DOT HILL SYSTEMS CORP
EXHIBIT 10.1
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<DESCRIPTION>EXHIBIT 10.1
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit 10.1
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt">July&nbsp;05, 2006
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Hanif I. Jamal<BR>
7347 El Fuerte Street<BR>
Carlsbad, CA 92009

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dear Hanif:
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We are very pleased to offer you a position with Dot Hill Systems Corp., and look forward to you
joining our group of outstanding professionals. We are sure that you will find your new position
rewarding and challenging. If you accept our offer, this letter, our employee handbook and the
Proprietary Rights and Confidentiality agreement will constitute the entire agreement between you
and Dot Hill regarding your employment. The following outlines your employment offer:
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    <TD width="5%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Title:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Senior Vice President &#038; Chief Financial Officer</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Reporting To:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dana Kammersgard, President &#038; CEO</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Location:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Carlsbad, CA</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Base Salary:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$10,384.62 paid biweekly</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Other Compensation:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">You will be eligible to participate in the Dot Hill Executive
Compensation Program for 2006. Currently your potential payout is 55% of base salary.
Details to follow under separate cover.</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Stock Options:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Upon signing this offer and beginning your employment you will receive a
grant for 225,000 stock options. These options will be issued in accordance with the Dot
Hill Systems Stock Option Plan.</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Start Date:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">July&nbsp;31, 2006 or another agreed upon date</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Employment Status:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Full-Time, Exempt</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Benefits:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Dot Hill provides a very competitive benefit package, which is continually under
review, and therefore subject to change. Included in this package is employee medical
insurance, employee dental insurance and a 401(k) Savings Plan. If you choose to add
dependents to the health and dental plan, there will be a monthly deduction. To initiate
your insurance benefits, you must complete the appropriate forms within 31&nbsp;days of your</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">eligibility date. If you have any specific questions, please
contact Human Resources.</TD>
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">You will also accrue vacation at a rate of 3&nbsp;weeks per year. In
2006 you will also be granted 2&nbsp;weeks of additional vacation in
December.</TD>
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Health Benefits<BR>
Eligibility Date</B>:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Date of hire</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Confidentiality:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">As a member of the Dot Hill team, you will have access to the trade secrets,
strategic plans, and other confidential and proprietary information of the company.
Included in your new hire packet will be a Proprietary Rights and Confidentiality
Agreement, which we require you to sign.</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Drug Free Workplace:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">It is our desire to provide a safe and healthy work environment for
our employees and to provide quality products to our customers. In keeping with these
concerns, and in compliance with the Federal Drug Free Workplace Act, Dot Hill has
incorporated a Drug-Free workplace policy.</TD>
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">In light of this policy, all prospective employees of Dot Hill
are required to submit to drug testing. Results of this screen
must be negative of any controlled substance, with the
exception of medications at a level prescribed by a licensed
physician. All offers of employment are contingent upon these
results.</TD>
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    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>At-Will Employer:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employment with Dot Hill is based on the mutual consent of you and the
company. As an at-will employer, both you and Dot Hill reserve the right to end the
employment relationship at any time. Although other aspects of your employment may
change, the at-will nature of your employment may only be changed through a written notice
signed the CEO of Dot Hill.</TD>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Hanif, we are excited about the opportunity to work with you in the building of this enterprise and
believe that you will be a valuable member of our team. We look forward to a mutually beneficial
and rewarding association with you. If you agree to the terms outlined in this letter, please sign
below.
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    <TD colspan="3" align="left">Sincerely,<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD colspan="3" align="left">/s/ Deborah L. Weaver
&nbsp;</TD>
    <TD>&nbsp;</TD>
<tr><td>&nbsp;</td></tr>
</TR><TR>
    <TD colspan="3" align="left">Deborah L. Weaver&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD colspan="3" align="left">Vice President, Human Resources&nbsp;</TD>
    <TD>&nbsp;</TD>
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<TR valign="bottom">
    <TD colspan="5" valign="top" style="border-bottom: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px"><I>Offer expires 07/07/2006</I></DIV></TD>
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<DIV align="left" style="font-size: 10pt; margin-top: 0pt">I agree to accept the position of Senior Vice President &#038; Chief Financial Officer under the<BR>
terms and conditions described herein.

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    <TD>&nbsp;</TD>
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    <TD style="border-bottom: 1px solid #000000" align="left">/s/ Hanif I. Jamal&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD  style="border-bottom: 1px solid #000000" align="left">July 5, 2006&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Hanif I. Jamal</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD> Date&nbsp;</TD>
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    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
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