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                                  EXHIBIT 10.13

                               RETENTION AGREEMENT

                  THIS RETENTION AGREEMENT (the "AGREEMENT"), dated
_____________, is made by and between Overland Data Inc., a California
corporation having its principal offices at 8975 Balboa Avenue, San Diego,
California 92123-1599 (the "COMPANY") and _____________ ("EMPLOYEE").

                                    AGREEMENT

         WHEREAS, Employee is a key employee of the Company;

         WHEREAS, the Company considers that providing Employee with certain
employment termination benefits will operate as an incentive for Employee to
remain employed by the Company in the event of a Change of Control.

         NOW THEREFORE, to induce Employee to remain employed by the Company,
and for other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the Company and Employee agree as follows:

1. DEFINITIONS.

         1.1 "BASE SALARY" shall mean the Employee's gross annual salary at
the time of a Change of Control or the Termination Date, whichever is higher.

         1.2 "CHANGE OF CONTROL" is defined to have occurred if, and only if,
during Employee's employment:

                  (a) any individual, partnership, firm, corporation,
association, trust, unincorporated organization or other entity or person, or
any syndicate or group deemed to be a person under Section 14(d)(2) of the
Exchange Act is or becomes the "Beneficial Owner" (as defined in Rule 13d-3
of the General Rules and Regulations under the Exchange Act), directly or
indirectly, of securities of the Company representing 50% or more of the
combined voting power of the Company's then outstanding securities entitled
to vote in the election of directors of the Company;

                  (b) there occurs a reorganization, merger, consolidation or
other corporate transaction involving the Company ("TRANSACTION"), in each
case, with respect to which the stockholders of the Company immediately prior
to such Transaction do not, immediately after the Transaction, own more than
fifty (50) percent of the combined voting power of the Company or other
corporation resulting from such Transaction; or

                  (c) all or substantially all of the assets of the Company
are sold, liquidated or distributed.

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         1.3 "CAUSE" shall mean

                  (a) Employee's gross neglect of his duties to the Company,
where Employee has been given a reasonable opportunity to cure his gross
neglect (which reasonable opportunity must be granted during the thirty-day
period preceding termination);

                  (b) any violation by Employee of Employee's obligations
under this Agreement or any employment agreement which Employee may have with
the Company;

                  (c) Employee taking any role in any buy-out of the Company
without the approval of the Company's majority shareholder; or

                  (d) Employee's commission of any act of fraud, theft or
embezzlement against the Company.

         1.4 "COMPENSATION" shall mean Base Salary plus Target Bonus.

         1.5 "RESIGNATION FOR GOOD REASON" shall mean the voluntary
resignation by Employee of his employment with the Company within two years
following a Change of Control and within three (3) months of the following
Good Reasons:

                  (a) any reduction in Employee's Base Salary or Target
Bonus; or

                  (b) any reduction in Employee's title; or

                  (c) any significant reduction in Employee's
responsibilities and authority;

                  (d) any failure by the Company to pay Employee's Base
Salary; or

                  (e) a relocation by the Company of Employee's place of
Employment outside a fifty (50) mile radius of Employee's current place of
employment.

                  An event described in Section 1.5(a) through (e) will not
constitute Good Reason unless Employee provides written notice to the Company
of his intention to resign for Good Reason and unless the Company does not
cure the Good Reason within ten (10) days of the Company's receipt of the
written notice.

         1.6 "SEVERANCE PERIOD" shall begin on the Termination Date and
extend for twelve months following the Termination Date

         1.7 "TARGET BONUS" shall mean the variable annual compensation
represented by the percentage of Base Salary Employee is eligible to receive,
prior to a Change of Control, in the event targeted goals are achieved for
the year.

         1.8 "TERMINATION DATE" shall mean the date of termination of
Employee's employment relationship with the Company.

         1.9 "TERMINATION PAYMENTS" shall mean any payment or distribution of
Compensation or benefits made pursuant to SECTION 4.1(a)-(c) of this
Agreement.

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2. TITLE AND DUTIES. Employee will hold the position of____________________.
His primary duties will include such duties as are assigned or delegated to
Employee by the President and Chief Executive Officer of the Company (the
"PRESIDENT"). Employee will: (i) devote his entire business time, attention,
skill, and energy exclusively to the business of the Company; (ii) use his
best efforts to promote the success of the Company's business; and (iii)
cooperate fully with the President and the Board of Directors of the Company
in the advancement of the best interests of the Company.

3. AT-WILL EMPLOYMENT. Employee reaffirms that Employee's employment
relationship with the Company is at-will, terminable at any time and for any
reason by either the Company or Employee. While certain paragraphs of this
Agreement describe events that could occur at a particular time in the
future, nothing in this Agreement may be construed as a guarantee of
employment of any length.

4. TERMINATION PAYMENTS.

         4.1 If, within two (2) years immediately following a Change of
Control, Employee's employment terminates as the result of (i) termination by
the Company of Employee's employment for a reason other than Cause; or (ii)
Employee's Resignation for Good Reason

                  (a) Employee will receive a pro-rata share of Base Salary
and accrued but unused vacation through the Termination Date, less applicable
state and federal taxes or other payroll deduction;

                  (b) Employee is eligible for Severance under this Agreement
in a lump-sum amount equal to Base Salary plus Target Bonus, less applicable
state and federal taxes or other payroll deduction;

                  (c) If Employee elects to continue insurance coverage as
afforded to Employee according to the Consolidated Omnibus Budget
Reconciliation Act of 1985 ("COBRA"), Company will reimburse Employee the
amount of the premiums incurred by Employee during the Severance Period.
Nothing in this Agreement will extend Employee's COBRA period beyond the
period allowed under COBRA, nor is Company assuming any responsibility which
Employee has for formally electing to continue coverage;

         4.2 The payments set forth in SECTION 4.1(b) AND (c) above are in
exchange for, and contingent upon Employee's execution of a release of all
claims as of the Termination Date, in substantially the form attached to this
Agreement as Exhibit 1.

         4.3 If Employee's employment terminates for any reason after the two
year period immediately following a Change of Control or terminates during
that two year period for any reason other than (i) termination by the Company
of Employee's employment for a reason other than Cause; or (ii) Employee's
Resignation for Good Reason, the Company will pay Employee a pro-rata share
of Base Salary and accrued but unused vacation through the Termination Date.

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5. RETIREMENT AND PROFIT-SHARING PLANS. Notwithstanding anything in this
Agreement to the contrary, Employee's rights in any retirement, pension or
profit-sharing plans offered by the Company shall be governed by the rules of
such plans as well as by applicable law; provided, however, that on the
Termination Date, Employee shall become fully vested in all pension and
401(k) account balances.

6. TAX CONSEQUENCES. The Company makes no representations regarding the tax
consequence of any provision of this Agreement. Employee is advised to
consult with his own tax advisor with respect to the tax treatment of any
payment contained in this Agreement.

7. TAX ADJUSTMENT. Notwithstanding the foregoing or any other provision of
this Agreement to the contrary, if tax counsel selected by the Company and
acceptable to Employee determines that any portion of any payment under this
Agreement would constitute an "excess parachute payment" within the meaning
of Section 280G of the Internal Revenue Code of 1986, as amended (the
"Code"), the payments to be made to Employee under this Agreement shall be
reduced (but not below zero) such that the value of the aggregate payments
that Employee is entitled to receive under this Agreement and any other
agreement or plan or program of the Company shall be one dollar ($1) less
than the maximum amount of payments which Employee may receive without
becoming subject to the tax imposed by Section 4999 of the Code.

8. DISPUTE RESOLUTION PROCEDURES. Any dispute or claim arising out of this
agreement shall be subject to final and binding arbitration. The arbitration
will be conducted by one arbitrator who is a member of the American
Arbitration Association ("AAA") or of the Judicial Arbitration and Mediation
Services ("JAMS"). The arbitration shall be held in San Diego, California.
The arbitrator shall have all authority to determine the arbitrability of any
claim and enter a final and binding judgment at the conclusion of any
proceedings in respect of the arbitration. Any final judgment only may be
appealed on the grounds of improper bias or improper conduct of the
arbitrator. The parties will be entitled to conduct discovery (i.e.,
investigation of facts through depositions and other means) which shall be
governed by the California Code of Civil Procedure (the "CCP") section
1283.05. The arbitrator shall have all power and authority to enter orders
relating to such discovery as are allowed under the CCP. The arbitrator will
apply California substantive law in all respects. The party prevailing in the
resolution of any such claim will be entitled, in addition to such other
relief as may be granted, to an award of all reasonable attorneys fees and
costs incurred in pursuit of the claim, without regard to any statute,
schedule, or rule of court purported to restrict such award.

9. GENERAL PROVISIONS.

         9.1 GOVERNING LAW. This Agreement will be governed by and construed
in accordance with the laws of California.

         9.2 ASSIGNMENT. Employee may not assign, pledge or encumber his
interest in this Agreement or any part thereof.

         9.3 NO WAIVER OF BREACH. The failure to enforce any provision of
this Agreement will not be construed as a waiver of any such provision, nor
prevent a party from enforcing the provision or any other provision of this
Agreement. The rights granted the parties are

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cumulative, and the election of one will not constitute a waiver of such
party's right to assert all other legal and equitable remedies available
under the circumstances.

         9.4 SEVERABILITY. The provisions of this Agreement are severable,
and if any provision will be held to be invalid or otherwise unenforceable,
in whole or in part, the remainder of the provisions, or enforceable parts of
this Agreement, will not be affected.

         9.5 ENTIRE AGREEMENT. This Agreement constitutes the entire
agreement of the parties with respect to the subject matter of this
Agreement, and supersedes all prior and contemporaneous negotiations,
agreements and understandings between the parties, oral or written.

         9.6 MODIFICATION; WAIVERS. No modification, termination or attempted
waiver of this Agreement will be valid unless in writing, signed by the party
against whom such modification, termination or waiver is sought to be
enforced.

         9.7 FEES AND EXPENSES. If any proceeding is brought for the
enforcement or interpretation of this Agreement, or because of any alleged
dispute, breach, default or misrepresentation in connection with any
provisions of this Agreement, the successful or prevailing party will be
entitled to recover from the other party reasonable attorneys' fees and other
costs incurred in that proceeding (including, in the case of an arbitration,
arbitration fees and expenses), in addition to any other relief to which such
party may be entitled.

         9.8 AMENDMENT. This Agreement may be amended or supplemented only by
a writing signed by both of the parties hereto.

         9.9 DUPLICATE COUNTERPARTS. This Agreement may be executed in
duplicate counterparts; each of which shall be deemed an original; provided,
however, such counterparts shall together constitute only one instrument.

         9.10 INTERPRETATION. The headings contained in this Agreement are
for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.

         9.11 DRAFTING AMBIGUITIES. Each party to this Agreement and its
counsel have reviewed and revised this Agreement. The rule of construction
that any ambiguities are to be resolved against the drafting party shall not
be employed in the interpretation of this Agreement or any of the amendments
to this Agreement.

                                             OVERLAND DATA, INC.

Dated:                                       By:
      ------------------------------            --------------------------------
                                             Name:
                                                  ------------------------------
                                             Title:
                                                   -----------------------------

Dated:
      ------------------------------         -----------------------------------
                                             Printed Name:
                                                          ----------------------

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                                    EXHIBIT 1

                                 GENERAL RELEASE

         This GENERAL RELEASE ("RELEASE") is entered into effective as of
______________, (the "EFFECTIVE DATE") by and between Overland Data, Inc., a
California corporation, having its principal offices at 8975 Balboa Avenue,
San Diego, California 92123-1599 ("COMPANY") and _____________________, an
individual residing at ____________________ ("EMPLOYEE") with reference to
the following facts:

                                    RECITALS

         A. The parties entered into a Retention Agreement ("the Agreement")
dated ____________, by which the parties agreed that upon the occurrence of
certain conditions, Employee would become eligible for Termination Payments
as defined in the Agreement in exchange for Employee's release of the Company
from all claims which Employee may have against the Company as of the
Termination Date.

         B. The parties desire to dispose of, fully and completely, all
claims, which Employee may have against the Company in, the manner set forth
in this Release.

                                    AGREEMENT

         1. RELEASE. Employee, for himself and his heirs, successors and
assigns, each fully releases, and discharges Company, its officers,
directors, employees, shareholders, attorneys, accountants, other
professionals, insurers and agents of the other (collectively "Agents"), and
all entities related to each party, including, but not limited to, heirs,
executors, administrators, personal representatives, assigns, parent,
subsidiary and sister corporations, affiliates, partners and co-venturers
(collectively "Related Entities"), from all rights, claims, demands, actions,
causes of action, liabilities and obligations of every kind, nature and
description whatsoever, Employee now has, owns or holds or has at anytime
had, owned or held or may have against the Company, Agents or Related
Entities from any source whatsoever, whether or not arising from or related
to the facts recited in this Release. Employee specifically releases and
waives any and all claims arising under any express or implied contract,
rule, regulation or ordinance, including, without limitation, Title VII of
the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Americans
with Disabilities Act, the California Fair Employment and Housing Act, and
the Age Discrimination in Employment Act, as amended ("ADEA").

         2. SECTION 1542 WAIVER. This Release is intended as a full and
complete release and discharge of any and all claims that Employee may have
against the Company, Agents or Related Entities. In making this release,
Employee intends to release the Company, Agents and Related Entities from
liability of any nature whatsoever for any claim of damages or injury or for
equitable or declaratory relief of any kind, whether the claim, or any facts
on which such claim might be based, is known or unknown to him. Employee
expressly waives all rights under Section 1542 of the California Civil Code,
which Employee understands provides as follows:

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           A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR
           DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF
           EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE
           MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

Employee acknowledges that he may discover facts different from or in
addition to those that he now believes to be true with respect to this
Release. Employee agrees that this Release shall remain effective
notwithstanding the discovery of any different or additional facts.

         3. WAIVER OF CERTAIN CLAIMS. Employee acknowledges that he has been
advised in writing of his right to consult with an attorney prior to
executing the waivers set out in this Release, and that he has been given a
21-day period in which to consider entering into the release of ADEA claims,
if any. In addition, Employee acknowledges that he has been informed that he
may revoke a signed waiver of the ADEA claims for up to seven (7) days after
executing this Release.

         4. NO UNDUE INFLUENCE. This Release is executed voluntarily and
without any duress or undue influence. Employee acknowledges he has read this
Release and executed it with his full and free consent. No provision of this
Release shall be construed against any party by virtue of the fact that such
party or its counsel drafted such provision or the entirety of this Release.

         5. GOVERNING LAW. This Release is made and entered into in the State
of California and accordingly the rights and obligations of the parties
hereunder shall in all respects be construed, interpreted, enforced and
governed in accordance with the laws of the State of California as applied to
contracts entered into by and between residents of California to be wholly
performed within California.

         6. SEVERABILITY. If any provision of this Release is held to be
invalid, void or unenforceable, the balance of the provisions of this Release
shall, nevertheless, remain in full force and effect and shall in no way be
affected, impaired or invalidated.

         7. COUNTERPARTS. This Release may be executed simultaneously in one
or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument. This Release may
be executed by facsimile, with originals to follow by overnight courier.

         8. DISPUTE RESOLUTION PROCEDURES. Any dispute or claim arising out
of this agreement shall be subject to final and binding arbitration. The
arbitration will be conducted by one arbitrator who is a member of the
American Arbitration Association ("AAA") or of the Judicial Arbitration and
Mediation Services ("JAMS"). The arbitration shall be held in San Diego,
California. The arbitrator shall have all authority to determine the
arbitrability of any claim and enter a final and binding judgment at the
conclusion of any proceedings in respect of the arbitration. Any final
judgment only may be appealed on the grounds of improper bias or improper
conduct of the arbitrator. The parties will be entitled to conduct discovery
(i.e., investigation of facts through depositions and other means) which
shall be governed by the Code

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of Civil Procedure ("CCP") section 1283.05. The arbitrator shall have all
power and authority to enter orders relating to such discovery as are allowed
under the CCP. The arbitrator will apply California substantive law in all
respects. The party prevailing in the resolution of any such claim will be
entitled, in addition to such other relief as may be granted, to an award of
all reasonable attorneys fees and costs incurred in pursuit of the claim,
without regard to any statute, schedule, or rule of court purported to
restrict such award.

         9. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
of the parties with respect to the subject matter of this Agreement, and
supersedes all prior and contemporaneous negotiations, agreements and
understandings between the parties, oral or written.

         10. MODIFICATION; WAIVERS. No modification, termination or attempted
waiver of this Agreement will be valid unless in writing, signed by the party
against whom such modification, termination or waiver is sought to be
enforced.

         11. AMENDMENT. This Agreement may be amended or supplemented only by
a writing signed by Employee and the Company.

Dated:
      -----------------------------       --------------------------------------
                                          Printed Name:
                                                       -------------------------

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                                  EXHIBIT 10.18

                                 [OVERLAND LOGO]

                               Overland Data, Inc.
                               8975 Balboa Avenue
                            San Diego, CA 92123-1599
                                 (858) 571-5555
                               (858) 495-4267 fax

                              EMPLOYMENT AGREEMENT

This Employment Agreement ("Agreement"), which shall become effective on
April 2, 2001 (the "Effective Date"), finalizes the terms and conditions of
employment agreed upon by and between Overland Data, Inc. ("Employer" or the
"Company") and Chester Baffa ("Executive").

The parties agree as follows:

1.       POSITIONS AND DUTIES. Executive will be employed by the Company in
the position of Vice President of Sales, reporting to the Company's President
and Chief Executive Officer ("CEO"), and shall do and perform all services,
acts or things necessary or advisable to manage and conduct the business of
the Company and which are normally associated with the position of Vice
President of Sales consistent with the bylaws of the Company and as required
by the Company's President & CEO and by the Company's Board of Directors (the
"Board").

         1.1 BEST EFFORTS/FULL-TIME. During the Employment Term (as defined
in paragraph 1.2 herein), Executive will act in the best interests of
Employer and devote his full business time and best efforts to the
performance of his duties under this Agreement. Executive agrees to be
available to render such services at all reasonable times and places and in
accordance with Employer's directives.

Executive shall be assigned to work in the Company's corporate offices in San
Diego, California, but may be required to travel in connection with his
duties. Executive will abide by all policies, procedures, and decisions made
by Employer, as well as all federal, state and local laws, regulations or
ordinances applicable to his employment.

During his employment, Executive must not engage in any work, paid or unpaid,
that creates an actual or potential conflict of interest with Employer's
business interests and if, in the opinion of the Board, an actual or
potential conflict exists, the Board may in its sole discretion require
Executive to choose to either (i) discontinue the other work or (ii) resign
from his employment with Employer. The foregoing restriction shall not
preclude Executive from engaging in civic, charitable or religious
activities, or from serving on boards of directors of companies or
organizations so long as he notifies the Board of

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such services in writing, and such services do not pose a conflict or
interfere with his responsibilities to Employer. It is anticipated that
Executive shall generally devote no less than 40 hours per week to his duties
for Employer.

         1.2 TERM OF EMPLOYMENT. This Agreement shall commence on April 2,
2001, and, unless terminated by either party in accordance with paragraph 5
herein, shall continue until October 8, 2002 (the period of employment
hereunder shall be referred to herein as the "Employment Term"). Except as
provided in paragraph 6, this Agreement shall continue during the Employment
Term to govern the terms and conditions of Executive's employment, unless
modified by the parties hereto in writing.

2.       COMPENSATION.

         2.1 BASE SALARY. As compensation for the proper and satisfactory
performance of all duties under this Agreement, Executive shall earn a gross
annual base salary of $250,000.00 ($9,615.38 gross per bi-weekly payroll
period), less all legally required payroll deductions, payable in accordance
with Employer's normal payroll practices ("Base Salary").

         2.2 BONUS/COMMISSION. Executive will be eligible to receive
potential annual bonus earnings of up to $75,000 or such other amount as
determined by the Board, based on reasonable and obtainable performance
criteria to be mutually determined by the Board and the President & CEO. This
bonus will be based on the Company's June 30 fiscal year. Also, Executive
will be eligible to receive potential commission compensation of up to
$12,500 per quarter, or such other amount as determined by the Board and the
President & CEO, based upon 100% achievement of the Company's quarterly sales
goals.

         2.3 STOCK OPTIONS. Subject to the approval of the Board, Executive
will be granted an option to purchase 150,000 shares of Employer's Common
Stock under Employer's 2000 Stock Option Plan (the "2000 Plan"). The option
exercise price will be equal to the closing market price of the Company's
Common Stock on April 2, 2001. Except as otherwise provided in this
Agreement, shares subject to this option will be governed by the terms and
conditions of the 2000 Plan and the standard form of Stock Option Agreement
that Executive will be required to sign as a condition of receiving this
option. This option will be an incentive stock option to the maximum amount
allowable by the Internal Revenue Code of 1986, as amended; the remainder of
this option will be a non-qualified stock option. A total of 50,000 shares of
Common Stock underlying this option shall vest on April 2, 2002, and an
additional 4,166 shares shall vest on the 2nd of each subsequent month until
March 2004, and 4,182 shares shall vest on the 2nd of April 2004.
Notwithstanding the foregoing, all outstanding shares underlying this option
shall vest in full and be fully exercisable upon a "Change of Control" as
defined in Section 1.2 of the Retention Agreement, dated as of April 2, 2001,
(the "Retention Agreement"), by and between the Company and Executive.

         2.4 MOVING EXPENSE REIMBURSEMENT. It is agreed that within twelve
months of the Effective Date, Executive will relocate his primary residence
to the

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San Diego, California area. Employer agrees to either pay or reimburse
Executive for the expenses listed below which are associated with such
relocation. The aggregate amount of such payments and reimbursements, which
shall be taxable to Executive, shall not exceed $75,000.

         o   Temporary living accomodations in California for Executive and his
             family for up to 180 days;

         o   Realtor fees and closing costs directly associated with the sale of
             Executive's current residence and the purchase of a new residence.

         o   Travel, meals and lodging en route to California for Executive and
             his family; and

         o   Shipment of household goods and personal belongings to California,
             plus storage of such items while Executive is in temporary living
             accommodations.

Should Executive's employment with the Company during the Employment Term be
terminated for Cause as defined in Section 5.1 below, or should Executive
resign during the Employment Term without Good Reason as defined in Section
5.4 below, then an aggregate amount equal to the sum of all amounts in
respect of relocation paid to or on behalf of Executive pursuant to this
Section, and reduced by 1/18 per full month starting from the Effective Date
until the termination or resignation date, shall be repaid by the Executive
to the Company within thirty days of such termination or resignation date.

         2.5 UNILATERAL MODIFICATION OF COMPENSATION. Employer reserves the
right to modify Executive's compensation, at any time, at its sole and
absolute discretion.

3.       CUSTOMARY FRINGE BENEFITS. Executive shall be eligible for all
customary and usual benefits generally available to all executive level
employees of Employer, as determined in the sole and absolute discretion of
Employer and subject to the terms and conditions set forth in the applicable
benefit plan or policy. Employer reserves the right to change or eliminate
any of the fringe benefits provided to executive level employees on a
prospective basis at any time, at Employer's sole and absolute discretion.
Executive understands that all benefits provided in this paragraph may be
reduced by, or subject to, all legally required taxes.

4.       BUSINESS EXPENSES. Executive will be reimbursed for all reasonable,
out-of-pocket business expenses incurred in the performance of his duties on
behalf of Employer subject to Executive's compliance with the Company's
established expense reimbursement policy.

5.       TERMINATION.

         5.1 TERMINATION FOR CAUSE BY EMPLOYER. Employer may terminate
Executive's employment under this Agreement immediately at any time for
"Cause", which shall include, but is not limited to: (a) acts or omissions
constituting gross negligence, recklessness or willful misconduct on the part
of Executive with respect to his obligations or otherwise relating to the
business of Employer; (b) Executive's material breach of this Agreement; (c)
Executive's conviction or entry of a plea of nolo

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contendere for fraud, misappropriation or embezzlement, or any felony or
crime of moral turpitude; (d) Executive's dishonesty or involvement in any
conduct that adversely affects Employer's name or public image or is
otherwise detrimental to Employer's business interests; (e) Executive's
willful neglect of duties as determined in the sole and exclusive discretion
of Employer; or (f) Executive's death.

                  5.1.1. ENTITLEMENTS UPON TERMINATION FOR CAUSE. In the
event that Executive's employment is terminated for Cause in accordance with
paragraph 5.1, Executive shall be entitled to receive: (a) the Base Salary
then in effect, prorated to the date of termination; (b) any performance
bonuses or commissions earned prior to the date of termination; and (c) any
expense reimbursements to which Executive is entitled by virtue of his prior
employment with Employer (collectively, (a), (b) and (c) above are referred
to herein as the "Standard Entitlements"). In the event of such termination
for Cause, Executive shall not be entitled to receive (i) the Severance
Payment (as defined in paragraph 5.2 below), or any part thereof, or (ii) any
further vesting of stock options; and all other obligations of Employer to
Executive pursuant to this Agreement shall automatically terminate and be
completely extinguished.

         5.2 TERMINATION WITHOUT CAUSE BY EMPLOYER. Employer may terminate
Executive's employment without Cause at any time. If Employer terminates
Executive's employment without Cause, Executive shall be entitled to receive
the Standard Entitlements. In addition to the above, in the event that (i)
Employer terminates Executive's employment without Cause during the
Employment Term, and (ii) Executive complies with all of the conditions in
paragraph 5.2.1 below, Executive will be entitled to an aggregate severance
payment equal to Executive's then Base Salary, payable on a pro-rated basis
in accordance with Employer's regular payroll practices for the twelve (12)
months immediately following such termination date (the "Severance Payment").
Upon Executive's termination without Cause, subject to the conditions
specified above, any shares of Common Stock underlying Executive's then
outstanding stock options that otherwise would vest during the twelve (12)
months following the date of such termination shall vest in full and shall be
immediately exercisable as of the date of such termination, and such stock
options may be exercised in whole or in part at any time within thirty (30)
days of the date of such termination without Cause. In the event of such
termination without Cause, all of Employer's other obligations pursuant to
this Agreement shall terminate automatically and extinguish completely
following the date of such termination without Cause.

                  5.2.1. CONDITIONS TO RECEIVE SEVERANCE PAYMENTS. The
Severance Payment will be paid provided that the following conditions are met:

                           (a) Executive complies with all surviving
provisions of this Agreement as specified in paragraph 11.8 below; and

                           (b) Executive executes a full general release in
the form attached hereto as EXHIBIT A, releasing all claims, known or
unknown, that Executive may have against Employer arising out of or in any
way related to Executive's employment or termination of employment with
Employer.

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         5.3 VOLUNTARY RESIGNATION BY EXECUTIVE FOR GOOD REASON. Executive
may voluntarily resign his position with Employer at any time provided that
he delivers to the Board at least thirty (30) days' advance written notice of
his resignation. In the event that (i) his resignation is for Good Reason (as
defined below) and (ii) such resignation for Good Reason occurs on or before
the Final Severance Date, Executive will be entitled to receive the Severance
Payment, provided that Executive complies with all of the conditions in
paragraph 5.2.1 above. In the event of such resignation for Good Reason, all
of Employer's other obligations pursuant to this Agreement shall terminate
automatically and extinguish completely following the date of such
resignation for Good Reason. Executive will be deemed to have resigned for
"Good Reason" in the following circumstances: (a) Employer reduces
Executive's Base Salary and potential annual bonus earnings by more than ten
percent (10%), unless the reduction is made as part of, and is generally
consistent with, a general reduction of other senior executive salaries and
incentive compensation; (b) Executive's position and/or duties are modified
so that his duties are no longer consistent with the position of Vice
President of Sales or (c) Employer relocates Executive's principal place of
work to a location more than fifty (50) miles from Employer's current
location without his prior written approval.

         5.4 VOLUNTARY RESIGNATION BY EXECUTIVE WITHOUT GOOD REASON. In the
event that Executive's resignation is without Good Reason, Executive will be
entitled to receive the Standard Entitlements, but Executive shall not be
entitled to receive (i) the Severance Payment, or any part thereof, or (ii)
any further vesting of stock options; and all other obligations of Employer
to Executive pursuant to this Agreement shall automatically terminate and be
completely extinguished.

         5.5 TERMINATION WITHOUT CAUSE OR RESIGNATION FOR GOOD REASON AFTER
THE EMPLOYMENT TERM. If Executive is terminated without Cause after the
Employment Term, or if Executive resigns for Good Reason after the Employment
Term, then Executive shall not be entitled to the Severance Payment, or any
part thereof, as defined in this Agreement.

6.       TERMINATION UPON CHANGE OF CONTROL. In the event of a "Change of
Control" (as defined in the Retention Agreement), Employer's obligations to
Executive pursuant to paragraph 5 above shall terminate automatically and
extinguish completely, and the consequences of any termination or resignation
of Executive following a Change of Control will be as governed by the
Retention Agreement.

7.       CONFIDENTIALITY/INTELLECTUAL PROPERTY AGREEMENT AND INSIDER TRADING
POLICY. Executive agrees that he has read, signed, and will abide by the
terms and conditions of Employer's Confidentiality/Intellectual Property
Agreement and Employer's Insider Trading Policy.

Executive recognizes that his employment with the Company will involve
contact with information of substantial value to the Company which gives the
Company an advantage over its competitors who do not know or use it,
including but not limited to, techniques, designs, drawings, processes,
inventions, developments, equipment, prototypes, sales and customer
information, and business and financial information

                                       5
<Page>

relating to the business, products, practices and techniques of the Company
(hereinafter referred to as "Confidential and Proprietary Information").
Executive will at all times regard and preserve as confidential such
Confidential and Proprietary Information obtained by Executive from whatever
source and will not, either during his employment with the Company or
thereafter, publish or disclose any part of such Confidential and Proprietary
Information in any manner at any time, or use the same except on behalf of
the Company, without the prior written consent of the Company.

8.       NON-COMPETITION. During the Employment Term, Executive shall devote
Executive's full business energies, interest, abilities and productive time
to the proper and efficient performance of Executive's duties under this
Agreement. The foregoing requirement shall not preclude Executive from
engaging in civic, charitable or religious activities, or from serving on
boards of directors of companies or organizations which will not present any
direct conflict with the interest of Employer or affect the performance of
Executive's duties hereunder.

Except with the prior written consent of Employer, Executive will not, during
the Employment Term, or any period during which Executive is receiving
compensation or any other consideration from Employer, engage in competition
with Employer, either directly or indirectly, in any manner or capacity, as
adviser, principal, agent, partner, officer, director, employee, member of
any association or otherwise, in any phase of the business of developing,
manufacturing and marketing of products which are in the same field of use or
which otherwise compete with the product or products actively under
development by Employer.

Except as permitted herein, Executive agrees not to acquire, assume or
participate in, directly or indirectly, any position, investment or interest
known by Executive to be adverse or antagonistic to Employer, its business or
prospects, financial or otherwise. Ownership by Executive, as a passive
investment, of less than one percent (1%) of the outstanding shares of
capital stock of any corporation with one or more classes of its capital
stock listed on a national securities exchange or publicly traded in the
over-the-counter market shall not constitute a breach of this paragraph 8.

9.       NONSOLICITATION. During the Employment Term and for a period of one
year thereafter, irrespective of the manner of termination of employment,
Executive agrees not to, directly or indirectly, separately, or in
association with others: (a) interfere with, impair, disrupt, or damage
Employer's relationship with any of its customers or prospective customers by
soliciting, encouraging, or causing others to solicit or encourage any of
them, for the purpose of diverting or taking away the business such customers
have with Employer; or (b) interfere with, impair, disrupt, or damage
Employer's business by soliciting, encouraging, or causing others to solicit
or encourage, any of Employer's employees to discontinue their employment
with Employer.

10.      AGREEMENT TO ARBITRATE. Executive and Employer agree to arbitrate
any claim or dispute ("Dispute") arising out of or in any way related to this
Agreement, the employment relationship between Employer and Executive or the
termination of

                                       6
<Page>

Executive's employment, except as provided in paragraph 10.1 below, to the
fullest extent permitted by law. Except as provided above, this method of
resolving Disputes shall be the sole and exclusive remedy of the parties.
Accordingly, the parties understand that, except as provided herein, they are
giving up their rights to have their disputes decided in a court of law and,
if applicable, by a jury, and instead agree that their disputes shall be
decided by an arbitrator.

         10.1 SCOPE OF THE AGREEMENT. A Dispute shall include all disputes or
claims between Executive and Employer arising out of, concerning or relating
to Executive's employment by Employer, including, without limitation: claims
for breach of contract, tort, discrimination, harassment, wrongful
termination, demotion, discipline, failure to accommodate, compensation or
benefits claims, constitutional claims and claims for violation of any local,
state or federal law, or common law, to the fullest extent permitted by law.
A Dispute shall not include any dispute or claim, whether brought by either
Executive or Employer, for: (a) workers' compensation or unemployment
insurance benefits; or (b) the exclusions from arbitration specified in the
California Arbitration Act, California Code of Civil Procedure section
1281.8. For the purpose of this paragraph 10, references to "Employer"
include Employer and all related or affiliated entities and their employees,
supervisors, officers, directors, owners, stockholders, agents, pension or
benefit plans, pension or benefit plan sponsors, fiduciaries, administrators,
and the successors and assigns of any of them, and this paragraph 10 shall
apply to them to the extent that Executive's claims arise out of or relate to
their actions on behalf of Employer.

         10.2 CONSIDERATION. The parties agree that their mutual promise to
arbitrate any and all disputes between them, except as provided in paragraph
10.1, rather than litigate them before the courts or other bodies, provides
adequate consideration for this paragraph 10.

         10.3 INITIATION OF ARBITRATION. Either party may initiate an
arbitration proceeding by providing the other party with written notice of
any and all claims forming the basis of such proceeding in sufficient detail
to inform the other party of the substance of such claims. In no event shall
the request for arbitration be made after the date when institution or legal
or equitable proceedings based on such claims would be barred by the
applicable statute of limitations.

         10.4 ARBITRATION PROCEDURE. The arbitration will be conducted by the
American Arbitration Association pursuant to its Commercial Arbitration Rules
in San Diego, California by a single, neutral arbitrator. The parties are
entitled to representation by an attorney or other representative of their
choosing. The arbitrator shall have the power to enter any award that could
be entered by a judge of the Superior Court of the State of California, as
applicable to the cause of action, and only such power. The parties agree to
abide by and perform any award rendered by the arbitrator. Judgment on the
award may be entered in any court having jurisdiction thereof.

         10.5 COSTS OF ARBITRATION. Each of the parties hereto shall
initially pay fifty percent (50%) of the arbitration filing, hearing fees and
costs of the arbitrator. The

                                      7
<Page>

arbitrator, as part of its final award, shall have the power to reallocate
such fees and costs in favor of the prevailing party in the arbitration. In
addition, each party will bear its own attorneys' fees, unless otherwise
required or allowed by law and awarded by the arbitrator.

         10.6 GOVERNING LAW. All Disputes between the parties shall be
governed, determined and resolved by the internal laws of the State of
California, including the California Arbitration Act, California Code of
Civil Procedure 1280 et seq.

11.      GENERAL PROVISIONS.

         11.1 SUCCESSORS AND ASSIGNS. The rights and obligations of Employer
under this Agreement shall inure to the benefit of and shall be binding upon
the successors and assigns of Employer. Executive shall not be entitled to
assign any of Executive's rights or obligations under this Agreement.

         11.2 INDEMNIFICATION. The indemnification provisions for Officers
and Directors under Employer's Bylaws will (to the maximum extent permitted
by law) be extended to Executive.

         11.3 WAIVER. This Agreement may not be modified or amended except by
an instrument in writing, signed by Executive and by a duly authorized
representative of Employer other than Executive. Either party's failure to
enforce any provision of this Agreement shall not in any way be construed as
an amendment or waiver of any such provision, or prevent that party
thereafter from enforcing each and every other provision of this Agreement.

         11.4 SEVERABILITY. If any provision of this Agreement is held by an
arbitrator or a court of law to be illegal, invalid or unenforceable, then:
(a) that provision shall be deemed amended to achieve as nearly as possible
the same economic effect as the original provision; and (b) the legality,
validity and enforceability of the remaining provisions of this Agreement
shall not be affected or impaired thereby.

         11.5 INTERPRETATION; CONSTRUCTION. This Agreement has been drafted
by Employer, but Executive has participated in the negotiation of its terms.
Furthermore, Executive acknowledges that he has had an opportunity to review
and revise the Agreement and have it reviewed by legal counsel, if desired.
Therefore, the normal rule of construction to the effect that any ambiguities
are to be resolved against the drafting party shall not be employed in the
interpretation of this Agreement.

         11.6 GOVERNING LAW. This Agreement will be governed by and construed
in accordance with the laws of the State of California.

         11.7 NOTICES. All notices or demands of any kind required or
permitted to be given by the Company or Executive under this Agreement shall
be given in writing and shall be personally delivered (and receipted for) or
mailed by certified mail, return receipt requested, postage prepaid,
addressed as follows:

                                     8
<Page>

IF TO THE COMPANY:                                  IF TO EXECUTIVE:

Overland Data, Inc.                                 Chester Baffa
8975 Balboa Avenue                                  15071 Clinton Street
San Diego, CA  92123-4124                           Brighton, CO  80601
Attn: President & CEO

Any such written notice shall be deemed received when personally delivered or
three (3) days after its deposit in the United States mail as specified
above. Either party may change its address for notices by giving notice to
the other party in the manner specified in this paragraph 11.7.

         11.8 SURVIVAL. The rights and obligations contained in paragraph 9
("Nonsolicitation") shall survive any termination or expiration of this
Agreement for a period of one year, and paragraphs 7
("Confidentiality/Intellectual Property Agreement and Insider Trading
Policy"), 10 ("Agreement to Arbitrate") and 11 ("General Provisions") shall
survive any termination or expiration of this Agreement.

         11.9 ENTIRE AGREEMENT. This Agreement constitutes the entire
agreement between the parties relating to the subject matter herein and
supersedes all prior or simultaneous representations, discussions,
negotiations, and agreements, whether written or oral.

         11.10 COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

THE PARTIES TO THIS AGREEMENT HAVE READ THE FOREGOING AGREEMENT IN ITS
ENTIRETY AND FULLY UNDERSTAND EACH AND EVERY PROVISION CONTAINED HEREIN,
WHEREFORE, THE PARTIES HAVE FREELY AND VOLUNTARILY EXECUTED THIS AGREEMENT AS
OF THE DATE FIRST ABOVE WRITTEN.

EXECUTIVE:

         /s/ Chester Baffa
-----------------------------------
Chester Baffa

COMPANY:
OVERLAND DATA, INC.

         /s/ Christopher Calisi
-----------------------------------
Christopher Calisi
President and Chief Executive Officer

                                       9
<Page>

                                    EXHIBIT A

                                 GENERAL RELEASE

This GENERAL RELEASE ("RELEASE") is entered into effective as of ______________,
____, (the "EFFECTIVE DATE") by and between Overland Data, Inc., a California
corporation, having its principal offices at 8975 Balboa Avenue, San Diego,
California 92123-1599 (the "COMPANY") and Chester Baffa, an individual residing
at [_____________] ("EMPLOYEE") with reference to the following facts:

                                    RECITALS

         A. The parties entered into an Employment Agreement (the
"AGREEMENT") dated as of April 2, 2001, by which the parties agreed that upon
the occurrence of certain conditions, Employee would become eligible for the
Severance Payment as defined in the Agreement in exchange for Employee's
release of the Company from all claims which Employee may have against the
Company as of the date of the termination of Employee's employment.

         B. The parties desire to dispose of, fully and completely, all
claims which Employee may have against the Company in the manner set forth in
this Release.

                                    AGREEMENT

         1. RELEASE. Employee, for himself and his heirs, successors and
assigns, fully releases and discharges the Company, its officers, directors,
employees, shareholders, attorneys, accountants, other professionals,
insurers and agents (collectively, "Agents"), and all entities related to
each party, including, but not limited to, heirs, executors, administrators,
personal representatives, assigns, parent, subsidiary and sister
corporations, affiliates, partners and co-venturers (collectively, "Related
Entities"), from all rights, claims, demands, actions, causes of action,
liabilities and obligations of every kind, nature and description whatsoever,
Employee now has, owns or holds or has at anytime had, owned or held or may
have against the Company, Agents or Related Entities from any source
whatsoever, whether or not arising from or related to the facts recited in
this Release. Employee specifically releases and waives any and all claims
arising under any express or implied contract, rule, regulation or ordinance,
including, without limitation, Title VII of the Civil Rights Act of 1964, the
Civil Rights Act of 1991, the Americans with Disabilities Act, the California
Fair Employment and Housing Act, and the Age Discrimination in Employment
Act, as amended ("ADEA").

         2. SECTION 1542 WAIVER. This Release is intended as a full and
complete release and discharge of any and all claims that Employee may have
against the Company, Agents or Related Entities. In making this release,
Employee intends to release each of the Company, Agents and Related Entities
from liability of any nature whatsoever for any claim of damages or injury or
for equitable or declaratory relief of any kind, whether the claim, or any
facts on which such claim might be based, is known

                                       1
<Page>

or unknown to him. Employee expressly waives all rights under Section 1542 of
the California Civil Code, which Employee understands provides as follows:

          A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR
          DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF
          EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE
          MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

Employee acknowledges that he may discover facts different from or in
addition to those that he now believes to be true with respect to this
Release. Employee agrees that this Release shall remain effective
notwithstanding the discovery of any different or additional facts.

         3. WAIVER OF CERTAIN CLAIMS. Employee acknowledges that he has been
advised in writing of his right to consult with an attorney prior to
executing the waivers set out in this Release, and that he has been given a
21-day period in which to consider entering into the release of ADEA claims,
if any. In addition, Employee acknowledges that he has been informed that he
may revoke a signed waiver of the ADEA claims for up to seven (7) days after
executing this Release.

         4. NO UNDUE INFLUENCE. This Release is executed voluntarily and
without any duress or undue influence. Employee acknowledges that he has read
this Release and executed it with his full and free consent. No provision of
this Release shall be construed against any party by virtue of the fact that
such party or its counsel drafted such provision or the entirety of this
Release.

         5. GOVERNING LAW. This Release is made and entered into in the State
of California and accordingly the rights and obligations of the parties
hereunder shall in all respects be construed, interpreted, enforced and
governed in accordance with the laws of the State of California as applied to
contracts entered into by and between residents of California to be wholly
performed within California.

         6. SEVERABILITY. If any provision of this Release is held to be
invalid, void or unenforceable, the balance of the provisions of this Release
shall, nevertheless, remain in full force and effect and shall in no way be
affected, impaired or invalidated.

         7. COUNTERPARTS. This Release may be executed simultaneously in one
or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument. This Release may
be executed by facsimile, with originals to follow by overnight courier.

         8. DISPUTE RESOLUTION PROCEDURES. Any dispute or claim arising out
of this Release shall be subject to final and binding arbitration. The
arbitration will be conducted by one arbitrator who is a member of the
American Arbitration Association ("AAA") or of the Judicial Arbitration and
Mediation Services ("JAMS") and will be

                                       2
<Page>

governed by the Model Employment Arbitration rules of AAA. The arbitration
shall be held in San Diego, California. The arbitrator shall have all
authority to determine the arbitrability of any claim and enter a final and
binding judgment at the conclusion of any proceedings in respect of the
arbitration. Any final judgment only may be appealed on the grounds of
improper bias or improper conduct of the arbitrator. Notwithstanding any rule
of AAA to the contrary, the parties will be entitled to conduct discovery
(i.e. investigation of facts through depositions and other means) which shall
be governed by California Code of Civil Procedure Section 1283.05 (the
"CCP"). The arbitrator shall have all power and authority to enter orders
relating to such discovery as are allowed under the CCP. The arbitrator will
apply California substantive law in all respects. The party prevailing in the
resolution of any such claim will be entitled, in addition to such other
relief as may be granted, to an award of all actual attorneys fees and costs
incurred in pursuit of the claim, without regard to any statute, schedule, or
rule of court purported to restrict such award.

         9. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
of the parties with respect to the subject matter of this Agreement, and
supersedes all prior and contemporaneous negotiations, agreements and
understandings between the parties, oral or written.

         10. MODIFICATION; WAIVERS. No modification, termination or attempted
waiver of this Agreement will be valid unless in writing, signed by the party
against whom such modification, termination or waiver is sought to be
enforced.

         11. AMENDMENT. This Agreement may be amended or supplemented only by
a writing signed by Employee and the Company.

Dated:
      --------------------------------       -----------------------------------
                                                 Chester Baffa

                                       3

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