Document:

Account Transfer and Purchase Agreement

 Exhibit 10.1 
 ACCOUNT TRANSFER AND PURCHASE AGREEMENT 
 This Account Transfer and Purchase Agreement (this “Agreement”)
is dated this 26th day of November, 2008, and is between MARQUETTE COMMERCIAL FINANCE, a division of Marquette Business Credit, Inc., a Minnesota corporation authorized to do business in Texas (“MCF”), and OVERLAND STORAGE, INC., a
California corporation (“Seller”). This Agreement shall become effective as of the day it is accepted in the State of Texas by MCF as indicated at the end hereof by the date and signature on behalf of MCF. 
 WHEREAS, MCF is in the business of purchasing accounts receivable (“accounts”); and 
 WHEREAS, Seller desires, from time to time during the term of this Agreement, to sell accounts to MCF; and 
 WHEREAS, the parties hereto desire to enter into this Agreement to govern the purchase and sale of accounts; 
 NOW THEREFORE, in consideration of the premises, the mutual agreements herein contained and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows: 
  

	1.	Offer of Accounts. At its election from time to time during the term of this Agreement, Seller agrees to offer for sale to MCF certain of its accounts arising out of
sales of goods, or services rendered, by Seller, and to sell to MCF on the terms set forth in this Agreement such of the offered accounts as MCF may accept for purchase in the State of Texas. MCF shall have the absolute right in its sole discretion
to reject any or all offered accounts, whether or not MCF has previously purchased accounts of any particular account debtor hereunder. The parties agree that, without the prior consent of MCF, the maximum Gross Amount (as defined below) of accounts
that MCF may purchase hereunder at any time, together with the Gross Amount of accounts previously purchased by MCF from Seller hereunder which then remain outstanding, will not exceed Nine Million and No/100 Dollars ($9,000,000.00) (the
“Facility Amount”). MCF’s consent to purchase accounts in excess of such amount may be evidenced by MCF’s acceptance for purchase of such offered accounts. 

  

	2.	Purchase and Sale of Accounts. Each account purchased by MCF hereunder shall be purchased by MCF without recourse against Seller. All losses incurred by MCF from the
financial inability of the applicable account debtor to pay such account over and above any and all Residual Payments (as hereinafter defined) and Reserve (as hereinafter defined) amounts offset shall be borne solely by MCF; provided, however, that
nothing in this Agreement shall be construed to relieve Seller from liability for any breach by Seller of any representation, warranty or agreement of Seller contained herein. Notwithstanding any provision in this Agreement to the contrary, it is
contemplated by and the intention of the parties hereto that accounts of Seller may be considered and purchased as one account (herein a “batch”) and the terms “account” and “accounts” as used herein may also refer to
and mean a “batch” or “batches,” as the case may be. 

 In connection with each offer of accounts to MCF,
Seller agrees to deliver to MCF a written assignment of such accounts, together with a copy of all invoices relating to such accounts, and evidence of delivery of the related goods or performance of the related services (and, if requested, the
original purchase orders from the applicable customers), all in a form satisfactory to MCF. In order for an account to be eligible for purchase by MCF, the related invoice must set forth, as the sole address for payment, the following post office
box: PO Box 72971 Dept 2971, Los Angeles CA 90084-2971 (“Authorized Remittance Address”) (or, upon notice from MCF, another post office box of MCF) and, in the case of payments to be effected by wire transfer or other electronic means, the
related invoice must set forth, as the sole bank account for such payment, a bank account of MCF (or a third party designated by MCF) designated by MCF from time to time (except in each case as otherwise agreed in writing by MCF). MCF’s
acceptance for purchase of offered accounts shall be evidenced by MCF’s tendering of the Initial Payment (as hereinafter defined) to Seller or otherwise delivering to Seller a schedule of accounts accepted for purchase by MCF. Seller’s
transference of offered accounts shall not be effective as to any accounts not accepted for purchase by MCF. 
  

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 Seller hereby sells, transfers, assigns and otherwise conveys to MCF (as a sale by Seller and a purchase
by MCF, and not as security for any indebtedness or other obligation of Seller to MCF) all right, title and interest of Seller in and to all accounts accepted by MCF for purchase hereunder, together with all related rights (but not obligations) of
Seller with respect thereto, including all contract rights, guarantees, letters of credit, liens in favor of Seller, insurance and other agreements and arrangements of whatever character from time to time supporting or securing payment of such
accounts and all right, title and interest of Seller in any related goods, including Seller’s rights and remedies under Article 2, Part 7 of the applicable Uniform Commercial Code (“UCC”). The foregoing sale, transfer, assignment and
conveyance does not constitute and is not intended to result in an assumption by MCF of any obligation of Seller or any other person in connection with the accounts or related rights or under any agreement or instrument relating thereto. Seller
agrees to execute and deliver such bills of sale, assignments, letters of credit, notices of assignment, financing statements (including continuation statements) under the applicable UCC and other documents, and make such entries and markings in its
books and records, and to take all such other actions (including the negotiation, assignment or transfer of negotiable documents, letters of credit or other instruments) as MCF may request to further evidence or protect the sales and assignments of
accounts and related rights to MCF hereunder, as well as MCF’s interest in any returned goods referred to in Section 7 hereof. 
  

	3.	Terms of Accounts. Except as otherwise may be agreed to in writing by MCF from time to time, the terms of sale offered by Seller to its account debtors with respect to
all accounts offered to MCF for purchase hereunder shall be NET 30 DAYS. After an account has been purchased by MCF, Seller shall not have the right to vary the terms of sale set forth in the invoice relating to such account, or any other aspect of
the account, except in Seller’s capacity as agent for MCF for purposes of collection of accounts purchased by MCF as set forth in Section 8 hereof, and then only with the prior written consent of MCF. 

  

	4.	Purchase Price. The purchase price for each account purchased hereunder shall consist of and be paid by the Initial Payment and the Residual Payment. The Initial
Payment shall be payable by MCF to Seller on the business day that MCF accepts for purchase the related account, and the Residual Payment shall be payable by MCF to Seller within five business days after MCF receives and deposits the proceeds of
collection for the subject account in an amount equal to the Net Amount (as hereinafter defined) of such account (subject to MCF’s right to withhold payment of Residual Payments hereunder, and subject to MCF’s right to withhold, offset and
charge, each as described below). 

 “Initial Payment” means seventy percent (70%) of the Gross Amount of an
account. “Gross Amount” of an account means the gross face amount payable pursuant to the related invoice. “Net Amount” of an account means the Gross Amount of such account, less all permitted discounts, deductions and
allowances. “Residual Payment” with respect to an account means the aggregate amount collected with respect to such account, less the sum of (i) the Initial Payment with respect to such account, (ii) the MCF Discounts (as
hereinafter defined), (iii) any and all reasonable attorneys’ fees and other costs of collection. 
  

	5.	Fixed and Variable Discounts. “Fixed Discount” means a discount computed on the Gross Amount of an account based on the actual days elapsed from the date of
the Initial Payment for such account until up to three business days after the proceeds of collection for such account are received and deposited by MCF, based upon the following schedule: 

  

				
	 Days
	  	Discount	 
	 1-60
	  	2.50	%
	 61-75
	  	3.0	%
	 76 and over
	  	3.50	%

 Notwithstanding the foregoing, the minimum Fixed Discount on each account purchased hereunder shall
be $10.00. The Fixed Discount shall be referred to herein as the “MCF Discounts”. Seller hereby authorizes MCF, in MCF’s sole discretion, to collect any amounts that are attributable to the MCF Discounts by (i) deducting from the
Residual Payments, (ii) debiting the “Debit Account” (as hereinafter defined), or (iii) using any combination of the foregoing. As used herein, “Debit Account” shall mean any account that Seller has supplied to MCF over
which MCF has express written authority to debit pursuant to the Debit and Funding Instruction Form 
  

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 Seller hereby agrees to pay MCF a servicing fee on the first day of each calendar month equal to
(i) $10,000 minus (ii) the total Fixed Discount earned during the previous month (the “Servicing Fee”). Seller hereby authorizes MCF, in MCF’s sole discretion, to collect any amounts that are attributable to the Servicing
Fee by (i) by reducing the Initial Payment, (ii) deducting from the Residual Payments, (iii) debiting the Debit Account, or (iv) using any combination of the foregoing. Such fee shall be paid to MCF so long as this Agreement is
in effect. Seller and MCF acknowledge and agree that the Servicing Fee is intended as reasonable compensation to MCF for making this facility available under the terms of this Agreement and for no other purpose. 
  

	6.	Reserve. In the event that Seller has breached any material representation, warranty, covenant or agreement contained herein (including, without limitation, in the
event an account purchased by MCF becomes a Disputed Account as hereinafter defined), any account is not paid in full within 90 days from the date of purchase of such account, or MCF deems itself insecure hereunder, MCF may at its election, withhold
and accumulate the payment of the Residual Payments (“Reserve”) with respect to any or all accounts purchased hereunder to the extent necessary to maintain a Reserve in an amount up to the sum of (a) the total Initial Payments made by
MCF with respect to accounts purchased by MCF hereunder which remain uncollected, plus (b) the total of the MCF Discounts with respect to such accounts and (c) such other amounts which may become due by Seller to MCF hereunder or under any
other agreement. Seller hereby authorizes MCF to offset and charge any and all amounts for which Seller or the Reserve may be obligated to pay to MCF pursuant to the terms of this Agreement against the Reserve, and at MCF’s election, against
any funds of Seller in the possession or control of MCF, from whatever source. However, if, on any business day that MCF regularly makes a payment to Seller for accounts purchased, none of the foregoing conditions exists and no other breach of this
Agreement by Seller exists, then MCF shall distribute to Seller the Residual Payments then due and all funds it then has on hand that it has collected from accounts that MCF has not then purchased. 

  

	7.	Certain Security. For the purpose of securing MCF (a) in the payment of any and all sums of money that may become due and owing MCF from Seller by reason of this
Agreement, (b) in the performance by Seller of Seller’s obligations hereunder, and under any other agreement, contract, document, note or other instrument in favor of MCF or its assignees and (c) in the performance of all the
obligations of all Affiliates (as hereinafter defined) under each Affiliate’s agreements, contracts, documents, notes or other instruments in favor of MCF or its assigns, Seller hereby grants to MCF a security interest in (i) all of
Seller’s present and future accounts, account and contract rights, proceeds of inventory, contracts, drafts, acceptances, documents, instruments, chattel paper, deposit accounts, general intangibles, excluding intellectual property, and all
products and proceeds therefrom, including all returned or repossessed goods, as well as all books and records pertaining to all of the foregoing, (ii) all amounts due as Residual Payments or withheld by MCF as the Reserve pursuant to
Section 6 hereof and (iii) all money and other funds of Seller now or hereafter in the possession, custody or control of MCF, from whatever source (the “Collateral”). The term “Affiliate” shall mean with respect to any
person or entity in question, any other person or entity owned or controlled by, or which owns or controls or is under common control or is otherwise affiliated with such person or entity in question. Seller agrees to execute and deliver such
financing statements under the applicable UCC and other documents, and make such entries and markings in its books and records and to take all such other actions, as MCF may request to further evidence, perfect, preserve or protect the security
interest granted to MCF hereunder. MCF shall have all rights and remedies in respect of the lien and security interest herein granted as are provided in this Agreement, the UCC and other applicable law, including the right at any time, before or
after any default by Seller of any of its obligations hereunder, to notify account debtors and obligors on instruments to make payment to MCF (or its designee) and to take control of proceeds to which MCF is entitled, and to apply proceeds to (in
addition to other obligations of Seller to MCF) the reasonable attorneys’ fees and legal expenses incurred by MCF in connection with the disposition of collateral or the other exercise of rights and remedies by MCF. 

 Seller hereby authorizes MCF to file in any jurisdiction MCF may deem appropriate, without the signature of Seller, one or more financing statements, and
all amendments and continuations with respect thereto, relating to the Collateral and hereby ratifies, confirms and consents to any such filings made by MCF prior to the date hereof. Seller further agrees that a carbon, photographic or other
reproduction of this Agreement or any financing statement describing any Collateral is sufficient as a financing statement and may be filed in any jurisdiction MCF may deem appropriate. 
  

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 Seller herein acknowledges and warrants to MCF that it has received and will receive, direct and indirect
benefits by and from granting this security interest to MCF to secure the obligations of any Affiliate to MCF. 
 In the event a security
interest has heretofore been granted and given to MCF by Seller in a prior agreement(s) or document(s) to secure certain obligations, then, in such event, and notwithstanding anything in this Agreement to the contrary, including Section 23
hereof, the lien and security interest herein granted and given to MCF is in renewal and extension, and not in extinguishment of, all such prior liens and security interests and are valid and subsisting liens and security interests to secure all
prior, existing and new obligations of Seller to MCF hereunder and under any such prior agreements, which obligations are likewise herein renewed and extended, in any manner, including any action required in connection with or by virtue of the
United States Bankruptcy Code (the “Bankruptcy Code”). 
  

	8.	Servicing. MCF hereby appoints Seller as servicing agent for MCF (“Servicer”) for the purpose of expediting the payment of accounts purchased by MCF
hereunder which become past due. Servicer agrees to maintain an active, on-going and regular dialogue with each Account Debtor. Servicer further agrees to utilize all powers, influences and rights and take every action within its control in
accordance with its customary practices and applicable law to expedite the collection of the accounts purchased by MCF which become past due and direct such payments in specie exclusively to the Authorized Remittance Address. Seller will furnish to
MCF, upon request, any and all papers, documents and records in its possession or control related to accounts purchased by MCF hereunder, or related to Seller’s business relationship with the respective account debtors, and agrees to cooperate
fully with MCF in all matters related to collection of accounts purchased by MCF hereunder. MCF reserves the right to terminate such servicing relationship at any time with or without cause and without notice to Servicer. 

Seller authorizes MCF to forward directly to account debtors statements or invoices on accounts purchased by MCF hereunder, and to request payment at
such address or to such bank account as may be designated by MCF. Seller agrees that, if any payment is made to Seller on any account purchased by MCF from Seller hereunder, Seller (i) will hold such payment in trust for MCF, (ii) will not
commingle such payment with any funds of Seller, and (iii) will deliver such payment to MCF, in the exact form received, by the close of business on the next business day following receipt thereof by Seller. Seller shall direct all account
debtors on all accounts receivable to remit all payments directly to the Authorized Remittance Address, whether such accounts are purchased by MCF or not. If any payment on such accounts is received by Seller (rather than sent to the Authorized
Remittance Address), Seller shall give prompt notice thereof to MCF. Without limiting the other rights and remedies of MCF under this Agreement or otherwise, Seller’s failure to strictly comply with this Section 8 shall constitute an
immediate breach of and default under this Agreement, entitling MCF (in MCF’s discretion) to immediately terminate this Agreement. If any goods relating to an account purchased by MCF hereunder shall be returned to or repossessed by Seller,
Seller shall give prompt notice thereof to MCF and shall hold such goods in trust for MCF, separate and apart from Seller’s own property, and such goods shall be owned solely by MCF and be subject to MCF’s direction and control. Seller
shall properly store and protect such goods and agrees to cooperate fully with MCF in any subsequent disposition thereof for the benefit of MCF. 
 Seller authorizes MCF to collect, sue for and give releases for in the name of Seller or MCF in MCF’s sole discretion, all amounts due on accounts sold to MCF hereunder. Seller specifically authorizes MCF to endorse, in the name of
Seller, all checks, drafts, trade acceptances or other forms of payment tendered by account debtors in payment of accounts sold to MCF hereunder and made payable to Seller. MCF shall have no liability to Seller for any mistake in the application of
any payment received with respect to any account, IT BEING THE SPECIFIC INTENT OF THE PARTIES HERETO
THAT MCF SHALL HAVE NO LIABILITY HEREUNDER FOR ITS OWN NEGLIGENCE except for its own gross
negligence or willful misconduct. Seller hereby waives notice of nonpayment of any account sold to MCF hereunder as well as any and all other notices with respect to such accounts, demands or presentations for payment, and agrees that MCF may extend
or renew from time to time the payment of, or vary or reduce the amount payable under or compromise any of the terms of, any account purchased by MCF, in each case without notice to or the consent of Seller. Seller further authorizes MCF (or its
designee) to open and remove the contents of any post office box of Seller or MCF (or its designee) which MCF believes contains mail relating to accounts, and in connection therewith or otherwise, to receive, open and dispose of mail addressed to
Seller which MCF believes may relate to accounts, and 

  

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in order to further assure receipt by MCF (or its designee) of mail relating to such accounts, to notify other parties including customers and postal
authorities to change the address for delivery of such mail addressed to Seller to such address as MCF may designate. MCF agrees to use reasonable measures to preserve the contents of any such mail which does not relate to accounts purchased
hereunder and to deliver same to Seller (or, at the election of MCF, to notify Seller of the address where Seller may take possession of such contents; provided, if Seller does not take possession of such contents within 30 days after notice from
MCF to take possession thereof, MCF may dispose of such contents without any liability to Seller). Seller hereby irrevocably appoints MCF (and any employee, agent or other person designated by MCF, any of whom may act without joinder of the others)
as Seller’s attorneys-in-fact and agents, in Seller’s name, place and stead, to take all actions, execute and deliver all notices, negotiate such instruments and other documents, as may be necessary or advisable to permit MCF (or its
designee) to take any and all of the actions described in this paragraph or to carry out the purpose and intent thereof, as fully and for all intents and purposes as Seller could itself do, and hereby ratifies and confirms all that said
attorneys-in-fact and agents may do or cause to be done by virtue hereof. This power of attorney is irrevocable and deemed coupled with an interest. 
  

	9.	 Representations and Warranties of Seller. Seller hereby represents and warrants to MCF with respect to each account offered by Seller to MCF, and
purchased by MCF hereunder that (i) Seller is the sole owner of such account, which account is free and clear of any liens, claims, equities or encumbrances whatsoever, and upon each purchase by MCF of such account, MCF will own such account
free and clear of any liens, claims, equities or encumbrances whatsoever and the consideration received by Seller from MCF for such account is fair and adequate, (ii) Seller is the sole obligee under such account, and has full power and is duly
authorized to sell, assign and transfer such account to MCF hereunder, and the date of sale of such account is not more than 30 days after the date of the original invoice relating to such account, (iii) Seller has no knowledge of any fact
which would lead it to expect that, at the date of sale of such account to MCF , such account will not be paid in the full stated amount when due, (iv) such account arises out of a bona fide sale of conforming goods or the bona fide rendition
of services by Seller, and all underlying goods have been delivered to the account debtor, or all underlying services have been rendered by Seller, in complete fulfillment of all of the terms and conditions of a fully executed, delivered and
unexpired contract with the account debtor, and the account debtor has accepted the goods or services to which the account relates, (v) such account is denominated and payable only in United States dollars and constitutes the legal, valid and
binding payment obligation of the account debtor, enforceable in accordance with its terms (except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement
of creditors’ rights generally), (vi) such account is current and not past due as of the date of purchase by MCF, has not been paid by or on behalf of the account debtor in whole or in part, and is not subject to any dispute, rescission,
set-off, recoupment, defense or claim by the account debtor, whether relating to price, quality, quantity, workmanship, delay in delivery, set off, counterclaim or otherwise, other than certain rebates and stock rotation program detailed in an
agreements between Seller and stocking distributors as disclosed to MCF and the account debtor has not claimed any defense of any kind or character (other than bankruptcy or insolvency arising after the date of sale of such account to MCF hereunder)
against payment of such account, and (vii) as of the date of purchase by MCF of such account, the account debtor with respect to such account is located (within the meaning of Section 9-307 of the applicable UCC) and has its principal
executive offices within the United States. Seller further represents and warrants to MCF that (a) the execution, delivery and performance of this Agreement by Seller have been duly authorized and this Agreement constitutes the legal, valid and
binding obligation of Seller, enforceable against Seller in accordance with its terms (except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of
creditors’ rights generally), (b) Seller is not a debtor in any bankruptcy proceedings, insolvent, undergoing composition or adjustment of debts or unable to make payment of its obligations when due and no petition in bankruptcy has been
filed by or against Seller or any Affiliate, nor has Seller or any Affiliate filed any petition seeking an adjustment of its debts or for any other relief under the Bankruptcy Code, and no application for appointment of a receiver or trustee for all
or a substantial part of the property of Seller or any Affiliate is pending, nor has Seller or any Affiliate made any assignment for the benefit of creditors, (c) Seller is not in default of any debt or obligation to MCF, any other lender or
other creditor, (d) Seller’s principal place of business, chief executive office, the location where all records concerning its books of account and contract rights are kept, and (except any additional locations listed on Schedule A
attached hereto) the sole location of any property subject to the security interest granted herein is its “Address for Notices” set forth on the signature page hereon, and (e) Seller is organized under the 

  

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laws of the State of California and its charter number or similar organization number in such state is C1002378. Seller agrees not to change the location of
its principal place of business or chief executive office, the location where its records concerning its books of account or contract rights are kept, or the location of any property subject to the security interest granted herein, without giving at
least 15 days advance written notice thereof to MCF pursuant to Section 19 herein. Seller does business under no trade or assumed names except as may be listed on Schedule A attached hereto. 

 Each representation and warranty of Seller contained in this Agreement shall be deemed to be made at and as of the date hereof and at and as of the date
of each sale of accounts to MCF hereunder. 
 Seller agrees to indemnify and hold all Indemnified Persons (as hereinafter defined) harmless
against any breach by Seller of any representation, warranty or agreement of Seller contained in this Agreement, and against any claims or damages arising out of the manufacture, sale, possession or use of, or otherwise relating to, goods, or the
performance of services, associated with or relating to accounts or related rights purchased (or with respect to which a security interest is granted) hereunder. The term “Indemnified Persons” shall mean MCF and its officers, directors,
shareholders, employees, attorneys, representatives, agents, Affiliates, successors and assigns. 
 Seller agrees to notify MCF immediately of
any breach by Seller of any representation, warranty or agreement of Seller contained herein or should any representation, warranty or agreement made herein become untrue or false at any time. Seller further agrees to notify MCF immediately of the
assertion by any account debtor of any dispute or other claim (including any defense or offset asserted by any account debtor) with respect to any account sold to MCF hereunder, or with respect to any related goods or services (“Disputed
Accounts”). Upon MCF’s request, Seller agrees to settle, at its own expense and for the benefit of MCF, all such Disputed Accounts; provided, that any such settlement shall be made only with the prior written consent of MCF. Unless MCF is
advised in writing by Seller to the contrary, any account that has not been approved by the account debtor within sixty (60) days from the date of the invoice upon which the account is based shall be deemed to be a Disputed Account. As to any
Disputed Account, MCF shall have the right, in its sole discretion, (i) to settle at the expense of Seller (including all reasonable attorneys’ fees and expenses of MCF) and for the benefit of MCF any such dispute or claim upon such terms
as MCF may in its sole discretion deem advisable or (ii) to assign the related account to Seller, without recourse to MCF, and charge any unpaid balance with respect thereto (up to the amount of the Initial Payment with respect thereto and
MCF’s Discounts through the date of such charge with respect thereto) against the Reserve or deduct such unpaid balance from any Initial Payments or against any money or other funds of Seller in the possession, custody or control of MCF, from
whatever source; provided, however, that MCF would, in good faith, pursue its rights under (ii) above prior to pursuing its rights under (i) above. Seller agrees that, in lieu of MCF charging any such unpaid balance against the Reserve,
Initial Payments or against such other funds, MCF may require Seller to pay (and Seller hereby agrees to pay) to MCF on demand any such unpaid balance. If Seller has not paid such unpaid balance within 10 days from MCF’s demand, Seller hereby
authorizes MCF, in MCF’s sole discretion, to collect such amounts by debiting the Debit Account. An account with respect to which the account debtor has asserted an Insolvency Claim is not a Disputed Account. As used herein, “Insolvency
Claim” means any defense or other claim by an account debtor with respect to an account sold to MCF hereunder arising solely out of the bankruptcy or insolvency of the account debtor or the financial inability of the account debtor to pay, if
Seller has not breached its representation contained in clause (vi) of the first paragraph of this Section. Notwithstanding anything herein to the contrary, MCF shall have the right to charge all accounts not paid because of an Insolvency Claim
against the Reserve and such charge shall have priority over and be paid before any Disputed Account charge. 
 Seller waives all rights to
surcharge any of MCF’s collateral pursuant to Section 506(c) of the Bankruptcy Code. 
  

	10.	 Financial Statements. Seller represents and warrants that all financial and other information provided by Seller to MCF in connection with or in
Seller’s application to MCF or to induce MCF to enter into this Agreement is true, complete and correct in all material respects. Seller agrees to furnish to MCF (i) within 60 days after the last day of each fiscal year of Seller, a
consolidated statement of income and a consolidated statement of cash flows of Seller for such fiscal year, and a consolidated balance sheet of Seller as of the last day of such fiscal year, in each case company prepared, and (ii) within 30
days after the last day of each fiscal month of Seller, an unaudited consolidated statement of income and an unaudited consolidated balance sheet of Seller as of the last day of such fiscal month. Seller represents and warrants that each such
statement of income and statement 

  

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of cash flows will fairly present, in all material respects, the results of operations and cash flows of Seller for the period set forth therein, and that
each such balance sheet will fairly present, in all material respects, the financial condition of Seller as of the date set forth therein, all in accordance with generally accepted accounting principles applied on a consistent basis, except as
otherwise noted in the accompanying auditors’ report (or, with respect to unaudited financial statements, in the notes thereto). Seller also agrees to furnish to MCF, upon request, such additional financial and business information concerning
Seller and its business as MCF may reasonably request. Seller also agrees to furnish to MCF copies of its Form 941 returns filed with the Internal Revenue Service and evidence of payment of related taxes within 45 days after the last day of each
calendar quarter. MCF and its agents, representatives and accountants shall have the right, at all times during normal business hours and without prior notice to Seller, to conduct an audit or other examination of the financial and business records
of Seller and to examine and make copies of all books and records of Seller for the purpose of assuring or verifying compliance by Seller with the terms of this Agreement, and Seller agrees to cooperate fully with MCF and its agents, representatives
and accountants in connection therewith. Seller agrees to properly reflect the effect of this Agreement, and all sales related thereto, in all financial reports and disclosures, written or otherwise, provided to Seller’s creditors and other
interested parties. Seller specifically agrees that all accounts purchased by MCF will be excluded from Seller’s reported accounts receivable balances. Seller also specifically agrees to immediately notify MCF of any material adverse change in
Seller’s financial condition or business. 

  

	11.	Financial Covenants. Seller agrees to maintain the following financial covenants while this Agreement remains in effect: 

  

	 	(a)	Dilution. Seller covenants and agrees that at the end of each fiscal month during the effectiveness of this Agreement, the Seller’s Dilution shall not exceed fifteen
percent 15.0%). 

 The following terms shall have the following meanings for purposes of this Section 11: 
 “Dilution” means for any period of time the percentage obtained by dividing (a) the aggregate amount of credit memos, discounts and
other downward adjustments to the original invoiced price of inventory sold or services rendered by Seller during such period, by (b) gross collections for such period, all as determined by MCF. 
  

	12.	Taxes. All taxes and governmental charges of any kind imposed with respect to the sale of goods or the rendering of services relating to accounts purchased by MCF
hereunder shall be for the account of, and paid by, Seller. 

  

	13.	Fees. Seller hereby agrees to pay to MCF a termination fee equal to two percent (2.0%) of the Facility Amount (the “Termination Fee”) and the payment
shall be an obligation of Seller secured under Section 7 hereof. This Termination Fee is due and payable immediately upon termination of this Agreement by Seller. However, if this Agreement is so terminated by Seller after the expiration of one
(1) year from the Effective Date (as defined herein), but before the expiration of two (2) years from such date, one-half of the Termination Fee shall be waived. If the Agreement is terminated by Seller more than two (2) years after
the Effective Date, all of the Termination Fee shall be waived. 

  

	14	Termination. This Agreement may be terminated by either party hereto by delivery of written notice of termination of this Agreement to the other party specifying the
date of termination, which date shall be at least 30 days after the date such notice is given. MCF may, at its election, terminate this Agreement immediately and without the requirement of notice to Seller if (i) Seller shall fail to perform
any of its obligations hereunder or shall breach any of its material representations and warranties hereunder, (ii) Seller or any of its Affiliates shall become insolvent or suspend all or a substantial part of its or their business,
(iii) a petition under the Bankruptcy Code or any other insolvency or debtor statute shall be filed by or against Seller or any Affiliate or any receivership proceedings with respect thereto shall commence, (iv) any guarantee of any of
Seller’s obligations hereunder shall be terminated or become impaired, (v) an event of default occurs under any other agreement now or hereafter executed between Seller and MCF, or (vi) MCF otherwise determines that it is insecure
hereunder. 

  

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 Termination of this Agreement shall not affect the rights and obligations of the parties hereunder with
respect to transactions occurring on or prior to the date of such termination, and this Agreement shall continue to govern the rights and obligations of the parties hereto with respect to accounts purchased by MCF from Seller on or prior to the date
of such termination. All security interests granted or contemplated by this Agreement shall survive the termination of this Agreement until all amounts payable to MCF with respect to transactions occurring on or prior to the date of termination have
been paid to MCF, and Seller has performed all its obligations to MCF with respect to such transactions and all obligations under this Agreement including but not limited to payment of any fees owing hereunder. 
  

	15.	Attorney’s Fees, Litigation Expense. Seller agrees to reimburse MCF upon demand for MCF’s reasonable attorneys’ fees, court costs and other fees and
expenses incurred in collecting any sums due or to become due to MCF hereunder, enforcing any of MCF’s rights under this Agreement and all actions taken by MCF that it deems necessary or desirable under the Bankruptcy Code or should any
provisions of the Bankruptcy Code be applicable to any rights or obligations of any party to this Agreement, as well as all appearances, motions and actions to which MCF may be or become a party in any bankruptcy case. 

  

	16.	Governing Law; Venue; Submission to Jurisdiction. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS WITHOUT GIVING EFFECT
TO THE PRINCIPLES OF CONFLICTS OF LAWS THEREOF, EXCEPT TO THE EXTENT PERFECTION AND THE EFFECT OF PERFECTION OR NON-PERFECTION OF THE SECURITY INTEREST GRANTED HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL, ARE GOVERNED BY THE LAWS OF A
JURISDICTION OTHER THAN THE STATE OF TEXAS. NOTWITHSTANDING THE FOREGOING, IN THE EVENT THAT ANY COURT SHOULD DETERMINE THAT THIS ACCOUNT PURCHASE TRANSACTION IS A LOAN OR THAT ANY OF THE DISCOUNTS OR FEES SET FORTH HEREIN ARE INTEREST, OR A CHARGE
FOR THE USE, FOREBEARANCE OR DETENTION OF MONEY, THEN AND IN SUCH EVENT, THE LAWS OF THE STATE OF ARIZONA, AS FAR AS THE MAXIMUM SALE OF INTEREST AND USURY, SHALL APPLY. MCF IS A WHOLLY-OWNED SUBSIDIARY OF MERIDIAN BANK, N.A., WHICH HAS ITS HOME
OFFICE IN ARIZONA. THEREFORE, TEXAS LAWS AND THE LAWS OF OTHER STATES, EXCEPT ARIZONA, ARE PREEMPTED BY THE NATIONAL BANK ACT, 12 U.S.C. §§ 21, ET SEQ., AND THE REGULATIONS PROMULGATED THEREUNDER. ACCORDINGLY, THE LAWS OF THE STATE OF
ARIZONA IN EFFECT AS OF THE DATE OF EXECUTION OF THE AGREEMENT REGARDING MAXIMUM RATES OF INTEREST AND USURY, A.R.S. §§ 44 – 1201, ET SEQ., (AS AMENDED FROM TIME TO TIME) SHALL GOVERN THIS AGREEMENT. THIS AGREEMENT IS PERFORMABLE BY
THE PARTIES IN TARRANT COUNTY, TEXAS. SELLER AND MCF EACH AGREE THAT THE STATE COURTS OF TARRANT COUNTY, TEXAS SHALL BE THE EXCLUSIVE VENUE FOR LITIGATION OF ANY DISPUTE OR CLAIM ARISING UNDER OR RELATING TO THIS AGREEMENT, AND THAT SUCH COUNTY IS A
CONVENIENT FORUM IN WHICH TO DECIDE ANY SUCH DISPUTE OR CLAIM. SELLER AND MCF EACH CONSENT TO THE PERSONAL JURISDICTION OF THE STATE COURTS LOCATED IN TARRANT COUNTY, TEXAS FOR THE LITIGATION OF ANY SUCH DISPUTE OR CLAIM. SELLER IRREVOCABLY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM. 

  

	17.	Waiver of Jury Trial. SELLER AND MCF EACH HEREBY IRREVOCABLY WAIVES, TO THE MAXIMUM EXTENT PERMITTED BY LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF
ANY LITIGATION DIRECTLY OR INDIRECTLY AT ANY TIME ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR ASSOCIATED HEREWITH. 

  

 8 

	18.	Amendments; Waivers. This Agreement may be amended only in writing signed by the parties hereto. No failure on the part of MCF to exercise, and no delay by MCF in
exercising, and no course of dealing by MCF with respect to, any right, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege hereunder by MCF preclude
any other or further exercise thereof or the exercise of any other right, power or privilege. The remedies of MCF hereunder are cumulative and not exclusive of any remedies provided by law. 

  

	19.	Notices. All notices and other communications provided for herein shall be given or made in writing and telecopied or delivered by courier or mail to the intended
recipient at the “Address for Notices” specified opposite its name on the signature page hereto, or at such other address or telecopy number as shall be designated by a party to the other party in the manner specified in this Section. All
such notices and other communications shall be deemed to have been duly given when transmitted by telecopier (with receipt thereof confirmed by telecopier) or personally delivered or, in the case of a mailed notice, upon deposit in the United States
Postal System postage prepaid and properly addressed, in each case given or addressed as aforesaid. 

  

	20.	Indemnification. Seller agrees to indemnify, defend and hold the Indemnified Persons harmless from and against any and all loss, liability, obligation, damage,
penalty, judgment, claim, deficiency and expense (including interest, penalties, reasonable attorneys’ fees and amounts paid in settlement) owing to any third party to which any Indemnified Person may become subject arising out of or based upon
this Agreement as well as any prior relationship of Seller with any Indemnified Person, WHETHER BY ALLEGED OR ACTUAL NEGLIGENCE OF
ANY INDEMNIFIED PERSON, except and to the extent caused by the gross negligence or willful misconduct of any Indemnified Person. 

  

	21.	Waiver and Release. Seller, by its execution of this Agreement, does hereby covenant, warrant and represent that (i) Seller is not in default and no default
exists under any prior agreements or transactions with MCF, (ii) Seller releases, relinquishes and waives any and all defenses to the enforceability of any prior agreements or transactions with MCF in connection therewith to which Seller may
have otherwise been entitled as of the date hereof, (iii) Seller relinquishes, waives and releases MCF from any and all claims known or unknown which Seller may or might have against MCF arising directly or indirectly out of or from any prior
agreements or transactions between Seller and MCF, (iv) the benefit received and to be received by Seller as a result of this Agreement shall and does constitute sufficient and valuable consideration to Seller for entering into and performing
its obligations under this Agreement, (v) the execution, delivery and performance by Seller of this Agreement and the consummation of the transaction contemplated thereby are (a) not prohibited by any indenture, contract or agreement, law
or corporate or partnership documents, including, but not limited to the Bylaws and Articles of Incorporation or Certificate of Incorporation, as the case may be, if Seller is a corporation, or Seller’s partnership agreement, if Seller is a
partnership, (b) duly authorized by appropriate action of Seller, and (c) legally valid and binding obligations of Seller and will continue to be such and enforceable against the Seller according to their terms (except as such
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally), (vi) that this Agreement will be executed and delivered by
properly authorized officers of Seller, (vii) MCF has no obligation to continue the prior agreements or enter into this Agreement except for the considerations herein expressed, and (viii) the representations and warranties set forth
herein will survive the execution and delivery of this Agreement until Termination. 

  

	22.	Captions; Final Agreement; Counterparts; Successors and Assigns. Captions and headings appearing herein are included solely for convenience of reference and are not
intended to affect the interpretation of any provision of this Agreement. This Agreement represents the final agreement between the parties hereto with respect to the subject matter hereof, and supersedes all prior proposals, negotiations,
agreements and understandings, oral or written, related to such subject matter. This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument. Delivery of an executed
counterpart of this Agreement by telecopy shall be equally as effective as delivery of a manually executed counterpart of this Agreement. Any party delivering an executed counterpart of this Agreement by telecopy also shall deliver a manually
executed counterpart of this Agreement but the failure to deliver a manually executed counterpart shall not affect the validity, enforceability, and binding effect of this Agreement. This Agreement may not be assigned by Seller without the prior
written consent of MCF. This Agreement may be assigned by MCF, and any accounts purchased by MCF hereunder, together with all rights and interests related thereto granted to MCF hereunder, may be assigned by MCF, all without notice to or the consent
of Seller. This Agreement shall be binding upon the parties hereto and their respective successors and permitted assigns. 

  

 9 

	23.	Effectiveness of Agreement. This Agreement shall become effective only upon acceptance by MCF at its offices in Fort Worth, Tarrant County, Texas as evidenced by
MCF’s signature hereon (“Effective Date”). 

  

	24.	Account Purchase Transaction. Seller and MCF acknowledge and agree that the sale of accounts contemplated and covered hereby are fully intended by the parties hereto
as true sales and purchases of accounts governed by the provisions of Section 306.103 of the Texas Finance Code and Section 9.109(e) of the Texas Business and Commerce Code, as each may be amended from time to time, and, accordingly, legal
and equitable title in all of Seller’s accounts sold to and purchased by MCF from time to time hereunder will pass to MCF. 

  

	25.	Expenses. MCF shall be entitled to reimbursement upon demand for all usual and customary out of pocket expenses incurred by MCF in the course of performing its
functions with respect to this Agreement, including without limitation, the following: lock box charges, long-distance telephone charges, postage, credit reports, wire transfers, insufficient funds charges, check copying charges, overnight mail
delivery, UCC and tax lien searches and filing fees. Seller hereby authorizes MCF, in MCF’s sole discretion, to collect such expenses (i) by reducing the Initial Payment; (ii) by deducting such amounts from the Residual Payments
(Reserve); (iii) debiting the Debit Account; or (iv) by using any combination of the foregoing. This authorization shall not affect Seller’s obligation to pay such sums to MCF on demand. 

 IN WITNESS WHEREOF, the parties hereto, heretofore duly authorized, have executed this Agreement as of the date first set forth above. 
  

									
	Address for Notices:	 		 	SELLER: OVERLAND STORAGE, INC.
	4820 OVERLAND AVENUE	 		 	
	SAN DIEGO, CA 92123	 		 	
	Telecopy No.: (858) 503-4342	 		 	
					
		 		 		 	By:	 	/s/ V.A. LoForti
		 		 		 	Name:	 	Vernon A. LoForti
		 		 		 	Title:	 	President and CEO
			
	Address for Notices:	 		 	MARQUETTE COMMERCIAL FINANCE,
	801 CHERRY STREET	 		 	a division of Marquette Business Credit, Inc.
	SUITE 3400	 		 	
	FORT WORTH, TEXAS 76102	 		 	By:	 	/s/ Daniel Karas
	Telecopy No.: (817) 258-6107	 		 	Name:	 	Daniel J. Karas
		 		 		 	Title:	 	EVP & Managing Director
		 		 		 	Date:	 	November ___, 2008

  

			
	STATE OF CALIFORNIA	  	§
		  	                    §
	COUNTY OF SAN DIEGO	  	§

 The foregoing instrument was acknowledged before me this 28th day of November, 2008, by Vernon A.
LoForti as President and CEO of Overland Storage, Inc. 
 Witness my hand and official seal. 

					
			
	My Commission expires: Feb. 26, 2010	 		 	/s/ VR S. Kalanduyan
		 		 	(Notary Public)

  

 10 

 SCHEDULE A 
 TO 
 ACCOUNT TRANSFER AND PURCHASE AGREEMENT 
 Dated November 24, 2008 
 By and Between 
 MARQUETTE COMMERCIAL FINANCE 
 AND 

OVERLAND STORAGE, INC. 
 The addresses of any other
locations of Collateral referenced in Section 9: 
 None 
 Any trade or assumed names referenced in Section 9: 
 None 
  

 11Third Supplemental Indenture

 Exhibit 4.1 
  
  
  
 BURLINGTON NORTHERN SANTA FE CORPORATION 
 and

 THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., 
 Trustee 
  
  
 THIRD SUPPLEMENTAL INDENTURE

 Dated as of December 3, 2008 
 to 
 INDENTURE 
 Dated
as of December 1, 1995 
  
  
 7.00% Notes due February 1, 2014 
  
  
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 ARTICLE ONE
 DEFINITIONS
	  	2
			
	Section 1.01	  	Definition of Terms.	  	2
		
	ARTICLE TWO	  	
	GENERAL TERMS AND CONDITIONS OF THE NOTES	  	2
			
	Section 2.01	  	Designation and Principal Amount.	  	2
	Section 2.02	  	Maturity.	  	2
	Section 2.03	  	Further Issues.	  	2
	Section 2.04	  	Form and Payment.	  	2
	Section 2.05	  	Global Securities.	  	3
	Section 2.06	  	Definitive Form.	  	3
	Section 2.07	  	Interest.	  	3
	Section 2.08	  	Authorized Denominations.	  	3
	Section 2.09	  	Redemption.	  	3
	Section 2.10	  	Change of Control.	  	5
	Section 2.11	  	Appointment of Agents.	  	7
		
	ARTICLE THREE	  	
	FORM OF NOTES	  	7
			
	Section 3.01	  	Form of Notes.	  	7
		
	ARTICLE FOUR	  	
	ORIGINAL ISSUE OF NOTES	  	8
			
	Section 4.01	  	Original Issue of Notes.	  	8
		
	ARTICLE FIVE	  	
	MISCELLANEOUS	  	8
			
	Section 5.01	  	Ratification of Indenture.	  	8
	Section 5.02	  	Trustee Not Responsible for Recitals.	  	8
	Section 5.03	  	Governing Law.	  	8
	Section 5.04	  	Separability.	  	8
	Section 5.05	  	Counterparts.	  	8
			
	EXHIBIT A	  	Form of Notes	  	

 THIRD SUPPLEMENTAL INDENTURE, dated as of December 3, 2008 (this “Supplemental
Indenture”), between Burlington Northern Santa Fe Corporation, a corporation duly organized and existing under the laws of the State of Delaware, having its principal office at 2650 Lou Menk Drive, Fort Worth, Texas 76131-2830 (the
“Company”), and The Bank of New York Mellon Trust Company, N.A. (formerly known as The Bank of New York Trust Company, N.A.), a national banking association (as successor in interest to J.P. Morgan Trust Company, National Association, as
successor in interest to Bank One Trust Company, N.A., as successor in interest to The First National Bank of Chicago, as trustee (the “Trustee”). 
 WHEREAS, the Company executed and delivered the indenture, dated as of December 1, 1995, to the Trustee (as heretofore supplemented, the “Indenture”), to provide for the issuance of the Company’s
debentures, notes or other evidences of indebtedness (the “Securities”), to be issued in one or more series; 
 WHEREAS, pursuant
to the terms of the Indenture, the Company desires to provide for the establishment of a new series of its notes under the Indenture to be known as its “7.00% Notes due February 1, 2014” (the “Notes”), the form and substance
of such series and the terms, provisions and conditions thereof to be set forth as provided in the Indenture and this Supplemental Indenture; 
 WHEREAS, the Board of Directors of the Company, pursuant to the resolutions duly adopted on April 24, 2008, has duly authorized the issuance of the Notes, and has authorized the proper officers of the Company to execute any and all
appropriate documents necessary or appropriate to effect each such issuance; 
 WHEREAS, this Supplemental Indenture is being entered into
pursuant to the provisions of Section 901(7) of the Indenture; 
 WHEREAS, the Company has requested that the Trustee execute and
deliver this Supplemental Indenture; and 
 WHEREAS, all things necessary to make this Supplemental Indenture a valid agreement of the
Company, in accordance with its terms, and to make the Notes, when executed by the Company and authenticated and delivered by the Trustee, the valid obligations of the Company, have been performed, and the execution and delivery of this Supplemental
Indenture has been duly authorized in all respects; 

 NOW THEREFORE, in consideration of the premises and the purchase and acceptance of the Notes by the
Holders thereof, and for the purpose of setting forth, as provided in the Indenture, the forms and terms of the Notes, the Company covenants and agrees with the Trustee, as follows: 
 ARTICLE ONE 
 DEFINITIONS 
 Section 1.01 Definition of Terms. 
 Unless the context otherwise requires: 
 (a) each term defined in the Indenture has the same meaning when used in this Supplemental Indenture; 
 (b) the singular includes the plural and vice versa; and 
 (c) headings are for convenience of reference only and do not affect interpretation. 
 ARTICLE TWO

 GENERAL TERMS AND CONDITIONS OF THE NOTES 
 Section 2.01 Designation and Principal Amount. 
 There is hereby authorized and established a series of Securities under
the Indenture, designated as the “7.00% Notes due February 1, 2014”, which is not limited in aggregate principal amount. The aggregate principal amount of the Notes to be issued shall be as set forth in any Company order for the
authentication and delivery of the Notes, pursuant to Section 303 of the Indenture. 
 Section 2.02 Maturity. 
 The Stated Maturity of principal for the Notes will be February 1, 2014. 
 Section 2.03 Further Issues. 
 The Company may from time to time, without the consent of the
Holders of the Notes, issue additional notes of that series. Any such additional notes will have the same ranking, interest rate, maturity date and other terms as the Notes. Any such additional notes, together with the Notes herein provided for,
will constitute a single series of Securities under the Indenture. 
 Section 2.04 Form and Payment. 
 Principal of, premium, if any, and interest on the Notes shall be payable in U.S. dollars. 
 Section 2.05 Global Securities. 
 Upon the original issuance, the Notes will be represented by
one or more Global Securities registered in the name of Cede & Co., the nominee of The Depository Trust 

  

 -2- 

 
Company (“DTC”). The Company will issue the Notes in denominations of $2,000 and integral multiples of $1,000 in excess thereof and will deposit
the Global Securities with DTC or its custodian and register the Global Securities in the name of Cede & Co. 
 Section 2.06 Definitive
Form. 
 If (a) the Depository is at any time unwilling or unable to continue as depositary and a successor depositary is not
appointed by the Company within 90 days of notice thereof, (b) an Event of Default has occurred with regard to the Notes and has not been cured or waived, or (c) the Company at any time and in its sole discretion determines not to have the
Notes represented by Global Securities, the Company may issue the Notes in definitive form in exchange for such Global Securities. In any such instance, an owner of a beneficial interest in Notes will be entitled to physical delivery in definitive
form of Notes, equal in principal amount to such beneficial interest and to have Notes registered in its name as shall be established in a Company order. 
 Section 2.07 Interest. 
 The Notes will bear interest (computed on the basis of a 360-day year consisting of twelve
30-day months) from December 3, 2008 at the rate of 7.00% per annum, payable semiannually; interest payable on each Interest Payment Date will include interest accrued from December 3, 2008, or from the most recent Interest Payment
Date to which interest has been paid or duly provided for; the Interest Payment Dates on which such interest shall be payable are February 1 and August 1, commencing on February 1, 2009; and the record date for the interest payable on
any Interest Payment Date is the close of business on January 15 or July 15, as the case may be, next preceding the relevant Interest Payment Date, whether or not that day is a business day. 
 Section 2.08 Authorized Denominations. 
 The
Notes shall be issuable in denominations of $2,000 and integral multiples of $1,000 in excess thereof. 
 Section 2.09 Redemption. 
 The Notes are subject to redemption upon not less than 30 and not more than 60 days’ notice by mail, at any time, as a whole or in part, at the
election of the Company, at a redemption price equal to the greater of (i) 100% of their principal amount or (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the date of
redemption on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below), plus 50 basis points, plus in either case accrued and unpaid interest to the date of redemption. The Independent
Investment Banker (as defined below) will calculate the redemption price. 
 “Treasury Rate” means, with respect to any redemption
date, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury
Price for such redemption date. 
  

 -3- 

 “Comparable Treasury Issue” means the United States Treasury security selected by the
Independent Investment Banker as having a maturity comparable to the remaining term of the Notes that would be used, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of
comparable maturity with the remaining term of the Notes. “Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the Trustee after consultation with the Company. 
 “Comparable Treasury Price” means, with respect to any redemption date, (i) the average of the bid and asked prices for the Comparable
Treasury Issue (expressed in each case as a percentage of its principal amount) on the third business day preceding such redemption date, as set forth in the daily statistical release (or any successor release) published by the Federal Reserve Bank
of New York and designated “Composite 3:30 p.m. Quotations for U.S. Government Securities” or (ii) if such release (or any successor release) is not published or does not contain such prices on such business day, (A) the average
of the Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (B) if the Trustee obtains fewer than four such Reference Treasury Dealer Quotations, the
average of all such quotations. 
 “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and
any redemption date, the average, as determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Trustee by such Reference
Treasury Dealer at 5:00 p.m. on the third business day preceding such redemption date. 
 “Reference Treasury Dealer” means each of
Citigroup Global Markets Inc., Goldman, Sachs & Co. and J.P. Morgan Securities Inc. and their respective successors and one other nationally recognized investment banking firm designated by the Company that is a primary U.S. Government
securities dealer in New York City (a “Primary Treasury Dealer”); provided, however, that if any of the foregoing shall cease to be a Primary Treasury Dealer, the Company shall substitute therefore another Primary Treasury Dealer.

 Notice of any redemption will be mailed at least 30 days but not more than 60 days before the redemption date to each holder of the Notes
to be redeemed. 
 Unless the Company defaults in payment of the redemption price, on and after the redemption date interest will cease to
accrue on the Notes or portions thereof called for redemption. 
 Section 2.10 Change of Control. 
 (a) Upon the occurrence of a Change of Control Repurchase Event, unless the Company has exercised its right to redeem all Notes in accordance with the
redemption 

  

 -4- 

 
terms as set forth in the Notes, the Company shall make an irrevocable offer to each Holder of Notes to repurchase all or any part (in integral multiples of
$1,000) of such Holder’s Notes at a repurchase price in cash equal to 101% of the aggregate principal amount of Notes repurchased plus any accrued and unpaid interest on the Notes repurchased to, but not including, the date of repurchase.

 (b) Within 30 days following any Change of Control Repurchase Event or, at the Company’s option, prior to any Change of Control, but
in either case, after the public announcement of such Change of Control, the Company shall mail to each Holder of Notes, with a copy to the Trustee, a notice: 
 (i) describing the transaction or transactions that constitute or may constitute the Change of Control Repurchase Event; 
 (ii) offering to repurchase all Notes tendered; 
 (iii) setting forth the payment date for the repurchase
of the Notes, which date will be no earlier than 30 days and no later than 60 days from the date such notice is mailed; 
 (iv) if mailed
prior to the date of consummation of the Change of Control, stating that the offer to repurchase is conditioned on a Change of Control Repurchase Event occurring on or prior to the payment date specified in such notice; 
 (v) disclosing that any Note not tendered for repurchase will continue to accrue interest; and 
 (vi) specifying the procedures for tendering Notes. 
 (c) The Company shall comply with the requirements of Rule 14e-1 under the Exchange Act, and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection
with the repurchase of the Notes as a result of a Change of Control Repurchase Event. To the extent that the provisions of any securities laws or regulations conflict with the Change of Control Repurchase Event provisions of the Notes, the Company
will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under the Change of Control Repurchase Event provisions of the Notes by virtue of such conflict. 
 (d) On the repurchase date following a Change of Control Repurchase Event, the Company shall, to the extent lawful: 
 (i) accept for payment all Notes or portions thereof properly tendered pursuant to such offer; 
 (ii) deposit with the Trustee an amount equal to the aggregate purchase price in respect of all Notes or portions thereof properly tendered; and

  

 -5- 

 (iii) deliver or cause to be delivered to the Trustee the Notes properly accepted, together with an
officers’ certificate of the Company stating the aggregate principal amount of Notes or portions thereof being repurchased by the Company. 
 (e) The Trustee will promptly mail to each Holder of Notes properly tendered, the purchase price for such Notes, and the Trustee, upon the execution and delivery by the Company of such Notes, will promptly authenticate and cause to be
transferred by book-entry to each Holder a new Note equal in principal amount to any unpurchased portion of any Notes surrendered; provided that each new Note will be in a principal amount of a minimum denomination of $2,000 and an integral multiple
of $1,000. 
 (f) The Company shall not be required to make an offer to repurchase the Notes upon a Change of Control Repurchase Event if a
third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by the Company and such third party purchases all Notes properly tendered and not withdrawn under its offer. 

(g) Solely for purposes of this Section 2.10 in connection with the Notes, the following terms shall have the following meanings: 
 “Below Investment Grade Ratings Event” means that on any day within the 60-day period (which period shall be extended so long as the rating of
the Notes is under publicly announced consideration for a possible downgrade by any of the Rating Agencies) after the earlier of (i) the occurrence of a Change of Control; or (ii) public notice of the occurrence of a Change of Control or
the intention by the Company to effect a Change of Control, the Notes are rated below Investment Grade by each of the Rating Agencies. Notwithstanding the foregoing, a Below Investment Grade Ratings Event otherwise arising by virtue of a particular
reduction in rating shall not be deemed to have occurred in respect of a particular Change of Control (and thus shall not be deemed a Below Investment Grade Ratings Event for purposes of the definition of Change of Control Repurchase Event
hereunder) if the Rating Agencies making the reduction in rating to which this definition would otherwise apply do not announce or publicly confirm or inform the Trustee in writing that the reduction was the result, in whole or in part, of any event
or circumstance comprised of or arising as a result of, or in respect of, the applicable Change of Control (whether or not the applicable Change of Control shall have occurred at the time of such ratings event). 
 “Change of Control” means the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which
is that any “person” or “group” (as those terms are used in Section 13(d)(3) of the Exchange Act), other than the Company, its subsidiaries, or the Company’s or such subsidiaries’ employee benefit plans, becomes
the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the combined voting power of the Company’s Voting Stock or other Voting Stock into which the Company’s Voting
Stock is reclassified, consolidated, exchanged or changed measured by voting power rather than number of shares. 
  

 -6- 

 “Change of Control Repurchase Event” means the occurrence of both a Change of Control and a
Below Investment Grade Ratings Event. 
 “Investment Grade” means a rating of Baa3 or better by Moody’s (or its equivalent
under any successor ratings category of Moody’s); a rating of BBB- or better by S&P (or its equivalent under any successor ratings category of S&P); and the equivalent investment grade credit rating from any additional Rating Agency or
Rating Agencies selected by the Company. 
 “Moody’s” means Moody’s Investors Service, Inc. 
 “Rating Agency” means (a) each of Moody’s and S&P; and (b) if either of Moody’s or S&P ceases to rate the Notes or
fails to make a rating of the Notes publicly available for reasons outside of the Company’s control, a “nationally recognized statistical rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act,
selected by the Company and as certified by a resolution of the Company’s board of directors as a replacement agency for Moody’s or S&P, or both of them, as the case may be. 
 “S&P” means Standard & Poor’s Ratings Services, a division of McGraw-Hill, Inc. 
 “Voting Stock” of any specified “person” (as that term is used in Section 13(d)(3) of the Exchange Act) as of any date means the
capital stock of such person that is at the time entitled to vote generally in the election of the board of directors of such person. 
 Section 2.11
Appointment of Agents. 
 The Trustee will initially be the Security Registrar and Paying Agent for the Notes and will act as such only
at its offices in New York, New York. 
 ARTICLE THREE 
 FORM OF NOTES 
 Section 3.01 Form of Notes. 
 The Notes and the Trustee’s Certificate of Authentication to be endorsed thereon are to be substantially in the form set forth in Exhibit A hereto.

 ARTICLE FOUR 
 ORIGINAL ISSUE OF
NOTES 
 Section 4.01 Original Issue of Notes. 
 The Notes may, upon execution of this Supplemental Indenture, be executed by the Company and delivered to the Trustee for authentication, and the Trustee shall, upon Company order, authenticate and deliver such Notes
as in such Company order provided. 
  

 -7- 

 ARTICLE FIVE 
 MISCELLANEOUS 
 Section 5.01 Ratification of Indenture. 
 The Indenture, as supplemented by this Supplemental Indenture, is in all respects ratified and confirmed, and this Supplemental Indenture shall be deemed
part of the Indenture in the manner and to the extent herein and therein provided; provided that the provisions of this Supplemental Indenture apply solely with respect to the Notes. 
 Section 5.02 Trustee Not Responsible for Recitals. 
 The recitals herein contained are made by
the Company and not by the Trustee, and the Trustee assumes no responsibility for the correctness thereof. The Trustee makes no representation as to the validity or sufficiency of this Supplemental Indenture. 
 Section 5.03 Governing Law. 
 This Supplemental
Indenture and each Note shall be governed by and construed in accordance with the laws of the State of New York. 
 Section 5.04 Separability.

 In case any one or more of the provisions contained in this Supplemental Indenture or the Notes shall for any reason be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Supplemental Indenture or of the Notes, but this Supplemental Indenture and the Notes shall be construed as if
such invalid or illegal or unenforceable provision had never been contained herein or therein. 
 Section 5.05 Counterparts. 
 This Supplemental Indenture may be executed in any number of counterparts each of which shall be an original; but such counterparts shall together
constitute but one and the same instrument. 
  

 -8- 

 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed, all
as of the day and year first above written. 
  

			
	BURLINGTON NORTHERN SANTA FE CORPORATION
		
	By:	 	 /s/ Julie A. Piggott

	Name:	 	Julie A. Piggott
	Title:	 	Vice President – Finance & Treasurer
	
	 THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee

		
	By:	 	 /s/ Brian Echausse

	Name:	 	Brian Echausse
	Title:	 	Assistant Treasurer

  

 -9- 

 EXHIBIT A 
 FORM OF NOTES 
 BURLINGTON NORTHERN SANTA
FE CORPORATION 
 7.00% NOTE DUE FEBRUARY 1, 2014 

  

			
	 REGISTERED
	 	$500,000,000
	 No. R-1
	 	CUSIP No. 12189T BB9

 THIS SECURITY IS A GLOBAL
SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND
IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF.
THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR
A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR
IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER
THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 
 BURLINGTON
NORTHERN SANTA FE CORPORATION, a corporation duly organized and existing under the laws of Delaware (herein called the “Company”, which term includes any successor Person under the Indenture hereinafter referred to), for value received,
hereby promises to pay to CEDE & CO., or registered assigns, the principal sum of Five Hundred Million Dollars ($500,000,000) on February 1, 2014, and to pay interest thereon from December 3, 2008 or from the most recent Interest
Payment Date to which interest has been paid or duly provided for, semi-annually on February 1 and August 1 in each year, commencing February 1, 2009, at the rate of 7.00% per annum, until the principal hereof is paid or made
available for payment. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such interest, which shall be the January 15 or July 15 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. Any such interest
not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the
close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or
be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully
provided in said Indenture. 
 Payment of the principal of (and premium, if any) and interest on this Security will be made at the office or
agency of the Company maintained for that purpose in the Borough of Manhattan, The City of New York, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts;
provided, however, that at the option of the Company payment of interest may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register. 
 Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have
the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has been executed by the Trustee referred
to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

 IN WITNESS WHEREOF, the Company has caused this instrument
to be duly executed under its corporate seal. 
  

									
	Dated: December 3, 2008	 		 	BURLINGTON NORTHERN SANTA FE CORPORATION
					
		 		 		 	By	 	 
		 		 		 		 	 Julie A. Piggott
 Vice President – Finance

  

			
	Attest:
	
	  

	 Jeffrey T. Williams
 Assistant Secretary

 This is one of the Securities of the series designated therein referred to in the within-mentioned
Indenture. 
  

									
	Dated: December 3, 2008	 		 	 THE BANK OF NEW YORK MELLON TRUST
 COMPANY,
N.A. 
 As Trustee

					
		 		 		 	By	 	 
		 		 		 		 	Authorized Officer

  

 [REVERSE OF NOTE] 
 This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to be issued in one or more series under an Indenture, dated as of December 1,
1995, between the Company and The Bank of New York Mellon Trust Company, N.A. (formerly known as The Bank of New York Trust Company, N.A.), as successor to J.P. Morgan Trust Company, National Association, as successor in interest to Bank One Trust
Company, N.A., as successor to The First National Bank of Chicago, as Trustee (herein called the “Trustee”, which term includes any successor trustee under the Indenture), as supplemented by the Third Supplemental Indenture, dated as of
December 3, 2008, between the Company and the Trustee (herein called the “Indenture”, which term shall have the meaning assigned to it in such instrument), and reference is hereby made to the Indenture for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered. This Security is one
of the series designated on the face hereof and will initially be offered in the aggregate principal amount of $500,000,000. The Company may, without the consent of the Holders, issue additional Securities and thereby increase such principal amount
in the future, on the same terms and conditions and with the same CUSIP number as this Security. 
 The Securities of this series are subject
to redemption upon not less than 30 and not more than 60 days’ notice by mail, at any time, as a whole or in part, at the election of the Company, at a redemption price equal to the greater of (i) 100% of their principal amount or
(ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the date of redemption on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury
Rate (as defined in the Supplemental Indenture establishing the Securities of this series), plus 50 basis points, plus in either case accrued and unpaid interest to the date of redemption. 
 In the event of redemption of this Security in part only, a new Security or Securities of this series and of like tenor for the unredeemed portion hereof
will be issued in the name of the Holder, upon the cancellation hereof. 
 Upon the occurrence of a Change of Control Repurchase Event,
unless the Company has exercised its right of redemption as described above, each Holder of Securities shall have the right to require the Company to repurchase all or any part (in integral multiples of $1,000) of such Holder’s Securities
pursuant to the Change of Control notice as provided in, and subject to the terms of, the Indenture at a purchase price in cash equal to 101% of the aggregate principal amount of the Securities repurchased, plus accrued and unpaid interest, if any,
to, but not including, the date of repurchase. 
 The Indenture contains provisions for defeasance at any time of the entire indebtedness of
this Security or certain restrictive covenants and Events of Default with respect to this Security, in each case upon compliance with certain conditions set forth in the Indenture. 
 If an Event of Default with respect to Securities of this series shall occur and be continuing, the principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the Indenture. 
 The Indenture permits, with certain exceptions as
therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee
with the consent 

 
of the Holders of a majority in principal amount of the Securities at the time Outstanding of each series to be affected. The Indenture also contains
provisions permitting the Holders of specified percentages in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain
provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security
and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security. 
 As provided in and subject to the provisions of the Indenture, the Holder of this Security shall not have the right to institute any proceeding with
respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a continuing Event of Default with respect to the Securities of
this series, the Holders of not less than 25% in principal amount of the Securities of this series at the time Outstanding shall have made written request to the Trustee to institute proceedings in respect of such Event of Default as Trustee and
offered the Trustee reasonable indemnity, and the Trustee shall not have received from the Holders of a majority in principal amount of Securities of this series at the time Outstanding a direction inconsistent with such request, and the Trustee
shall have failed to institute any such proceeding, for 60 days after receipt of such notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted by the Holder of this Security for the enforcement of any payment of
principal hereof or any premium or interest hereon on or after the respective due dates expressed herein. 
 No reference herein to the
Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and any premium and interest on this Security at the times, place and
rate, and in the coin or currency, herein prescribed. 
 As provided in the Indenture and subject to certain limitations therein set forth,
the transfer of this Security is registrable in the Security Register, upon surrender of this Security for registration of transfer at the office or agency of the Company in any place where the principal of and any premium and interest on this
Security are payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon
one or more new Securities of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 
 The Securities of this series are issuable only in registered form without coupons in denominations of $2,000 and integral multiples of $1,000 in excess
thereof. As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same. 
 No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
 Prior to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the 

 
owner hereof for all purposes, whether or not this Security is overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice
to the contrary. 
 All terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the
Indenture.

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