**Exhibit10.22**

**ADDENDUMTO PRODUCT PURCHASE AGREEMENT**

This ADDENDUM TO PRODUCTPURCHASE AGREEMENT (the “Addendum”) supplements that certain Product PurchaseAgreement No. PRO1585-042103 effective as of the 30th day of July, 2003 by andbetween Hewlett-Packard Company (herein “HP”) on the one hand and OverlandStorage Inc. (herein “Supplier”) on the other hand.  There are no third party beneficiaries tothis Addendum.

#### **RECITALS**

WHEREAS, HP andSupplier have previously entered into the aforesaid Product Purchase Agreement(the “Agreement”) or are concurrently entering into the Agreement and thisAddendum;

WHEREAS, thepurpose of this Addendum is to set forth commercial and other terms andconditions for Product sold by Supplier and purchased by HP pursuant to theAgreement; and

WHEREAS, HP andSupplier desire to supplement the Agreement as herein provided.

NOW, THEREFORE,for good and valuable consideration, the receipt and sufficiency of which arehereby acknowledged, HP and Supplier hereby agree as follows:

1.1       Theeffective date (“Effective Date”) of this Addendum is July 30th 2006.

1.2       Capitalizedterms used herein, unless otherwise defined, will have the meanings given inthe Agreement.

1.3       The originalTerm of Agreement will be extended effective upon execution ofthis Addendum by the parties and covers a period (the “Term”) which commencesas of the Effective Date of this Addendum and continues for one (1) year andthereafter continues indefinitely unless terminated earlier under the terms ofthe Agreement; provided that in no event will this Agreement continue longerthan three (3) years from the Addendum Effective Date unless extended orrenewed upon mutual written agreement of the parties.

1.4   THISADDENDUM IS SUBJECT TO THE AGREEMENT, AND IN THE EVENT OF ANY CONFLICT BETWEENA PROVISION OF THE AGREEMENT AND A PROVISION OF THIS ADDENDUM, THE PROVISIONSOF THE AGREEMENT WILL GOVERN.

1.5   Termination

1.5.1        Terminationor expiration of the Agreement will ipsofacto terminate thisAddendum.

1.5.2        ThisAddendum may be terminated as set forth Article 24 of the Agreement.

1.5.3        Terminationor expiration of this Addendum will not terminate otherwise affect theAgreement which will continue unaffected and in full force and effect accordingto the terms thereof.

1.5.4        ThisAddendum can be executed in original, telecopied or emailed counterparts, andeach counterpart will be considered an original, but all of which together willconstitute one and the same instrument.

1.5.5        ThisAddendum will inure to the benefit of each of the party’s permitted assigns orsuccessors in interest and will be effective as of the Effective Date.

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1.5.6        Additionalterms and conditions (if any):

.

1.6   TheAgreement continues in full force and effect; and except as may be expresslyset forth in this Addendum, the Agreement is unchanged.

IN WITNESSWHEREOF, the parties, intending to be legally bound hereby, have executed thisAddendum as of the Effective Date.
| OVERLAND STORAGE INC. |                           | HEWLETT-PACKARD COMPANY |
|-----------------------|--------------------------------|-------------------------|
|                  |                           |                    |
|                  |                           |                    |
| By                    |   /s/  V.A. LoForti  |                    | By |   /s/ Richard Gentilini |
|                  |                           |                    |   |   |
| Print Name            |   Vernon  A. LoForti |                    | Print Name |   Richard Gentilini |
|                  |                           |                    |   |   |
| Title                 |   VP  & CFO      |                    | Title |   Director, Global Procurement |
|                  |                           |                    |   |   |
| Date                  |   6/8/06             |                    | Date |   6/19/06 |
|                       |                                |                         |  |  |  |  |  |  |  |  |

 

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