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CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

EXHIBIT 10.3  

 
 

PRODUCT SUPPLEMENT/AWARD LETTER (SCSI)    
  

This
Product Supplement/Award Letter (this "Award Letter") is made on and as of the 24th day of May, 2002 ("Effective Date") by and between Sun Microsystems, Inc. ("Sun") and Dot Hill Systems
Corporation ("Supplier"), pursuant to the Product Purchase Agreement, dated as of May 24, 2002, Agreement No. AR-63645, made between the parties (the "Agreement"). Capitalized terms
not defined in this Award Letter have the meanings set forth in the Agreement. The parties agree as follows: 

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

2    PRODUCT DESCRIPTIONS AND PRICING/COST REDUCTIONS: Product descriptions and pricing are set forth in Exhibit A to this Award
Letter. Supplier will provide to Sun at least a [...***...] Product price reduction per quarter commencing [...***...] after Sun's general availability
("GA") of the Product; provided however, that the Product pricing shall be subject to further reduction based on the market competitiveness of the Products. Such price reductions shall continue in
effect until such time as the parties mutually agree that no further cost reductions can be derived due to Product maturation. 

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

4    UPSIDE SUPPORT: Sun may request all or any part of Upside quantity at anytime during the applicable quarter up to the maximum amount
indicated beginning with Sun's GA of the Sun product or system that incorporates the Product(s). Supplier shall sell, manufacture and ship such Upside quantities to Sun on a "first-in,
first-out" basis within five (5) business days after Sun's written request. 

	Timeframe
 
	 	Days Advance Notice
	 	Upside Max. Percentage Increase

	[...***...]	 	 	 	 

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

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

6    STATEMENT OF WORK: The Statement of Work is set forth as Exhibit C. 

7    SPECIFICATION: The Product Specification is set forth as Exhibit D. 

8    SUN CONTRACTORS: The list of Sun Contractors, if any, is set forth in Exhibit E. 

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

1

 

10    BUSINESS CONTINUITY PLAN: Supplier's business continuity plan for the Product is set forth in Exhibit G. 

11    DEMAND REPLENISHMENT: The Demand Replenishment Program for the Product is set forth in Exhibit H. 

12    LICENSED SOFTWARE: The Licensed Software shall mean the most current version of SanPath Basic,SanPath Advanced and SanScape. The
Software License Fees for SanPath Basic, SanPath Advanced and SanScape are included in the Product price where applicable, as set forth in Exhibit A, and there are no additional Software
License Fees. 

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

ý
Exhibit A (Product Descriptions and Pricing)

ý Exhibit B (Sun-unique Components)

ý Exhibit C (Statement of Work)

ý Exhibit D (Specification)

ý Exhibit E (Sun Contractors)

ý Exhibit F (External Manufacturers)

ý Exhibit G (Business Continuity Plan)

ý Exhibit H (Demand Replenishment Program)

o Exhibit I (Licensed Software) 

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

	Sun Microsystems, Inc.	 	Dot Hill Systems Corporation
	 	 	 
	

By	
 	

By
	
	 	

	Name	 	Name
	
	 	

	Title	 	Title
	
	 	

	Date	 	Date
	
	 	

	
 	
 	

Dot Hill Systems BV
	 	 	 
	 	 	By
	 	 	

	 	 	Name
	 	 	

	 	 	Title
	 	 	

	 	 	Date
	 	 	

[*]=CONFIDENTIAL
TREATMENT REQUEST(ED). 

2

 
 
 

EXHIBIT A
  PRICING AND PRODUCT DESCRIPTION
  (attached)
  [...***...]    
  

[*]=CONFIDENTIAL
TREATMENT REQUEST(ED). 

3

 
 
 

EXHIBIT B
  SUN-UNIQUE COMPONENTS
  (attached)
  [...***...]    
  

[*]=CONFIDENTIAL
TREATMENT REQUEST(ED). 

4

 
 
 

EXHIBIT C
  STATEMENT OF WORK
  (attached)    
  

[*]=CONFIDENTIAL
TREATMENT REQUEST(ED). 

5

 
 
 

Minnow Statement of Work and Product Requirements    
  

 
 

Minnow Project    
    
    Statement of Work
  And Product Requirements
  [...***...]    
  

[*]=CONFIDENTIAL
TREATMENT REQUEST(ED). 

6

 
 
 

EXHIBIT D
  SPECIFICATIONS
  (attached)    
  

The
attached specification is substantially complete, but has not been finalized with respect to certain items, which are indictaed herein. The parties agree to negotiate in good faith to reach
agreement on the remaining items within fourteen (14) days of the Effective Date of the Agreement. 

[*]=CONFIDENTIAL
TREATMENT REQUEST(ED). 

7

 
 
 

Engineering Specification
  for the
  [...***...]    
  

[*]=CONFIDENTIAL
TREATMENT REQUEST(ED). 

8

 
 
 

EXHIBIT E
  SUN CONTRACTORS    
  

Not
currently applicable. 

[*]=CONFIDENTIAL
TREATMENT REQUEST(ED). 

9

 
 
 

EXHIBIT F
  EXTERNAL MANUFACTURERS    
  

Solectron
Corporation

847 Gibraltar Drive

Building 5

Milpitas, CA 95035 

Solectron
Technology Sdn. Bhd.

Plot 13 Phase IV

Prai Industrial Estate

13600 Prai

Penang, Malaysia 

[*]=CONFIDENTIAL
TREATMENT REQUEST(ED). 

10

 
 
 

EXHIBIT G
  BUSINESS CONTINUITY PLAN
  (attached)    
  

[*]=CONFIDENTIAL
TREATMENT REQUEST(ED). 

11

 
 
 

DOT HILL SYSTEMS CORP.
  DISASTER RECOVERY AND BUSINESS CONTINUITY PLAN
  May 14, 2002    
  

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

[...***...] 

[*]=CONFIDENTIAL
TREATMENT REQUEST(ED). 

12

 
 
 

Solectron    
    
    Corporate Disaster Response and Recovery Document    
    
    April 24, 2002    
    
    [...***...]    

[*]=CONFIDENTIAL
TREATMENT REQUEST(ED). 

13

 
 
 

EXHIBIT H
  DEMAND REPLENISHMENT PROGRAM    
  

[...***...]

[*]=CONFIDENTIAL
TREATMENT REQUEST(ED). 

14

 
 
 

Attachment A
  Demand Replenishment Products    
  

Raw Materials: 

	Product Description
 
	 	Sun Part Number
 

Finished Goods: 

	Sun Part Number
 
	 	Product Description
 

	[...***...]	 	 

[*]=CONFIDENTIAL TREATMENT REQUEST(ED). 

15

QuickLinks

PRODUCT SUPPLEMENT/AWARD LETTER (SCSI)

EXHIBIT A PRICING AND PRODUCT DESCRIPTION (attached) [...***...]

EXHIBIT B SUN-UNIQUE COMPONENTS (attached) [...***...]

EXHIBIT C STATEMENT OF WORK (attached)

Minnow Statement of Work and Product Requirements

Minnow Project Statement of Work And Product Requirements [...***...]

EXHIBIT D SPECIFICATIONS (attached)

Engineering Specification for the [...***...]

EXHIBIT E SUN CONTRACTORS

EXHIBIT F EXTERNAL MANUFACTURERS

EXHIBIT G BUSINESS CONTINUITY PLAN (attached)

DOT HILL SYSTEMS CORP. DISASTER RECOVERY AND BUSINESS CONTINUITY PLAN May 14, 2002

Solectron Corporate Disaster Response and Recovery Document April 24, 2002 [...***...]

EXHIBIT H DEMAND REPLENISHMENT PROGRAM

Attachment A Demand Replenishment ProductsQuickLinks
 -- Click here to rapidly navigate through this document

  

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2 OF THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. 

EXHIBIT 10.4  

 
 

PRODUCT SUPPLEMENT/AWARD LETTER (FC)    
  

This
Product Supplement/Award Letter (this "Award Letter") is made on and as of the 24th day of May, 2002 ("Effective Date") by and between Sun Microsystems, Inc. ("Sun") and Dot Hill Systems
Corporation ("Supplier"), pursuant to the Product Purchase Agreement, dated as of May 24, 2002, Agreement No. AR-63645, made between the parties (the "Agreement"). Capitalized terms not defined
in this Award Letter have the meanings set forth in the Agreement. The parties agree as follows: 

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

2    PRODUCT DESCRIPTIONS AND PRICING/COST REDUCTIONS: Product descriptions and pricing are set forth in Exhibit A to this Award Letter.
Supplier will provide to Sun at least a [...***...] Product price reduction per quarter commencing [...***...] after Sun's general availability ("GA")
of the Product; provided however, that the Product pricing shall be subject to further reduction based on the market competitiveness of the Products. Such price reductions shall continue in effect
until such time as the parties mutually agree that no further cost reductions can be derived due to Product maturation. 

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

4    UPSIDE SUPPORT: Sun may request all or any part of Upside quantity at anytime during the applicable quarter up to the maximum amount
indicated beginning with Sun's GA of the Sun product or system that incorporates the Product(s). Supplier shall sell, manufacture and ship such Upside quantities to Sun on a "first-in, first-out"
basis within five (5) business days after Sun's written request. 

	Timeframe
 
	 	Days Advance Notice
	 	Upside Max. Percentage Increase

	[...***...]	 	 	 	 

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

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

6    STATEMENT OF WORK: The Statement of Work is set forth as Exhibit C. 

7    SPECIFICATION: The Product Specification is set forth as Exhibit D. 

8    SUN CONTRACTORS: The list of Sun Contractors, if any, is set forth in Exhibit E. 

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

1

 

10    BUSINESS CONTINUITY PLAN: Supplier's business continuity plan for the Product is set forth in Exhibit G. 

11    DEMAND REPLENISHMENT: The Demand Replenishment Program for the Product is set forth in Exhibit H. 

12    LICENSED SOFTWARE: The Licensed Software shall mean the most current version of SanPath Basic,SanPath Advanced and SanScape. The
Software License Fees for SanPath Basic, SanPath Advanced and SanScape are included in the Product price where applicable, as set forth in Exhibit A, and there are no additional Software License Fees. 

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

ý
Exhibit A (Product Descriptions and Pricing)

ý Exhibit B (Sun-unique Components)

ý Exhibit C (Statement of Work)

ý Exhibit D (Specification)

ý Exhibit E (Sun Contractors)

ý Exhibit F (External Manufacturers)

ý Exhibit G (Business Continuity Plan)

ý Exhibit H (Demand Replenishment Program)

o Exhibit I (Licensed Software) 

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

	Sun Microsystems, Inc.	 	Dot Hill Systems Corporation
	 	 	 
	

By	
 	

By
	
	 	

	Name	 	Name
	
	 	

	Title	 	Title
	
	 	

	Date	 	Date
	
	 	

	
Sun Microsystems International B.V.	
 	

Dot Hill Systems B.V.
	 	 	 
	By	 	By
	
	 	

	Name	 	Name
	
	 	

	Title	 	Title
	
	 	

	Date	 	Date
	
	 	

[*]=CONFIDENTIAL
TREATMENT REQUEST(ED). 

2

 
 
 

EXHIBIT A
  PRICING AND PRODUCT DESCRIPTION
  (attached)
  [...***...]    
  

[*]=CONFIDENTIAL
TREATMENT REQUEST(ED). 

3

 
 
 

EXHIBIT B
  SUN-UNIQUE COMPONENTS
  (attached)
  [...***...]    
  

[*]=CONFIDENTIAL
TREATMENT REQUEST(ED). 

4

 
 
 

EXHIBIT C
  STATEMENT OF WORK
  (attached)    
  

[*]=CONFIDENTIAL
TREATMENT REQUEST(ED). 

5

 
 
 

Minnow Statement of Work and Product Requirements    
  

 
 

Minnow Project    
    
    Statement of Work
  And Product Requirements
  [...***...]    
  

[*]=CONFIDENTIAL
TREATMENT REQUEST(ED). 

6

 
 
 

EXHIBIT D
  SPECIFICATIONS
  (attached)    
  

The
attached specification is substantially complete, but has not been finalized with respect to certain items, which are indictaed herein. The parties agree to negotiate in good faith to reach
agreement on the remaining items within fourteen (14) days of the Effective Date of the Agreement. 

[*]=CONFIDENTIAL
TREATMENT REQUEST(ED). 

7

 
 
 

Engineering Specification
  for the
  [...***...]    
  

[*]=CONFIDENTIAL
TREATMENT REQUEST(ED). 

8

 
 
 

EXHIBIT E
  SUN CONTRACTORS    
  

Not
currently applicable. 

[*]=CONFIDENTIAL
TREATMENT REQUEST(ED). 

9

 
 
 

EXHIBIT F
  EXTERNAL MANUFACTURERS    
  

Solectron
Corporation

847 Gibraltar Drive

Building 5

Milpitas, CA 95035 

Solectron
Technology Sdn. Bhd.

Plot 13 Phase IV

Prai Industrial Estate

13600 Prai

Penang, Malaysia 

[*]=CONFIDENTIAL
TREATMENT REQUEST(ED). 

10

 
 
 

EXHIBIT G
  BUSINESS CONTINUITY PLAN
  (attached)    
  

[*]=CONFIDENTIAL
TREATMENT REQUEST(ED). 

11

 
 
 

DOT HILL SYSTEMS CORP.
  DISASTER RECOVERY AND BUSINESS CONTINUITY PLAN
  May 14, 2002    
  

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

[...***...] 

[*]=CONFIDENTIAL
TREATMENT REQUEST(ED). 

12

 
 
 

Solectron    
    
    Corporate Disaster Response and Recovery Document    
    
    April 24, 2002    
    
    [...***...]    

[*]=CONFIDENTIAL
TREATMENT REQUEST(ED). 

13

 
 
 

EXHIBIT H
  DEMAND REPLENISHMENT PROGRAM    
  

[...***...]

[*]=CONFIDENTIAL
TREATMENT REQUEST(ED). 

14

 
 
 

Attachment A
  Demand Replenishment Products    
  

Raw Materials: 

	Product Description
 
	 	Sun Part Number
 

Finished Goods: 

	Sun Part Number
 
	 	Product Description
 

	[...***...]	 	 

[*]=CONFIDENTIAL TREATMENT REQUEST(ED). 

15

QuickLinks

PRODUCT SUPPLEMENT/AWARD LETTER (FC)

EXHIBIT A PRICING AND PRODUCT DESCRIPTION (attached) [...***...]

EXHIBIT B SUN-UNIQUE COMPONENTS (attached) [...***...]

EXHIBIT C STATEMENT OF WORK (attached)

Minnow Statement of Work and Product Requirements

Minnow Project Statement of Work And Product Requirements [...***...]

EXHIBIT D SPECIFICATIONS (attached)

Engineering Specification for the [...***...]

EXHIBIT E SUN CONTRACTORS

EXHIBIT F EXTERNAL MANUFACTURERS

EXHIBIT G BUSINESS CONTINUITY PLAN (attached)

DOT HILL SYSTEMS CORP. DISASTER RECOVERY AND BUSINESS CONTINUITY PLAN May 14, 2002

Solectron Corporate Disaster Response and Recovery Document April 24, 2002 [...***...]

EXHIBIT H DEMAND REPLENISHMENT PROGRAM

Attachment A Demand Replenishment Products

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