$50,000 to Be Received by Overland CEO Eric Kelly

 On April 28, 2009, the board of directors of Overland Storage, Inc., upon the recommendation of the compensation committee, agreed to pay CEO Eric L. Kelly $50,000 in director fees related to his service as Chair of the Operating Plan Special Committee from December 9, 2008 to January 26, 2009. As the company is currently accruing but not paying cash fees to its directors for board and committee service, such amount will be paid to Kelly at such time in the future as the board decides to pay accrued director fees.