Vernon LoForti Leaves Overland

According to a SEC filing published by Overland Storage, Inc.:

Termination of Employment of President
 Vernon A. LoForti’s employment with our company ended on September 28, 2009. Mr. LoForti had been serving as our President and Secretary at the time of his departure.

Employment and Severance Agreement
with Kurt L. Kalbfleisch
On September 29, 2009, we entered into an employment and severance agreement with Kurt L. Kalbfleisch, our Vice President of Finance and Chief Financial Officer. The agreement provides for Mr. Kalbfleisch to earn a base salary of $225,000, which has been his stated base salary since February 2008. Mr. Kalbfleisch’s salary was however reduced 10% in January 2009 as part of an across-the-board salary reduction of 10% for all of our salaried employees, including each of our executive officers serving at the time of the reduction. The employment and severance agreement recognizes this reduction, which will remain in effect until the reduction is lifted for other vice presidents. Mr. Kalbfleisch will be eligible to receive quarterly or annual bonuses and/or equity incentives, in each case as determined by our board of directors or an authorized committee of the board. If we terminate Mr. Kalbfleisch’s employment without cause or he resigns his employment for good reason (as such terms are defined in the agreement) before the end of a fiscal quarter or year, he will be eligible to receive a prorated amount of the target bonus for the fiscal quarter or year in which his employment terminates. The agreement has a three-year term and automatically renews for additional one-year terms unless one of the parties timely gives notice to terminate.

Note: Kalbfleisch joined Overland in December 1993 and since then has served in several key management roles in cost accounting and finance. Prior to joining our company, he worked as a manufacturing budget analyst for McDonnell Douglas Corporation, a major aerospace manufacturer and defense contractor. Kurt received his MBA from the University of San Diego and a B.A. in Business Administration from Point Loma Nazarene University in San Diego.