Document:

Exhibit
10.1

 

TENTH
AMENDMENT AGREEMENT

 

THIS TENTH AMENDMENT AGREEMENT
(this “Agreement”) is made and entered into as of the 8th day of
September, 2004, by and among FLEET CAPITAL CORPORATION (“Lender”), a
Rhode Island corporation with an office at 200 Glastonbury Boulevard,
Glastonbury, Connecticut 06033; and UNITED INDUSTRIAL CORPORATION (“UIC”), a
Delaware corporation, and the following of its subsidiaries: AAI CORPORATION (“AAI”),
a Maryland corporation, DETROIT STOKER COMPANY, a Michigan corporation; AAI
ENGINEERING SUPPORT INC., a Maryland corporation, and AAI/ACL TECHNOLOGIES,
INC., a Maryland corporation (each a “Borrower” and collectively the “Borrowers”).
Capitalized terms used, but not defined, herein shall have the meanings given
to such terms in the Credit Agreement (defined below).

 

WHEREAS, the
Borrowers and the Lender are parties to the Loan and Security Agreement, dated
as of June 28, 2001, as amended by the Waiver, Amendment and Consent
Agreement dated as of March 6, 2002; 
the Second Amendment and Consent Agreement dated as of June 28,
2002; the Third Amendment and Waiver Agreement dated as of March 21, 2003;
the Fourth Amendment to Loan Agreement dated as of March 31, 2003; the
Fifth Amendment Agreement dated as of September 30, 2003; the Sixth
Amendment Agreement dated as of November 17, 2003; the Seventh Amendment
Agreement dated as of December 31, 2003; the Eighth Amendment Agreement
dated as of May 18, 2004; and the Ninth Amendment Agreement dated as of
August 16, 2004 (as amended, the “Credit Agreement”); and

 

WHEREAS, the
Borrowers have requested and the Lender has agreed to amend the Credit
Agreement, all on the terms and conditions set forth herein.

 

NOW THEREFORE, in
consideration of the premises, and in reliance thereon, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:

 

Section 1.                                          Amendments.  Subject to the satisfaction in full, on or
prior to the Agreement Effective Date, of the conditions precedent set forth in
Section 2 below, the Credit Agreement is hereby amended as follows:

 

(i)            The first sentence
of Section 1.1.1 of the Credit Agreement is amended and restated in its
entirety to read as follows:

 

1.1.1                        Loans
and Reserves.  Lender agrees, for so
long as no Default or Event of Default exists, to make Revolving Loans to
Borrowers from time to time, as requested by the Designated Borrower in the
manner set forth in Section 3.1.1 and, in the case of LIBOR advances,
Section 3.1.4 hereof, up to a maximum principal amount at any time
outstanding equal to the lesser of (i) the Borrowing Base at such time, minus
the LC Amount and reserves, if any, including, without limitation, reserves for
Environmental Claims, and (ii) 10,000,000.

 

(ii)                                  Section 8.2.1
of the Credit Agreement is amended and restated in its entirety to read as
follows:

 

 

8.2.1                        Mergers;
Consolidations; Sales; Acquisitions. 
Merge or consolidate with any Person, or acquire or sell all or any
substantial part of the Properties of any Person or of any business unit or
division thereof, absent the Lender’s prior written consent, provided, that
upon prior written notice to Lender, AAI may sell its transportation
division.  All net cash proceeds from
any sale of assets to which Lender consents or which is otherwise permitted
hereunder shall be used, at the time of the receipt of such proceeds, to repay
the outstanding Loans, it being understood that, for the purposes of this
Section 8.2.1, “Loans” shall not refer to or include the LC Amount or any
other amounts owing in respect of the Letters of Credit.

 

(iii)                               Clauses (iv) and (v)
of Section 8.2.3 of the Credit Agreement are amended and restated in their
entirety, and the following clause (vi) is added to the end of Section 8.2.3,
each to read as follows:

 

(iv) Permitted Purchase
Money Indebtedness;

 

(v) contingent liabilities arising out of endorsements of checks and
other negotiable instruments for deposit or collection in the ordinary course
of business; and

 

(vi) Indebtedness owed by UIC (which may be guaranteed by AAI) under
the Convertible Senior Notes due 2024, provided that the principal amount of
such Indebtedness shall not exceed $120,000,000.

 

(iv) Clause (iii) of Section 8.2.7 of the Credit Agreement is
amended and restated in its entirety to read as follows:

 

(iii) stock repurchases in an aggregate amount not
to exceed $55,000,000 during the term of this Agreement; provided,
however, that additional stock repurchases in an aggregate amount not to exceed
$25,000,000 may be made solely from the proceeds of the issuance of the
Convertible Senior Notes due 2024.

 

(v)                                 The following Section 8.2.16 is added to the
Credit Agreement after Section 8.2.15 thereof:

 

8.2.16                  No Voluntary
Prepayments of Convertible Senior Notes due 2024.  Except to the extent required by the Indenture (as in effect on
the date that the first Convertible Senior Notes due 2024 are issued
thereunder) and as described in the Preliminary Offering Memorandum, (a) guarantee
(except for AAI), provide any collateral for, or otherwise provide any credit
support for, any of the Convertible Senior Notes due 2024, (b) make any
principal payment on, purchase, or repurchase (or agree to purchase or
repurchase) any of the Convertible Senior Notes due 2024, except for principal
payments and purchases for consideration consisting solely of common stock of
UIC (and payments of cash for fractional shares of common stock of UIC in
connection with a purchase or repurchase of the Convertible Senior Notes due
2024 for shares of UIC common stock), (c) purchase for cash or repurchase for
cash (or agree to purchase or repurchase for cash) any of the Convertible
Senior Notes due 2024 if UIC has the option of

 

2

 

paying such amount in the form of common stock (other
than payments in cash for fractional shares of common stock of UIC in
connection with a purchase or repurchase of the Convertible Senior Notes due
2024 for shares of UIC common stock), or (d) pay any amount of interest in cash
(other than for fractional shares of UIC common stock of UIC) if UIC has the
option of paying such amount in the form of common stock (for example, in the
case of additional interest that is payable if an automatic conversion occurs
prior to September 15, 2009)(other than payments in cash for fractional
shares of UIC common stock in connection with a purchase or repurchase of the
Convertible Senior Notes due 2024 for shares of UIC common stock); provided,
that UIC may make any such cash payment of principal, purchase for cash and
repurchases for cash and cash interest payments referred in clauses (b), (c)
and (d) of this Section 8.2.16 (each, a “Clause (b), (c) and (d) Payment”)
so long as at the time of such payment (x) no Default or Event of Default has
occurred and is continuing, and (y) the Borrowers have delivered to the Lender
the financial statements of the Borrowers with respect to the immediately
preceding fiscal quarter and computations evidencing that, at the time of such
payment and after giving effect thereto (1) the Borrowers are in compliance
with Section 8.3.1 of the Credit Agreement on a Pro Forma Basis and (2)
the Borrowers have Liquidity of not less than $15,000,000.

 

(vi)                              Section 8.3.2
of the Credit Agreement is amended and restated in its entirety to read as
follows:

 

8.3.2                        Maximum
Balance Sheet Leverage Ratio:  not
permit the ratio of UIC and its Subsidiaries’ (a) the result of (i) total
liabilities, as determined on a consolidated basis in accordance with GAAP
(but, without duplication, including all LC Amounts as liabilities) minus (ii)
cash balances of UIC and its Subsidiaries, to (b) Tangible Total Net Worth, to
exceed (x) 5.75 to 1.00 as at September 30, 2004, (y) 5.25 to 1.00 as at
December 31, 2004 and (z) 5.00 to 1.00 as at the end of any fiscal quarter
ending on or after March 31, 2005.

 

(vii)                           The
words “or any petition for an order for relief shall be filed by or against any
Borrower under the Bankruptcy Code (and shall not be discharged within 60
days))” are deleted from Section 11.1.8 and the following words are
substituted therefor:  “or any
bankruptcy, reorganization or other case or proceeding is commenced by or
against any Borrower under any bankruptcy or insolvency law (which case or
proceeding, in the case of an involuntary proceeding commenced against a
Borrower, is not discharged within 60 days after the commencement thereof)”.

 

(viii)                        The following Sections 11.1.14, 11.1.15 and
11.1.16 are added to the end of Section 11 of the Credit Agreement after
Section 11.1.13 thereof to read as follows:

 

11.1.14            Events of Default
Under Indenture.  There shall occur
any “event of default”, as defined in the Indenture (or any other event as a
result of which the holders of the Convertible Senior Notes due 2024 have the
right to accelerate the maturity thereof).

 

3

 

11.1.15            Termination of
Trading.  The common stock of UIC is
neither listed for trading on a United States national securities exchange nor
approved for trading on an established automated over-the-counter trading
market in the United States.

 

11.1.16            Change in Control.  A Change in Control shall occur.

 

(ix)                                Section 11.2
of the Credit Agreement is amended by deleting the reference to
“Section 11.1.10” therein and substituting a reference to
“Section 11.1.8”.

 

(x)                                   The
definition of “Sublimit Reserve Amount” appearing in Appendix A of the Credit
Agreement is hereby deleted and the definition of “Consolidated Fixed Charge
Coverage Ratio” appearing in Appendix A of the Credit Agreement is amended and
restated in its entirety as follows:

 

Consolidated Fixed
Charge Coverage Ratio – means for the period in question, the
ratio of (a) the sum of EBITDA plus (in each case to the extent deducted
from income for the purpose of calculating EBITDA) accruals for pension
liabilities and losses incurred due to the cessation of business of the
transportation division, minus Unfunded Capital Expenditures of UIC and
its Subsidiaries, divided by (b) the sum of cash taxes, dividends, principal
payments on the Convertible Senior Notes due 2024 (whether voluntary, scheduled
or unscheduled), scheduled principal payments of the Loans and any other
Indebtedness, including Capitalized Lease Obligations, all interest in respect
of Indebtedness (including, without limitation, interest on the Convertible
Senior Notes due 2024) accrued or paid (whether or not actually paid during
such period) and all fees and expenses payable under this Agreement, cash
payments related to asbestos litigation claims, cash payments to fund
underfunded pension liabilities, and net cash payments relating to or arising
from the cessation of the transportation division, each case with respect to
UIC and its Subsidiaries as determined in accordance with GAAP.

 

(xi)                                The
following definitions are added in alphabetical order to Appendix A to the
Credit Agreement:

 

Change in Control–The occurrence of any of the
following:

 

(a)                                  any “person” or group” (as
these terms are used for purposes of Section 13(d) and 14(d) of the
Securities Exchange Act of 1934) is or becomes the “beneficial owner” (as that
term is used in Rule 13d-3 under the Securities Exchange Act of 1934), directly
or indirectly, of 50% or more of the total voting power of all classes of UIC’s
capital stock entitled to vote generally in the election of directors (“voting
stock”);

 

(b)                                 the following persons
cease for any reason to constitute a majority of UIC’s board of directors:

 

4

 

(i)                                     individuals who on the
first issue date of the Convertible Senior Notes due 2024 constituted UIC’s
board of directors; and

 

(ii)                                  any new directors whose
election to UIC’s board of directors or whose nomination for election by UIC’s
shareholders was approved by at least a majority of UIC’s directors then still
in office who were either directors on such first issue date of the Convertible
Senior Notes due 2024 or whose election or nomination for election was
previously so approved;

 

(c)                                  UIC consolidates with, or
merges with or into, another person or any person consolidates with, or merges
with or into, UIC, in any such event other than pursuant to a transaction in
which the persons that “beneficially owned,” directly or indirectly, the shares
of UIC’s voting stock immediately prior to such transaction, “beneficially
own,” directly or indirectly, immediately after such transaction, shares of the
surviving or continuing corporation’s voting stock representing at least a
majority of the total voting power of all outstanding classes of voting stock
of the surviving or continuing corporation in substantially the same proportion
as such ownership immediately prior to the transaction;

 

(d)                                 the sale, transfer, lease,
conveyance or other disposition of all or substantially all of UIC’s property
or assets to any “person” or “group” (as those terms are used in Sections 13(d)
and 14(d) of the Securities Exchange Act of 1934), including any group acting
for the purpose of acquiring, holding, voting or disposing of securities within
the meaning of Rule 13d-5(b)(1) under the Securities Exchange Act of 1934;

 

(e)                                  UIC distributes to all or
substantially all of the holders of UIC’s common stock UIC’s assets, cash, debt
securities or certain rights to purchase UIC’s securities, which distribution
has a per share value exceeding 10% of the closing price of UIC’s common stock
on the day preceding the declaration date for such distribution; or

 

(f)                                    UIC is liquidated or
dissolved or holders of UIC’s capital stock approve any plan or proposal for
UIC’s liquidation or dissolution.

 

However, a “Change in Control” will not be deemed to
have occurred if either:

 

5

 

(1)                                  the closing sale price per
share of UIC’s common stock for each of any five trading days during the 10
trading days immediately preceding the Change in Control is at least 120% of
the conversion price of the Convertible Senior Notes due 2024 in effect on such
trading day; or

 

(2)                                  in the case of a merger or
consolidation, all of the consideration (other than cash payments for
fractional shares or pursuant to statutory appraisal rights) in the merger or
consolidation constituting the Change in Control consists of common stock and
any associated rights traded on a U.S. national securities exchange or quoted
on The Nasdaq National Market (or which will be so traded or quoted when issued
or exchanged in connection with such change in control), and, as a result of
such transaction or transactions, the Convertible Senior Notes due 2024 become
convertible solely into such common stock and associated rights.

 

Clause (b), (c)
and (d) Payments – as
defined in Section 8.2.16 of this Agreement.

 

Convertible Senior Notes due 2024 – the convertible senior notes issued by UIC
pursuant to and defined in the Indenture in the original principal amount of
$100,000,000 and up to an additional $20,000,000 in principal amount of such
convertible senior notes that are issuable in the event that the initial
purchasers of such notes elect to exercise, within 13 days after the first
issuance of such convertible senior notes, their option to purchase such
additional notes, all issued in accordance with the terms set forth in the
Preliminary Offering Memorandum.

 

Indenture– the Indenture dated as of September 14, 2004, among UIC, AAI and
U.S. Bank National Association, as Trustee, pursuant to which the Convertible
Senior Notes due 2024 have been or will be issued, in the form that such
Indenture is in on the date that the first Convertible Senior Notes due 2024
are issued thereunder.

 

Liquidity–as of any date of determination, an
amount equal to the sum of (i) the Availability on such date plus (ii) Cash and
Cash Equivalents of UIC on such date.

 

Preliminary Offering Memorandum—the Preliminary Offering Memorandum of UIC
dated September 8, 2004 relating to the Convertible Senior Notes due 2024.

 

Pro Forma Basis– means, in connection with the
determination of Consolidated Fixed Charge Coverage Ratio for any period, that
such determination shall be made on the assumption that any Clause (b), (c) and
(d) Payment that has been made or is being made during the fiscal quarter in
which

 

6

 

the
Consolidated Fixed Charge Coverage Ratio is being determined on a Pro Foma
Basis shall be deemed to have been made on the last day of the fiscal quarter
ending immediately preceding the date of determination.

 

Section 2.                                          Conditions
to Effectiveness of Agreement. 
This Agreement shall become effective as of the date that the following
conditions shall have been satisfied (the date of satisfaction of such
conditions being referred to herein as the “Agreement Effective Date”):

 

(i)                                     The
Lender shall have executed this Agreement and shall have received a copy of
this Agreement duly executed by the Borrowers.

 

(ii)                                  The
Borrowers shall have paid a fee of $25,000 to Lender in consideration of the
amendments set forth herein.

 

(iii)                               The
Borrowers shall have paid to counsel for the Lender the amount of reasonable
fees and disbursements owed to such counsel in connection with this Agreement
and matters related hereto.

 

(iv)                              The
Lender shall have received such other information, approvals, opinions,
documents or instruments as it may reasonably request, including, without
limitation, a copy of the Preliminary
Offering Memorandum.

 

(v)                                 The
Senior Convertible Notes due 2024 shall have been issued under the Indenture
and in accordance with the Preliminary
Offering Memorandum.

 

Section 3.                                          Representations
and Warranties.  In order to
induce the Lender to enter into this Agreement, the Borrowers jointly and
severally represent and warrant to the Lender that, as of the Agreement
Effective Date, after giving effect to the effectiveness of this Agreement, the
following statements are true and correct in all material respects:

 

(i)                                     Authorization
of Agreements. The execution and delivery of this Agreement by each
Borrower and its performance under the Credit Agreement as amended by this
Agreement (the “Amended Agreement”) are within each such Borrower’s
corporate powers and have been duly authorized by all necessary corporate
action on the part of each such Borrower.

 

(ii)                                  No
Conflict. The execution and delivery by each Borrower of this Agreement and
the performance by each Borrower of the Amended Agreement do not contravene any
such Borrower’s certificate of incorporation or bylaws or any other contractual
restriction where such a contravention has a reasonable possibility of having a
Material Adverse Effect or contravening any law or governmental regulation or
court decree or order binding on or affecting any such Borrower.

 

(iii)                               Binding
Obligation. This Agreement has been duly executed and delivered by each
Borrower and this Agreement and the Amended Agreement constitute the legal,
valid and binding obligations of each Borrower, enforceable against each Borrower
in accordance with their respective terms, except as may be limited by
bankruptcy,

 

7

 

insolvency,
reorganization, moratorium or similar laws relating to or limiting creditors’
rights generally and by general principles of equity.

 

(iv)                              Governmental
Approval, Regulation, etc.  No
authorization or approval or other action by, and no notice to or filing with,
any governmental authority or regulatory body or any other Person is required
for the due execution, delivery or performance of this Agreement by any
Borrower.

 

(v)                                 Incorporation
of Representations and Warranties from Credit Agreement. Other than as
amended hereby each of the representations and warranties set forth in
Section 7 of the Credit Agreement is true and correct as of the date
hereof.

 

Section 4.                                          Acknowledgement.  Each Borrower acknowledges and agrees
that each of the Security Documents to which it is a party or otherwise bound
shall continue in full force and effect. Each Borrower hereby agrees and
confirms that each Security Document to which it is a party or otherwise bound
and all Collateral encumbered thereby will continue to guaranty or secure, as
the case may be, the payment and performance of all obligations guaranteed or
secured thereby, as the case may be, and that none of the Borrowers has any
defense, offset, counterclaim or right of recoupment with respect to the
Obligations of the Borrowers under the Amended Agreement.

 

Section 5.                                          Miscellaneous.

 

(i)                                     Effect
on the Credit Agreement and the Other Loan Documents. Except as
specifically set forth herein, the terms, provisions and conditions of the
Credit Agreement and the other Loan Documents shall remain in full force and
effect and are hereby ratified and confirmed and the Borrowers remain bound to
pay and perform their obligations thereunder.

 

(ii)                                  Applicable
Law. THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND
GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT
TO SUCH ANY LAWS RELATING TO CONFLICTS OF LAWS OTHER THAN SECTION 5-1401
OF THE NEW YORK GENERAL OBLIGATIONS LAW.

 

(iii)                               Headings.
The various headings of this Agreement are inserted for convenience only and
shall not affect the meaning or interpretation of this Agreement or any provision
hereof.

 

(iv)                              Counterparts
and Incorporation. This Agreement may be executed by the parties hereto in
several counterparts and by the different parties on separate counterparts,
each of which shall be deemed to be an original and all of which shall constitute
together but one and the same instrument. 
A facsimile or other electronic copy of an executed counterpart shall
have the same effect as the original executed counterpart.  Following execution and delivery of this
Agreement, any reference to the Credit Agreement shall be deemed a reference to
such document as hereby amended.

 

8

 

(v)                                 Severability.
Any provision of this Agreement which is prohibited or unenforceable in any
jurisdiction shall, as to such provision and such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions of this Agreement or affecting the validity or
enforceability of such provisions in any other jurisdiction.

 

[Signatures Follow on Next Page]

 

9

 

IN WITNESS
WHEREOF, this Tenth Amendment Agreement has been duly executed and delivered as
of the day and year first above written.

 

 

	
   

  	
  FLEET CAPITAL
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Matthew
  Bourgeois

  
	
   

  	
  Name:

  	
  Matthew
  Bourgeois

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
  UNITED
  INDUSTRIAL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Frederick M.
  Strader

  
	
   

  	
  Name:

  	
  Frederick M.
  Strader

  
	
   

  	
  Title:

  	
  President and
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
  AAI CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Frederick M.
  Strader

  
	
   

  	
  Name:

  	
  Frederick M.
  Strader

  
	
   

  	
  Title:

  	
  President and
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
  DETROIT STOKER
  COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Frederick M.
  Strader

  
	
   

  	
  Name:

  	
  Frederick M.
  Strader

  
	
   

  	
  Title:

  	
  Chief Executive
  Officer

  
	
   

  	
   

  
	
   

  	
  AAI ENGINEERING
  SUPPORT INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Frederick M.
  Strader

  
	
   

  	
  Name:

  	
  Frederick M.
  Strader

  
	
   

  	
  Title:

  	
  Chief Executive
  Officer

  
	
   

  	
   

  
	
   

  	
  AAI/ACL
  TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Frederick M.
  Strader

  
	
   

  	
  Name:

  	
  Frederick M.
  Strader

  
	
   

  	
  Title:

  	
  Chief Executive
  Officer

  
				

 

Signature Page to Tenth
Amendment AgreementEXHIBIT 10.9

 

 

LOAN MODIFICATION

 

This Loan Modification
(this “Modification”) is entered into on this 30TH day of August,
2002, by and between OVERLAND STORAGE, INC., a California
corporation, formerly known as Overland Data, Inc as “Borrower”, and COMERICA
BANK-CALIFORNIA, a California banking corporation, as “Bank”.

 

RECITALS

 

This Modification is
entered into upon the basis of the following facts and understandings of the
parties, which facts and understandings are acknowledged by the parties to be
true and accurate:

 

1.                                       Bank
has previously made certain loans (collectively, the “Loan”) to Overland Data
Inc. pursuant to the terms and conditions of (i) that certain Business Loan
Agreement dated as of November 28, 2001 (the “Agreement”), and (ii) that
certain Master Revolving Note dated as of November 28, 2001 in the
original principal amount of Ten Million Dollars ($10,000,000) (the “Note”).

 

2.                                       The
obligations of Overland Data, Inc under the Agreement, and the Note are secured
by, among other things, the granting of a security interest in and to all of
Overland Data, Inc personal property assets pursuant to the Agreement.  The granting of such security interest was
perfected by a filed Financing Statement, Form UCC-1 dated of even date
therewith, and filed with the Secretary of State of California on
December 26, 2001 as document No. 0136160667.

 

3.                                       The
Agreement, the Note, and the UCC, together with all other documents and
instruments executed in connection with the Loan, are hereinafter referred to
collectively as the “Loan Documents.

 

4.                                       Subsequent
to the Loan, on June 28, 2002, Overland Data, Inc. amended its Articles of
Organization to provide for a change in the name of OVERLAND STORAGE, INC (the
“Amendment”).  The Amendment was filed
in the Office of the Secretary of State of California on June 28, 2002.

 

5.                                                                                       Notwithstanding
any provisions of the Loan Documents to the contrary, Borrower has requested
that Bank consent to the Amendment and refrain from exercising its rights and
remedies under the Loan Documents.  Bank
hereby consents to the Amendment, subject to the terms and conditions set forth
below.

 

AGREEMENT

 

NOW THEREFORE, for good
and valuable consideration, the receipt of which is hereby acknowledged, the
parties hereto agree as follows:

 

1.                                       Bank’s
agreement to consent to the Amendment shall only be with respect to Borrower’s
name change pursuant to the Amendment and except as specifically provided
herein, the Loan Documents shall remain in full force and effect in accordance
with their original terms and conditions.

 

2.                                       None
of the terms or provisions of the Loan Documents or this Modification may
bewaived, altered, modified, limited, or amended except by a written agreement
expressly referring to the Loan Documents and/or this Modification and duly
signed by both Bank and Borrower.

 

3.                                       Wherever
the term “Borrower” is used in the Loan Documents, it shall hereafter mean Overland
Storage, Inc.

 

4.                                       Legal
Effect.   Except as specifically set
forth in this Modification, all of the terms and conditions of the Loan
Documents shall remain in full force and effect.

 

5.                                       Further
Documents.  Borrower hereby agrees
to execute any documents requested by Bank to effectuate this Modification,
including without limitation a Financing Statement Amendment, Form UCC-2 to
amend the name of Debtor on the UCC.

 

6.                                       Integration.   This is an integrated Modification, and
supersedes all prior negotiations and agreements regarding the subject matter
hereof.

 

IN WITNESS WHEREOF, the
parties have agreed as of the date first set forth above.

 

	
  Borrower:

  	
  Bank:

  
	
  Overland
  Storage, Inc.

  	
  COMERICA
  BANK-CALIFORNIA

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  V.A. LoForti

  	
   

  	
  By:

  	
  /s/ Carisa Azzi for

  	
   

  
	
  Its:

  	
  VP
  & CFO

  	
   

  	
   

  	
  Tracy Fredricks

  
	
   

  	
   

  	
  Vice President

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