
	Engineering and Technical Services.  Supplier shall provide engineering and technical services on a continuous basis in order to maintain Failure rates within the agreed upon Field Failure Metric Limits.

*** Confidential Treatment Requested

Exhibit 10.5

		
	5.
	Corrective Action Plan and Compensation to HP.

		
	5.1
	Corrective Action Plan. Whenever the Field Failure Metric Targets or Limits are exceeded, Supplier will develop and take all actions necessary to implement a reasonable Corrective Action Plan as set forth in this Exhibit and as may be more fully detailed in the applicable commodity quality plan, if any.

		
	5.2
	Compensation. Supplier will [...***...].

		
	5.3
	[...***...]. Notwithstanding anything herein to the contrary, if a failure of Products constitutes both an Epidemic Failure described in section 2 and [...***...].

		
	6.
	Catastrophic Failure. HP reserves the right to implement a corrective action with Supplier in the event failure rates or specific failure occurrences indicate a potential Catastrophic Failure but have not yet met AFR or Epidemic Failure percentages. HP agrees to use reasonable efforts to mitigate the cost of the correction action.

		
	7.
	Unplanned Firmware Upgrades. In the event it is determined an unplanned firmware upgrade is needed to resolve an existing quality issue, and such upgrade is not part of the HP standard upgrade process, the Supplier shall bear the full costs of implementing such upgrade(s).

		
	8.
	HDD Sled Assembly (without HDD) and Dongle Boards. Supplier will warrant sled assemblies and dongle boards per the Terms of the Agreement and this Exhibit N. Upon request, Supplier will provide to HP manufacturing yield and quality data for the sled assemblies and dongle boards. Dot Hill may also be asked to provide failure analysis and technical support if required to support an HP factory or field quality issue.                                                  ·

		
	9.
	Definitions. In addition to terms defined where used in the body of this Exhibit, the following capitalized terms shall have the meanings set forth below when used in this Exhibit:

*** Confidential Treatment Requested

Exhibit 10.5

AFR. "AFR" means [...***...].

[...***...]

[...***...]
[...***...]

ARR. For the purpose of this exhibit, ARR means [...***...].

[...***...].
[...***...].

[...***...]

[...***...]
[...***...]

Catastrophic Failures. Catastrophic Failures include but are not limited to [...***...].

CCFR. For the purpose of this exhibit, CCFR means [...***...].

[...***...].

*** Confidential Treatment Requested

Exhibit 10.5

[...***...].

[...***...].

[...***...]
[...***...] 
[...***...]
[...***...]
[...***...]
Corrective Action Plan. This term refers to an HP-approved plan developed by Supplier to remedy a Failure.  [...***...].

Eligible Purchasers. This term shall have the same meaning as it does in the Agreement to which this Exhibit attached; except, however, that [...***...].

Failure. A Failure is [...***...]

*** Confidential Treatment Requested

Exhibit 10.5

[...***...].

[...***...].

[...***...].

Product Recall. The term "Product Recall" means [...***...].

Service Return. This term means [...***...].

*** Confidential Treatment Requested

Exhibit 10.5

EXHIBIT (U)

TRAINING

		
	1.
	Technical Training.  [...***...].

		
	2.
	Presales Training.  [...***...].

		
	3.
	HP's Rights in Training Classes and Materials. [...***...].

		
	4.
	[...***...].

*** Confidential Treatment Requested

Exhibit 10.5

Exhibit X

Equipment Management and Remarketing

		
	1.
	Definitions. The following terms will have the meanings specified below:

		
	a.
	"EMR" shall mean [...***...].

		
	b.
	"Refurbish" or "Refurbishment" is defined to mean [...***...].

		
	c.
	"Qualified Supplier Components" is defined as [...***...].

		
	2.
	Support. Supplier hereby agrees to the following:

		
	A.
	[...***...].

		
	B.
	[...***...].

*** Confidential Treatment Requested

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00234-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00234-of-00352.parquet"}]]