Roderick M Sherwood Iii Form 4 DOT HILL SYSTEMS / RODERICK M SHERWOOD III ownership change

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

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X

Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

1. Name and Address of Reporting Person^*

SHERWOOD RODERICK M III

(Last) (First) (Middle)

1351 S. SUNSET STREET

(Street)

LONGMONT CO 80501

(City) (State) (Zip)

2. Issuer Name and Ticker or Trading Symbol
DOT HILL SYSTEMS CORP [ HILL ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

X	Director	10% Owner
	Officer (give title below)	Other (specify below)

3. Date of Earliest Transaction (Month/Day/Year)
10/06/2015

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
			Code	V	Amount	(A) or (D)	Price
Common Stock	10/06/2015		D		52,500	D	(1)	0	D

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
				Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares
Director Stock Option (Right to Buy)	$4.02	10/06/2015		D			50,000	(2)	06/01/2016	Common Stock	50,000	(2)	0	D
Director Stock Option (Right to Buy)	$3.85	10/06/2015		D			20,000	(2)	05/24/2017	Common Stock	20,000	(2)	0	D
Director Stock Option (Right to Buy)	$2.7	10/06/2015		D			20,000	(2)	05/08/2018	Common Stock	20,000	(2)	0	D
Director Stock Option (Right to Buy)	$0.94	10/06/2015		D			10,000	(2)	06/14/2019	Common Stock	10,000	(2)	0	D
Director Stock Option (Right to Buy)	$1.75	10/06/2015		D			10,000	(2)	05/02/2020	Common Stock	10,000	(2)	0	D
Director Stock Option (Right to Buy)	$2.95	10/06/2015		D			10,000	(2)	05/01/2021	Common Stock	10,000	(2)	0	D
Director Stock Option (Right to Buy)	$1.15	10/06/2015		D			10,000	(2)	05/06/2022	Common Stock	10,000	(2)	0	D
Director Stock Option (Right to Buy)	$1.74	10/06/2015		D			10,000	(2)	05/05/2023	Common Stock	10,000	(2)	0	D
Director Stock Option (Right to Buy)	$4.03	10/06/2015		D			10,000	(2)	05/04/2024	Common Stock	10,000	(2)	0	D
Director Stock Option (Right to Buy)	$6.44	10/06/2015		D			15,000	(3)	05/03/2022	Common Stock	15,000	(3)	0	D
Director Stock Option (Right to Buy)	$2.42	10/06/2015		D			50,000	(2)	08/12/2020	Common Stock	50,000	(2)	0	D

Explanation of Responses:

1. Disposed of pursuant to an Agreement and Plan of Merger (the "Merger Agreement"), dated August 18, 2015, among the Issuer, Seagate HDD Cayman ("Parent"), and Denali Acquisition Sub Corp., a wholly-owned subsidiary of Parent ("Merger Sub"), in exchange for cash consideration of $9.75 per share, without interest, subject to any required withholding of taxes. Pursuant to the Merger Agreement, Merger Sub merged with and into the Issuer, with the Issuer continuing as the surviving corporation (the "Merger").

2. This option, which was fully vested on the closing date of the Merger (October 6, 2015), was cancelled in the Merger in exchange for a cash payment equal to $9.75 per share minus the per share exercise price of the option, subject to any applicable tax withholdings.

3. This option, which provided for vesting of 100% of the shares subject to the option on May 4, 2016, was cancelled in the Merger in exchange for a cash payment equal to $9.75 per share, minus the per share exercise price of the option, subject to any applicable tax withholdings. In connection with the Merger, vesting of the stock option was accelerated and the option became fully vested and exercisable effective immediately prior to the effective time of the Merger.

Remarks:

	/s/ Hanif I. Jamal, attorney-in-fact	10/08/2015
	** Signature of Reporting Person	Date
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