Document:

exv10w1

Exhibit 10.1

Dot Hill Systems PPA: PRO02542-060507

***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.

PRODUCT PURCHASE AGREEMENT

Dot Hill Systems

Agreement # PRO02542-060507

HP Confidential

 

 

Dot Hill Systems PPA: PRO02542-060507

TABLE OF CONTENTS

	 	 	 	 	 
	1. Scope of Agreement
	 	 	1	 
	1.1 Definitions
	 	 	1	 
	1.2 General
	 	 	1	 
	1.3 Eligible Purchasers
	 	 	1	 
	1.4 Term of Agreement
	 	 	1	 
	1.5 Sale and Purchase
	 	 	1	 
	1.6 Committed Volume
	 	 	1	 
	2. Ordering and Shipment of Product. Ordering and Shipment of Product terms are set forth in
Exhibit D (Ordering and Shipment of Product)
	 	 	1	 
	3. Prices and Payment Terms. Prices, payment terms and other pricing terms will be as follows:
	 	 	1	 
	3.1 Prices
	 	 	1	 
	3.2 Payment Terms
	 	 	1	 
	3.3 Discounts and Rebates
	 	 	1	 
	3.4 Sales Tax and Duties
	 	 	1	 
	3.5 Financial Condition
	 	 	1	 
	3.6 Invoices
	 	 	1	 
	4. Competitive Pricing
	 	 	1	 
	4.1 General. Supplier will maintain competitive pricing of Products for HP throughout the Term
	 	 	2	 
	4.2 Competitive Offerings
	 	 	2	 
	4.3 [...***...] Pricing
	 	 	2	 
	4.4 New Product Offerings
	 	 	2	 
	5. Inspection and Audit Rights
	 	 	2	 
	5.1 Inspection and Audit Rights
	 	 	2	 
	6. Engineering Process, Design Changes and Quality
	 	 	3	 
	6.1 Quality
	 	 	3	 
	7. Warranties
	 	 	3	 
	7.1 Product General Warranties
	 	 	3	 
	7.2 Warranty Periods
	 	 	3	 
	8. Epidemic Failure Warranty
	 	 	4	 
	9. Safety
	 	 	4	 
	10. Product Returns; Non-Conforming Product
	 	 	4	 
	11. Support; Other Services
	 	 	4	 
	12. Business Recovery Plan; Loss Control
	 	 	5	 
	13. Confidential Information
	 	 	6	 
	14. Marketing and Licenses
	 	 	1	 
	14.4 Software License
	 	 	1	 
	15. Intellectual Property Ownership Warranty and Indemnification
	 	 	2	 
	15.1 Intellectual Property Ownership
	 	 	2	 
	16. Delaying Causes
	 	 	1	 
	17. Events of Default and Remedies
	 	 	1	 
	18. General Indemnity
	 	 	3	 
	18. General Indemnity
	 	 	3	 
	19. Limitation of Liability
	 	 	4	 
	20. Termination
	 	 	5	 
	21. Additional Obligations of Supplier
	 	 	5	 
	21.5 Social and Environmental Responsibility
	 	 	1	 
	21.6 Product Content
	 	 	2	 
	22. Miscellaneous
	 	 	2	 
	22.5 Assignment
	 	 	3	 
	22.6 No Waiver
	 	 	3	 
	22.14 Disputes/Escalation Process
	 	 	5	 

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

EXHIBIT INDEX

	 	 	 	 	 
	1. Exhibit A — Definitions
	 	 	20-24	 
	 
	 	 	 	 
	2. Exhibit B — Product Description and Specifications
	 	 	25	 
	 
	 	 	 	 
	3. Exhibit C — Eligible Purchasers Under this Agreement
	 	 	26-27	 
	 
	 	 	 	 
	4. Exhibit D — Ordering and Shipment of Product
	 	 	28-29	 
	 
	 	 	 	 
	5. Exhibit E — Pricing
	 	 	30	 
	 
	 	 	 	 
	6. Exhibit F — Engineering Process or Design Changes
	 	 	31	 
	 
	 	 	 	 
	7. Exhibit G — Quality
	 	 	32	 
	 
	 	 	 	 
	8. Exhibit H — Product Returns; Non-Conforming Product
	 	 	33	 
	 
	 	 	 	 
	9. Exhibit I — Manufacturing Rights
	 	 	34	 
	 
	 	 	 	 
	10. Exhibit J — Recipients for Notices and Relationship Managers
	 	 	35	 
	 
	 	 	 	 
	11. Exhibit K — Service and Support Requirements
	 	 	36	 
	 
	 	 	 	 
	12. Exhibit L — Third Party and Open Source Software Components
	 	 	37	 
	 
	 	 	 	 
	13. Exhibit M — Flexibility Agreement
	 	 	38	 
	 
	 	 	 	 
	14. Exhibit N — Quality Compensation Exhibit
	 	 	39-42	 
	 
	 	 	 	 
	15. Exhibit O — Governmental Compliance
	 	 	43	 
	 
	 	 	 	 
	16. Exhibit P — Insurance
	 	 	44	 
	 
	 	 	 	 
	17. Exhibit Q — Industrial Design of the Product
	 	 	45	 

HP Confidential

 

 

 

Dot Hill Systems PPA: PRO02542-060507

PRODUCT PURCHASE AGREEMENT

AGREEMENT NO. [INSERT # ]

This PRODUCT PURCHASE AGREEMENT (“Agreement”) is entered into as of the 10th day
of September, 2007 (the “Effective Date”) by and between Hewlett-Packard Company, a Delaware
corporation having its principal place of business located at 3000 Hanover Street, Palo Alto,
California 94304 (“HP”), and Dot Hill Systems Corp.(“Supplier”), organized and operating
under the laws of Delaware with its principal place of business at 2200 Faraday Avenue, Suite
100, Carlsbad, CA 92008, HP and Supplier are collectively referred to herein as the
“Parties”.

RECITALS

WHEREAS, Supplier wishes to sell, and HP wishes to purchase, goods or services, or both, upon
the terms and conditions hereinafter provided.

NOW, THEREFORE, in consideration of the mutual promises and covenants herein contained,
Supplier and HP hereby agree as follows:

	 	1.	 	Scope of Agreement

	 	1.1	 	Definitions. Definitions for capitalized terms used in
this Agreement are set forth either in the main body of this Agreement where used
or in Exhibit A (Definitions).
	 
	 	1.2	 	General. The goods to be provided under this Agreement are
set forth in Exhibit B (Product Description and Specifications) (the “Goods”).
Services may be provided under this Agreement (the “Services”) in connection with
the furnishing of Goods or as primary performance. As used in this Agreement,
unless the context otherwise requires, “Product” refers interchangeably to any
Goods or any Services, or both in combination, and “Product” includes both
singular and plural forms. Product provided by Supplier to HP and Eligible
Purchasers during the Term will be furnished under this Agreement and will be
governed by and subject to this Agreement in all cases.
	 
	 	1.3	 	Eligible Purchasers. The entities eligible to purchase
under this Agreement are listed in Exhibit C (Eligible Purchasers Under This
Agreement).
	 
	 	1.4	 	Term of Agreement. This Agreement will be effective upon
execution by the Parties and covers a period (the “Term”) which commences as of
the Effective Date and continues for one (1) year and thereafter continues unless
terminated earlier under the terms of this Agreement, provided that in no event
will this Agreement continue longer than three (3) years from the Effective Date
unless extended or renewed upon mutual written agreement of the Parties.
	 
	 	1.5	 	Sale and Purchase. During the Term, Supplier will produce
(or procure) and sell to HP, and HP will order and purchase from Supplier, the
item(s) and volume of Product that HP may order and Supplier may agree to supply
from time to time. By mutual written agreement the Parties may add or delete
Products from coverage under this Agreement.
	 
	 	1.6	 	Committed Volume. Nothing in this Agreement obligates HP
to purchase any minimum quantity of Product. This Agreement sets forth the terms
and conditions during the Term which govern Orders and Acknowledgments for
Product. Any Order or Acknowledgment or other legally binding volume commitment
for Product which is entered during the Term will remain governed by this
Agreement notwithstanding expiration or termination of this Agreement for any
reason. Unless otherwise agreed, if HP fails, for any reason or no reason, to
purchase committed volume, Supplier’s sole and exclusive remedy will be to give
HP written notice of termination except that HP will have up to
[...***...]
following receipt of Supplier’s notice of termination within which to purchase
Product at the then current volume rate and pricing.

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

	 	1.6.1	 	Unless agreed to otherwise in Exhibit M (Flexibility Agreement), in
no event will HP be liable for any monetary damages for failure to
purchase committed volume; provided that HP will remain obligated to pay
amounts due and owing under Sections 3.2 (Payment Terms) and 3.4 (Sales
Taxes and Duties). Unless otherwise agreed, if Supplier is unable, for
any reason or no reason, to furnish or delays furnishing committed
volume, HP may purchase such committed volume, or any part thereof, from
other source(s), and such purchase(s) will be aggregated with purchases
hereunder for purposes of determining HP’s compliance with this
Agreement.

	 	2.	 	Ordering and Shipment of Product. Ordering and Shipment of Product terms are set
forth in Exhibit D (Ordering and Shipment of Product).
	 
	 	3.	 	Prices and Payment Terms. Prices, payment terms and other pricing terms will be as
follows:

	 	3.1	 	Prices. Prices for Product are as set forth in Exhibit E
(Pricing).
	 
	 	3.2	 	Payment Terms. Payments will be issued [...***...] after
receipt of a valid invoice or receipt of the Goods or Services, whichever is
later. No invoice may be dated or submitted earlier than date of Delivery. Any
prompt payment discount will be calculated from the same date. Payment will be
in U.S. currency unless otherwise stated. [...***...]
	 
	 	3.3	 	Discounts and Rebates. Discounts and rebates may be
negotiated by the Parties from time to time during the Term.
	 
	 	3.4	 	Sales Tax and Duties. Unless otherwise agreed, prices are
exclusive of all taxes or duties (other than taxes levied on Supplier’s income)
that Supplier may be required to collect or pay upon purchase, sale or shipment
of Product. Any such taxes or duties must appear as a separate item on
Supplier’s invoice. [...***...] Where
applicable, HP will provide Supplier with an exemption resale certificate.
	 
	 	3.5	 	Financial Condition. Except for HP Subsidiaries and HP
Affiliates, any credit line extended to an Eligible Purchaser will be subject to
Supplier’s normal credit standards and approval procedures in effect from time to
time during the Term.

	 	3.5.1	 	HP may review Supplier’s performance capability under
this Agreement at HP’s discretion, and Supplier will make available to HP,
upon written request, information as may be reasonable, customary and
sufficient to show Supplier’s then current performance capability,
including financial condition. If the financial condition of either Party
materially and adversely changes from its financial condition as of the
date of this Agreement, then the other Party will have the right to demand
adequate assurance of due performance.

	 	3.6	 	Invoices. HP may require Supplier to submit invoices
electronically, at Supplier’s sole expense, in which case Supplier is thereby
authorized to, and will, transmit the required information in electronic format.
HP may utilize a third party, at HP’s sole discretion, to facilitate HP’s order
and invoicing processes that may entail disclosure of information about the
Supplier, this Agreement, and the receipt and processing of any purchase order,
invoice and related documentation.
	 
	 	3.7	 	Right of Offset. Either party, at its option, shall have the right
to setoff or deduct from the other party’s invoice any credits, refunds or claims
of any kind, provided that: (i) the party subject to the setoff or deduction has
had forty-five (45) days from notice of the amounts due to make payment but fails
to do so, and; (ii) the party subject to the setoff or deduction has confirmed,
in writing or by email, the amount and the validity of the credit, refund or
claim.

	 	4.	 	Competitive Pricing.

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

     4.1 General. Supplier will maintain competitive pricing of Products for HP
throughout the Term.

     4.2 Competitive Offerings. At any time during the Term, unless
otherwise agreed, HP may notify Supplier that HP has received a bona fide offer
to deliver Product, or a substantial equivalent, under written contract in
approximately comparable volume, mix, service level and duration of committed
sale as the undelivered or unperformed portion of any committed volume under this
Agreement at pricing lower than pricing in effect under this Agreement or at
lower total cost to HP. If [...***...] of the date of such notice
Supplier does not reduce its pricing sufficiently to meet the terms of such offer
and advise HP of such reduction, HP may purchase from such offer any or all of
the undelivered or unperformed portion of any committed volume under this
Agreement. The quantity so purchased will be deleted from any HP purchase
requirements. Anything in the foregoing to the contrary notwithstanding, this
provision will not apply to [...***...]

     4.3 [...***...] Pricing. At any time during the Term, unless
otherwise agreed, [...***...], Supplier will [...***...], unless prohibited by Applicable
Law, [...***...].

     4.4 New Product Offerings. At any time during the Term HP may
notify Supplier that HP has received a bona fide offer to deliver goods which
have superior technical specifications or superior attributes or capabilities as
compared with Product, and to the extent it deems itself able to do so, HP may
provide specifics so that Supplier may revise specifications for Product or
otherwise offer such substitute goods to HP hereunder. If within a commercially
reasonable time after such notice Supplier is unable to sell or fails to offer to
sell HP Product with revised specifications (which are acceptable to HP) or such
substitute goods at reasonable pricing and otherwise meeting the terms of such
offer, HP may purchase from such offeror any or all of the undelivered or
unperformed portion of any committed volume under this Agreement. The quantity
so purchased will be deleted from HP’s purchase requirements.

	 	5.	 	Inspection and Audit Rights.

     5.1 Inspection and Audit Rights. HP, at its expense, may
engage an independent third party (“Auditor”) to inspect and audit, on an annual
basis, or more frequently if Supplier has breached any of its obligations under
this Agreement, Supplier’s books and records relating to Supplier’s performance
of its obligations under this Section 5.1 and that are reasonably required to
determine Supplier’s compliance with Supplier’s obligations under this Section
5.1.

     5.1.1 HP will provide Supplier reasonable notice, not less
than [...***...] in advance, of such inspection and audit.

     5.1.2 Supplier will refund the amount of any overcharge or
other discrepancy as may reasonably be determined by such inspection and
audit, and if the final report of such inspection and audit reveals an
overcharge or other discrepancy of five percent (5%) or more during the
relevant time period, Supplier will also reimburse HP for all reasonable
costs of the inspection and audit.

     5.1.3 Supplier will cooperate fully with all such inspection
and audit requests; provided that (i) in no event will material containing
any information that is protected under court order or the written
directions of regulatory authorities be required to be disclosed and (ii)
material may be redacted by Supplier to the extent necessary to protect
against any invasion of personal privacy.

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

     5.1.4 Any such Auditor will execute a confidentiality
agreement in favor of Supplier containing terms no less restrictive than
those set forth in Section 13 of this Agreement prior to receipt of any of
the information referenced above; provided that such Auditor may disclose
such information only to HP and Supplier; and provided further that (i) the
identity of Supplier’s other customers, details of specific customer
transactions and actual costs incurred by Supplier will not be disclosed to
HP and (ii) aggregated pricing, aggregate costs and other information not
identifiable to an individual or source may be disclosed to HP. HP’s right
of inspection and audit under this Section 5 (Audit Rights) will continue
and survive for [...***...] after expiration or any termination of this
Agreement.

	 	6.	 	Engineering Process, Design Changes and Quality. Terms pertaining to engineering
process and/or design changes for the Product are set forth in Exhibit F (Engineering
Process or Design Changes).

	 	6.1	 	Quality. Supplier will maintain the quality system
specified in Exhibit G (Quality) of this Agreement.

	 	7.	 	Warranties.

	 	7.1	 	Product General Warranties. Supplier represents and
warrants that all Product will:

	 	7.1.1	 	Be manufactured, processed, and assembled by Supplier
or Supplier’s authorized Subcontractors.
	 
	 	7.1.2	 	Conform to Specifications, including without
limitation, HP’s General Specification for the Environment.
	 
	 	7.1.3	 	Be new,
	 
	 	7.1.4	 	Contain first-quality components, raw materials and parts.
	 
	 	7.1.5	 	Be free from defects in design, material and workmanship.
	 
	 	7.1.6	 	Be free and clear of all liens, encumbrances,
restrictions, and other claims against title or ownership.
	 
	 	7.1.7	 	Comply with the intellectual property warranty terms
set forth in Section 15 (Intellectual Property Ownership Warranty and
Indemnification).

	 	7.2	 	Warranty Periods.

	 	7.2.1	 	All warranties set forth in Section 7.1 will survive
any inspection, delivery, acceptance or payment by HP.
	 
	 	7.2.2	 	The warranties set forth in sub-sections 7.1.2 and
7.1.5 are effective upon Delivery, are continuing, and will remain in
effect for and expire [...***...] following Supplier’s delivery of the Product
(“Product Warranty Period”).
	 
	 	7.2.3	 	The warranties set forth in Sections 7.1.1, 7.1.3,
7.1.4 and 7.1.6 are made and effective at Delivery.

	 	7.3	 	Services and Support Warranty. Supplier warrants that all
Services and Support will be provided in a professional and workmanlike manner by
competent, experienced personnel possessing suitable expertise in the subject
matter.
	 
	 	7.4	 	[...***...] Warranty. Supplier warrants that Product
[...***...].

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

	 	7.5	 	Compliance with Applicable Law. Supplier warrants that it
will comply with all Applicable Law in its performance under this Agreement.
	 
	 	7.6	 	Warranty Exclusions. Except for Sections 7.1.6 and 7.1.7,
the warranties set forth in this Section 7 will not apply to any Product to the
extent such Product does not function property as a result of: (i) has been
improperly installed, repaired, altered or otherwise modified (other than by
Supplier or Supplier’s Subcontractors), (ii) has been subjected to misuse, abuse,
negligence or accident, (other than by Supplier or Supplier’s Subcontractors).
	 
	 	7.7	 	Warranty Remedies. If, during the Product Warranty Period,
Products are found to breach any warranty specified in this Agreement, then in
addition to any other remedies expressly provided for in this Agreement, HP may
return Products to Supplier [...***...] for repair or replacement (in
Supplier’s discretion), or if neither alternative is available on commercially
reasonable terms, credit. Any Product corrected or furnished in replacement
shall, from the date of delivery of those replacement Products, be subject to the
provisions of this Sub-Section and Section 7 for [...***...] from the date of
delivery or the remaining period of the original Product Warranty Period,
whichever is longer. The remedy set forth in this section 7.7 shall be the sole
and exclusive remedy for a breach of the warranties set forth herein.
	 
	 	7.8	 	Disclaimer of Warranties. EXCEPT AS EXPLICITLY STATED
HEREIN, THERE ARE NO WARRANTIES, EXPRESS. IMPLIED OR OTHERWISE, PROVIDED OR MADE,
AND ALL PRODUCTS, SERVICES OR OTHER ITEMS ARE PROVIDED “AS IS” AND WITHOUT ANY
WARRANTIES. SUPPLIER HEREBY DISCLAIMS ALL IMPLIED WARRANTIES, INCLUDING, WITHOUT
LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE AND NON-INFRINGEMENT OF THIRD PARTY RIGHTS.

	 	8.	 	Epidemic Failure Warranty. Supplier also represents and warrants that during the
Product Warranty Period, all Product will comply with the terms of the warranty against
Epidemic Failure as set forth in Exhibit N (Quality Compensation). In the event that
Supplier breaches this warranty, HP shall have the remedies set forth in Exhibit N
(Quality and Compensation), in addition to any other remedies available under this
Agreement.
	 
	 	9.	 	Safety. If the Goods supplied hereunder, or Services performed hereunder,
involve any risk of injury or death to persons, or damage to property, Supplier shall
provide notice to the appropriate individuals identified in Exhibit J (Recipients for
Notices) and follow the procedures set forth in Section 4 of Exhibit F (Engineering
Process or Design Changes), as well as any other applicable provisions in this
Agreement. Supplier shall also provide HP with a written description of the nature and
extent of such risk, including a description of any precautions which should be taken to
minimize risk.
	 
	 	10.	 	Product Returns; Non-Conforming Product. Terms pertaining to product returns
and/or non-conforming Product are set forth in Exhibit H (Product Returns;
Non-Conforming Product).
	 
	 	11.	 	Support; Other Services.

	 	11.1	 	General. Supplier will maintain such number of qualified
personnel and do all that is necessary to satisfy the Support and service level
obligation set forth in Exhibit K (Service and Support Requirements).
	 
	 	11.2	 	HP Property. HP may loan to Supplier HP Property solely
for use in providing Services, Support or in Supplier’s manufacturing, testing or
adapting Product. All HP Property will be segregated from Supplier’s property
and identified as the sole property of HP. HP Property may not be transferred,
assigned, loaned or otherwise encumbered by Supplier in any way. HP Property may
be loaned to third parties for fulfillment of Supplier’s obligations hereunder
only upon HP’s prior written consent, provided that Supplier assumes all
responsibility and liability for the HP Property, as set forth herein, while in
the possession of such third parties. Supplier will return, at its expense, HP
Property in good condition, reasonable wear and tear excepted, upon HP’s request
or in all events

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

	 	 	 	upon termination or expiration of this Agreement. Prior to HP Property being
loaned to Supplier, Supplier will execute HP’s standard Equipment Loan
Agreement.
	 
	 	11.3	 	Survival of Support Obligations. Unless otherwise stated
in Exhibit K (Service and Support Requirements), Supplier’s obligations to
provide Support will continue throughout the Term and for [...***...] after the last
Delivery of Product under this Agreement, even if this Agreement is terminated or
expires.

	 	11.3.1	 	Supplier may not discontinue Support for Product for which manufacture or
supply is discontinued in accordance with Exhibit I (Discontinuance of
Product and Manufacturing Rights). In addition, if HP issues notice to
Supplier that HP is ending the life of a Product, Supplier must continue to
provide Support pursuant to this section.
	 
	 	11.3.2	 	In the event of any expiration or termination of this Agreement Supplier
may [...***...].

	 	11.4	 	Supplier Support of Third Parties. Supplier may
independently offer and provide maintenance and support services to third
parties, [...***...].

	 	12.	 	Business Recovery Plan; Loss Control

	 	12.1	 	Business Recovery Plan; Loss Control. Supplier will
develop and keep current a formal Business Continuity Plan (“BRP”) that details
Supplier’s strategies for response to and recovery from a broad spectrum of
potential physical or financial disasters that could disrupt operations and
timely delivery of Product or Services required pursuant to this Agreement. Upon
request, Supplier will make its Business Continuity Plan available to HP or its
designated representative for review.
	 
	 	12.2	 	Loss Control. Supplier will be responsible for maintaining
its facilities, the Hubs to which Supplier may ship Products, Supplier Managed
Inventory (“SMI”) and all warehouse and storage facilities and operations (except
HP Warehouses) in accordance with applicable and prudent safety, security, and
fire protection standards and Supplier’s BRP. Supplier will allow HP and its
designated representative to perform on-site audits of such facilities and
operations and will cooperate in the resolution of recommendations for
improvement.
	 
	 	12.3	 	Production [...***...]. If, for some reason, [...***...], Supplier
[...***...].
	 
	 	 	 	Notwithstanding the foregoing, and regardless as to whether [...***...] Supplier
hereby agrees to:
	 
	 	 	 	[...***...]

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

	 	 	 	[...***...]

	 	13.	 	Confidential Information.

	 	13.1	 	Confidential Information. During the Term, either Party
may provide or disclose information that is designated as “Confidential
Information” (“Discloser”) to the other Party (“Recipient”).

	 	13.1.1	 	Confidential Information may include, but is not limited to, information
or data concerning the Discloser’s products or product plans, business
operations, strategies, customers and related business information that is
marked as confidential or, if disclosed orally, is memorialized in a
writing within ten (10) business days of such disclosure.
	 
	 	13.1.2	 	Confidential Information shall include without limitation, each Party’s
business plans, roadmaps, volume data, technical data, and Specifications,
irrespective of any lack of confidentiality marking.
	 
	 	13.1.3	 	The Recipient shall protect, and will ensure its employees and
subcontractors protect, such Confidential Information by using the same
degree of care (but no less than a reasonable degree of care) to prevent
the unauthorized use, dissemination, disclosure or publication of such
Confidential Information of a like nature.
	 
	 	13.1.4	 	The Recipient may disclose the Confidential Information to only those
employees and subcontractors who have a need to know and who are under an
obligation of confidentiality at least as restrictive as that contained in
this section.
	 
	 	13.1.5	 	Confidential Information of a Party may be used only for purposes of
exercising and fulfilling the Parties’ respective rights and obligations
under this Agreement. Each Recipient may reassign its employees who have
had access to such Confidential Information. If a Recipient or any of its
Affiliates is requested or required by subpoena, court order, or similar
process or applicable governmental regulation to disclose any Confidential
Information, the Parties agree that the Recipient will provide the
Discloser with

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

	 	 	 	prompt notice of such request or obligation so that the Discloser may
seek an appropriate protective order or procedure if it elects to do so.
	 
	 	13.1.6	 	Each Party’s obligation under this Section 13.1 with respect to
Confidential Information shall expire three (3) years from the date of
disclosure except for Technical Information or other technical or product
trade secret information, which will expire only upon the existence of one
of the exclusions, set forth below.
	 
	 	13.1.7	 	Exclusions. The foregoing confidentiality obligations will not
apply to any information that (a) is known by the Recipient prior to
disclosure as evidenced by tangible records, (b) was developed by the
Recipient prior to disclosure or is subsequently developed independently
and without reference to the disclosure, (c) is or becomes publicly
available through no fault of the Recipient, (d) is rightfully received
from a third party with no duty of confidentiality, (e) is disclosed by the
Recipient with the Discloser’s written approval or (f) is disclosed under
operation of law.
	 
	 	13.1.8	 	Existing Confidential Disclosure Agreements. The Parties agree
that this Section 13 is intended to supplement any existing confidential
disclosure agreements that are in effect as of the Effective Date of this
Agreement.

	 	13.2	 	No Publication. Supplier shall not publicize or disclose
the terms or existence of this Agreement, nor shall Supplier use the name(s),
trademark(s), or trade name(s) of HP, HP Subsidiaries or HP Affiliates, except as
follows: (i) With the prior written consent of HP; or (ii) as may otherwise be
required by law. HP may impose, as a condition of its consent, any restrictions
which HP deems appropriate, in its sole discretion. Supplier shall provide ten
(10) days advance written notice to HP prior to disclosure and provide HP with
the proposed text and context of the disclosure.

	 	14.	 	Marketing and Licenses

	 	14.1	 	Marketing Authority. HP will have the authority worldwide
to market Product and HP Products containing Product to the extent it deems
appropriate. Nothing in this Agreement precludes HP from independently
developing, purchasing, licensing or marketing any product which performs the
same or similar function as Product. HP will have the right to use its own
business and license terms for all marketing and distribution of Product and HP
Products.
	 
	 	14.2	 	No Rights in Marks. Except as otherwise set forth in
Section 14.3 (Private Labeling), nothing in this Agreement grants either Party
any rights in the Marks of the other Party; provided that HP may use the name of
Supplier and the name of any Product in advertising and marketing Product or HP
Products.
	 
	 	14.3	 	Private Labeling. If during the Term HP requests Supplier
to produce HP private label versions of Product, Supplier will ensure that
Product contains HP Marks, serial number format and packaging as specified by HP
and conforms to HP specifications for external appearance. Supplier will make
commercially reasonable efforts to fulfill such request, as long as there is no
material change in form or dimensions of Product. [...***...] Except as provided herein, Supplier will have no other
right or license in any HP Marks.
	 
	 	14.4	 	Software License.

	 	14.4.1	 	If Product includes Software, then subject to the terms and conditions of
this Agreement, Supplier hereby grants to HP, a nonexclusive, worldwide,
fully paid-up, upon HP’s payment to Suppliers of all applicable fees and
royalties for each Product, license to use, reproduce, for archival
purposes only, and distribute the Software solely as integrated with
Product or HP Products. These rights will extend to HP Subsidiaries,
Affiliates and third party channels of distribution for those Products that
such entities acquire from Supplier in their capacity as Eligible
Purchasers. The rights granted herein include the right to use and

HP Confidential

***Confidential Treatment Requested

 

 

 

Dot Hill Systems PPA: PRO02542-060507

	 	 	 	distribute updates to such Software directly with the Product or
indirectly (without the Product) to customers of the HP Product.
	 
	 	14.4.2	 	If any Software is licensed from a third party or subject to a third
party license (including, without limitation, open source software),
Supplier shall identify each software component and identify the
corresponding third party license in Exhibit L (Third Party and Open Source
Software Components).
	 
	 	14.4.3	 	If any Software is subject to a license which requires the distribution
of source code (e.g., GPL/ LGPL licenses), Supplier agrees to provide HP
with all such source code.

	 	14.5	 	Documentation License. For purposes of this Agreement,
Supplier hereby grants HP a non-exclusive, perpetual, irrevocable, worldwide
fully paid-up license to use, reproduce, and distribute, in connection with
distribution or sale of HP Products and prepare derivative works in HP’s name all
Documentation furnished by Supplier under this Agreement. HP may reproduce such
Documentation without Supplier’s logo or other identification of source, subject
to affixing copyright notices to all copies of Documentation that attribute the
ownership rights in such Documentation to Supplier and its licensors. These
rights with respect to the Documentation will extend to Eligible Purchasers and,
to the extent related to distribution or sale of HP Products, to HP Subsidiaries,
Affiliates and third party channels of distribution as may be authorized by HP
and solely in their capacity as an Eligible Purchaser of Products under this
Agreement.

	 	15.	 	Intellectual Property Ownership Warranty and Indemnification

	 	15.1	 	Intellectual Property Ownership.

	 	15.1.1	 	Each Party will maintain all right, title, and interest in and to its own
Pre-Existing Intellectual Property irrespective of any disclosure of such
Pre-Existing Intellectual Property to the other party, subject to any
licenses granted herein.
	 
	 	15.1.2	 	Notwithstanding anything to the contrary in this Agreement, there is no
assignment of any of HP’s Intellectual Property Rights to Supplier or
Supplier’s Intellectual Property Rights to HP.
	 
	 	15.1.3	 	Industrial Design. The Parties agree that HP owns all right,
title, and interest in and to the Developed Materials and any derivatives,
improvements or modifications thereto and any Intellectual Property Rights
related to any and all of the above. “Developed Materials” means the
Industrial Design of the Product as identified in Exhibit Q. Supplier
warrants that Supplier can assign to HP all right, title and interest in
and to the Developed Materials to HP. Supplier hereby irrevocably
transfers, conveys and assigns to HP all of its right, title and interest
in the Developed Materials to HP. To the extent permitted by law, Supplier
waives any moral rights, such as the right to be named as author, the right
to modify, the right to prevent mutilation and the right to prevent
commercial exploitation, whether arising under the Berne Convention or
otherwise. Supplier will sign any necessary documents and will assist HP,
at HP’s expense, in preparing and executing any documents necessary for HP
to obtain protection for the Developed Materials on a worldwide basis. All
works of authorship included in the Developed Materials shall bear the
following copyright notice: © Copyright 2006 [INSERT YEAR OF ACTUAL
PUBLICATION.] Hewlett-Packard Development Company, L.P.
	 
	 	15.1.4	 	Tools. If HP pays the Supplier to produce any Tools, the Parties
agree that HP owns all right, title, and interest in and to the Tools and
any derivatives, improvements or modifications thereto and any Intellectual
Property Rights related to any and all of the above. Supplier warrants
that Supplier can assign to HP all right, title and interest in and to the
Tools. Supplier hereby irrevocably transfers, conveys and assigns to HP
all of its right, title and interest in the Tools to HP. To the extent
permitted by law, Supplier waives any

HP Confidential

 

 

 

Dot Hill Systems PPA: PRO02542-060507

	 	 	 	moral rights, such as the right to prevent mutilation and the right to
prevent commercial exploitation, whether arising under the Berne
Convention or otherwise. Supplier will sign any necessary documents and
will assist HP, at HP’s expense, in preparing and executing any documents
necessary for HP to obtain protection for the Tools on a worldwide basis.
All works of authorship included in the Tools shall bear the following
copyright notice: © Copyright 2006 [INSERT YEAR OF ACTUAL PUBLICATION.]
Hewlett-Packard Development Company, L.P.
	 
	 	15.1.5	 	Products. The Parties agree that if Supplier creates any
derivatives, improvements or modifications to the Products and/or
Documentation, ownership of said derivatives, improvements or modifications
[...***...].

	 	15.2	 	Intellectual Property Warranties. Supplier represents and
warrants with regard to the Product including Software and Documentation, that:

	 	15.2.1	 	Supplier will own or have all the necessary copyright licenses for HP to
fully exploit the Product, including the Software and Documentation as
intended herein;
	 
	 	15.2.2	 	the Product does not constitute and will not constitute a
misappropriation of the trade secrets of any third party;
	 
	 	15.2.3	 	any Supplier Marks on the Product do not infringe any third party
trademark rights;
	 
	 	15.2.4	 	to the best of Supplier’s knowledge, the Product and the use thereof,
does not infringe on any patent of any third party, and there are no claims
of such infringement;
	 
	 	15.2.5	 	the Product does not infringe and will not infringe upon any other
third-party Intellectual Property Rights;
	 
	 	15.2.6	 	HP does not and will not need to procure any rights or licenses to any
patents or other third-party Intellectual Property Rights to fully exploit
the Product;
	 
	 	15.2.7	 	there are no patent markings on any part of the external housing of the
Product;
	 
	 	15.2.8	 	that the Software will not (i) contain lock out devices or have any
virus, disabling device, time bomb, Trojan horse, back door or any other
harmful component, (ii) replicate, transmit or activate itself without
control of a person operating the computing equipment on which it resides,
(iii) alter, damage or erase any data or other computer programs without
control of a person operating the computing equipment on which it resides
or (iv) 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 hardware configuration, frequency or duration of
use, or other limiting criteria;
	 
	 	15.2.9	 	Supplier will assign to HP the benefits of all warranties applicable to
any third party software acquired by HP from Supplier; and
	 
	 	15.2.10	 	Supplier represents and warrants that Supplier complies with and shall
continue to comply with all licenses (including, without limitation, all
open source licenses) associated with any software component included in
the Product and Documentation.
	 
	 	15.2.11	 	If Supplier breaches this Intellectual Property Warranty, HP may
immediately terminate this Agreement in whole or in part and may
immediately cancel any unfilled Accepted Orders

HP Confidential

 

 

 

Dot Hill Systems PPA: PRO02542-060507

	 	 	 	without liability, such remedies being in addition to any other remedies
provide by this Agreement, or otherwise available to HP under law or
equity.

	 	15.3	 	Supplier’s Duty to Defend. Subject to the provisions of
15.4 and except as provided in Section 15.7, Supplier will indemnify, defend and
hold harmless HP, HP Subsidiaries, HP Affiliates and Eligible Purchasers and its
customers (including without limitation end users, distributors and resellers),
officers, directors, employees, agents and representatives (“Indemnitees”) from
and against any claims or liabilities relating to any claim that:

	 	15.3.1	 	any Product;
	 
	 	15.3.2	 	any Software included in the Product;
	 
	 	15.3.3	 	any Documentation;
	 
	 	15.3.4	 	a Supplier Mark or
	 
	 	15.3.5	 	anything else provided as part of Supplier’s Support,

	 	 	 	or use of any of the foregoing, constitutes a misappropriation or infringement
of any third party’s Intellectual Property Rights (all of the foregoing being
referred to as an “IP Claim”). Without limiting the generality of the
foregoing, Supplier will pay losses and damages, liabilities, judgments, awards,
costs and expenses including reasonable attorneys’ fees, expert witness fees and
bonds incurred by Indemnitees and any award in connection with, arising from or
with respect to any such claim or agreed to by Supplier in any settlement of
that claim.
	 
	 	 	 	The combination of the Product with an HP Product will not void Supplier’s
Intellectual Property Warranty and concomitant indemnification obligations
provided that the IP Claim would apply regardless of the combination. However,
[...***...].
	 
	 	15.4	 	HP’s Duty to Notify and Tender of Claims. HP will give
Supplier written prompt notice of any IP Claim. If Supplier assumes defense of
such IP Claim without reservations of rights, HP will provide Supplier the
authority, information and reasonable assistance (at Supplier’s expense)
necessary to defend. Supplier will control defense, and HP will not settle such
IP Claim without Supplier’s consent, not to be unreasonably withheld. Should
Supplier not diligently pursue resolution of such IP Claim or fails to provide HP
with reasonable assurance that it will diligently pursue resolution, then HP may,
without in any way limiting its other rights and remedies, defend the claim and
collect all reasonable costs of doing so from Supplier. Any settlement or
compromise Supplier desires to enter into will be subject to HP’s prior approval,
which HP agrees not to unreasonably withhold, delay or condition. HP and any
other Indemnitee may, at its expense, in its or their discretion, participate in
the defense of such IP Claim. Section 22.14 (Disputes/Escalation Process) shall
not apply to this section.
	 
	 	15.5	 	Limitation on Settlement. Supplier will only enter into a
compromise or settlement that will not have the effect of creating any liability
or obligation (whether legal or equitable) on HP unless HP otherwise agrees in
writing. In addition, Supplier shall obtain a full and complete release of any
and all claims that the third party claimant may have against HP.
	 
	 	15.6	 	Remedies for Infringing Product. If the use, manufacture,
sale, combination, or importation of the Product (“Infringing Product”) is
enjoined and Supplier has indemnification obligations pursuant to this Section
15, Supplier will, at its sole expense and option:

HP Confidential

***Confidential Treatment Requested

 

 

 

Dot Hill Systems PPA: PRO02542-060507

	 	(i)	 	procure for HP the right to continue using or combining the
Infringing Product, as the case may be;
	 
	 	(ii)	 	replace the Infringing Product with a non-infringing
product of equivalent function, form factor, and performance; or
	 
	 	(iii)	 	modify the Infringing Product to be non-infringing,
without materially detracting from function, form factor, or performance.

	 	15.7	 	Exclusions. Nothing in this Section 15 shall apply to any
Products or parts to the extent that such Products or parts (i) have been
modified (other than by Supplier or Supplier’s Authorized Contractors), (ii) have
been used in a manner contrary to Specifications, or (iii) the infringement
arises out of Supplier’s compliance with a design that HP required Supplier to
implement.

	 	16.	 	Delaying Causes.

	 	16.1	 	Delaying Causes. Neither Party will be liable for any
delay in performance under this Agreement caused by any act of God or other cause
beyond Supplier’s reasonable control and without Supplier’s fault or negligence
including but not limited to fire, flood, war, embargo, riot or an unforeseeable
intervention of any government authority, which causes complete business
interruption (a “Delaying Cause”). A Delaying Cause does not include delays in
transportation, shortages of materials, delays by manufacturers or subcontractors
or economic considerations or inefficiencies. No Delaying Cause will suspend or
excuse either Party’s obligations as set forth in Section 13 (Confidential
Information), Section 15 (Intellectual Property Ownership Warranty and
Indemnification), Exhibit P (Insurance), and Section 18 (Indemnity).
	 
	 	16.2	 	Occurrence of a Delaying Cause. Any Party whose
performance is affected by a Delaying Cause will notify the other Party promptly
upon commencement of a Delaying Cause and will provide its best estimate of the
expected duration of such occurrence. Upon notice to Supplier during pendency of
a Delaying Cause, HP may terminate any unfilled Accepted Orders without
liability. Any Party whose performance is affected by a Delaying Cause will
exercise reasonable diligence to overcome and affect cessation of the Delaying
Cause and to mitigate effects thereof. Performance of the Parties’ respective
obligations to purchase and sell Product will be suspended to the extent affected
by, and for the duration of, a Delaying Cause, and during pendency of a Delaying
Cause affecting Supplier’s ability to make timely Delivery, HP may purchase
replacement Product elsewhere and deduct the quantity of Product affected thereby
from its purchase requirements without affecting eligibility or entitlement to
pricing hereunder. If, however, Supplier’s performance is delayed for reasons
set forth above for a cumulative period of [...***...] or more, HP, notwithstanding
any other provision of this Agreement to the contrary, may terminate this
Agreement and/or any Order issued hereunder by notice to Supplier.
	 
	 	16.3	 	Resumption of Performance. The Parties will resume
performance under this Agreement once the Delaying Cause ceases, and HP may, upon
written notice not later than [...***...] following such cessation, extend the Term
up to the length of time the Delaying Cause endured.

	 	17.	 	Events of Default and Remedies

	 	17.1	 	Events of Default. A Party will be in default under this
Agreement upon the occurrence of any of the following events (each an “Event of
Default”):

	 	17.1.1	 	A Party fails to pay or perform any payment obligation when and as due
under this Agreement or any Accepted Order after [...***...] receipt of written
notice from the other Party;
	 
	 	17.1.2	 	A Party fails to perform any obligation under this Agreement or any
Accepted Order, other than as set forth in Section 17.1.1, when such
failure continues for [...***...] after written notice thereof is given or, if
such failure cannot reasonably be cured within said [...***...], but is capable
of cure within a longer period not exceeding [...***...]

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

	 	 	 	and the Party commences to cure such failure promptly upon receipt of
such written notice and thereafter proceeds with reasonable diligence to
cure such failure, for such longer period as may be necessary for the
Party to cure the same with reasonable diligence;
	 
	 	17.1.3	 	Any representation or warranty made by a Party in connection with this
Agreement proves to be false in any material respect; provided that if such
representation or warranty is capable of being cured, then the Party may
cure such misrepresentation or breach of warranty within [...***...] after
written notice thereof is given or, if such misrepresentation or breach of
warranty cannot reasonably be cured within said [...***...] and the Party
commences to cure same promptly and thereafter proceeds with reasonable
diligence to cure same, for such longer period as may be necessary for the
Party to cure the same with reasonable diligence; or
	 
	 	17.1.4	 	A Party makes an assignment for the benefit of creditors, admits in
writing its inability to pay its debts as they mature, applies to any court
for the appointment of a trustee or receiver for any of its properties, or
commences any voluntary proceeding under any bankruptcy, reorganization,
arrangement, insolvency, readjustment of debt, dissolution, liquidation or
other similar law of any jurisdiction; or any such application or any such
proceeding is filed or commenced against said Party and said Party
indicates its approval, consent or acquiescence thereto; or there is filed
or commenced against said Party an involuntary proceeding under any
bankruptcy, reorganization, arrangement, insolvency, readjustment or debt,
dissolution, liquidation or other similar law of any jurisdiction and such
proceeding is not dismissed, and remains in effect, for thirty (30) days or
more; or an order is entered adjudicating said Party bankruptcy or
insolvent; or
	 
	 	17.1.5	 	Except as may be permitted under Section 22.5 (Assignment), a Party
transfers all or substantially all of its properties or merges with or into
any other entity or there is otherwise any change in controlling interest
or ownership of a Party, without the prior written consent of the other
Party; or
	 
	 	17.1.6	 	A Party assigns or attempts to assign this Agreement or any Accepted
Order to a competing entity or in case of an assumption or delegation of
performance of this Agreement or any Accepted Order by a competing entity,
if in the other Party’s reasonable determination such assignment or
performance would be detrimental to the performance of this Agreement or
any Accepted Order or to its business interests or prospects.

	 	17.2	 	Rights and Remedies Upon Default. The Party not in default
may terminate this Agreement or any Accepted Order upon written notice to the
other Party and/or may enforce, by all proper and legal suits and other means,
its right hereunder, with or without terminating this Agreement or any Accepted
Order. All rights and remedies will be cumulative and may be exercised singly or
concurrently.
	 
	 	17.3	 	Cover Costs. Upon a [...***...]. Supplier will be responsible
for [...***...] (“Cover Costs”) [...***...]. Cover Costs may include, but are not
limited to: [...***...]. Notwithstanding anything herein to the 

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

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

	 	17.4	 	Additional Remedies. Unless otherwise specifically stated,
all remedies expressed in this Agreement are in addition to any legal,
contractual, equitable, or statutory rights that may exist.

	 	18.	 	General Indemnity
	 
	 	18.	 	General Indemnity

	 	18.1	 	Indemnity. Supplier shall defend, indemnify, and
hold harmless HP, HP’s Subsidiaries, HP Affiliates and all Eligible
Purchasers purchasing under this Agreement, and their respective
directors, officers, employees and agents from and against any and all
claims, losses, liens, demands, attorneys’ fees, damages, liabilities,
costs, expenses, obligations, causes of action, or suits (collectively
“Claims”) to the extent that such Claims are caused by, arise out of, or
are connected in any way with:

	 	(a)	 	any act or omission, whether active or passive
and whether actual or alleged, or willful misconduct, of Supplier,
its employees, or agents;
	 
	 	(b)	 	the breach of this Agreement (including, but
not limited, to the costs associated with any Product recall) by
Supplier, its employees or agents of any of its contractual
obligations, covenants, undertakings, or promises under this
Agreement, or,
	 
	 	(c)	 	property loss, damage, personal injury or
death, caused by Supplier, Supplier’s Product (includes Goods and
Services), its employees or agents.

A Claim relating to or arising out of Section 18.1 (a), (b) or (c) is
hereinafter referred to as an “Indemnified Claim”.

	 	18.1.1	 	Supplier shall, at its own expense, defend any third party
Indemnified Claim and Supplier will pay all costs, including
attorneys’ and experts’ fees and litigation costs.
	 
	 	18.1.2	 	Supplier will not have any obligation to defend, indemnify or
hold harmless hereunder when [...***...].
	 
	 	18.1.3	 	Supplier’s obligations to defend, indemnify and hold harmless
hereunder will not be limited or otherwise affected by any
insurance, self-insurance or retention of risk which it may carry or
assume.

	 	18.2	 	HP’s Duty to Notify. HP will give Supplier prompt
notice of any third party claim that constitutes an Indemnified Claim.
HP will provide Supplier the authority, information and reasonable
assistance (at Supplier’s expense) necessary to defend. Supplier will
control the defense, and HP will not settle any such Indemnified Claim
without Supplier’s consent, not to be unreasonably withheld; provided that
if Supplier does not diligently pursue resolution of the Indemnified
Claim, or, fails to provide HP with reasonable assurance that it

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

will diligently pursue resolution, HP may, without in any way limiting
its other rights and remedies, defend the Indemnified Claim and collect
all costs of doing so from Supplier. Any settlement or compromise
Supplier desires to enter into will be subject to HP’s approval. HP and
any other Indemnitee may, in its or their discretion, participate in the
defense of such claim or action.

	 	19.	 	Limitation of Liability.

     19.1.  Limitation on General Damages. A party’s aggregate
liability to the other party under this Agreement for any claims, whether in contract,
warranty, negligence, tort, strict liability, or otherwise, for loss or damage arising
out of, in connection with, or resulting from this Agreement, or the performance or
breach thereof, will not exceed the greater of:

19.1.1. [...***...], or,

19.1.2. [...***...].

19.1.3. Notwithstanding anything herein to the contrary, the limitations
on liability set forth in this Section 19.1 shall not apply to Supplier’s
liability and responsibilities in Epidemic Failure situations under any
Corrective Action Plan as more fully described in Section 2 of Exhibit N
(Quality and Compensation).

19.2  Exclusion for Special Damages. NEITHER PARTY WILL BE LIABLE FOR ANY
SPECIAL, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOSS OF DATA, PROFITS OR
REVENUE, COST OF CAPITAL OR DOWNTIME COSTS), OR FOR ANY EXEMPLARY OR PUNITIVE DAMAGES
ARISING OUT OF ANY PERFORMANCE OF THIS AGREEMENT OR ANY ORDER, REGARDLESS OF WHETHER
SUCH DAMAGES ARE BASED IN TORT, WARRANTY, CONTRACT OR ANY OTHER LEGAL THEORY, EVEN IF
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

19.3.  Exceptions to Liability Limitation and Exclusion. Nothing in Section
19 (“Limitation of Liability”) excludes, disclaims, limits or otherwise affects:

     19.3.1. Either party’s liability for any third party claims for personal
injury, death, or claims for physical damage to property; or,

     19.3.2. [...***...]

19.4.  Limitation to Products. Notwithstanding anything herein to the
contrary, Supplier shall have no liabilities or responsibilities with
respect to [...***...].

	 	20.	 	Termination

	 	20.1	 	Termination for Convenience. HP may terminate this
Agreement at any time without liability for damages and without need to show
cause upon [...***...] prior written notice. Upon 

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

	 		 	termination pursuant to this
Section, HP will accept delivery of, and pay for, [...***...], Order Changes, of Exhibit D (Ordering and Shipment of Product).
HP will purchase and pay for upon delivery to HP [...***...]; provided that Supplier will mitigate to the maximum
extent feasible;. Supplier may terminate this Agreement at any time without
liability for damages and without need to show cause upon [...***...] prior written
notice.
	 
	 	20.2	 	Termination for Default. Either Party may terminate this
Agreement or any Accepted Order in accordance with Section 17 (Events of Defaults
and Remedies).
	 
	 	20.3	 	Termination for Cause. Either Party may terminate this
Agreement or any Accepted Order pursuant to any other right granted to or
reserved in that Party under this Agreement or any Accepted Order or as may exist
at law or in equity, as may be limited or otherwise affected by this Agreement.
	 
	 	20.4	 	Effect of Termination. Notwithstanding expiration or any
termination of this Agreement or any Accepted Order, Sections 3.2 (Payment
Terms), 11.3 (Survival of Support Obligations), 13 (Confidential Information), 15
(Intellectual Property Protection and Warranty), 18 (Indemnity), 19 (Limitation
of Liability), 22.11 (Governing Law), 22.14 (Disputes/Escalation Process),
Exhibit A (Definitions), Exhibit I ( Discontinuance of Product and Manufacturing
Rights), Exhibit K (Services and Support Requirements), Exhibit P (Insurance),
all licenses granted to HP under Sections 14.4 (Software License) and 14.5
(Documentation License), and any obligations that HP may have under Exhibit M
(Flexibility Agreement) will survive. HP’s audit rights under Section 5 (Audit
Rights) will survive for three (3) years after expiration or termination of this
Agreement.

	 	21.	 	Additional Obligations of Supplier

	 	21.1	 	Governmental Compliance. Supplier, its agents, employees
will comply with all Applicable Law and will contractually obligate its
Subcontractors to comply with all Applicable Law in its performance of this
Agreement, including but not limited to the specific requirements referenced
Exhibit O (Governmental Compliance). Upon request, Supplier agrees to certify
compliance with any Applicable Law or regulations. HP is neither responsible for
monitoring Supplier’s nor Supplier’s Subcontractor’s compliance with any
Applicable Law.
	 
	 	21.2	 	Trade and Logistics. HP’s compliance and operational
requirements regarding Trade and Logistics are set forth in detail at
https://h20168.www2.hp.com/supplierextranet/index.do. Supplier and each Supplier
shipping location has the obligation for ensuring compliance with U.S. and other
national export, import, customs, and trade-related laws and regulations.
Supplier also understands that it is responsible for developing and implementing
procedures to ensure compliance with HP’s Trade and Logistics Requirements.
	 
	 	21.3	 	Personal Data Use and Protection.

	 	21.3.1	 	“Personal Data” Defined. “Personal Data” means information
related to any identified, or identifiable, person or legal entity,
including any HP or Supplier employees and/or customers. “Personal Data”
shall also mean any additional data deemed personal data by any applicable
personal data law or directive.

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

	 	21.3.2	 	Supplier Obligations. With regard to any Personal Data
that Supplier receives from HP and/or HP Customers to perform Supplier’s
obligations under this Agreement, Supplier shall comply with all of the
following obligations:

	 	(i)	 	Supplier shall comply with all applicable
data protection laws and/or directives, all applicable export laws.
	 
	 	(ii)	 	Supplier’s use of the Personal Data is
limited to performance of Supplier’s obligations under this
Agreement. Supplier may only disclose Personal Data to those
Supplier employees that have a need to know in order to perform
Supplier’s obligations under this Agreement. Said Supplier
employees must be bound by confidentiality obligations no less
restrictive that those contained in Section 13 (Confidential
Information) of this Agreement.
	 
	 	(iii)	 	Supplier may not disclose Personal Data
to any third party without the advance, written permission of HP.
Supplier shall immediately notify HP if Supplier becomes aware of
any unauthorized use of disclosure of Personal Data.
	 
	 	(iv)	 	Supplier shall use the same degree of
care as it uses to protect its own information of similar nature
(but never less than a reasonable degree of care) to prevent
unauthorized use, dissemination or publication of Personal Data.
Personal Data shall also be considered Confidential Information and
treated in accordance with the requirements for Confidential
Information under this Agreement.
	 
	 	(v)	 	Supplier shall, at HP’s request, and upon
termination of this Agreement, deliver to HP any Personal Data in
Supplier’s possession and, if copies were made, destroy all copies
of Personal Data. Supplier’s Personal Data obligations stated
herein shall survive expiration or termination of this Agreement.
	 
	 	(vi)	 	Personal Data in Storage Devices. As to
Personal Data contained in data storage devices that may be returned
to Supplier for “Supply Chain Processes” (“Supply Chain Processes”
is defined as repair, refurbishment, recycle or scrap):

	 		 	(a)    Supplier shall implement and maintain appropriate security
processes to ensure that unauthorized persons will not have access to
data storage devices returned to Supplier;

	 
	 		 	(b)    Supplier will not access Personal Data on the data storage device
beyond that point which is required to repair or refurbish the data
storage device;

	 
	 	 	 	(c)    Supplier will not provide access to the data storage device except
to Supplier’s employees who require access in order to perform
Supplier’s Supply Chain Processes.

	 
	 	 	 	(d)    Personal Data contained in data storage devices, where the data
storage device is not returned to originator, will not be retained
longer than is required for Supplier to perform its Supply Chain
Process, at which point said Personal Data will be destroyed in
accordance with leading industry practices.

	 	21.4	 	Insurance. Without limiting any of the obligations or
liabilities of Supplier, Supplier will maintain, at its own expense, as long as
this Agreement is in effect, insurance policies of the kind and limits listed in
the attached Exhibit P (Insurance).
	 
	 	21.5	 	Social and Environmental Responsibility. Supplier warrants
that in all countries in which Supplier and, to Supplier’s knowledge, information
and belief, Supplier’s authorized subcontractors do business, its and their
operations comply with all applicable laws and regulations governing labor and
employment, employee health and safety, protection of the environment, and
ethical practices, including but not limited to, laws and regulations relating to
working hours, working conditions, wages, benefits, child labor, forced labor,
freedom of association and equal employment opportunity. Supplier agrees to sign
HP’s Supplier Social and Environmental Responsibility Agreement and comply with
HP’s Supplier Code of Conduct, including establishment of

HP Confidential

 

 

Dot Hill Systems PPA: PRO02542-060507

	 	 	 	management systems as described therein, as set out at
http://www.hp.com/hpinfo/globalcitizenship/environment/supplychain/index.html.
	 
	 	21.6	 	Product Content.

	 	21.6.1	 	Supplier will furnish HP any information reasonably requested by HP to
confirm the material composition of the Products or of any parts,
components or other constituents of the Products or of their packaging all
as supplied to HP under this Agreement or as used in any manufacturing
processes.
	 
	 	21.6.2	 	Each chemical substance contained in Products is on the inventory of
chemical substances compiled and published by the United States
Environmental Protection Agency pursuant to the Toxic Substances Control
Act.
	 
	 	21.6.3	 	Supplier will provide to HP prior to shipment a complete and accurate
Material Safety Data Sheets (MSDS) for any Product for which such a data
sheet is required under Applicable Law or in order for HP to sell Product
in any country.

	 	21.7	 	Packaging and Shipment. All Products will be shipped in
conformance with all applicable national and international transportation
requirements including, where applicable, regulations regarding chemicals and
hazardous materials, dangerous goods, or fumigation and aeration. All packaging
materials, including pallets, will be free of pests and comply with national and
international regulations regarding Solid Wood Packing Materials (SWPM) where
applicable. All packaging for Products will comply with HP’s General
Specification for the Environment.
	 
	 	21.8	 	Access to Information Systems. In order to fulfill its
obligations under this Agreement, [...***...]

	 	22.	 	Miscellaneous

	 	22.1	 	Notices. Except for HP’s email notifications to Supplier
for content changes at HP’s website references stated in this Agreement as noted
in section 22.2 below, all other notices that are required to be given under this
Agreement will be in writing and will be sent to the respective address as set
forth in Exhibit J (Recipients for Notices), or such other address as each Party
may designate by notice given in accordance with this Section. Any such notice
may be delivered by hand, by overnight courier, by first class pre-paid letter or
by facsimile or electronic mail transmission, and will be deemed to have been
received: (a) by hand delivery, at the time of delivery; (b) by overnight
courier, on the second business day after delivery to the carrier; (c) by first
class mail, four (4) business days after day of mailing; and (d) by facsimile or
electronic mail, immediately upon confirmation of transmission, provided however,
for notice of termination or default, a confirmatory copy is sent pre-paid by
first class mail or overnight courier or is hand delivered by the end of the next
business day.

HP Confidential

***Confidential
Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

	 	22.2	 	Website References. Wherever in this Agreement an HP web
site or web address is stated, access may require assistance of HP personnel, or
HP may require Supplier to enter into one or more separate agreements concerning
access or use thereof. HP reserves all rights, from and after the Effective Date
of this Agreement, to revise, withdraw or otherwise modify (variously and
collectively, “Change”) the contents of any web site or web address stated in
this Agreement. Supplier will be required to comply with all such Changes ten
Days after email notification of such Change is sent by HP to Supplier. If
Supplier does not accept such Change, Supplier will provide notice of
non-acceptance as set forth in Section 22.1 (Notices); provided that HP must
receive notice of non-acceptance within fourteen (14) days after HP has provided
Supplier notice of such Change, or Supplier will be deemed to have accepted such
Change. Any use of a web site or address by Supplier after its receipt of HP’s
notice of Change will constitute Supplier’s acceptance of such Change,
notwithstanding any notice of non-acceptance or objection HP may receive
thereafter.
	 
	 	22.3	 	Exhibits; Other Documents. The Exhibits attached to this
Agreement and all other documents referred to herein are hereby incorporated by
this reference and made part of this Agreement. Unless an Exhibit specifically
refers to and amends a term of this Agreement, the terms and conditions of this
Agreement will control and take precedence over conflicting terms in an Exhibit.
	 
	 	22.4	 	Independent Contractors. The relationship of the Parties
established under this Agreement is that of independent contractors, and neither
Party is a partner, employee, agent or joint venturer of or with the other.
Nothing in this Agreement precludes either Party from independently developing,
manufacturing, selling or supporting products similar to Product.
	 
	 	22.5	 	Assignment.

	 	22.5.1	 	Neither this Agreement nor any right, license, privilege or obligation
provided herein or in any Accepted Order may be assigned, transferred or
shared by either Party without the other Party’s prior written consent, not
to be unreasonably withheld, and any attempted assignment, transfer or
sharing without consent is void; provided that Supplier may perform its
obligations hereunder through any Subsidiary or Affiliate for whose
performance Supplier will be responsible and remains liable and HP may
assign any Order to an HP Subsidiary or HP Affiliate for whose performance
HP will be responsible and remains liable.
	 
	 	22.5.2	 	Any merger, consolidation, reorganization, transfer of substantially all
or a material portion of the assets of a Party, or other change in control
or ownership will be considered as assignment of the purposes of this
Agreement; provided that either Party may merge with or into any of its
Subsidiaries, Affiliates or parent companies and may assign this Agreement
or any Accepted Order to any of its Subsidiaries, Affiliates or parent
companies without need for consent.
	 
	 	22.5.3	 	The assigning Party must ensure that the assignee assumes in writing or
by operation of law the assigning Party’s obligations, and no assignment
will relieve the assigning Party of its obligations, under this Agreement
and any assigned Accepted Orders. This Agreement will inure to the benefit
of and will be binding on the permitted successors and assigns of the
Parties.

	 	22.6	 	No Waiver. 

	 	22.6.1	 	No modification or waiver of, or amendment to, or release from, any
provision of this Agreement or any Accepted Order and no waiver of, or
release from, any breach or default hereunder, will be of any force or
effect unless contained in a writing which is signed by the Party which is
sought to be bound thereby, nor may same be held or considered to be a
modification or waiver of, or amendment to, or release from, any other
provision, nor be a waiver of or release from any other breach or default.
	 
	 	22.6.2	 	No modification or waiver of, or amendment to, or release from, any
provision of this Agreement and no waiver of, or release from, any breach
or default hereunder, will result

HP Confidential

 

 

Dot Hill Systems PPA: PRO02542-060507

	 	 	 	from any conflicting, different or printed provisions of any subsequently
dated sales or purchase order, order acknowledgment, or a confirmation
thereof, for Product, unless such subsequent provision is stated
conspicuously on the face of any such order, acknowledgment or
confirmation and such order, acknowledgment or confirmation is agreed in
a writing signed by an authorized representative of the Party to be bound
thereby.
	 
	 	22.6.3	 	The Parties contemplate that from time to time order, acknowledgment and
confirmation forms may be utilized, and the provision of this Agreement
will govern and control such forms except to the extent of any such
subsequent provision as aforesaid. The failure of any Party to enforce any
provision of this Agreement, or to exercise any right, will not be
considered a waiver of that provision or right.

	 	22.7	 	No Third Party Beneficiary. This Agreement does not confer
any right or remedy other than to the Parties hereto and their respective
permitted successors and assigns, and no action may be brought against any Party
hereto by any third party claiming as a third party beneficiary to this Agreement
or any Accepted Order. Nothing in this Agreement is intended to relieve or
discharge any obligation or liability of any third party to any Party to this
Agreement, and nothing herein confers, or is intended to give any third party,
any right of subrogation.
	 
	 	22.8	 	Headings; Interpretation. The Section titles and headings
used in this Agreement are for reference only and do not limit or extend the
meaning of any provision of this Agreement, and will not be used in
interpretation of any provision of this Agreement. All terms defined in this
Agreement in the singular form will have comparable meanings when used in the
plural form and vice versa. References in this Agreement to “Sections”, and
“Exhibits” are to sections and exhibits herein or hereto unless otherwise
indicated. The words “include” and “including” and words of similar import when
used in this Agreement will not be construed to be limiting or exclusive.
	 
	 	22.9	 	Severability. If any provision in this Agreement is held
invalid or unenforceable by a body of competent jurisdiction, such provision will
be construed limited or, if necessary, severed only to the extent necessary to
eliminate such invalidity or unenforceability. The Parties will negotiate a
valid, enforceable substitute provision that most nearly effects the Parties’
original intent in entering into this Agreement or to provide an equitable
adjustment in the event no such provision can be added. The other provisions of
this Agreement will remain in full force and effect.
	 
	 	22.10	 	Entire Agreement. This Agreement, together with the
Exhibits, comprise the entire understanding between the Parties with respect to
the subject matter hereof and supersede any previous or contemporaneous
communications, representations or agreements, whether oral or written, with
respect thereto; provided that any separate non-disclosure agreement between the
Parties will continue unchanged and in full force and effect according to its
terms. For purposes of construction and interpretation, this Agreement will be
deemed to have been drafted by both Parties, and no ambiguity will be construed
in favor of or against either Party.
	 
	 	22.11	 	Governing Law. This Agreement and any dispute related to
or arising out of this Agreement will be governed in all respects by New York law
without reference to any choice or conflict of laws provisions of New York or the
law of any other jurisdiction. The Parties exclude application of the 1980
United Nations Convention on Contracts for the International Sale of Goods, if
applicable. The Parties hereby submit to the jurisdiction of the courts of
California with subject matter jurisdiction, and waive any venue objections
against the United States District Court for the Northern District of California,
San Jose Branch and the Superior and Municipal Courts of the State of California,
Santa Clara County, in any litigation arising under this Agreement.
	 
	 	22.12	 	Counterparts. This Agreement may be executed in any
number of counterparts, each of which will be deemed an original, but all of
which together will constitute one and the same instrument. If this Agreement is
executed in counterparts, no signatory hereto will be bound until all Parties
have duly executed, or caused to be duly executed, a counterpart of this
Agreement.

HP Confidential

 

 

Dot Hill Systems PPA: PRO02542-060507

	 	22.13	 	Authority of Signatory. If HP or Supplier executed this
Agreement by agent or representative, such agent or representative by his/her act
of signing this Agreement individually warrants and represents to the Parties,
and HP and Supplier warrant and represent respectively to each other, that he/she
is authorized to execute, acknowledge and deliver this Agreement on behalf of HP
or Supplier, as the case may be, and thereby to bind the respective Party to the
same.
	 
	 	22.14	 	Disputes/Escalation Process.

	 	22.14.1	 	The escalation process for Support is set forth in Exhibit K (Service
and Support Requirements).
	 
	 	22.14.2	 	Supplier and HP will attempt in good faith to resolve all disputes under
this Agreement by mutual agreement before initiating any legal action or
attempting to enforce any rights or remedies hereunder; provided that
nothing herein will prevent either Party from giving notice at any time of
default as set forth in Section 17 (Events of Defaults and Remedies) or
termination as set forth in Section 20 (Termination).
	 
	 	22.14.3	 	In the event of a dispute, and as a required precondition to initiating
legal action (other than for an injunction or restraining or protective
order), either Party must give notice to the other Party, and within [...***...] after receipt of the notice, HP’s procurement representative and
his/her corresponding functional-level counterpart at Supplier will meet to
discuss and attempt to resolve the dispute.
	 
	 	22.14.4	 	If a resolution mutually recognized as such by both Parties is not
achieved within [...***...] thereafter, the dispute will be referred to
senior officers of the Parties of comparable rank or position who will meet
to discuss and attempt a resolution of the dispute.
	 
	 	22.14.5	 	If within [...***...] after referral the dispute remains
unresolved, both Parties may pursue any or all rights and remedies as may
exist at law or in equity, as may be limited or otherwise affected by this
Agreement.
	 
	 	22.14.6	 	If either Party fails to meet or discuss a dispute as provided above,
such Party covenants not to commence a suit as to that dispute, other than
for an injunction or restraining or protective order. The failure or
refusal of either Party to meet and discuss any dispute as provided above
will entitle the other Party to immediately exercise and pursue any such
right or remedy, including commencement of a suit as to the dispute.
Nothing herein will prevent either Party, at any time, from suggesting
referral of any dispute to mediation before a mutually acceptable mediator
under mutually acceptable rules and procedures.

IN WITNESS WHEREOF, the Parties, intending to be legally bound, have executed this Agreement
by their respective authorized representatives as of the Effective Date.

	 	 	 
	DOT HILL SYSTEMS CORP.	 	HEWLETT-PACKARD COMPANY
	 
	/s/
Dana Kammersgard

	 	/s/ Jeff J. Kato
	 

	 	 
	Authorized Signature

	 	Authorized Signature
	 
	 	 
	9/4/07

	 	9/10/2007
	 

	 	 
	Date

	 	Date
	 
	 	 
	Dana
Kammersgard

	 	Jeff J. Kato
	 

	 	 
	Printed Name

	 	Printed Name
	 
	 	 
	President
& CEO

	 	Director of Nearline Disk SWD
	 

	 	 
	Title

	 	Title

HP Confidential

***Confidential
Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

EXHIBIT A

DEFINITIONS

	1.	 	Definitions. As used in this Agreement, and in addition to other terms elsewhere
defined in this Agreement, each of the following terms has the indicated meanings:

“Accepted Order” means an Order as to which Supplier has issued its Acknowledgment
accepting the Order or which is deemed accepted as set forth in
Exhibit D, Section 1.4 or
which otherwise constitutes a contract under Applicable Law, is legally binding or legally
enforceable.

“Acknowledgment” means a written or electronic acknowledgment or confirmation issued by
Supplier in response to and following Supplier’s receipt to of an Order issued by HP or an
Eligible Purchaser to Supplier for Delivery of Product.

“Affiliate” means an entity whose voting shares are owned less that fifty percent (50%),
but at least ten percent (10%), by a Party to this Agreement and which is not controlled
by, or under common control with, a Party to this Agreement as its Subsidiary.

“Applicable Law” means all constitutions, laws, statutes, codes, ordinances, orders,
judgments, decrees, injunctions, rules, regulations, permits and legally binding
requirements of all federal, state and local governmental authorities applicable to any
Party’s performance under this Agreement.

“Auditor” has the meaning given it in Section 5.1 (Audit Rights).

“Blanket Purchase Order” has the meaning given it in Section 1.3 of Exhibit D (Ordering
and Shipment of Product), Section 1.3.

“BRP” has the meaning given it in Section 12 (Business Recovery Plan; Loss Control).

“Business Day” (whether initial letters are capitalized or not) means a Day other than a
Saturday, Sunday or a Day on which U.S. commercial banks in California, or, if different,
commercial banking institutions in the location at which performance of an act or
obligation under this Agreement is to occur, are closed or required to close under
Applicable Law.

“Confidential Information” has the meaning set forth in Section 13.1 (Confidential
Information).

“Control” (including the terms “controlling”, “controlled by” and “under common control
with”) means the possession, direct or indirect, of the power to direct or cause the
direction of the management and policies of a person or entity, whether through the
ownership of voting securities, by contract or otherwise.

“Cover Costs” has the meaning given it in Section 17.3 (Cover Costs).

“Day” (whether initial letter is capitalized or not) means a calendar day and includes
Saturdays, Sundays and holidays, except that, in the event that an obligation to be
performed under this Agreement falls due on a day other than a Business Day, the
obligation will be deemed due on the first Business Day thereafter.

“Delaying Cause” has the meaning set forth in Section 16.1 (Delaying Causes).

“Delivery” or “Deliver” means, in accordance with an Accepted Order and this Agreement,
delivery to a common carrier for shipment and arrival of Product at the receiving area, as
HP or an Eligible Purchaser may designate, and Supplier may agree, from time to time
during the Term.

“Delivery Date” means the date specified in an Accepted Order for the Delivery of Product
by Supplier to the destination required under the Accepted Order.

“Developed Materials” means the Industrial Design of the Product as identified in Exhibit
Q (Industrial Design of the Product).

HP Confidential

 

 

Dot Hill Systems PPA: PRO02542-060507

EXHIBIT A

DEFINITIONS (CONTINUED)

“Discontinued Product” has the meaning set forth in Exhibit I (Discontinuance of Product
and Manufacturing Rights) Section 1.1.

“Documentation” means the technical documentation that Supplier will provide with Product
from time to time during the Term and to the extent HP may reasonably request and show
need for access.

“Effective Date” has the meaning given it in the introduction to this Agreement.

“Eligible Purchaser” means any legal entity which is authorized to purchase Product
pursuant to this Agreement as provided in Section 1.3 of this Agreement and that is
identified in Exhibit C (Eligible Purchaser Under This Agreement).

“Emergency Order” has the meaning set forth in Section 1.5 Exhibit D (Ordering and
Shipment of Product).

“Engineering Change” has the meaning set forth in Exhibit F (Engineering Process or Design
Changes) at Section 1 (Engineering Process or Design Changes).

“Epidemic Failure” has the meaning set forth in Section 8.1 (Epidemic Failure) and Exhibit
N (Quality and Compensation).

“Event of Default” has the meaning given it in Section 17.1 (Events of Default).

“Forecast”
means HP’s non-binding estimate of purchases of Product over
[...***...], or such other period as may be designated by the Parties.

“Goods” has the meaning given it in Section 1.2 (General).

“HP” has the meaning given it in the introduction to this Agreement.

“HP Contractor” or “Contractor” means any third party which performs work for HP or HP
Subsidiaries or Affiliates and which requires Product from Supplier. HP Contractors are
independent contractors of HP or its Subsidiaries or Affiliates and are not legally
related to HP or its Subsidiaries or Affiliates as agent, employee, partner, joint
venturer or in any other manner.

“HP-Owned Technology” means the Industrial Design of the Product as identified in Exhibit
Q (Industrial Design of the Product).

“HP Products” means the HP products or systems that include or incorporate Products.

“HP Property” means all property including without limitation models, tools, equipment,
copies of designs and documentation and other materials that may be furnished to Supplier
by HP or on HP’s behalf or separately paid for by HP for use by Supplier in connection
with this Agreement or any Order.

“HP Warehouse” means any facility which is owned, leased, rented or use of which is
otherwise arranged by HP where HP inventory, including raw material, components and
work-in-process, may be stored.

“HP’s General Specification For the Environment” means the requirements and specifications
set out in HP’s General Specification for the Environment,
[...***...]. For purposes of this Agreement such requirements and specifications are
part of the Specifications for Product.

“Hubs” means Supplier’s logistic service providers which store, maintain or handle
Supplier Managed Inventory.

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

EXHIBIT A

DEFINITIONS (CONTINUED)

“Indemnitees” has the meaning given it in Section 15.3 (Supplier’s Duty to Defend).

“Industrial Design” means the design, shape, color, aesthetics, and/or texture of the
“face” or front of the Product, including the HP logo affixed thereto, as further
described on Exhibit Q (Industrial Design of the Product), and excluding any
manufacturing processes to produce any or all of the foregoing features.

“Infringing Product” has the meaning set forth in Section 15.6 (Remedies for Infringing
Product).

“Intellectual Property Rights” means any ideas, whether or not patentable, inventions,
discoveries, processes, works of authorship, marks, names, know-how, and any and all
rights in such materials on a worldwide basis, including any rights in patents,
inventor’s certificates, utility models, copyrights, moral rights, trade secrets, mask
works, trade names and marks and other analogous rights.

“IP Claim” has the meaning set forth in Section 15.3 (Supplier’s Duty to Defend).

“Lead Time” means the time between the date an Order is issued and the Delivery Date.

“Mark” (whether initial letter is capitalized or not) means any trademark, service mark,
trademark and service mark application, trade dress, trade name, logo, insignia, symbol,
design or other marking identifying a party or its products.

“Month” or “Year” means calendar month and year.

“Non-cancelable Order” means an Accepted Order that due to agreement of the Parties may
not be rescheduled or canceled by HP, except as set forth in Section 1.10 of Exhibit D
(Ordering and Shipment of Product). Any Accepted Order for Unique Product will be deemed
to be a Non-cancelable Order.

“Non-conforming Product” means any Product which at any time during the applicable
warranty period does not comply with the Specifications or otherwise does not comply with
the requirements of an Accepted Order or this Agreement.

“Non-SMI” has the meaning set forth in Exhibit D (Ordering and Shipment of Product)
Section 1.9.

“Notice Period” has the meaning given it in Exhibit I (Discontinuance of Product and
Manufacturing Rights) Section 1.1.

“Order” means a written or electronic purchase order or release issued by HP or an
Eligible Purchaser to Supplier for Delivery of Product.

“Parts” means the spares replacements, components and other items that may be supplied in
conjunction with or as additions to Product.

“Personal Data Use and Protection” has the meaning given it in Section 21.3 (Personal
Data Use and Protection).

“Pre-Existing Intellectual Property” means the Intellectual Property Rights of a Party
existing prior to the commencement of any work performed pursuant to the Agreement and
all Intellectual Property Rights that are created outside of the scope of this Agreement
without the use of the other party’s confidential information or materials.

“Product” or “Products” includes any Goods and Services set forth in Exhibit B (Product
Description and Specifications), Parts, Software and all related Documentation and other
deliverables provided pursuant to this Agreement.

HP Confidential

 

 

Dot Hill Systems PPA: PRO02542-060507

EXHIBIT A

DEFINITIONS (CONTINUED)

“Production Failure” has the meaning given it in Section 12.3 (Production Failure).

“Product Failure Alternative Facility” has the meaning given it in Section 12.3.3.

“Product Warranty Period” has the meaning given it in Section 7.2.2.

“Return Materials Authorization” or “RMA” has the meaning set forth in Exhibit H (Product
Returns; Non-Conforming Product) Section 1.1.

“Schematics” means construction and assembly drawings, photo-tooling for Printed Circuit
Boards (PCBs), and codes, software or firmware for custom or proprietary components.

“Services” has the meaning set forth in Section 1.2 of this Agreement and in Exhibit K
(Services and Support Requirements).

“Shipment” (whether initial letter is capitalized or not) means the date of shipment
from Supplier’s facility, or in the case of Product shipped from a third party warehouse,
the date of shipment from the third party warehouse to HP or an Eligible Purchaser’s
facility.

“Software” means all source code, firmware, embedded code, object code, microcode, and
executable files that are contained in or distributed with the Product, including all
updates and upgrades thereto, and the related documentation.

“Specifications” means Supplier’s standard specifications for Product, the technical and
functional requirements for Product set forth in Exhibit B (Product Description and
Specifications), HP’s General Specifications for the Environment, and any other
requirements which may be attached hereto or referred to herein or agreed to by the
Parties or which may be published in Supplier’s manuals and technical data sheets for
Product in effect on the date Supplier Delivers the corresponding Order.

“Subcontractor” means any third party, under contract or other arrangement with Supplier,
with responsibility for supply of components or parts for Product, Support of Product, or
for assembly, storage or configuration of Product.

“Subsidiary” means an entity controlled by, or under common control with, a Party to
this Agreement, through ownership or control of fifty percent (50%) or greater of the
voting power of the shares or other means of ownership or control, for as long as such
ownership or control continues to exist.

“Supplier” has the meaning given it in the introduction to this Agreement.

“Supplier IP” means the intellectual property that is created by Supplier under this
Agreement, including that which is described in Exhibit B (Product Description and
Specifications) (but that is not funded by HP and is not Industrial Design) and to which
Supplier will retain all Intellectual Property Rights, as per Exhibit Q (Industrial
Design of the Product).

“Supplier Managed Inventory” or “SMI” means a program or process for Supplier’s inventory
to be stored at Hubs or within Supplier’s designated area within an HP Warehouse.

“Supplier Management Process” or “SMP” has the meaning given it in Exhibit G (Quality)
Section 5 (Supplier Rating).

“Support” means technical support and other Services as set forth in Exhibit K (Service
and Support Requirements), standard services Supplier customarily provides for Product,
or substantial equivalent, and services for Product mutually agreed to be provided by
Supplier to HP; provided that if Product includes or constitutes Software, Support also
includes fixes, updates and upgrades, unless otherwise agreed.

HP Confidential

 

 

Dot Hill Systems PPA: PRO02542-060507

EXHIBIT A

DEFINITIONS (CONTINUED)

“Technical Information” means Supplier’s manufacturing information and technology to
produce Product and provide Support, including without limitation: (i) specifications,
software, schematics, designs, drawings, or other materials pertinent to the most current
revision level of manufacturing of Product; (ii) copies of all inspection, manufacturing,
test and quality control procedures and any other work processes; (iii) jig, fixture and
tooling designs; (iv) supplier history files; (v) support documentation; and (vi) any
additional technical information or materials that may be agreed to by the Parties.

“Term” has the meaning set forth in Section 1.4 (Term of Agreement).

“Tools” means the jigs, fixtures, tools, molds, dies, stamps, prototypes, schematics,
designs, and all documentation and material relating thereto that Supplier, its
subcontractors, agents, and/or employees generate that relate to the Industrial Design of
the Product.

“Unique Product” means Product that is unique in nature, customer-specific to HP and
cannot be resold by Supplier to customers other than HP without major modification.

HP Confidential

 

 

Dot Hill Systems PPA: PRO02542-060507

EXHIBIT B

PRODUCT DESCRIPTION AND SPECIFICATIONS

	1.	 	Product Description.
	 
	 	 	[...***...]
	 
	2.	 	Product Specifications.
	 
	 	 	Product will conform to Specifications. Specifications include without limitation:

	 	2.1	 	[...***...].
	 
	 	2.2	 	Safety and regulatory agency requirements
	 
	 	2.3	 	HP’s Packing and Shipping Requirements specified in Section 21 of the Agreement
	 
	 	2.4	 	Technical requirements specified in Accepted Orders
	 
	 	2.5	 	The attached Statement of Work, [...***...]

	3.	 	Changes to Specifications, SOW or other technical requirements.

If the parties mutually agree, in writing, to changes to the Specifications, the SOW, or
any other technical requirements under this Agreement, such changes will automatically be
made a part of this Agreement, including this Annex B, without the need to make a formal
amendment to the Agreement. Emails that are exchanged between authorized members of
either party, that explicitly confirm the agreement by both parties to a technical change
shall constitute the parties mutually, written agreement for purposes of this section.

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

EXHIBIT C

ELIGIBLE PURCHASERS UNDER THIS AGREEMENT

	1.	 	All entities listed in Section 2 of this Exhibit C may purchase Product pursuant
to this Agreement; provided that:

	 	1.1	 	Nothing in this Agreement makes HP liable or otherwise responsible
for any purchase or obligation of any HP Subsidiary, HP Affiliate or HP
Contractor;
	 
	 	1.2	 	Except for HP Subsidiaries and HP Affiliates, any credit line
extended to an Eligible Purchaser will be subject to Supplier’s normal credit
standards and approval procedures in effect from time to time during the Term;
	 
	 	1.3	 	Any purchase by any such Eligible Purchaser is for production of HP
Products or is otherwise related to HP Products; and
	 
	 	1.4	 	As may reasonably be requested by Supplier, HP will provide
reasonable confirmation that any such purchase by any such Eligible Purchaser is
intended by HP for HP Products.
	 
	 	1.5	 	Each Eligible Purchaser will state, when purchasing Product
pursuant to this Agreement, as may be reasonably acceptable in form and substance
to Supplier, that such Eligible Purchaser is purchasing Product pursuant to this
Agreement and agrees to be bound by its terms and conditions.

	 	1.5.1	 	With respect to any Accepted Order for Product,
[...***...]. In addition, all of Supplier’s
warranties specified in this Agreement run to Eligible Purchaser, and said
Eligible Purchaser will be entitled to exercise HP’s right of this
Agreement. Even if HP purchases Product from Supplier for resale to
Eligible Purchaser, all of Supplier’s warranties will run to Eligible
Purchaser. [...***...]; provided that nothing herein restricts or otherwise limits modification or
waiver of this Agreement, or part hereof, with respect to any such Order
upon mutual agreement in writing between Supplier and any Eligible
Purchaser, and provided further that:

	 	1.5.1.1	 	Any termination by Supplier or an Eligible Purchaser and any
exercise of rights and remedies by Supplier or an Eligible
Purchaser are limited, in each case, to the Accepted Orders from
such Eligible Purchaser;
	 
	 	1.5.1.2	 	In the event of Non-conforming Product, the Eligible Purchaser
under the Accepted Order out of which the Non-conforming Product
arises, or HP acting on its own behalf or that of such Eligible
Purchaser may, in each such case, make claims and exercise all
available rights and remedies, but there can be no double recovery
for any occurrence;
	 
	 	1.5.1.3	 	HP may treat any default in performance by Supplier under an
Accepted Order with an Eligible Purchaser as an Event of Default
whereupon HP may exercise all available rights and remedies.
Supplier may treat any default in performance by an Eligible
Purchaser as an Event of Default whereupon Supplier may exercise
all available rights and remedies; and
	 
	 	1.5.1.4	 	Anything in this Agreement to the contrary notwithstanding, any
liability disclaimer or limitation in this Agreement applicable to
HP or Supplier will be applicable to each Eligible Purchaser and to
Supplier.

 HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

2. List of Eligible Purchasers. The Parties will meet as necessary to formally update this
Exhibit C to accurately reflect entities qualifying as Eligible Purchasers.

	 	 	 	 	 
	A.

	 	Corporate Name:	 	 
	 

	 	 	 	 
	 

	 	Address:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	B.

	 	Corporate Name:	 	 
	 

	 	 	 	 
	 

	 	Address:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	C.

	 	Corporate Name:	 	 
	 

	 	 	 	 
	 

	 	Address:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	D.

	 	Corporate Name:	 	 
	 

	 	 	 	 
	 

	 	Address:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	E.

	 	Corporate Name:	 	 
	 

	 	 	 	 
	 

	 	Address:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 

HP Confidential

 

 

Dot Hill Systems PPA: PRO02542-060507

EXHIBIT D

ORDERING AND SHIPMENT OF PRODUCT

	1.	 	Ordering and Shipment of Product.

	 	1.1	 	In General. HP or an Eligible Purchaser may purchase
Product in one or more of the following ways: (a) by issuing an Order, (b) by
issuing a Blanket Purchase Order, or (c) according to any applicable SMI process.
	 
	 	1.2	 	Orders. Each sale and purchase of Product under this
Agreement will be initiated by an Order issued to Supplier by HP or an Eligible
Purchaser. Each Order will include quantity and price, shipping destination,
proposed Delivery Date and other instructions or requirements pertinent to the
Order. HP or an Eligible Purchaser may schedule regular intervals for Deliveries
in such Order. This Agreement applies to all Orders for Product and all
Acknowledgements of Orders whether or not the Order or Acknowledgment refers to
this Agreement. Any preprinted terms in any Orders or Acknowledgements that
attempt to add to, modify, or contradict the terms of this Agreement are not to
be given effect unless specifically agreed to in a signed writing.
	 
	 	1.3	 	Blanket Purchaser Order. HP or an Eligible Purchaser may
issue a Blanket Purchase Order to indicate that it may order the listed Products
within the period covered by such Blanket Purchase Order. Blanket Purchase
Orders do not represent a commitment by HP or the Eligible Purchaser to buy the
volume indicated. Blanket Purchaser Orders will include the quantity, part
number and revision level of the Product. A Blanket Purchase Order will be used
for fulfillment purposes until the earlier of the expiration of such Blanket
Purchase Order or depletion of the quantity or dollar limit for the Products
under such Blanket Purchase Order. Supplier will honor and fulfill all Forecasts
it received from HP and/or the Eligible Purchaser that are associated with a
Blanket Purchase Orders as per its obligations set forth in Exhibit M
(Flexibility Agreement). Supplier is deemed to have Acknowledged and accepted a
Blanket Purchase Order upon submission if such document conforms to this
Agreement.
	 
	 	1.4	 	Order Acceptance and Acknowledgment. Each Order will be
deemed to have been placed as of date of issuance of the Order by HP, subject to
receipt by Supplier. Supplier will promptly confirm to HP receipt of an Order
electronically or through facsimile. Within [...***...] following receipt of the
Order, Supplier will issue an Acknowledgment which accepts or rejects the Order;
provided that if [...***...] after issuance of the Order HP has not received
Supplier’s Acknowledgment or rejection, the Order will be deemed accepted as
issued. Unless otherwise expressly agreed by HP, Delivery must be in strict
conformity with Accepted Orders.
	 
	 	1.5	 	Emergency Orders. HP or an Eligible Purchaser may issue
Orders on an emergency basis (“Emergency Order”). Subject to availability of
Product, Supplier will fill Emergency Orders upon acceptance thereof by Supplier.
	 
	 	1.6	 	Forecasts. As Supplier may reasonably request, but no more
frequently than [...***...], HP will provide a rolling Forecast of projected Orders.
Any quantities listed in any Forecast or other correspondence between the Parties
are estimates made by HP as an accommodation to Supplier and do not constitute a
commitment by HP to purchase any such quantity. HP may revise any Forecasts as
necessary.
	 
	 	1.7	 	Lead Time. Lead Time for each item of
Product [...***...]. Either party may
request a change in Lead Times at any time, and any change announced by Supplier
will apply unless otherwise agreed; provided that Lead Times may not be
materially lengthened on less than [...***...] prior notice.
	 
	 	1.8	 	Non-conforming Orders. HP and Supplier recognize that from
time-to-time circumstances may arise that require flexibility and cooperation in
the order and delivery of supply outside the
requirements of this Exhibit D. HP will use reasonable commercial efforts to
place Orders for Product within Forecasts and Lead Times and for Orders
exceeding Forecasts or shortening Lead

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

EXHIBIT D

ORDERING AND SHIPMENT OF PRODUCT (CONTINUED)

	 	 	 	Time, Supplier will [...***...].
	 
	 	1.9	 	Inventory Requirements. HP may request Supplier to deliver
Product either through a non-Supplier Managed Inventory (“Non-SMI”) process or to
use an SMI process, as may be agreed by the Parties. There is no inventory
requirement under a non-SMI process. Use of an SMI process, whether with Hubs,
HP Warehouse or otherwise, may require additional or different terms and
conditions and is subject to mutual agreement. Inventory requirements for an SMI
process may be agreed by the Parties. Without limiting any of the obligations or
liabilities of Supplier, Supplier will maintain, at its own expense, as long as
this Agreement is in effect, insurance policies of the kind and limits listed in
Exhibit P (Insurance).
	 
	 	1.10	 	Order Changes. To the extent that Order changes are
addressed in Exhibit M (Flexibility Agreement), those terms will control the
increase or decrease of Orders as well as any liability that HP may have in
relation to the increase, decrease or cancellation of Orders with respect to
finished goods, raw materials, or Work in Progress. Absent an Order change issue
being addressed in Exhibit M (Flexibility Agreement), this Section 1.10 will
control.

	 	1.10.1	 	HP and Eligible Purchaser may, without charge, postpone, decrease or
increase any Accepted Order by notice to Supplier as set forth in this
Section; provided that any increase in quantity or any rescheduling to an
earlier Delivery Date [...***...].
	 
	 	 	 	At any time prior to Shipment, HP and Eligible Purchaser may postpone
any Accepted Order; provided that [...***...]. At any
time prior to Shipment, HP and Eligible Purchaser may decrease any
Accepted Order; [...***...].
	 
	 	1.10.2	 	Accepted Orders for Product may be canceled at any time prior to
Supplier’s commencement of production.

	 	1.11	 	Purchase Reports. Within [...***...] after close of each
HP fiscal quarter, Supplier will provide HP a report which details purchases of
Product by HP and all Eligible Purchasers by item, quantity and purchase
location, showing total quantities shipped, total dollars invoiced, returns,
percent of on-time and on-quality orders and such other information as HP and
Supplier may mutually determine is appropriate. Reports will be sent to HP’s and
Eligible Purchaser’s respective Purchaser locations and a report detailing HP’s
and Eligible Purchaser’s total purchases will be sent to HP’s primary contact set
forth in Exhibit J (Recipients for Notice).
	 
	 	1.12	 	Delivery, Shipment and Packaging. Supplier will comply
with the terms for delivery, shipment and packaging as set forth in the website
referenced in Section 21.2 of this Agreement (Trade and Logistics).

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

EXHIBIT E

PRICING

Supplier will provide a Product and Parts/Spares pricing schedule to HP [...***...]. The pricing
schedule will include Supplier’s part number, HP’s part number, description and quarterly pricing
for new Product and new and repair Parts/Spares based on HP’s fiscal quarter. Supplier agrees to
provide [...***...] and Supplier agrees that [...***...]. Supplier agrees to provide [...***...].

Pricing provided is in US$ dollars.

Initial pricing is per the table below. Per unit pricing for the Product does not include
[...***...]. All future pricing
changes will be managed via a working spreadsheet submitted via HP’s web based e-sourcing tool.
All future price changes are automatically incorporated into this Agreement as reference.

[...***...]

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

EXHIBIT F

ENGINEERING PROCESS OR DESIGN CHANGES

	1.	 	Supplier Proposed Changes. Except as set forth in this Exhibit F,
Supplier will not make or incorporate in Product any of the following changes if such
changes affect [...***...] (each an “Engineering Change” and collectively, “Engineering
Changes”):
	 
	 	 	[...***...]

	2.	 	Disk Drive Firmware Qualification and Change Management. Supplier is
responsible for identifying and qualifying a version of disk drive firmware for use in
the Product shipped by HP. HP requires that the selected, qualified version of firmware
will be kept under change control. Supplier will identify to HP the drive firmware
revision they have presently qualified and have incorporated into the Product and any
prototypes of the Product being purchased by HP for development and testing.

	3.	 	Notice of Proposed Change. Supplier will notify HP in writing of any
proposed Engineering Change. [...***...], Supplier may not provide Product involving an
Engineering Change to HP for production usage until HP has notified Supplier, in
writing, that it has completed its qualification testing.

	 	2.1	 	If any Engineering Change [...***...].
	 
	 	2.2	 	If as a result of such an Engineering Change HP would be unable to
utilize Product due to a failure under HP’s qualifications, Supplier will
continue to provide Product without the Engineering Change until Supplier and HP
resolve any qualification issues.
	 
	 	2.3	 	If a resolution mutually recognized as such by both Parties is not
achieved within a reasonable time, Supplier may, [...***...].

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

	 	 	Notwithstanding anything to the contrary herein, HP shall not unreasonably withhold,
delay or condition its approval to any Engineering Change that Supplier desires to
implement to the Products. All Engineering Changes will be documented in Supplier’s
electronic engineering change system. HP shall document promptly its approval or
rejection of each Engineering Change that Supplier requests in the same system.

	3.	 	HP Proposed Changes. HP may change HP supplied drawings or designs or
the Specification at any time prior to manufacture, effective upon notice to Supplier.
If any such change affects price, component obsolescence, quality performance or
delivery schedules of Product, an impact proposal prepared by Supplier will be presented
to HP for approval prior to Supplier initiating any change. Supplier may make written
claim for any equitable adjustment related to such change within [...***...] from the
date HP gives notice to Supplier of such change, or such claim will be deemed untimely
and adjustment with respect thereto will be waived, renounced, released and forever
barred.

	4.	 	Safety Standard Changes. Supplier will provide HP oral notice, to be
followed by written notice, or email notice within [...***...] of Supplier having
knowledge of the need for any upgrade, substitution or other change required to make
Product meet applicable safety standards or requirements of Applicable Law. HP may
require that all affected Product be reworked to meet such standards or requirements and
Supplier, in its discretion, will accomplish the same by either requesting that Product
be returned to Supplier for upgrade to current revisions or be upgraded by Supplier or
HP in the field.

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

aur

EXHIBIT G

QUALITY

	1.	 	Quality System. Supplier will maintain a quality system that ensures
compliance with this Agreement and meets at least one (1) of the following:

	 	1.1	 	Currently certified to the applicable ISO 9000 series of standards
for the Products;
	 
	 	1.2	 	Maintains a quality management system and manual that complies with
the applicable ISO 9000 quality systems series of standards;
	 
	 	1.3	 	[...***...]; or,
	 
	 	1.4	 	[...***...].

	2.	 	Documentation. Supplier, upon written request from HP, will provide to
HP copies of Supplier’s quality system documentation and supporting test documentation.
The Parties will create and maintain a combined team to provide oversight of Supplier’s
quality systems to ensure Supplier’s compliance with this Agreement.

	3.	 	HP’s Right to Inspect Facilities. With reasonable advance notice and in
compliance with Supplier’s security and safety requirements, HP and/or its designated
representative may inspect Supplier’s production and repair facilities (including but
not limited to Product, raw materials, equipment associated manufacturing processes,
test and inspection data, reliability data, failure analysis data, corrective action
data, and training data) to ensure compliance with this Agreement. HP’s inspection may
be for any reason related to this Agreement, including to ensure Supplier’s compliance
with HP’s requirements. Supplier will inform its Subcontractors and suppliers of HP’s
right to inspect their facilities and will use reasonable efforts to secure such rights
at no charge to HP.

	4.	 	Reports. Supplier will provide quality-related reports and such other
reports and information as HP may reasonably request.

	5.	 	Supplier Rating. HP periodically reviews its suppliers through the
Procurement Management Process (“PMP”). Supplier will participate in the PMP review
process.

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

EXHIBIT H

PRODUCT RETURNS; NON-CONFORMING PRODUCT

	1.	 	Product Returns; Non-conforming Product.

	 	1.1	 	Return Material Authorization. Product received by HP and
Eligible Purchasers but not yet shipped to HP customers may be returned to
Supplier as set forth in this Exhibit H. Product returned to Supplier will be
accompanied by a Return Materials Authorization (“RMA”). Unless Supplier
reasonably requires further verification, Supplier will provide an RMA within
[...***...] of HP’s request. [...***...].
	 
	 	1.2	 	Return Charges. All Non-conforming Product will be
returned to Supplier [...***...], and all replacement Product will be
shipped by Supplier at Supplier’s expense.
	 
	 	1.3	 	Duty to Remove Marks or Destroy Non-conforming Product.
Supplier will not sell, transfer or otherwise relinquish possession of Product
which bears any HP Mark, part number or identifier, including any HP packaging,
copyright, color or design scheme or code, other than as may be Ordered for
Delivery by HP or Eligible Purchasers.

	 	1.3.1	 	Supplier will not sell, transfer or otherwise
relinquish possession, dispose of, or reuse or remanufacture
Non-conforming Product which bears any HP Mark, part number or other such
identifier unless Supplier removes same therefrom, even if such removal
would result in destruction of the affected Product or Non-conforming
Product.
	 
	 	1.3.2	 	Supplier will not represent any Product as built for
HP or to HP specifications; provided that nothing herein limits or
otherwise affects Supplier’s right to represent Product as functional in
or compatible with any HP Products or as complying with or conforming to
specifications for HP Products, when such representation is true and
correct in all material respects.
	 
	 	1.3.3	 	All manufacturing overruns of HP branded Product or
defective HP branded Product will be destroyed by Supplier in a secure
manner upon HP’s authorization or reworked to remove any HP Mark, part
number or other such identifier. At no time may an HP branded Product be
sold or transferred to another party without HP’s prior written
authorization.

	 	1.4	 	Recycle or Disposal. Supplier will recycle or dispose of
any excess or waste Product including manufacturing overruns, damaged or
defective Product, and Non-conforming Product returned to Supplier and
non-repairable Non-conforming Product returned to Supplier in compliance with the
provisions of this Agreement, Applicable Law and any specific instructions
received from HP. Any proceeds received by Manufacturer on account of any
recycling or destruction carried out under this section will be credited to HP.
Other than instances of excess, waste, damaged or defective Products as set forth
above, HP shall be responsible for the disposal of Product by or for its
Customers, including any WEEE initiatives required.

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

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 [...***...] 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 purchase from Supplier a commercially
reasonable quantity of the Discontinued Product under the terms 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. 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 [...***...] following any such expiration or
termination.
	 
	 	 	 	[...***...]

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

	 	 	 	[...***...]
	 
	 	1.4	 	Survival of Lifetime Buy Rights. Supplier’s obligations to
provide [...***...] will continue and survive
expiration or any termination of the Agreement for [...***...] after expiration
or any termination of the Agreement.

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

EXHIBIT J

RECIPIENTS FOR NOTICES

	 	 	 	 	 	 	 	 	 
	For HP:

	 	 	 	 	 	For Supplier:	 	 
	 
	  Name:

	 	Mike Prus
	 	 	 	  Name:
	 	Bart Asquith
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	  Title:

	 	Commodity Manager
	 	 	 	  Title:
	 	Director, OEM Sales
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	  Address:

	 	200 Forest Street
	 	 	 	  Address:
	 	7420 East Dry Creek Pkwy
	 

	 	 
	 	 	 	 	 	 
	 

	 	Marlboro, MA 01752
	 	 	 	 	 	Longmont, CO 80503
	 
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	  Phone Number:

	 	508-467-2525
	 	 	 	  Phone Number:
	 	408-377-7474
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	  Fax Number:

	 	508-467-2636
	 	 	 	  Fax Number:
	 	408-377-7113
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	  Email:

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

	 	 
	 	 	 	 	 	 

The Agreement will be facilitated by a management sponsor from each party.

The sponsors will conduct quarterly reviews concerning status of the Agreement and outlook for
the future. Each sponsor will act, respectively, as an escalation path for issues arising under
the Agreement during the Term with the objective of timely resolution.

The individuals indicated in this Exhibit may be re-designated at any time by their respective
employers with appropriate information to the other party.

	 	 	 	 	 	 	 
	 	 	HP NAME, ADDRESS,	 	SUPPLIER	 	SUPPLIER NAME, ADDRESS,
	HP TITLE	 	PHONE, FAX, E-MAIL	 	EQUIVALENT TITLE	 	PHONE, FAX, E-MAIL
	Program Manager

	 	Kevin Collins
	 	Technical Account
	 	Paul Holladay
	 

	 	3404 E Harmony Rd.
	 	Manager
	 	7420 E. Dry Creek Pkwy
	 

	 	Ft. Collins, CO 80528
	 	 	 	Longmont, CO 80503
	 

	 	970-898-4672
	 	 	 	303-845-3341 (office)
	 

	 	[...***...]
	 	 	 	[...***...] (cell)
	 

	 	 	 	 	 	303-845-3655 (fax)
	 

	 	 	 	 	 	[...***...]
	 
	 	 	 	 	 	 
	Procurement Manager

	 	Grant Reoch
	 	Vice President WW OEM
	 	Garrett Wein
	 

	 	20555 Tomball Parkway
	 	Sales
	 	7420 E. Dry Creek Pkwy
	 

	 	Houston, Texas 77070
	 	 	 	Longmont, CO 80503
	 

	 	281-518-0146
	 	 	 	[...***...] (cell)
	 

	 	[...***...]
	 	 	 	[...***...]
	 
	 	 	 	 	 	 
	Procurement Quality

	 	Tim Love
	 	Director Quality
	 	Tom Chalmers
	Engineer

	 	20555 Tomball Parkway
	 	Assurance and
	 	2200 Faraday Ave
	 

	 	Houston, Texas 77070
	 	Configuration
	 	Suite 100
	 

	 	281-518-2043
	 	Management
	 	Carlsbad, Ca. 92008
	 

	 	[...***...]
	 	 	 	[...***...] (cell)
	 

	 	 	 	 	 	760 431-4416 (desk)
	 

	 	 	 	 	 	760 931-5528 (fax)
	 

	 	 	 	 	 	[...***...]

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

	 	 	 	 	 	 	 
	 	 	HP NAME, ADDRESS,	 	SUPPLIER	 	SUPPLIER NAME, ADDRESS,
	HP TITLE	 	PHONE, FAX, E-MAIL	 	EQUIVALENT TITLE	 	PHONE, FAX, E-MAIL
	Commodity Manager

	 	Mike Prus
	 	Director, OEM Sales
	 	Bart Asquith
	 

	 	200 Forest Street
	 	 	 	7420 E. Dry Creek Pkwy
	 

	 	Marlboro, MA 01752
	 	 	 	Longmont, CO 80503
	 

	 	508-467-2525 (office)
	 	 	 	[...***...] (cell)
	 

	 	[...***...]
	 	 	 	408-377-7177 (fax)
	 

	 	 	 	 	 	[...***...]
	 
	 	 	 	 	 	 
	Director Nearline Disk

	 	Jeff Kato
	 	EVP WW Field
	 	Phil Davis
	Systems

	 	3404 E Harmony Rd.
	 	Operations
	 	7420 E. Dry Creek Pkwy
	 

	 	Ft. Collins, CO 80528
	 	 	 	Longmont, CO 80503
	 

	 	970-898-3181
	 	 	 	303-845-3200 (office)
	 

	 	[...***...]
	 	 	 	[...***...]
	 
	 	 	 	 	 	 
	Services Commodity Manager

	 	Suzi Garrison
	 	VP of Customer Service
	 	Steven Craig
	 

	 	20555 Tomball Parkway
	 	 	 	7420 E. Dry Creek Pkwy
	 

	 	Houston, Texas 77070
	 	 	 	Longmont, CO 80503
	 

	 	281-927-2911
	 	 	 	303-845-3251 (office)
	 

	 	[...***...]
	 	 	 	[...***...] (cell)
	 
	 	 	 	 	 	 
	Product Safety and

	 	Jeff Doolittle
	 	Compliance Manager
	 	Roger Mannering
	Environmental Compliance

	 	3404 E Harmony Rd.
	 	 	 	2200 Faraday Ave
	Representative

	 	Ft. Collins, CO 77070
	 	 	 	Suite 100
	 

	 	870-898-3121
	 	 	 	Carlsbad, Ca. 92008
	 

	 	[...***...]
	 	 	 	760-931-5595 (office)
	 

	 	 	 	 	 	[...***...] (cell)
	 

	 	 	 	 	 	[...***...]

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

EXHIBIT K

SERVICE & SUPPORT REQUIREMENTS

K.1 SCOPE: This Exhibit K provides additional terms and conditions applicable to Supplier’s
provision of the Parts identified in Exhibit E to be used for maintenance (“Spares”) and
associated services to repair in and out of warranty Spares (“Services”).

K.2 SHIPMENT AND RETURNS:

K.2.1 GENERAL: Supplier will ship Spares from, and accept returns shipped to, one of [...***...]
its facilities, located in [...***...], and other locations agreed to in writing by HP and
Supplier. Supplier will promptly ship Spares and repair materials returned from HP. Unless HP
requests a later date, Lead-Time for Spares will not exceed [...***...] and Lead-Time to repair
or replace returned Spares will not exceed [...***...] from receipt of Spares. If any returned
Spares are damaged and not repairable, Supplier will notify HP within [...***...] of receipt of
such Spare and that such Spare will be disposed of as scrap at Supplier’s location or returned
to HP. Provisions regarding forecasts or lead times set forth in Exhibit D are not applicable
to the scope of this Exhibit K.

K.2.2 PRIORITY DELIVERY: In addition to any requirements regarding emergency orders that may be
in the Agreement, if HP notifies Supplier that HP is experiencing a critical support situation,
[...***...].

K.2.3 RMA PROCEDURE: HP will request an RMA number prior to return of any Spares and other
material to Supplier. HP will provide quantity and part numbers of Spares to be returned, and
will make best efforts to provide the serial number. Notwithstanding the timeframes set forth
in Exhibit H, Supplier will provide the RMA number within [...***...] of HP’s request.
[...***...]

K.3 TERM OF AVAILABILITY: Notwithstanding the provisions of Section 11.3 (Survival of Support
Obligations) of the Agreement, Supplier will provide Spares and Services during the Term of
Availability. The Term of Availability means, for each Spare the period beginning when the Spare
is first shipped to HP and continuing for a minimum of [...***...] from the date Supplier last
ships HP volume shipments of any Product that the Spare is used to support. Supplier must provide
written notification to HP at least [...***...] prior to discontinuing provision of Spares and
Services, and this notification shall identify by name and product number, the Spares affected.
Supplier will fulfill HP’s order for “last buy” quantities of Spares based on such notification.

HP Confidential

 Revision September 2004

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

K.4 PRICING: Purchase prices for Spares and Services are identified in Exhibit E. In the event
of a change in the prices that Supplier charges HP for Products, HP and Supplier will negotiate
changes to pricing for related Spares and Services within [...***...] of such changed Products
pricing. Pricing changes are [...***...]. All Spares returned to Supplier [...***...], and all replacement Spares shipped by Supplier will be delivered at
Supplier’s risk and expense. Terms of Sale and passage of title will be treated in the same
manner as the way Products are provided for in the Agreement.

K.5 NON-REPAIRABLE SPARES WARRANTY RECOVERY: HP and Supplier may document Spares that are not
economical to repair. HP will not return such Spares to Supplier. HP will scrap such Spares and
advise Supplier of the identity of the scrapped Spares (through serial numbers or another
reasonable method) and the quantities of in-warranty Spares that are scrapped. Supplier will issue
a credit to HP based on the then current purchase price of the in-warranty Spare in the Schedule of
Spares.

K.6 RIGHTS AND ASSISTANCE TO REPAIR: In the event that Supplier fails to continue to provide
Spares and Services during the Term of Availability as required by the Agreement, Supplier:

[...***...]

K.7 QUALITY: Notwithstanding provisions of Section 7.1 (Product General Warranties) of the
Agreement that Products be new, Spares must [...***...]

HP Confidential

 Revision September 2004

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

[...***...]. Spares repaired by Supplier will conform to all
Specifications, applicable to the Spare, for the longer of (i) the remaining warranty period, or
(ii) [...***...] from Delivery. [...***...].

K.8 THIRD PARTY REPAIR SERVICES: HP may use a third party to manage aspects of its repair
processes. Such third party repair center will be considered an Eligible Purchaser and the
provisions of Exhibit C (“Eligible Purchaser”) of the Agreement shall apply. Notwithstanding the
involvement of an Eligible Purchaser, HP shall remain entitled to all of its rights (including, but
not limited to, warranty and indemnification) under the Agreement.

K.9 SUPPLIER MANAGEMENT PROGRAM: Supplier agrees to participate in HP’s Supplier Management
Program and meet with HP at HP’s offices, as requested up to [...***...], in order to review
Supplier’s performance, establish performance metrics to drive continuous improvements, and discuss
other areas of mutual concern.

K.10 ORDER OF PRECEDENCE: Notwithstanding Section 22.3 of the Agreement, the terms of this
Exhibit K (whether or not specific reference to made to a term of the Agreement), shall take
precedence over the Agreement as such terms related to the scope of this Exhibit K.

K.11 SURVIVAL: In the event the Agreement terminates for any reason, this Exhibit K will continue
as a stand alone support agreement, until the end of the latest Term of Availability, and all terms
of the Agreement applicable to support will remain in full force and effect as a part of this stand
alone support agreement. Agreement terms applicable to support include, without limitation,
warranty, indemnification, remedies, pricing, payment, confidentiality, quality and general terms.

HP Confidential

 Revision September 2004

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

EXHIBIT K-1

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: if v6.3 replaced
v6.2, then v6.3 is the Current Version; if v6.0 replaced v5.0, then v6.0 is the Current
Version.
	 
	 	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” means [...***...]. Elevate to Level 2 as appropriate.
	 
	 	1.5	 	“Level 2 Support” means [...***...]. Elevate to Level 3 as appropriate.
	 
	 	1.6	 	“Level 3 Support” means [...***...].
	 
	 	1.7	 	“Level 4 Support” means [...***...]

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

	 	 	 	[...***...].
	 
	 	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: if v6.3 replaced v6.2, then
v6.2 is Prior Version; if v6.0 replaced v5.0, then v5.0 is the Prior Version.
	 
	 	1.10	 	“Problem” means a [...***...].
	 
	 	1.11	 	“Problem Resolution” means, [...***...]

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

	 	 	 	[...***...]
	 
	 	1.12	 	“Software Information” means, [...***...].
	 
	 	1.13	 	“Supplier” shall include, when applicable,
[...***...].
	 
	 	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.

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

	 	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 [...***...]

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

	 	 	 	[...***...]
	 
	 	2.2	 	Severity 2 Definition

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

	 	2.3	 	Severity 3 Definition

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

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

	 	 	 	[...***...]
	 
	 	2.4	 	Severity Level 4 Definition

“Severity 4” will be [...***...]

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

Table 1

     Hewlett-Packard/Supplier Response Requirements

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Supplier	 	 	 	 	 	 	 	 	 	 
	Severity	 	Response	 	Joint Action	 	Status	 	Interim Fix	 	Resolution	 	Level of
	Level	 	Requirements	 	Plan	 	Updates	 	Target *	 	Target *	 	Effort
	1

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

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

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

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

 

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

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

	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.

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

HP Confidential

***
Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

 EXHIBIT L

THIRD PARTY AND OPEN SOURCE SOFTWARE COMPONENTS

 

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

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

EXHIBIT M

FLEXIBILITY AGREEMENT

HP will provide a [...***...] rolling Forecast as defined in Exhibit D article 1.6 of this
agreement. [...***...]

Supplier is authorized to use this Forecast to purchase within a reasonable lead time any materials
required to support the base Forecast and the upside flexibility requirements described in this
Exhibit M. Supplier will provide [...***...]. In the event of
cancellation of any accepted order or termination of this agreement, for reasons other than
Supplier’s default, HP’s liability will be limited as specified below.

HP shall be liable for:

[...***...]

Supplier will make commercially reasonable efforts to mitigate HP’s liability [...***...], or other methods of disposition that
would serve to reduce HP’s overall liability. HP will promptly
[...***...].

Supplier shall [...***...] to provide HP flexibility as set forth below, and shall [...***...].

In instances of materials or capacity constraint that adversely affect Supplier’s ability to meet
HP’s then-existing or forecasted needs for Products, Supplier agrees to [...***...].

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

Flex is defined as [...***...].

Notwithstanding anything herein to the contrary, if HP’s forecast is [...***...] than the actually
ordered amount for any given [...***...], or is [...***...] than the actually ordered amount for
any [...***...], Supplier will use
[...***...] as the “forecasted” amount going forward, until [...***...].

[...***...]

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

[...***...]

LISTS OF SPECIAL COMPONENTS

These lists of HP Unique and Long Lead Time Components will be reviewed and updated on a quarterly
basis upon the mutual agreement of the parties.

HP Unique Components ***

[...***...]

Long Lead Time Components*

[...***...]

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

[...***...]

Buffer Requirements and HUB Management:

[...***...]

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

EXHIBIT N

QUALITY AND COMPENSATION EXHIBIT

	1.	 	Purpose of this Exhibit. Supplier’s obligations under Section 7 (Warranties)
of the 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 that failures of Product to conform to Section 7
(Warranties) reach certain levels, 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, [...***...]
	 
	 	2.2.	 	Any failure of Product to conform to Section 7 (Warranties) within [...***...]
after Delivery constitutes an occurrence for purposes of calculating Epidemic Failure.
	 
	 	2.3.	 	If the parties mutually determine that an Epidemic Failure may occur, [...***...] and Supplier will 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 pursuant to the terms and conditions of this Exhibit.
[...***...].
	 
	 	2.5.	 	Epidemic Failure Remedies. After review of [...***...], the parties will
[...***...]

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

[...***...]

	 	2.6.	 	In the event of an Epidemic Failure, each party will [...***...], Supplier will
[...***...], which may include, but may not be limited to, [...***...]; provided that HP
will [...***...].

	3.	 	Field Failure Metrics, Targets and Limits. To ensure that HP quality requirements are
met, Supplier agrees to [...***...] to comply with the applicable Failure Rate Metrics,
Targets and Limits set forth in Table 1. The parties will review the Targets and Limits
set forth in Table 1 annually for potential adjustment.

Table 1: Failure Rate Metric Targets & Limits

[...***...]

	4.	 	Engineering and Technical Services. Supplier shall provide engineering and technical
services on a continuous basis in order to [...***...].

	5.	 	Corrective Action Plan and Compensation to HP.

	 	5.1.	 	Corrective Action Plan. Whenever the Field Failure Metric Targets or Limits set
forth in Table 1 [...***...], Supplier will [...***...].
	 
	 	5.2.	 	Compensation. Supplier will [...***...].

Table 2: Compensation Payments

[...***...]

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

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

	6.	 	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.
	 
	 	 	AFR. AFR means [...***...]
	 
	 	 	ARR. For the purpose of this exhibit, ARR means [...***...]
	 
	 	 	Corrective Action Plan. This term refers to [...***...]. A Corrective Action Plan
shall, [...***...]. Additionally, a Corrective Action Plan shall [...***...]. The action
plan may [...***...].
	 
	 	 	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 [...***...]. Failures will [...***...]. Failures may
[...***...].

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

	 	 	A Failure may also include [...***...].
	 
	 	 	[...***...] does not constitute a Failure.
	 
	 	 	[...***...] does not constitute a Failure [...***...].
	 
	 	 	[...***...] and does not constitute a Failure.
	 
	 	 	Product Recall. The term “Product Recall” means [...***...].
	 
	 	 	Service Return. This term means [...***...].

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

EXHIBIT O

GOVERNMENTAL COMPLIANCE

As referenced at Section 21 (Additional Obligations of Supplier) of the Agreement, Supplier
will comply with all Applicable Laws, including without limitation those established laws
related to the following:

	 	1.	 	Vocational Rehabilitation Act. Supplier warrants that its U.S. operations comply
with the requirements of Executive Order 11246, the Vocational Rehabilitation Act and
the Vietnam Era Veterans’ Readjustment Assistance Act.
	 
	 	2.	 	Accessibility. Supplier is in compliance with all applicable laws and
regulations governing the accessibility of information technology for people with
disabilities. Supplier will provide HP with information about accessibility features of
Products.
	 
	 	3.	 	Procurement Regulations. HP is a commercial corporation that is also a
contractor and subcontractor for the U.S. government. All of the Products to be
purchased from Supplier by HP pursuant to a subcontract/purchase order in the United
States, its territories, possessions, the District of Columbia and the Commonwealth of
Puerto Rico are deemed to be “Commercial Items” as defined in Federal Acquisition
Regulation (“FAR”) 2. 10 1, Part 12 and 52.202.1 (c). The clauses identified FAR
52.244-6 are hereby deemed incorporated into this Agreement with respect to all
Commercial Items. In addition, Supplier is required to flow down FAR 52.219-9, Small
Business Subcontracting Plan (January 2002).
	 
	 	4.	 	Pursuant to FAR 52.212-5(e) and/or FAR 44.402(b), Supplier agrees to comply with
the following FAR clauses, which are hereby incorporated by reference into this
Agreement, with the same force and effect as if they were presented in full:

     FAR 52.222-26, Equal Opportunity (February 1999)

     FAR 52.219-8, Utilization of Small Business Concerns (October 2000)

     APPLICABLE IF THE SUBCONTRACT/PURCHASE ORDER EXCEEDS $2,500: FAR
52.222-41, Service Contact Act of 1965, as Amended (May 1989) if the purchase
order is principally for the furnishing of services through the use of service
employees.

     APPLICABLE IF THE SUBCONTRACT/PURCHASE ORDER IS FOR $10,000 OR
MORE: FAR 52.222-35, Affirmative Action for Disabled Veterans and Veterans of
the Vietnam Ear (April 1998)

     FAR 52.222-36, Affirmative Action for Workers with Disabilities
(June 1998)

	 	5.	 	Anti-Terrorism Security Measures. Supplier acknowledges that its failure to
comply with the laws, or regulations of any applicable governmental authority, U.S.
CTPAT or equivalent security guidelines or TAPA/HP security requirements will be
considered by HP as negligence and failure on the part of Supplier to provide due care
for HP shipments. Supplier will be liable for all fines and penalties imposed on HP,
and other damages incurred by HP, relating to Supplier’s noncompliance with any such
security regulations, guidelines or requirements.

HP Confidential

 

 

Dot Hill Systems PPA: PRO02542-060507

EXHIBIT P

INSURANCE

	1.	 	Worker’s Compensation Insurance. As required by Applicable Law having
jurisdiction over Supplier’s employees wherever work is to be performed under this
Agreement.

	2.	 	Employer’s Liability Insurance. In an amount keeping with the law of the nation,
state, territory or province having jurisdiction over Supplier’s employees wherever work
is to be performed under this Agreement or U.S. [...***...], whichever is greater.

	3.	 	General Liability Insurance. Including but not limited to premises and
operations, products and completed operations, broad form contractual liability, broad
form property damage and personal injury liability with a minimum limit of [...***...]
combined single limit per occurrence and [...***...] in the aggregate, for claims of
bodily injury, including death, and property damage that may arise from use of the
Products, or a minimum limit of [...***...] combined single limit per occurrence and
[...***...] in the aggregate for claims of acts or omissions of Supplier under this
Agreement. Each policy obtained by Supplier will name HP, its officers, subsidiaries,
directors and employees as additional insureds. Such insurance will apply as primary
insurance and no other insurance will be called upon to contribute to a loss covered
thereunder.

	4.	 	Claims Made Coverage. If any policies have “claims made” coverage, Supplier will
maintain such coverages with HP named as an additional insured for a minimum of
[...***...] after termination of this Agreement. Any such coverage must have a
retroactive date no later than the date upon which work commenced under this Agreement.

	5.	 	Additional Requirements. All deductibles on policies providing coverage will be
paid by Supplier.

In the event Supplier is self insured for matters described in
Section 12 (Business Recovery Plan; Loss Control) of the Agreement, Supplier
agrees to respond to all claims or losses made against or incurred by HP in the
same fashion as if insurance had been purchased with the same or broader coverage
terms than what is generally available to similar suppliers.

All insurance policies will be written by a company appropriately
licensed, financially responsible and authorized to do business in the territory
and jurisdiction where the project is located.

In no event will the coverages or limits of any insurance required
under this Exhibit, or the lack or unavailability of any other insurance, be
deemed to limit or diminish Supplier’s obligations or liability to HP under this
Agreement.

In addition, where allowed by law, such policies will permit
Supplier to waiver, on its own behalf and on behalf of its insurers, any rights
of subrogation against HP, its Subsidiaries, officer directors and employee.

	6.	 	Supplier will furnish Certificates of Insurance acceptable to HP before any work
is commenced hereunder by Supplier. The Certificate of Insurance will provide that
there will be no cancellation of coverage without [...***...] prior written notice to
HP. Dot Hill shall provide HP with [...***...] prior written notice of any reduction of
coverage.

HP Confidential

***Confidential Treatment Requested

 

 

Dot Hill Systems PPA: PRO02542-060507

EXHIBIT Q

INDUSTRIAL DESIGN OF THE PRODUCT

	1.	 	HP Industrial Design
	 
	 	 	The following list of features and/or components: (i) constitute the Industrial Design; (ii)
are the only pieces of Intellectual Property that are funded by HP
under this Agreement [...***...], and; (iii) are HP-Owned Technology.
	 
	 	 	[...***...]
	 
	2.	 	Supplier IP
	 
	 	 	Unless specifically set forth above in Section 1,
[...***...].
	 
	3.	 	Definitions. Terms not defined herein shall have those definitions as set forth
in Exhibit A (Definitions).

HP Confidential

***Confidential Treatment Requestedexv10w2

Exhibit 10.2

      

			
	
	 	***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
	 	 	 
	 
	 	HP CONFIDENTIAL
	 
	 	FOR DOT HILL ONLY

 

AMENDMENT ONE

TO PRODUCT PURCHASE AGREEMENT NO. PRO02542-060507

This Amendment One to the Product Purchase Agreement No. PRO02542-060507 signed by HP September 10,
2007, (the “Amendment One”) dated December 20, 2007 (the “Amendment One Effective Date”) is between
DOT HILL SYSTEMS CORPORATION (“DOT HILL”), a Delaware corporation, with offices at 2200 Faraday
Avenue, Carlsbad, CA, 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 that certain Product Purchase Agreement signed by HP
September 10, 2007, including all exhibits thereto, (collectively, the “Agreement”), whereby HP
authorized DOT HILL 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 to include the production, associated
maintenance, support, sale and distribution of additional Product as specified by HP herein;

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

TERMS

	 	1.	 	§1.2 (General) is hereby amended by including at the end of current section the
following:
	 
	 	 	 	“Any Products acquired by HP and Eligible Purchasers from Supplier will be covered by the
terms and conditions of this Agreement, whether or not set forth in Exhibit (B).”
	 
	 	2.	 	§1.4 (Term) is hereby amended from a one-year
initial term to a [...***...] term.
	 
	 	3.	 	§3.7 (Right of Offset) is hereby amended by replacing “Either party” at the beginning
of the section to “HP.”
	 
	 	4.	 	(new) §4.5 (Joint Material Cost Efforts) The Agreement is hereby amended by inclusion
of the following provision:
	 
	 	 	 	“The parties agree to work together to enable Supplier to reduce costs throughout the
Product supply chain (“Joint Cost Reduction Efforts”). Joint Cost Reduction Efforts [...***...]

***Confidential Treatment Requested

 

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

	 	 	 	[...***...]. Joint Cost Reduction Efforts may [...***...].
	 
	 	 	 	Supplier agrees to provide [...***...] on or before January 7, 2008, [...***...]. The parties expect
the Joint Cost Reduction Efforts to [...***...].”
	 
	 	5.	 	(new) §4.6 (Material Cost Reductions) The Agreement is hereby amended by inclusion of
the following provision:
	 
	 	 	 	“Supplier will [...***...] such initial cost reductions [...***...], Supplier will automatically
[...***...]. Such price reductions [...***...].”
	 
	 	6.	 	§7.2.2 (Warranty Periods) is hereby amended by replacing “[...***...]” to “[...***...].”
	 
	 	7.	 	§12.3 (Production [...***...]) is hereby amended by replacing the words “[...***...]” with
“[...***...].”
	 
	 	8.	 	§12.3(b) (Production [...***...]) is hereby replaced in its entirety with the following
provision, but (b)(i) through (v) shall remain:
	 
	 	 	 	“[...***...]:”
	 
	 	9.	 	§12.3(d) (Production [...***...]) is hereby amended by replacing [...***...] with [...***...].”
	 
	 	10.	 	(new) §12.4 (Technical Information Deposit Escrow Agreement) The Agreement is hereby
amended by inclusion of the following provision:
	 
	 	 	 	“At HP’s request, Supplier agrees to deposit with
an independent escrow agent the Technical
Information pursuant to the terms of a Deposit Agreement [...***...]. During the term of this
Agreement and any

 Page 2 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

	 	 	 	extensions thereof, Supplier [...***...]. The parties agree to designate [...***...], as the escrow
agent.”
	 
	 	11.	 	(new) §12.5 (Escrow Release) The Agreement is hereby amended by inclusion of the
following provision:
	 
	 	 	 	“Upon the occurrence of a “Release Condition” (as defined in the exhibit), and pursuant to
the terms of the Deposit Agreement, [...***...]. In addition, upon such Release Condition,
[...***...].”
	 
	 	12.	 	§14.4.1 (Software License) is hereby amended by including the words “irrevocable,
perpetual (as to sublicenses granted hereunder)” after the word “worldwide” in the first
sentence of the section.
	 
	 	13.	 	§15.3 (Supplier’s Duty to Defend) is hereby amended by:

	 	(i)	 	including the following new subsection 15.3.6 as follows: “or combination of
the Product with an HP Product where such combination is the intended purpose of the
Products set forth in the product documentation.” and;
	 
	 	(ii)	 	Deleting the final paragraph in its entirety from Section 15.3 beginning with,
“The combination of the...”

	 	14.	 	§17.3 (Cover Costs) is hereby replaced in entirety with the following:
	 
	 	 	 	“Cover Costs. Subject to the provisions of Article (17) of the Agreement, upon [...***...]
(“Cover Costs”) [...***...]. Cover Costs may include, but are not limited to: [...***...]

 Page 3 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

	 	 	 	[...***...].”
	 
	 	15.	 	Article 19 (Limitation of Liability) is hereby replaced in its entirety with the
following: “HP WILL NOT BE LIABLE TO SUPPLIER FOR ANY SPECIAL, INDIRECT, OR CONSEQUENTIAL
DAMAGES (INCLUDING LOSS OF DATA, PROFITS OR REVENUE, COST OF CAPITAL OR DOWNTIME COSTS), OR
FOR ANY EXEMPLARY OR PUNITIVE DAMAGES ARISING OUT OF ANY PERFORMANCE OF THIS AGREEMENT OR
ANY ORDER, REGARDLESS OF WHETHER SUCH DAMAGES ARE BASED IN TORT, WARRANTY, CONTRACT OR ANY
OTHER LEGAL THEORY, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES. [...***...].”
	 
	 	16.	 	§20.1 (Termination for Convenience) is hereby amended by deleting the last sentence of
that section.
	 
	 	17.	 	(new) §21.9 (Product Supply Assurance) The Agreement is hereby amended by inclusion of
the following:
	 
	 	 	 	“Supplier agrees that, during the Term of the Agreement [...***...], Supplier will [...***...].”
	 
	 	18.	 	(new) §21.10 (Product Exclusivity) The Agreement is hereby amended by inclusion of the
following provision:
	 
	 	 	 	“For a period of [...***...] from date of first HP customer shipment of the respective
Products, Supplier shall give HP product exclusivity for the following features: [...***...]”
	 
	 	19.	 	(new) §21.11 Critical Milestones. The Agreement is hereby amended by inclusion of the
following provision:
	 
	 	 	 	“Supplier shall meet the critical milestones (“Critical Milestones”) and associated dates as
set forth in Exhibit (T) attached hereto. In the event Supplier [...***...]. Subject to the
terms and conditions of Section 22.6 (No Waiver),

 Page 4 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

	 	 	 	of the Agreement HP [...***...].” 
	 
	 	20.	 	§22.5.2 (Assignment) is hereby amended by replacing “Either party” at the third line of
the section to “HP.”
	 
	 	21.	 	§22.11 (Governing Law) is hereby amended by deleting the last sentence of that section.
	 
	 	22.	 	(new) §22.15 (Protective Rights) The Agreement is hereby amended by inclusion of
Exhibit (R) (Protective Rights Agreement) attached hereto.
	 
	 	23.	 	Exhibit (A) (Definitions) shall be amended by replacing the definition of “Product” or
“Products” in its entirety with the following: “Product” or “Products” includes any Goods,
Services, Parts, Software, Documentation and other deliverables provided under this
Agreement, whether or not same is set forth in Exhibit B (Product Description and
Specifications).
	 
	 	24.	 	Exhibit (B) (Product Description and Specifications) attached to the Agreement shall be
amended by inclusion at the end of Exhibit (B) of Exhibit (B-1) attached hereto.
	 
	 	25.	 	Exhibit (E) (Pricing) attached to the Agreement shall be amended by inclusion at the
end of Exhibit (E) of Exhibit (E-1) attached hereto.
	 
	 	26.	 	Exhibit (I) (Manufacturing Rights) attached to the Agreement is hereby replaced in its
entirety with Exhibit (I) attached hereto.
	 
	 	27.	 	Exhibit (N) (Quality Compensation Exhibit) attached to the Agreement is hereby replaced
in its entirety with Exhibit (N) attached hereto.
	 
	 	28.	 	Exhibit (R) (Protective Rights Agreement) as attached hereto is hereby included in its
entirety in the Agreement.
	 
	 	29.	 	Exhibit (S) (Technical Information Escrow Agreement) as attached hereto is hereby
included in its entirety in the Agreement.
	 
	 	30.	 	(new) Exhibit (T) Critical Milestones as attached hereto is hereby included in its
entirety in the Agreement.
	 
	 	31.	 	(new) Contingent Terms and Conditions Precedent to Final agreement. The parties hereto
acknowledge certain terms and conditions shall be necessary to consummate the full
agreement between the parties. Accordingly, HP and Supplier shall promptly and in good
faith establish the following as soon as commercially reasonable after the Amendment One
Effective Date, but in no event later than [...***...]

	 	•	 	Exhibit (D) Ordering and Shipment of Product (SC review)

 Page 5 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

	 	•	 	Exhibit (G) Quality (SC review)
	 
	 	•	 	Exhibit (K) Service and Support Requirements (team review; L1/L2 incremental support
option / quote needed)
	 
	 	•	 	Exhibit (M) Flex Agreement (SC review)
	 
	 	•	 	(new) Stock Warrants Agreement (pending)

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 One to be executed by their duly
authorized representatives on the dates indicated below.

	 	 	 	 	 	 	 	 	 	 	 
	DOT HILL SYSTEMS CORP.	 	 	 	HEWLETT-PACKARD COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

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

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	Dana Kammersgard
	 	 	 	Name:
	 	Robin Hensley	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	CEO
	 	 	 	Title:	 	VP & General Manager,	 	 
	 

	 	 	 	 	 	 	 	Entry Storage Division	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	12/20/07	 	 	 	Date:	 	1-7-2008	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

 Page 6 of 38 

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

EXHIBIT (B-1)

ADDITIONAL PRODUCT DESCRIPTION AND SPECIFICATIONS

[...***...]

 Page 7 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

[...***...]

 Page 8 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

EXHIBIT (E-1)

ADDITIONAL PRODUCT PRICING

Subject to the provisions of Section 4.6 hereinabove, prices for the Products are as follows:

[...***...]

 Page 9 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

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, [...***...].
	 
	 	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. 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 [...***...] following any such
expiration or termination.
	 
	 	1.3	 	[...***...]

 Page 10 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

	 	 	 	[...***...]

 Page 11 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

EXHIBIT (N)

QUALITY AND COMPENSATION

	 	1.	 	Purpose of this Exhibit. Supplier’s obligations under Section 7
(Warranties) of the 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, [...***...]

	 	2.2.	 	Any failure of Product to conform to Section 7 (Warranties)
constitutes an occurrence for purposes of calculating Epidemic Failure.
	 
	 	2.3.	 	If HP determines that an Epidemic Failure may occur, [...***...].

 Page 12 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

	 	2.4.	 	Epidemic Failure [...***...]. In the event HP or Supplier
determines that there has been an Epidemic Failure, [...***...].
	 
	 	2.5.	 	Epidemic Failure [...***...]. After [...***...], HP may
[...***...] that the Epidemic Failure [...***...]
	 
	 	2.6.	 	[...***...]

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

 Page 13 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

Table 1: Failure Rate Metric Targets & Limits

[...***...]

	 	 	 	[...***...]
	 
	 	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.
	 
	 	5.	 	Corrective Action Plan and Compensation to HP.

	 	5.1.	 	Corrective Action Plan. Whenever the Field Failure
Metric Targets or Limits [...***...].
	 
	 	5.2.	 	Compensation. Supplier will pay HP reasonable
compensation payments [...***...].
	 
	 	5.3.	 	[...***...]. Notwithstanding anything herein to the contrary, if a
failure of Products constitutes both an Epidemic Failure described in section 2
and [...***...], and if [...***...].

	6.	 	Catastrophic Failure. [...***...]

 Page 14 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

	 	 	[...***...].
	 
	7.	 	Unplanned Firmware Upgrades. In the event it is determined an unplanned firmware
upgrade is needed [...***...].
	 
	8.	 	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:

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 [...***...]

 Page 15 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

[...***...]

Corrective Action Plan. This term refers to [...***...].

Eligible Purchasers. This term shall have the same meaning as it does in
the Agreement to which this Exhibit attached; except, however, that it shall also
include, solely for the purposes of this Exhibit, HP authorized service providers,
including without limitation, HP Repair Centers, HP’s Authorized Service Providers,
and HP-authorized channel partners.

 Page 16 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

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

Product Recall. The term “Product Recall” means [...***...].

Service Return. This term means an HP Product that has been sent back from
an end-user directly to the outsourced manufacturer from an Authorized Service
Provider, or from one of HP’s channel partners.

 Page 17 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

EXHIBIT (R)

PROTECTIVE RIGHTS EXHIBIT

[...***...]

 Page 18 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

EXHIBIT (S)

TECHNICAL INFORMATION ESCROW AGREEMENT

Deposit Account Number                     

[...***...]

 Page 19 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

[...***...]

 Page 20 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

[...***...]

 Page 21 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

[...***...]

 Page 22 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

[...***...]

 Page 23 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

[...***...]

 Page 24 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

[...***...]

 Page 25 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

[...***...]

 Page 26 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

[...***...]

 Page 27 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

[...***...]

 Page 28 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

[...***...]

 Page 29 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

[...***...]

 Page 30 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

[...***...]

 Page 31 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

[...***...]

 Page 32 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

[...***...]

 Page 33 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

[...***...]

 Page 34 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

[...***...]

 Page 35 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

[...***...]

 Page 36 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

[...***...]

 Page 37 of 38 

***Confidential Treatment Requested

 

			
	
	 	HP CONFIDENTIAL
FOR DOT HILL ONLY
	 

EXHIBIT (T)

CRITICAL MILESTONES

The following initial critical milestones are established below. The parties intend to complete
Critical Milestones as needed.

     [...***...]

 Page 38 of 38 

***Confidential Treatment Requested

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]