Document:

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                                               CONFIDENTIAL TREATMENT REQUESTED

                                  SUPPLY AGREEMENT

THIS SUPPLY AGREEMENT is effective this 5th day of November 1999 (the "EFFECTIVE
DATE"), between Overland Data, Inc., a California corporation, having a place of
business at 8975 Balboa Avenue, San Diego, CA 92123 ("SELLER") and Seagate
Technology, Inc., a Delaware corporation, having a place of business at 1650
Sunflower Ave., Costa Mesa, California ("BUYER").

In consideration of the mutual promises and covenants contained herein and for
other good and valuable consideration, the receipt of which is acknowledged by
both parties, the parties agree as follows:

                                     ARTICLE I.

                                    DEFINITIONS

       For purposes of this Agreement, the following terms and all other terms
defined in this Agreement shall have the meanings so defined:

1.1    ASIC.  The term "ASIC" means an application specific integrated circuit.

1.2    CORE TECHNOLOGY.  The term "Core Technology" means the patent rights as
       described and claimed in United States Patent Nos. 5712863, 5815514 and
       5931968.

1.3    DOCUMENTATION.  The term "Documentation" means all present and future
       manuals, notebooks, quick reference guides, comments and publications of
       every nature, and all corrections, modifications and revisions thereto,
       relating to Products.

1.4    IMPROVEMENTS AND MODIFICATIONS.  The term "Improvements and
       Modifications" means any and all changes in the design or Specifications
       of any of the Products or the Core Technology, including the addition of
       new features or capacities.

1.5    CORE TECHNOLOGY IMPROVEMENTS.  The term "Core Technology Improvements"
       means the improvements and modifications to the Core Technology where
       implementation of such improvements and modifications would infringe upon
       the patent claims of the Core Technology.

1.6    INTELLECTUAL PROPERTY.  The term "Intellectual Property" means copyright
       rights (including, without limitation the right to use, reproduce,
       modify, distribute, publicly display and publicly perform the copyrighted
       work), trademark rights (including, without limitation, trade names,
       trade marks, service marks and trade dress) patent rights (including,
       without limitation, the exclusive right to make, use or sell), trade
       secrets, moral rights, rights of publicity, goodwill and all other
       intellectual property rights as may exist now and/or hereafter come into
       existence and all renewals and extensions thereof,

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THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT
REQUEST.  REDACTED MATERIAL IS MARKED WITH A *** AND HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

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                                               CONFIDENTIAL TREATMENT REQUESTED

regardless of whether such rights arise under the laws of the United States or
any other country or jurisdiction.

1.7    INVENTION.  The term "Invention" means any idea, design, concept,
       technique, invention, discovery, algorithm or improvement relating to the
       Products, whether or not patentable.

1.8    NEXT GENERATION TRAVAN CARTRIDGE.  The term "Next Generation Travan
       Cartridge" means the next and future generations of Travan Cartridges,
       including (1) Travan NS Cartridge after the Travan NS 20 Cartridge, and
       (2) Travan Cartridge after the Travan 20 GB Cartridge, and (3) off-path
       Travan technology based Cartridges, all of which are presently expected
       to have a capacity of greater than 20 GB (compressed).

1.9    NEXT GENERATION TRAVAN DRIVE.  The term "Next Generation Travan Drive"
       means a non-read-while-write drive which reads and writes data onto a
       Next Generation Travan Cartridge.

1.10   PRODUCTS.  The term "Products" means any present or future Travan VR(2)
       ASIC.

1.11   SPECIFICATIONS.  The term "Specifications" means the specification for
       the Product as described in EXHIBIT B attached hereto.

1.12   TRAVAN VR(2) ASIC.  The term "Travan VR(2) ASIC" means an ASIC embodying
       the VR(2) technology, which is a modification of existing ASIC designs
       of Seller specifically adapted for incorporation into Next Generation
       Travan Drives which utilize non-read-while-write technology, such ASIC
       specification for which is attached as EXHIBIT B.

                                    ARTICLE II.

                           SALE AND PURCHASE OF PRODUCTS

2.1    SALE AND PURCHASE. Seller agrees to sell and Buyer agrees to buy Products
       and such other items as may be mutually agreed upon subject to the terms
       of this Agreement. Buyer will purchase Products pursuant to this
       Agreement by issuing purchase orders from time to time.

2.2    RESTRICTIONS.  Throughout the term of this Agreement and for five years
       thereafter, Buyer will not (i) market, offer to sell, or sell any
       Products purchased from Seller, except as part of Next Generation Travan
       Drives, to third parties.

2.3    TERM OF AGREEMENT.  This Agreement will commence on the Effective Date
       and, except as otherwise provided in this Agreement, will terminate one
       year from the Effective Date. The term of this Agreement will
       automatically renew for an additional one-year term on

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THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT
REQUEST.  REDACTED MATERIAL IS MARKED WITH A *** AND HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

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                                               CONFIDENTIAL TREATMENT REQUESTED

       each anniversary of the Effective Date unless either party provides
       the other party with written notice of such party's intention not to
       renew at least 90 days prior to such anniversary.

2.4    PURCHASE ORDERS. Buyer will order Products by submitting purchase orders
       to Seller in writing by priority or overnight U.S. mail, facsimile,
       overnight private courier, or other electronic means mutually agreed upon
       between the parties (the "PURCHASE ORDERS").  Each Purchase Order will
       contain the item ordered, description, quantity, date for delivery or
       performance, destination, and total price of the Purchase Order.  Seller
       will have 10 business days after receipt of a Purchase Order to reject
       the Purchase Order. Acceptance by Seller is limited to the provisions of
       this Agreement and Seller's Acknowledgement.  Seller will not ship any
       Products to Buyer without prior receipt of a Purchase Order.

2.5    FORECASTS. Buyer will provide Seller monthly rolling forecasts of Buyer's
       anticipated requirements for the Products for the six-month period
       following the date of the forecast, including the first two months of
       such forecast as a firm purchase order.  Buyer will not be bound by the
       forecast for any period beyond the first two months and will have no
       liability to Seller for any differences between a forecast requirement
       for any period beyond the first two months of such forecast and the
       actual Purchase Orders for such months submitted by Buyer.

2.6    PRECEDENCE.  Each Purchase Order issued under this Agreement will be made
       part of, and be incorporated into, this Agreement.  Unless otherwise
       specifically agreed to in writing between Buyer and Seller, the terms and
       conditions of this Agreement will take precedence and govern any accepted
       Purchase Order, or any additional terms stated on any such Purchase
       Order, notwithstanding any contrary terms and conditions in the printed
       portion of Buyer's Purchase Order form or Seller's Order Acknowledgment.

2.7    CANCELLATION OF PURCHASE ORDERS.  Buyer may cancel the undelivered
       portion of any purchase order upon written notice of cancellation to
       Seller.  Upon receipt of notice of cancellation, Seller shall immediately
       stop work on the undelivered portion of the affected Purchase Order and
       make no further commitments for materials or services to complete such
       affected Purchase Order.

       a.     In the event of such notice of cancellation (unless such
       cancellation is due to the default of Seller), Buyer will pay Seller for
       direct, reasonable and actual out-of-pocket expenses, excluding overhead
       and similar items, and any other expenses for which Seller is obligated
       to reimburse its foundry, which either Seller or its foundry incurred
       directly as a result of preparations to deliver such canceled Products.

       b.     In connection with such cancellation of Purchase Orders, Buyer may
       require Seller to transfer title and deliver to Buyer, in the manner and
       on the terms hereinafter set forth for non-cancelled orders any completed
       Products from such cancelled order.

                                       3

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT
REQUEST.  REDACTED MATERIAL IS MARKED WITH A *** AND HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

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                                               CONFIDENTIAL TREATMENT REQUESTED

       c.     In no event shall Buyer's liability to Seller as a result of
       cancellation of a Purchase Order exceed the total price of the cancelled
       portion of such Purchase Order.

2.8    CAPACITY AND ALLOCATION.  Seller will use commercially reasonable efforts
       to satisfy Buyer's Purchase Orders and forecasted requirements.  In the
       event that Seller's capacity to produce the Products is constrained for
       any reason, Seller will allocate such constrained supply among the
       accepted purchase orders of its customers at its sole discretion, and
       Buyer shall be released from Purchase Order obligations for amounts in
       excess of Product allocated to Buyer.

2.9    SHIPPING. Buyer reserves the right to designate means of shipping.
       Shipping methods will be as stated on Buyer's Purchase Order.  No changes
       will be made unless authorized in writing by Buyer.  F.O.B. point will be
       foundry facility as designated in EXHIBIT A.  All shipments will be
       adequately packaged to prevent any damage during normal transportation.

2.10   TITLE AND RISK OF LOSS.  Title to, and risk of loss of, the Products will
       pass to Buyer upon transfer of the Products to the F.O.B. point of
       shipment. Buyer will make any claims against Seller for shortages in
       quantities shipped within 30 days from the date of shipment.

2.11   FORCE MAJEURE.  Neither party will be considered in default or liable for
       any failure to perform its obligations under this Agreement if such
       failure arises out of an act of nature, war, strikes, lockouts, trade
       disputes, fires, quarantine restrictions, Governmental action or any
       other causes beyond the reasonable control of that party.  The affected
       party will immediately notify the other in writing if a force majeure
       event delays performance and will state the revised date for performance.
       Should Seller's inability to perform because of a force majeure event
       continue for a period in excess of 30 days, Buyer will not be obligated
       to purchase, at a later date, that portion of the Products that Seller is
       unable to deliver because of a force majeure event.

                                    ARTICLE III.

                            PRICES AND TERMS OF PAYMENT

3.1    PRICES. All Buyer purchases will be based on the prices in attached
       EXHIBIT C. Upon any automatic renewal pursuant to the provisions of
       SECTION 2.3, the parties will execute and date another revision of
       EXHIBIT C setting forth Product pricing for such renewed term.

3.2    PAYMENT TERMS.  Payment terms are *** after receipt of Seller's invoice.
       Bills of lading and shipping notices will be forwarded with Seller's
       invoice as needed.  Seller's invoice will specify Buyer's Purchase Order
       number.  All sales of Product will be F.O.B. foundry facility.

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THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT
REQUEST.  REDACTED MATERIAL IS MARKED WITH A *** AND HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

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                                               CONFIDENTIAL TREATMENT REQUESTED

3.3    TAXES.  Unless otherwise stated in writing by Seller, all prices quoted
       will be exclusive of all national, federal, state, local or any other
       governmental use, sales, excise, occupational, property (ad valorem) and
       similar taxes or duties now in force or enacted in the future. If any
       such tax, fee or charge of any nature whatsoever is imposed on the
       transaction, such tax will be paid by Buyer in addition to the prices
       quoted or invoiced.  If Seller is required to pay any such tax, fee or
       charge at the time of sale or thereafter, Buyer will promptly reimburse
       Seller after Seller provides Buyer with evidence of the amounts paid.

3.4    CREDITS.  Amounts owed to Buyer due to rejections of Products, or
       discrepancies on paid invoices will be, at Seller's option, fully
       credited against future invoices payable by Buyer, or paid by Seller
       within 30 calendar days from Seller's receipt of a debit memo or other
       written request for payment from Buyer.

3.5    NO SET-OFFS.  Buyer will not set off any amount owing at any time from
       Seller or any of Seller's affiliated companies to Buyer or its
       subsidiaries or affiliates against any amount payable at any time by
       Buyer in connection with this Agreement and/or any Purchase Order issued
       pursuant to this Agreement.

3.6    METHOD OF PAYMENT.  All payments under this Agreement for the Products
       purchased by Buyer will be made in United States dollars by (i) check, or
       (ii) wire transfer to the account specified in Seller's Acknowledgement.
       A finance charge of ***% per month will be assessed on any amounts which
       are past due.

                                    ARTICLE IV.

WARRANTIES

4.1    WARRANTY OBLIGATION.  Seller warrants that for a period of one year (the
       "WARRANTY PERIOD") from the date of shipment of the Products that such
       Products will (a) be in compliance with the material terms of the
       Specification attached hereto as EXHIBIT B, and (b) be of good
       workmanship and free from substantial defects.  Seller further warrants
       that Seller has title to the Products.  Seller does not warrant that all
       defects will be corrected.  The foregoing warranty will be subject to
       Buyer or the end-user installing and using the Products in accordance
       with the Specifications.  Further, the foregoing warranty will not extend
       to any Products which have been subject to mishandling, misuse, accident,
       improper installation, application or use, nor does such warranty extend
       to any Products that have been modified, repaired or altered by persons
       other than Seller.  Seller's sole obligation under this warranty is
       limited to either (i) correction or modification of any substantial
       defect(s) to the extent that such defect(s) can be documented, isolated,
       reproduced and corrected, or (ii) product replacement.

                                       5

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT
REQUEST.  REDACTED MATERIAL IS MARKED WITH A *** AND HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

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                                               CONFIDENTIAL TREATMENT REQUESTED

4.2    FUNCTIONAL TEST VECTORS.  Seller shall provide Buyer with functional test
       vectors for the Products.  It is the intent of the parties that the
       functional test vectors will be provided as tools to assist Buyer in
       verifying that the Products meet the Specifications.

4.3    REMEDY.  If Seller receives notice, verbal followed by written, from
       Buyer within the Warranty Period of failure of Products to satisfy the
       above warranties, then, one of the following remedies will be selected
       upon mutual agreement of the parties:  (i) Seller will replace the
       Products upon receipt from Buyer of the Products which prove to be
       defective, (ii) Seller will correct at no charge to Buyer any defective
       or non-conforming Products, (iii) Buyer will return such defective or
       non-conforming Products to Seller and recover from Seller the amount paid
       to Seller by Buyer thereof, or (iv) Buyer will correct the defective or
       non-conforming Product itself and charge Seller with the cost of such
       correction upon prior approval of Seller. If, for Products alleged to be
       defective or non-conforming and which are returned to Seller by Buyer,
       Seller determines that the parts returned by Buyer are not defective,
       Seller will return such non-defective parts to Buyer at Buyer's expense
       and Buyer will refund all shipping charges previously paid by Seller.
       THE ABOVE REMEDIES ARE THE SOLE AND EXCLUSIVE REMEDIES OF BUYER FOR A
       BREACH OF THE WARRANTY BY SELLER FOR THE PRODUCTS.

4.4    EXCLUSIONS.  The foregoing warranty will not apply to adjustments,
       modifications, replacements, or repair caused by:  (i) accident,
       transportation, mishandling, neglect, misuse or alterations by persons
       other than Seller; (or (II) the use or operation of the Products in
       violation of the Specification.

4.5    DISCLAIMER.  SELLER DOES NOT WARRANT THAT THE PRODUCTS WILL MEET BUYER'S
       REQUIREMENTS OR THAT THE PRODUCT WILL OPERATE IN THE COMBINATIONS WHICH
       BUYER MAY SELECT FOR USE.  THE PRODUCTS ARE PROVIDED WITHOUT ANY EXPRESS
       OR IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
       PURPOSE.  FURTHER, SELLER DOES NOT WARRANT, GUARANTEE, OR MAKE ANY
       REPRESENTATIONS REGARDING USE, OR THE RESULTS OF USE, OF THE PRODUCTS.
       THE ENTIRE RISK AS TO THE RESULTS AND PERFORMANCE OF THE PRODUCTS IS
       ASSUMED BY BUYER.

                                     ARTICLE V

                              LIMITATION OF LIABILITY

5.1    LIMITATION OF LIABILITY.  NOTWITHSTANDING ANYTHING TO THE CONTRARY IN
       THIS AGREEMENT, SELLER WILL NOT BE RESPONSIBLE OR LIABLE UNDER ANY
       PROVISION OF THIS AGREEMENT OR UNDER ANY CONTRACT, NEGLIGENCE, PRODUCT
       LIABILITY, STRICT LIABILITY OR OTHER LEGAL OR EQUITABLE THEORY FOR LOSS
       OR INACCURACY OF DATA, COST OF PROCUREMENT OF SUBSTITUTE GOODS, SERVICES
       OR TECHNOLOGY, OR

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THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT
REQUEST.  REDACTED MATERIAL IS MARKED WITH A *** AND HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

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                                               CONFIDENTIAL TREATMENT REQUESTED

       ANY INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES INCLUDING, WITHOUT
       LIMITATION, LOSS OF REVENUES AND LOSS OF PROFITS REGARDLESS OF WHETHER
       SELLER HAS BEEN ADVISED OF THE EXPECTATION OR EXISTENCE OF SUCH
       DAMAGES.  ANY LIABILITY OF SELLER UNDER ANY THEORY WHATSOEVER WILL BE
       LIMITED EXCLUSIVELY TO PRODUCT REPLACEMENT OR, IF UNENFORCEABLE, TO
       PAYMENT OF AN AMOUNT NOT GREATER THAN AMOUNTS ACTUALLY RECEIVED BY
       SELLER PURSUANT TO THIS AGREEMENT OR $***, WHICHEVER IS GREATER.

                                     ARTICLE VI

                         CONFIDENTIAL DATA AND DISCLOSURES

6.1    CONFIDENTIAL INFORMATION.  Each party agrees that any information
       identified, and marked as confidential ("CONFIDENTIAL INFORMATION"),
       including this Agreement and any schedules and exhibits thereto and the
       VR(2) Technical Information, which is made available to the other party
       in accordance with this Agreement shall be kept confidential.  Each
       party will use the other party's Confidential Information only for the
       purposes contemplated and permitted by this Agreement.  Neither party
       will disclose the other party's Confidential Information to any third
       party except as may be required (i) by court order (provided that the
       party subject to such court order gives prompt written notice thereof to
       the party whose Confidential Information will be disclosed and
       cooperates in any motion or action to prevent or limit the required
       disclosure), (ii) pursuant to any discovery obligation in litigation
       provided that a mutually agreeable protective order has been entered by
       the court, and (iii) pursuant to any applicable Securities and Exchange
       Commission ("SEC") filing rules, regulations and/or requirements ("SEC
       DISCLOSURE"), provided, however, that if a party desires to so disclose
       the Confidential Information of the other party, the filing party (a)
       will provide 30 days written notice to the other party of its intent to
       file such other party's Confidential Information so as to enable the
       other party to indicate which portions of its Confidential Information
       to excerpt (the "EXCERPTED PORTIONS") and the general reasons therefor,
       and (b) will make application to the SEC for confidential treatment of
       the Excerpted Portions unless the filing party provides a written
       opinion of counsel addressed to the other party that disclosure of
       certain of the Excerpted Portions is mandatory under applicable SEC
       rules and regulations and that filing of such a request for confidential
       treatment would be improper.  Each Party further agrees to protect the
       other party's Confidential Information from unauthorized use or
       disclosure in the same manner as it protects its own similar
       Confidential Information (but in no event with less than reasonable
       care), and to limit access to the other party's Confidential Information
       to those of its employees and agents who need such access for purposes
       contemplated and permitted by this Agreement.  This obligation of
       confidentiality shall last for four (4)  years from the date the
       Confidential Information is disclosed to the recipient, regardless of
       the termination date of this Agreement.

                                       7

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT
REQUEST.  REDACTED MATERIAL IS MARKED WITH A *** AND HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

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                                               CONFIDENTIAL TREATMENT REQUESTED

6.2    EXCLUSIONS.  The obligations in this Article VI will not apply to any
       information which is (i) publicly available, except as disclosed in
       violation of this Agreement; or (ii) lawfully received by any party from
       a third party who is or who was not bound in a confidential relationship
       to the other party; or (iii) already properly and lawfully in possession
       of any party prior to the date of this Agreement or the date of its
       disclosure, or information which such party demonstrates with appropriate
       documentation was known prior hereto; or (iv) required by law or
       governmental regulation or necessary for the purpose of enforcement of
       this Agreement; or (v) independently developed by one party without use
       of any Confidential Information of the other party by employees who have
       had no access to such Confidential Information; or (vi) not marked as
       "Confidential" or other similar legends indicating the confidential
       nature of the information.

6.3    THIRD PARTY MANUFACTURERS.  Notwithstanding the above, Buyer may share
       such Confidential Information with a third party, but only to the extent
       necessary for that third party to integrate Product into Buyer's product.
       Prior to such disclosure Buyer will insure that the third party signs a
       confidentiality agreement incorporating restrictions on disclosure of
       Confidential Information substantially similar to restrictions in this
       Section 6.3.

                                    ARTICLE VII

                           INTELLECTUAL PROPERTY RIGHTS

7.1    INTELLECTUAL PROPERTY RIGHTS TO THE PRODUCTS AND CORE TECHNOLOGY.  All
       right, title and interest in or to the Intellectual Property of the
       Products, including the Core Technology and including any and all
       Inventions, Improvements and Modifications to the Products and Core
       Technology developed by or for Seller, shall be solely owned by Seller.

7.2    IMPROVEMENTS AND MODIFICATIONS TO THE CORE TECHNOLOGY DEVELOPED BY BUYER.
       If Buyer desires to develop or develops any Core Technology Improvements,
       the parties must mutually agree upon the ownership or licensing to Seller
       of such Core Technology Improvements prior to the implementation of such
       Core Technology Improvements in the Product by either party.

7.3    IMPROVEMENTS AND MODIFICATIONS TO THE PRODUCT (EXCLUDING THE CORE
       TECHNOLOGY) DEVELOPED BY BUYER.  All right, title and interest in or to
       the Intellectual Property of the Product, excluding the Core Technology
       and including any and all Inventions, Improvements and Modifications to
       the Products (excluding Core Technology) developed by or for Buyer, shall
       be solely owned by Buyer.

                                    ARTICLE VIII

                                       8

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT
REQUEST.  REDACTED MATERIAL IS MARKED WITH A *** AND HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

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                                               CONFIDENTIAL TREATMENT REQUESTED

                                   LICENSE GRANT

8.1    LICENSE GRANT.  Subject to the terms and conditions of this Agreement,
       Seller hereby grants to Buyer ***.

8.2    TRADEMARK USAGE.  Buyer will comply with all applicable laws and
       governmental regulations pertaining to the proper use and designation of
       Seller's lawful trademarks.

                                     ARTICLE IX

                                     INDEMNITY

9.1    INDEMNITY BY SELLER. Seller will indemnify and hold harmless Buyer and
       its directors, officers, employees, agents, successors and assigns from
       and against any and all liability, damages, losses, claims, demands,
       actions, judgments, costs, attorneys' fees, disbursements and expenses
       incurred in connection with any action, claim or demand against Buyer by
       reason of injury to or death of any person or damage to or destruction of
       property arising out of or resulting from the negligent, reckless or
       willful acts or omissions of Seller, its employees, subcontractors or
       agents in supplying the Products to Buyer pursuant to this Agreement.
       Seller will not be responsible for any such losses, damages, liabilities,
       claims, actions, judgments, costs, demands, attorneys' fees,
       disbursements and expenses caused by the sole negligence or willful
       misconduct of Buyer, its directors, officers or employees.  If an action,
       claim or demand is filed against Buyer for which Seller is to be
       responsible under this provision, Buyer will promptly notify Seller in
       writing of such action, claim or demand.  Upon receipt of such notice
       from Buyer, if Seller acknowledges in writing to Buyer that Seller is
       obligated to indemnify Buyer under the terms of this SECTION 9.1 in
       connection with such action, claim or demand, then Seller will be
       entitled, if it so elects, to take control of the defense and
       investigation of such action, claim or demand and to employ and engage
       attorneys of its own choice to handle and defend the same at Seller's
       sole cost, risk and expense and Buyer will thereafter cooperate in all
       reasonable respects with Seller and its attorneys in the investigation,
       trial and defense of such action, claim or demand and any appeal arising
       therefrom.  Buyer may also, through independent counsel and at its own
       cost, participate in such investigation, trial and defense of such
       action, claim or demand and any appeal arising therefrom.  Seller may
       effect no settlement without the prior written approval of Buyer, which
       approval will not be unreasonably withheld.  Seller also agrees to carry
       fire and extended coverage insurance, and to be responsible for any of
       Buyer's property while in Seller's possession, to maintain such property
       in good condition, and not to dispose of such property except in
       accordance with Buyer's instructions and the terms hereunder.

9.2    INDEMNITY BY BUYER. Buyer will indemnify and hold harmless Seller and its
       directors, officers, employees, agents, successors and assigns from and
       against any and all liability, damages, losses, claims, demands, actions,
       judgments, costs, attorneys' fees,

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THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT
REQUEST.  REDACTED MATERIAL IS MARKED WITH A *** AND HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

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                                               CONFIDENTIAL TREATMENT REQUESTED

       disbursements and expenses incurred in connection with any action, claim
       or demand against Seller by reason of losses, injury to or death of any
       person or damage to or destruction of property arising out of or
       resulting from any sales or use of devices incorporating the Products,
       or the negligent, reckless or willful acts or omissions of Buyer, its
       employees, subcontractors or agents in the use or sale of the Products.
       Buyer will not be responsible for any such losses, damages, liabilities,
       claims, actions, judgments, costs, demands, attorneys' fees,
       disbursements and expenses caused by the sole negligence or willful
       misconduct of Seller, its directors, officers or employees. If an
       action, claim or demand is filed against Seller for which Buyer is to be
       responsible under this provision, Seller will promptly notify Buyer in
       writing of such action, claim or demand.  Upon receipt of such notice
       from Seller, if Buyer acknowledges in writing to Seller that Buyer is
       obligated to indemnify Seller under the terms of this SECTION 9.2 in
       connection with such action, claim or demand, then Buyer will be
       entitled, if it so elects, to take control of the defense and
       investigation of such action, claim or demand and to employ and engage
       attorneys of its own choice to handle and defend the same at Buyer's
       sole cost, risk and expense and Seller will thereafter cooperate in all
       reasonable respects with Buyer and its attorneys in the investigation,
       trial and defense of such action, claim or demand and any appeal arising
       therefrom.  Seller may also, through independent counsel and at its own
       cost, participate in such investigation, trial and defense of such
       action, claim or demand and any appeal arising therefrom.  Buyer may
       effect no settlement without the prior written approval of Seller, which
       approval will not be unreasonably withheld.  Buyer also agrees to carry
       fire and extended coverage insurance, and to be responsible for any of
       Seller's property while in Buyer's possession, to maintain such property
       in good condition.

9.3    LIABILITY FOR INJURIES TO PERSONNEL.  Each party will be solely
       responsible for, and will indemnify the other party against, all claims,
       losses, litigation, damages and expenses resulting from injuries to or
       the death of any of its personnel occurring while any such person is
       traveling to or from any of the other party's facilities, or is otherwise
       engaged in activities incident to this Agreement.

                                     ARTICLE X.

                         INTELLECTUAL PROPERTY INFRINGEMENT

10.1   REPRESENTATIONS.  Seller represents and warrants that it knows of no
       trade secret misappropriation that has occurred and has no reason to
       believe that a misappropriation will occur with regard to any Product or
       Documentation delivered to Buyer, and it knows of no patent, trademark,
       copyright or other proprietary rights infringement by the Products on the
       Effective Date of this Agreement.

10.2   DEFENSES.  Seller will indemnify, defend any suit or proceeding brought
       against, Buyer or its customers based on a claim that the Products, or
       any part thereof, as supplied by Seller and used within the scope of this
       Agreement constitutes an infringement of any U.S.

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                                               CONFIDENTIAL TREATMENT REQUESTED

       patent, copyright, trademark, trade secret or any other proprietary right
       of any third party or embodied in the Products as supplied by Seller,
       provided that (i) Buyer notifies Seller in writing within 30 days of the
       claim, (ii) Seller has sole control of the defense and all related
       settlement negotiations, and (iii) Buyer provides Seller with the
       assistance, information and authority necessary to perform the above.
       Seller will have no liability or obligation to defend any such claim of
       infringement based on:  (a) use of a superseded or altered version of
       the Product if such infringement would have been avoided by the use of a
       current unaltered version of the Product supplied by Seller; (b) any
       customized Products, to the extent such customization was at the request
       of Buyer; or (c) the combination, operation, or use of the Products
       supplied by Seller pursuant to this Agreement with other devices and
       components not supplied by Seller if such infringement would have been
       avoided by the use of the Products solely without such devices or
       components.

10.3   REMEDIES.  If the Product is held or is believed by Seller to infringe,
       Seller will have the option, at its expense, to (i) modify the Product
       to be non-infringing; (ii) obtain for Buyer and its customers a license
       to continue using the Product; or (iii) replace the Product with
       non-infringing alternatives which conform to the Product specification.
       THIS SECTION STATES SELLER'S ENTIRE LIABILITY FOR INFRINGEMENT.

                                     ARTICLE XI

                                  PRODUCT TRAINING

11.1   DEVELOPER KIT. Upon receipt of $*** from Buyer, Seller will provide to
       Buyer a Developer Kit, including the items set forth in EXHIBIT D.  The
       Developer Kit will include a rudimentary training session ("VR(2)
       UNIVERSITY") on the use of the Products at the scheduled times set forth
       in EXHIBIT D.  Telephonic support from Seller for a period of fifteen
       (15) working days immediately following the completion of VR(2)
       University is included as part of the Develop Kit.  Buyer will pay any
       travel, lodging, and other out-of-pocket expenses for its respective
       employees to attend VR(2) University.

11.2   ENGINEERING SUPPORT.  Upon Buyer's request, Seller will provide
       telephonic engineering support to Buyer at a rate of $*** per hour.
       Seller will invoice Buyer on a monthly basis for such engineering
       support.  Buyer will pay a minimum charge of $*** in any such month Buyer
       uses such telephonic support.  Seller will accumulate and calculate the
       charges for such telephonic support on the basis of 0.10 hour time
       increments, each such time increment corresponding to six minutes of
       time.

                                    ARTICLE XII.

                                    TERMINATION

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                                               CONFIDENTIAL TREATMENT REQUESTED

12.1   TERMINATION.  Either party may terminate this Agreement immediately (i)
       in the event of a material breach, including any failure by Buyer to make
       payments of any amounts to Seller when due, of any term of this Agreement
       by the other party which continues uncured for a period of *** after the
       non-breaching party provides written notice to the breaching party; (ii)
       upon any breach of the provisions of Article VI (Confidential Data and
       Disclosures); or (iii) upon a breach by a party of any provision of
       Article XII (Compliance with Laws).

12.2   INSOLVENCY.  Either party may terminate this Agreement or suspend
       performance, if at any time during the term of this Agreement the other
       party will becomes insolvent or is unable to meet its obligations as they
       become due; makes a general assignment for the benefit of creditors;
       petitions, applies for, suffers or permits with or without its consent
       the appointment of a custodian, receiver, trustee in bankruptcy or
       similar officer for all or any substantial part of its business or
       assets; avails itself or becomes subject to any proceeding under the
       Federal Bankruptcy Code or any similar state, federal or foreign statute
       relating to bankruptcy, insolvency, reorganization, receivership,
       arrangement, adjustment of debts, dissolution or liquidation, which
       proceeding is not dismissed within sixty (60) days of commencement
       thereof.

12.3   ACCRUED OBLIGATIONS.  Termination of this Agreement will not relieve
       either party of any then-accrued payment obligation under this Agreement,
       unless payment is disputed.  Any and all payments by either party to the
       other accrued pursuant to this Agreement as of the date of termination
       will remain due and payable in accordance with the terms hereof.

12.4   CONSEQUENCES OF TERMINATION. Upon termination of this Agreement for any
       reason whatsoever, each party will immediately deliver to the other all
       Confidential Information and other materials related to, embodying, or
       associated with, any of the Documentation, the VR(2) Technical
       Information, and the Intellectual Property made available to, or
       produced by, Buyer pursuant to the terms of this Agreement. Any
       termination of this Agreement will not eliminate any liability arising
       out of the conduct prior to the actual date of termination, and either
       party may, following such termination, pursue such remedies as may be
       available with respect to such liabilities.  In addition, the
       obligations of ARTICLE IV and SECTIONS 5.1, 6.1, 6.2, 7.1, , 9.1, 12 and
       13, will survive any termination of this Agreement. Within 30 calendar
       days after termination of this Agreement for any reason whatsoever, each
       party will certify in writing to the other that it has satisfied all of
       its obligations under this Section.

                                   ARTICLE XIII.

                                COMPLIANCE WITH LAWS

13.1   CERTAIN LAWS. Parties hereby acknowledge and agree that certain laws of
       the United States, including the Foreign Corrupt Practices Act, 15 U.S.C.
       sections 78dd-1, ET SEQ., prohibit any person subject to the jurisdiction
       of the United States from making any payment of money or anything of
       value, directly or indirectly, to any foreign political

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                                               CONFIDENTIAL TREATMENT REQUESTED

       party or candidate for foreign political office for the purpose of
       obtaining or retaining business.  Parties hereby represent and warrant
       that, in the performance of their duties pursuant to this Agreement,
       each has not made, and will not make, any such proscribed payment.  Each
       party will indemnify and hold harmless the other from and against any
       and all claims, losses and liabilities attributable to any breach by
       that party of its obligations under this SECTION 13.1.

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                                               CONFIDENTIAL TREATMENT REQUESTED

13.2   UNITED STATES EXPORT CONTROLS.  Without limiting the generality of
       SECTION 13.1, each party specifically acknowledges that certain of the
       Confidential Information ("TECHNICAL DATA") may be subject to United
       States export controls, pursuant to the Export Administration
       Regulations, 15 C.F.R. Parts 768-799. Each party will comply strictly
       with any applicable requirements of the Export Administration Regulations
       with respect to all such Technical Data.

                                    ARTICLE XIV.

                                    ARBITRATION

14.1   GOVERNING LAW. This Agreement will be governed in all respects solely and
       exclusively by the laws of the State of California, U.S.A. without regard
       to conflict of laws principles.  The United Nations Convention on the
       International Sale of Goods will not apply to this Agreement.

14.2   DISPUTE RESOLUTION. In any disputes, controversies, or claims arising out
       of, relating to, or in connection with this Agreement or between the
       parties, including the determination of the scope of the agreement to
       arbitrate, the parties agree to first endeavor to settle the dispute in
       an amicable manner by good faith discussions and bargaining between the
       parties.  If the parties are unable to resolve the controversy, upon
       request of one party, the parties agree to submit the dispute to an
       arbitrator for final and binding arbitration at a location to be
       determined by the non-requesting party.  The arbitration will comply with
       and be governed by provisions of the California Arbitration Act before an
       arbitrator experienced in the matter to be decided.

14.3   ARBITRATION EXCEPTION; INJUNCTIVE RELIEF AVAILABILITY.  Notwithstanding
       the foregoing, any claim relating to either of the parties' confidential
       information, trademarks, or other proprietary technology or intellectual
       property may be, at either parties' election, be determined by a court
       located in San Francisco, California, to whose exclusive jurisdiction the
       parties hereby consent.  Each party shall be authorized and entitled to
       obtain preliminary and permanent injunctive relief, which rights and
       remedies shall be cumulative and in addition to any other rights or
       remedies to which a party may be entitled.

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                                               CONFIDENTIAL TREATMENT REQUESTED

14.4   ANCILLARY RELIEF.  Nothing herein will prevent a party, prior to
       appointment of the arbitrator, from making application to any court of
       competent jurisdiction, for any provisional remedy available at law or in
       equity.  Such application for relief will not constitute a waiver of this
       agreement to arbitrate.  Upon appointment, the arbitrator will have
       exclusive authority to order provisional or interim relief, except that
       any relief ordered by the arbitrator may be immediately and specifically
       enforced by a court otherwise having jurisdiction.  The parties waive
       objection to venue and consent to the personal jurisdiction of the
       federal courts of San Francisco, California, U.S.A. in any action to
       enforce this agreement to arbitrate or any order or award of the
       arbitrator, or for the provisional or interim remedies provided for in
       this Agreement.

14.5   EXPENSES. In any arbitration proceeding pursuant to this Agreement, each
       party will bear the expenses of its witnesses.  All other costs of
       arbitration, including, without limitation, the fees and expenses of the
       arbitrators, the cost of the record or transcripts thereof, if any,
       administrative fees, the attorneys' fees of the parties, and all other
       fees and costs will be allocated to the parties to the arbitration as
       determined by the arbitrator, except that the prevailing party in such
       arbitration will be entitled to recover its reasonable attorneys' fees
       and expenses.

14.6   DISCOVERY. In any arbitration proceeding pursuant to this Agreement,
       discovery will be limited to written requests for the production of
       specific documents.  The period for requesting documents will be 30 days
       commencing upon the day that the answer is due under the Rules.  The
       responding party will have 15 days to produce the requested documents by
       sending copies to the requesting party or its representative via a
       recognized international courier service.  The parties will also
       voluntarily produce all documents that they intend to use at the
       arbitration hearing and a list of intended witnesses before the close of
       discovery subject to supplementation for purposes of rebuttal or good
       cause shown.  The parties waive any right to seek any discovery not
       provided for in this Agreement irrespective of whether the laws of any
       country provide for different or additional discovery in international
       arbitration.  The arbitrator will hold a pre-hearing conference within
       three days of the close of discovery and will schedule and hold the final
       hearing within 30 days of the close of discovery. Except as set forth in
       Section 14.2, EACH PARTY HERETO HEREBY AGREES THAT THE ARBITRATION
       PROCEDURE PROVIDED IN THIS AGREEMENT WILL BE THE SOLE AND EXCLUSIVE
       METHOD OF RESOLVING ANY DISPUTES, CONTROVERSIES OR CLAIMS ARISING IN
       CONNECTION WITH, OR OUT OF THIS AGREEMENT, OR OTHERWISE BETWEEN THE
       PARTIES TO THIS AGREEMENT.

                                    ARTICLE XV.

                               EPIDEMIC PRODUCT FAILURE

15.1   EPIDEMIC PRODUCT FAILURE.  For the purposes of this Agreement, "Epidemic
       Product Failure" means ***.  The parties agree, however, that in no event
       shall an Epidemic

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                                               CONFIDENTIAL TREATMENT REQUESTED

       Product Failure be deemed to occur during a Product ramp-up period of ***
       from the first shipment of Products to Buyer. In the case of an Epidemic
       Product Failure, Buyer and Seller shall cooperate to implement the
       following procedure:

       15.1.1 Buyer shall promptly notify Seller upon discovery of the failure.

       15.1.2 Within five (5) working days Seller shall give an initial response
              indicating its preliminary plans for diagnosing the problem.

       15.1.3 Seller and Buyer shall jointly exert all commercially reasonable
              efforts to diagnose the problem and plan a work-around or more
              permanent solution.

       15.1.4 Seller shall prepare and consult with Buyer regarding a recovery
              plan as well as an appropriate work-around, as an interim
              solution, if the parties mutually decide that such an interim
              solution is required.

15.2   MANUFACTURING LICENSE.  Seller hereby grants to Buyer a *** license to
       manufacture or have manufactured the Products (the "Manufacturing
       Rights") which Buyer may exercise at any time upon notice to Seller and
       upon the occurrence of either of the following:

       15.2.2 A Recovery Plan is not mutually agreed to in writing by the
              parties within thirty (30) days from the date of initial
              notification of the problem by Buyer to Seller. For the purposes
              of this Agreement, a "Recovery Plan" means a plan for which each
              party has devoted all commercially reasonable efforts to determine
              the root cause of the problem, and which includes (i)
              identification of the corrective action, and (ii) written
              milestones for the performance of the corrective action.

       15.2.3 Notwithstanding the terms of Section 2.8 hereof, If Seller
              consistently or continuously fails to supply Buyer with Products
              meeting the Specifications in the quantities (i) contained on a
              firm forecast of Buyer, and (ii) included in a firm non-cancelable
              Purchase Order submitted by Buyer and accepted by Seller pursuant
              to the terms of Section 2.4 ("Purchase Orders") hereof. For the
              purposes of this Section 15.2.3, Seller shall be deemed to have
              failed consistently in performing its obligations to supply
              Products if ***.

       15.2.4 If Buyer does exercise its Manufacturing Rights pursuant to this
              Section 15.2, the provisions of Section 15.3 shall additionally
              apply.

15.3   ROYALTIES AND REPORTING PROVISIONS.  In the event that Buyer exercises
       its Manufacturing Rights as provided in Section 15.2, and in the event
       that the parties have not previously executed a VR(2) Core License
       Agreement , the parties shall negotiate in good faith prior to the first
       sale of the Products manufactured by or for Buyer (i) the Product
       royalties to be paid to Seller by Buyer, (ii) the payment procedures and
       (iii) the sales and royalty reporting

                                       16

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                                               CONFIDENTIAL TREATMENT REQUESTED

       obligations of Buyer.  In general, Buyer shall additionally permit
       Seller to conduct an audit, no more than once per each six (6) month
       period and upon prior written notice to Buyer, to examine such books,
       records and accounts of Buyer to verify royalties due to Seller
       hereunder.  The parties currently intend to negotiate and execute a
       VR(2) Core License Agreement for the Products which shall contain such
       additional terms as are described in this Section 15.3.

                                    ARTICLE XVI.

                                   MISCELLANEOUS

16.1   INDEPENDENT CONTRACTORS.  Buyer and Seller hereby declare and agree that
       each is engaged in an independent business and will perform its
       obligations under this Agreement as an independent contractor and not as
       the agent or employee of the other; that the persons performing work for
       each party hereunder are not agents or employees of the other. Neither
       party will have the right or authority to assign or create any obligation
       of any kind, express or implied, on behalf of the other party, or to act
       for or on behalf of the other party, to make commitments of any kind or
       bind it in any way, to accept any service of process upon, or to receive
       any notices of any nature whatsoever in its behalf.

16.2   ASSIGNMENT.  Except as otherwise expressly proved in this Agreement,
       neither party may assign its rights or delegate its duties under this
       Agreement without the prior written consent of the other party; provided,
       however, that any party may assign its rights and delegate its duties,
       either in whole or in part, under this Agreement to any wholly owned or
       controlled affiliate, provided that such assignment includes an express
       assumption of the assignor's obligations hereunder. Any attempted
       assignment or delegation in contravention of this SECTION 16.2 will be
       void and of no effect.

16.3   NOTICE. Except as otherwise provided in this Agreement, all notices will
       be deemed to have been given when in writing and delivered in person,
       sent by electronic facsimile transmission, deposited in the United States
       Mail, postage prepaid, certified mail, return receipt requested or sent
       by a express courier service which provides documented delivery, and
       addressed as follows:  (i) if to Seller, Overland Data, Inc., 8975 Balboa
       Avenue, San Diego, CA 92123; and (ii) if to Buyer: Seagate Technology,
       Inc., 1650 Sunflower Avenue, Costa Mesa, CA 92626.  These addresses may
       be changed by written notice given by such party to the other pursuant to
       this SECTION 16.3.

16.4   NO THIRD PARTY BENEFICIARIES.  Except as otherwise provided in this
       Agreement, the provisions of this Agreement are for the benefit solely of
       the parties and not for any other person.

16.5   WAIVERS.  Waiver by either party of any breach by the other party will
       not be deemed a waiver of any other default.  The failure or delay of
       either party to assert any of its rights

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                                               CONFIDENTIAL TREATMENT REQUESTED

       under this Agreement will not be deemed a waiver of that party's right
       thereafter to enforce each and every provision of this Agreement

16.6   AMENDMENTS. No provision of this Agreement will be deemed waived, amended
       or modified by either party, unless such waiver, amendment or
       modification is in writing and signed by the authorized representative of
       the party against whom it is sought to enforce such waiver, amendment or
       modification.

16.7   HEADINGS. The section and paragraph headings contained in this Agreement
       are for reference purposes only and will not affect in any way the
       meaning or interpretation of this Agreement.

16.8   SEVERABILITY.  If any provision of this Agreement or the application of
       any such provision to any person or circumstance, is declared judicially
       to be invalid, unenforceable or void, such decision will not have the
       effect of invalidating or voiding the remainder of this Agreement, it
       being the intent and agreement of the parties that this Agreement will be
       deemed to have been amended by modifying such provision to the extent
       necessary to render it valid, legal and enforceable while preserving its
       intent or, if such modification is not possible, by substituting therefor
       another provision that is legal and enforceable and that achieves the
       same objective.

16.9   COUNTERPARTS. This Agreement may be executed in several duplicate
       originals , each of which will be deemed an original but all of which
       together will constitute one and the same instrument.

16.10  ENTIRE AGREEMENT. This Agreement embodies the entire agreement of Buyer
       and Seller respecting the Products and supersedes all prior agreements,
       understandings and communications, whether written or oral, between the
       parties with respect to its subject matter.

IN WITNESS WHEREOF, the parties hereto have each caused this Agreement to be
duly executed as of the Effective Date.

SELLER:  OVERLAND DATA, INC.              BUYER:  SEAGATE TECHNOLOGY, INC.

By: /s/ Scott McClendon                   By: /s/ Larry McMannon

Name: Scott McClendon                     Name:  Larry McMannon

Title: President & CEO                    Title: VP & General Manager

Date: 11/5/99                             Date: 11/5/99

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                                               CONFIDENTIAL TREATMENT REQUESTED

                                  EXHIBIT A

                          TRAVAN-TM- VR(2)-TM- ASIC ORDERS

1. Buyer acknowledges that the Products are fabricated in lots having a size
   corresponding to the aggregate number of parts ordered as set forth below.

                     VOLUME ORDERED              LOT SIZE

                     25k - 50k                   2,500 UNITS

                     50k - 100k                  10,000 UNITS

                     100k - 250k                 15,000 UNITS

                     250k+                       25,000 UNITS

2. Buyer will place purchase orders having a minimum order quantity of 2,500
   units of the Products.

3. Buyer acknowledges that the minimum lead-time for fabrication and delivery of
   any Products ordered will be 60 days from the date of receipt of Seller's
   Acknowledgement.

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                                     EXHIBIT B

                      SINGLE CHANNEL VR(2) ASIC SPECIFICATION

                                        ***

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                                               CONFIDENTIAL TREATMENT REQUESTED

                               OVERLAND CONFIDENTIAL

                                     EXHIBIT C

                      TRAVAN VR(2) ASIC PRICE/VOLUME SCHEDULE

                     ASIC ANNUAL VOLUME   PRICE/ASIC

                     ***

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                                               CONFIDENTIAL TREATMENT REQUESTED

                               OVERLAND CONFIDENTIAL

                                     EXHIBIT D

                         TRAVAN VR(2) ASIC DEVELOPER'S KIT

As part of the Travan VR(2) ASIC Developer's Kit, Overland will provide the
following items:

-      A five (5) day training session at Overland's facilities "VR(2)
       University".  This training course will commence on September 13th, 1999
       and be completed on September 16th, 1999.  Overland will provide the
       facility and refreshments during the day.  All other travel related
       expenses are the responsibility of the buyer.

-      Fifteen (15) working days of telephonic engineering support.  This
       support time begins on September 17th, 1999 and concludes at the end of
       the business day on October 7th, 1999.

-      A test PWB (with schematic) including the current single-channel VR(2)
       ASIC.

-      A set of software with documentation for Test PWB communications and
       coefficient calculations.

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                                               CONFIDENTIAL TREATMENT REQUESTED

                                  CREDIT AGREEMENT

This Credit Agreement("Agreement") is made and entered into on November 10,
1999, by and between Overland Data, Inc. a corporation, "Borrower" and Imperial
Bank, a California banking corporation, ("Bank").

Subject to the terms and conditions of this Agreement, any security agreement(s)
executed by Borrower in favor of Bank, any note(s) executed by Borrower in favor
of Bank, or any other agreements executed in conjunction therewith
(collectively, the "Loan Documents"), Bank shall make the loan(s) and or
advance(s) (individually a "Loan" and collectively "Loans") referred to below to
Borrower.

In consideration of mutual covenants and conditions hereof, the parties hereto
agree as follows:

1.     AMOUNT AND TERMS OF CREDIT

1.01   REVOLVING CREDIT COMMITMENT.

(a)       REVOLVING LINE OF CREDIT.  Subject to the terms and conditions of
this Agreement, provided that no event of default then has occurred and is
continuing, Bank shall, upon Borrower's request make advances ("Revolving
Loans") to Borrower, for working capital and support of standby letter of credit
activity purposes in an amount not to exceed $5,000,000 (the "Revolving Line of
Credit") until November 5, 2001 (the "Revolving Line of Credit Maturity Date").
Revolving Loans may be repaid and reborrowed, provided that all outstanding
principal and accrued interest on the Revolving Loans shall be payable in full
on the Revolving Credit Maturity Date.

(b)       REVOLVING NOTE.  The interest rate, payment terms, maturity date and
certain other terms of the Revolving Loan will be contained in a promissory note
dated the date of this agreement, as such may be amended or replaced from time
to time.

(c)       LETTER OF CREDIT USAGE AND SUBLIMIT.  Subject to availability under
the Revolving Line of Credit, at any time and from time to time from the date
hereof through the banking day immediately prior to the Revolving Line of Credit
Maturity Date, Bank shall issue for the account of Borrower such standby and
commercial letters of credit ("Letters of Credit") as Borrower may request,
which requests shall be made by delivering to Bank a duly executed letter of
credit application on Bank's standard form; provided, however, that the
outstanding and undrawn amounts under all such Letters of Credit shall be deemed
to constitute Revolving Loans for the purpose of calculating availability under
the Revolving Line of Credit. Unless agreed to in writing by Bank, no Letter of
Credit shall have an expiration date that is later than Ninety days after the
Revolving Line of Credit Maturity Date.  All Letters of Credit shall be in form
and substance acceptable to Bank in its sole discretion and shall be subject to
the terms and conditions of Bank's form application and letter of credit
agreement and other agreements required by Bank.  Borrower will pay all

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                                               CONFIDENTIAL TREATMENT REQUESTED

usual issuance and other fees that Bank notifies Borrower it will be charged for
issuing and processing Letters of Credit for Borrower.

(d)       BANKERS ACCEPTANCES. Within the Revolving Credit Commitment, Bank
will make Bankers Acceptances in minimum increments of $250,000, due not later
than ninety days from the date of advance, but in any event not later than
ninety days after the Revolving Credit Commitment maturity date, to refinance
draws against Bank's Sight Letters of Credit provided, however, that the
aggregate amount of such Bankers Acceptances, Letters of Credit, and Revolving
Loans outstanding at any one time shall not exceed the Revolving Credit
Commitment.

Bankers Acceptances will be discounted at (2.25%) per annum in excess of Bank's
announced Bankers Acceptance Rate prevailing on the day the bankers acceptance
is created. Discount charges are payable at the time of each advance, and
principal is payable at maturity.

1.02      DOCUMENTATION FEE, COSTS AND EXPENSES.   In addition to any other
amounts due, or to become due, concurrently with the execution hereof, Borrower
agrees to pay to Bank a documentation fee in the amount of $250.00, and all
other costs and expenses incurred by the Bank in the preparation of this
Agreement, the other Loan Documents and the perfection of any security interest
granted to Bank by Borrower.

1.03      COLLECTION OF PAYMENTS.  Borrower authorizes Bank to collect all
interest, fees, costs, and/or expenses due under this Agreement by charging
Borrower's demand deposit account number *** with Bank, or any other demand
deposit account maintained by Borrower with Bank, for the full amount
thereof.  Should there be insufficient funds in any such demand deposit
account to pay all such sums when due, the full amount of such deficiency
shall be immediately due and payable by Borrower.

2.     REPRESENTATIONS OF BORROWER

Borrower represents and warrants that:

2.01      EXISTENCE AND RIGHTS.  Borrower  is a corporation, duly organized and
existing and in good standing under the laws of the state of California, which
shall survive at least five years beyond the maturity of any Loans hereunder.
Borrower is authorized and in good standing to do business in the state of its
incorporation; Borrower has the appropriate powers and adequate authority,
rights and franchises to own its property and to carry on its business as now
conducted, and is duly qualified and in good standing in each state in which the
character of the properties owned by it therein or the conduct of its business
makes such qualification necessary; and Borrower has the power and adequate
authority to make and carry out this Agreement.  Borrower has no investment in
any other business entity unless specified in writing to Bank.

2.02      AGREEMENT AUTHORIZED.  The execution, delivery and performance of
this Agreement and the Loan Documents are duly authorized and do not require the
consent or approval of any

                                    2

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT
REQUEST.  REDACTED MATERIAL IS MARKED WITH A *** AND HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

<PAGE>

                                               CONFIDENTIAL TREATMENT REQUESTED

governmental body or other regulatory authority; are not in contravention of
or in conflict with any law or regulation or any term or provision of
Borrower's articles of incorporation, by-laws, or similar document as the
case may be, and this Agreement is the valid, binding and legally enforceable
obligation of Borrower in accordance with its terms; subject only to
bankruptcy, insolvency or similar laws affecting creditors rights generally.

2.03      NO CONFLICT.  The execution, delivery and performance of this
Agreement and the Loan Documents are not in contravention of or in conflict with
any agreement, indenture or undertaking to which  Borrower is a party or by
which it or any of its property may be bound or affected, and do not cause any
lien, charge or other encumbrance to be created or imposed upon any such
property by reason thereof.

2.04      LITIGATION.  Except as disclosed in writing to Bank by Borrower,
there is no litigation or other proceeding pending or threatened against or
affecting Borrower which if determined adversely to Borrower or its interest
would have a material adverse effect on the financial condition of Borrower, and
Borrower is not in default with respect to any order, writ, injunction, decree
or demand of any court or other governmental or regulatory authority.

2.05      FINANCIAL CONDITION.  The balance sheet of Borrower as of September
30, 1999, and the related profit and loss statement for the three month period
ended as of that date, a copy of which has heretofore been delivered to Bank by
Borrower, and all other statements and data submitted in writing by Borrower to
Bank in connection with this request for credit are true and correct, and said
balance sheet truly presents the financial condition of Borrower as of the date
thereof, and has been prepared in accordance with generally accepted accounting
principles on a basis consistently maintained.  Since such date there have been
no material adverse changes in the financial condition or business of Borrower.
Borrower has no knowledge of any liabilities, contingent or otherwise, at such
date not reflected in said balance sheet, and Borrower has not entered into any
special commitments or substantial contracts which are not reflected in said
balance sheet, other than in the ordinary and normal course of its business,
which may have a materially adverse effect upon its financial condition,
operations or business as now conducted.

2.06      TITLE TO ASSETS.  Borrower has good title to its assets, and the same
are not subject to any liens or encumbrances other than those permitted by
Section 5.02 hereof.

2.07      TAX STATUS.  Borrower has no liability for any delinquent state,
local or federal taxes, and, if Borrower has contracted with any government
agency, Borrower has no liability for renegotiation of profits.

2.08      TRADEMARKS, PATENTS.  Borrower, as of the date hereof, possesses all
necessary trademarks, trade names, copyrights, patents, patent rights, and
licenses to conduct its business as now operated, without any known conflict
with the valid trademarks, trade names, copyrights, patents and license rights
of others.

                                   3

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT
REQUEST.  REDACTED MATERIAL IS MARKED WITH A *** AND HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

<PAGE>

                                               CONFIDENTIAL TREATMENT REQUESTED

2.09      REGULATION U.  None of the proceeds of any Loan shall be used to
purchase or carry margin stock (as defined within Regulation U of the Board of
Governors of the Federal Reserve system).

2.10      ERISA.  All defined benefit pension plans as defined in the Employees
Retirement Income Security Act of 1974, as amended ("ERISA"), of Borrower meet,
as of the date hereof, the minimum funding standards of Section 302 of ERISA,
and no Reportable Event or Prohibited Transaction as defined in ERISA has
occurred with respect to any such plan.

2.11      YEAR 2000 COMPLIANCE.  Borrower and its subsidiaries, as applicable,
have reviewed the areas within their operations and business which could be
adversely affected by, and have developed or are developing a program to address
on a timely basis, the Year 2000 Problem and have made related appropriate
inquiry of material suppliers and vendors, and based on such review and program,
the Year 2000 Problem will not have a material adverse effect upon its financial
condition, operations or business as now conducted. "Year 2000 Problem" means
the possibility that any computer applications or equipment used by Borrower may
be unable to recognize and properly perform date sensitive functions involving
certain dates prior to and any dates on or after December 31, 1999.

3.     CONDITIONS PRECEDENT TO LOAN

          Prior to Bank being obligated to make any Loan pursuant to this
Agreement, Bank must receive all of the following, each of which must be in form
and substance satisfactory to Bank:

3.01      PROMISSORY NOTE(S).  Original, executed promissory note(s) as
applicable.

3.02      ORGANIZATIONAL DOCUMENTS.  Copies of the articles of incorporation,or
similar document as the case may be, of the Borrower.

3.03      AUTHORIZATIONS.  Certified copies of all action taken by any Borrower
to authorize the execution, delivery and performance of the Loan Documents.

3.04      GOOD STANDING .  Good standing certificates from the appropriate
secretary of state of the state in which  any Borrower is organized and in each
state in which it is required to be qualified to do business.

3.05      This Agreement executed by Borrower.

3.06      ADDITIONAL DOCUMENTS.  Such other documents as Bank may reasonably
deem necessary.

4.     AFFIRMATIVE COVENANTS OF BORROWER

                                4

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT
REQUEST.  REDACTED MATERIAL IS MARKED WITH A *** AND HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

<PAGE>

                                               CONFIDENTIAL TREATMENT REQUESTED

Borrower agrees that so long as it is indebted to Bank, under borrowings, or
other indebtedness, or so long as Bank has any obligation to extend credit to
Borrower it will, unless Bank shall otherwise consent in writing:

4.01      RIGHTS AND FACILITIES.  Maintain and preserve all rights, franchises
and other authority adequate for the conduct of its business; maintain its
properties, equipment and facilities in good order and repair; conduct its
business in an orderly manner without voluntary interruption and, if a
corporation or partnership, maintain and preserve its existence.

4.02      INSURANCE.  Maintain public liability, property damage and workers'
compensation insurance and insurance on all its insurable property against fire
and other hazards with responsible insurance carriers to the extent usually
maintained by similar businesses and/or in the exercise of good business
judgment, and as required by that Agreement to Provide Insurance executed by
Borrower, with the Bank to be shown as Lenders Loss Payee on such policies.

4.03      TAXES AND OTHER LIABILITIES.  Pay and discharge, before the same
become delinquent and before penalties accrue thereon, all taxes, assessments
and governmental charges upon or against it or any of its properties, and all
its other liabilities at any time existing, except to the extent and so long as:

(a)    The same are being contested in good faith and by appropriate proceedings
in such manner as not to cause any materially adverse effect upon its financial
condition or the loss of any right of redemption from any sale thereunder; and

(b)    It shall have set aside on its books reserves (segregated to the extent
required by generally accepted accounting practice) deemed by it to be adequate
with respect thereto.

4.04   RECORDS AND REPORTS.  Maintain a standard and modern system of accounting
in accordance with generally accepted accounting principles on a basis
consistently maintained; permit Bank's representatives to have access to, and to
examine its properties, books and records at all reasonable times and upon
reasonable notice during normal business hours; and furnish Bank:

(a)       QUARTERLY FINANCIAL STATEMENT. As soon as available, and in any event
within Forty- Five  (45) days after the close of each quarter, a consolidated
balance sheet, profit and loss statement and reconciliation of Borrower's
capital balance accounts as of the close of such period and covering operations
for the portion of Borrower's fiscal year ending on the last day of such period,
all in reasonable detail and reasonably acceptable to Bank, in accordance with
generally accepted accounting principles on a basis consistently maintained by
Borrower and certified by an appropriate officer of Borrower.

(b)       ANNUAL FINANCIAL STATEMENT. As soon as available, and in any event
within Ninety (90) days after and as of the close of each fiscal year of
Borrower, a consolidated report of audit of Company, all in reasonable detail,
audited by an independent certified public accountant selected by Borrower and

                                 5

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT
REQUEST.  REDACTED MATERIAL IS MARKED WITH A *** AND HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

<PAGE>

                                               CONFIDENTIAL TREATMENT REQUESTED

reasonably acceptable to Bank, in accordance with generally accepted accounting
principles on a basis consistently maintained by Borrower and certified by an
appropriate officer of Borrower;

(c)       OFFICER'S CERTIFICATE.  Within Forty Five (45) days after the end of
each quarter and fiscal year of Borrower, a certificate of the chief financial
officer of Borrower, stating that Borrower has performed and observed each and
every covenant contained in this Agreement to be performed by it and that no
event has occurred and no condition then exists which constitutes an event of
default hereunder or would constitute such an event of default upon the lapse of
time or upon the giving of notice and the lapse of time specified herein; or, if
any such event has occurred or any such condition exists, specifying the nature
thereof..

(d)       AUDIT REPORTS.  Promptly after the receipt thereof by Borrower,
copies of any detailed audit reports submitted to Borrower by independent
accountants in connection with each annual or interim work on the accounts of
Borrower made by such accountants;

(e)       STOCKHOLDER, SECURITY AND EXCHANGE COMMISSION STATEMENTS AND REPORTS
Promptly after the same are available, copies of all such proxy statements,
financial statements and reports as Borrower or any subsidiary shall send to its
members or stockholders as appropriate, if any, and copies of all reports which
Borrower or any subsidiary may file with the Securities and Exchange Commission.

(f)       OTHER INFORMATION.  Such other information relating to the affairs of
Borrower as the Bank reasonably may request from time to time.

4.05      WORKING CAPITAL. Maintain on a quarterly basis working capital,
meaning current assets minus current assets(excluding all amounts due from
stockholders, officers and affiliates) minus total current liabilities
(including all amounts due to stockholders, officers and affiliates) of not less
than Twenty Five Million Dollars ($25,000,000.00).

4.06      QUICK RATIO.  Maintain on a quarterly basis a consolidated quick
ratio of cash and accounts receivable to current liabilities of at least 1.5 to
1.00.

4.07      TANGIBLE NET WORTH.  Maintain on a quarterly basis a consolidated
Tangible Net Worth (defined as stockholder's equity less any value for goodwill,
trademarks, patents, copyrights, leaseholds, organization expense and other
similar intangible items, and any amounts due from stockholders, officers and
affiliates) of not less than Thirty Million Dollars ($30,000,000).

4.8       DEBT TO TANGIBLE NET WORTH.  Maintain on a quarterly basis a
consolidated ratio of total liabilities to Tangible Net Worth (defined as
stockholder's equity less any value for goodwill, trademarks, patents,
copyrights, leaseholds, organization expense and other similar intangible items,
and any amounts due from stockholders, officers and affiliates) of not greater
than 1.0 to 1.00.

                                  6

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT
REQUEST.  REDACTED MATERIAL IS MARKED WITH A *** AND HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

<PAGE>

                                               CONFIDENTIAL TREATMENT REQUESTED

4.09      OUT OF DEBT: The unpaid balance of the Revolving Loans shall be $0
for at least Thirty (30)  consecutive days during each calendar year].

4.10      ERISA.  Cause all defined benefit pension plans, as defined in ERISA,
of Borrower  to, at all times,  meet the minimum funding standards of Section
302 of ERISA, and ensure that no Reportable Event or Prohibited Transaction, as
defined in ERISA, will occur with respect to any such plan.

4.11      LAWS.      At all times comply with, or cause to be complied with, all
laws, statutes, rules, regulations, orders and directions of any governmental
authority having jurisdiction over Borrower or Borrower's business.

4.12      GAAP.  Compliance with all financial covenants shall be calculated
based on generally accepted accounting principles applied on a consistent basis
as maintained by Borrower.

4.13      YEAR 2000 COMPLIANT.   Borrower shall perform all acts reasonably
necessary to ensure that (a) Borrower and any business in which Borrower holds a
substantial interest, and (b) all customers, suppliers and vendors whose
compliance is likely to be material to Borrower's business, become Year 2000
Compliant in a timely manner.  Such acts shall include, without limitation,
performing a comprehensive review and assessment of all Borrower's systems and
adopting a detailed plan, with itemized budget, for the remediation, monitoring
and testing of such systems.  As used in this paragraph, "Year 2000 Compliant"
shall mean, in regard to any entity, that all software, hardware, firmware,
equipment, goods or systems utilized by or material to the business operations
or financial condition of such entity, will properly perform date sensitive
functions before, during and after the year 2000.  Borrower shall, immediately
upon request, provide to Bank such certifications or other evidence of
Borrower's compliance with the terms of this paragraph as Bank may from time to
time require.

4.14      OPERATING ACCOUNTS. Maintain all primary accounts and banking
relationship with the Bank. Maintain, or cause to be maintained, on deposit with
Bank, non-interest bearing demand deposit balances sufficient to compensate Bank
for all services provided by Bank.  Balances shall be calculated after reduction
for the reserve requirement of the Federal Reserve Board and uncollected funds.
Any deficiencies shall be charged directly to the Borrower on a monthly basis.

4.15      NOTICES. Promptly notify Bank in writing of (i) the occurrence of any
Event of Default hereunder or any event which upon notice and lapse of time
would be an Event of Default; (ii) all litigation affecting Borrower where the
amount is $100,000 or more; any substantial dispute which may exist between
Borrower and any governmental regulatory body or law enforcement authority; any
change in Borrower's name or principal place of business; or any other matter
which has resulted or might result in a material adverse change in Borrower's
financial condition or operations.

5.     NEGATIVE COVENANTS OF BORROWER

                                 7

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT
REQUEST.  REDACTED MATERIAL IS MARKED WITH A *** AND HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

<PAGE>

                                               CONFIDENTIAL TREATMENT REQUESTED

Borrower agrees that so long as it is indebted to Bank, or so long as Bank has
any obligation to extend credit to Borrower, it will not, without Bank's written
consent:

5.01      TYPE OF BUSINESS; MANAGEMENT; CHANGE IN CONTROL. Make any substantial
change in the character of its business; make any change in its Chief Executive
Officer or Chief Financial Officer..

5.02      LIENS AND ENCUMBRANCES.  Create, incur, permit to exist, or assume
any mortgage, pledge, encumbrance, lien or charge of any kind upon any asset now
owned or hereafter acquired by it, other than liens for taxes not delinquent and
liens in Bank's favor, except for those already existing as of September 30,
1999.

5.03      LOANS,  SECONDARY LIABILITIES.  Make any loans or advances to any
person or other entity other than in the ordinary and normal course of its
business as now conducted or make any investment in the securities of any person
or other entity other than the United States Government; or guarantee or
otherwise become liable upon the obligation of any person or other entity,
except by endorsement of negotiable instruments for deposit or collection in the
ordinary and normal course of its business.

5.04      ACQUISITION OR SALE OF BUSINESS; MERGER OR CONSOLIDATION.  Purchase
or otherwise acquire the assets or business of any person or other entity with
an acquisition price in excess of $1,000,000; or liquidate, dissolve, merge or
consolidate, or commence any proceedings therefor; or sell any assets except in
the ordinary and normal course of its business as now conducted; or sell, lease,
assign, or transfer any substantial part of its business or fixed assets, or any
property or other assets necessary for the continuance of its business as now
conducted, including without limitation the selling of any property or other
asset accompanied by the leasing back of the same.

5.05      CAPITAL EXPENDITURES. Make or incur obligations for fixed or capital
assets, which includes purchase money indebtedness or capital lease obligations
in excess of $1,000,000 in any twelve month period thereafter.

5.06      OPERATING LEASE  EXPENDITURES.  Make or incur obligations for
operating leases for real or personal property in excess of $1,000,000 in any
twelve  (12) month period thereafter.

6.     EVENTS OF DEFAULT

The occurrence of any of the following events of default ("Events of Default")
shall, at Bank's option, terminate Bank's commitment to lend and make all sums
of principal and interest then remaining unpaid on all Borrower's indebtedness
to Bank immediately due and payable, all without demand, presentment or notice,
all of which are hereby expressly waived:

                                   8

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT
REQUEST.  REDACTED MATERIAL IS MARKED WITH A *** AND HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

<PAGE>

                                               CONFIDENTIAL TREATMENT REQUESTED

6.01      FAILURE TO PAY.  Failure to pay any installment of principal or of
interest on any indebtedness of Borrower to Bank within five (5) days of its due
date.

6.02      BREACH OF COVENANT.  Failure of Borrower to perform any other term or
condition of this Agreement or any Loan Document  binding upon Borrower.

6.03      BREACH OF WARRANTY.  Any of Borrower's representations or warranties
made herein or any statement or certificate at any time given in writing
pursuant hereto or in connection herewith shall be false or misleading in any
respect.

6.04      INSOLVENCY; RECEIVER OR TRUSTEE.  Borrower shall become insolvent; or
admit its inability to pay its debts as they mature; or make an assignment for
the benefit of creditors; or apply for or consent to the appointment of a
receiver or trustee for it or for a substantial part of its property or
business.

6.05      JUDGMENTS, ATTACHMENTS.  Any money judgment in excess of $100,000,
writ or warrant of attachment, or similar process shall be entered or filed
against Borrower or any of its assets and shall remain unvacated, unbonded or
unstayed for a period of ten (10) days or in any event later than five (5) days
prior to the date of any proposed sale thereunder.

6.06      BANKRUPTCY.  Bankruptcy, insolvency, reorganization or liquidation
proceedings or other proceedings for relief under any bankruptcy law or any law
for the relief of debtors shall be instituted by or against Borrower and, if
instituted against it, shall not be dismissed within thirty (30) days
thereafter.

6.07      CESSATION OF BUSINESS.   Borrower shall voluntarily suspend its
business.

6.08      ADVERSE CHANGE.   Any change which, in the opinion of Bank, is
materially adverse to the financial condition of Borrower or any Guarantor; or
should Bank, for any reason, believe that the prospect of Borrower's payment or
performance hereunder or under any other agreement or instrument with Bank be
impaired.

6.09      OTHER DEFAULTS.   Borrower, shall commit or do or fail to commit or
do any act or thing which would constitute an event of default under any of the
terms of any other agreement, document or instrument executed or to be executed
by it concerning the obligation to pay money.

6.10      ADVANCES.  Notwithstanding anything to the contrary contained herein,
Bank shall have no duty to make advances while any event of default exists
notwithstanding any cure period provided for herein.

7.     MISCELLANEOUS PROVISIONS

7.01      FAILURE OR INDULGENCE NOT WAIVER.  No failure or delay on the part of
Bank or any holder of notes issued hereunder, in the exercise of any power,
right or privilege hereunder shall operate

                                       9

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT
REQUEST.  REDACTED MATERIAL IS MARKED WITH A *** AND HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

<PAGE>

                                               CONFIDENTIAL TREATMENT REQUESTED

as a waiver thereof, nor shall any single or partial exercise of any such
power, right or privilege preclude other or further exercise thereof or of
any other right, power or privilege.  All rights and remedies existing under
this Agreement or any note (s) issued in connection with a Loan that Bank may
make hereunder, are cumulative to, and not exclusive of, any rights or
remedies otherwise available.

7.02      COUNTERPARTS; ENTIRE AGREEMENT.  This Agreement may be executed by
the parties hereto in several counterparts, each of which shall be deemed to be
an original and all of which shall constitute together but one and the same
agreement.  This Agreement, and the other Loan Documents constitute the entire
understanding among the parties hereto with respect to the subject matter hereof
and supersedes any prior agreements, written or oral, with respect thereto.

7.03      ATTORNEY'S FEES.  Borrower will pay promptly to Bank without demand
after notice, with interest thereon from the date of expenditure at the rate
applicable to the Loan, reasonable attorneys' fees and all costs and expenses
paid or incurred by Bank in collecting or compromising the Loan after the
occurrence of an Event of Default, whether or not suit is filed.  If suit is
brought to enforce any provision of this Agreement, the prevailing party shall
be entitled to recover its reasonable attorneys' fees and court costs in
addition to any other remedy or recovery awarded by the court.

7.04      ADDITIONAL REMEDIES.  The rights, powers and remedies given to Bank
hereunder shall be cumulative and not alternative and shall be in addition to
all rights, powers and remedies given to Bank by law against Borrower or any
other person, including but not limited to Bank's rights of setoff or banker's
lien.

7.05      INUREMENT.  The benefits of this Agreement shall inure to the
successors and assigns of Bank and the permitted successors and assigns of
Borrower.

7.06      APPLICABLE LAW.  This Agreement and all other agreements and
instruments required by Bank in connection therewith shall be governed by and
construed according to the laws of the state of California, to the jurisdiction
of whose courts the parties hereby agree to submit.

7.07      OFFSET.  In addition to and not in limitation of all rights of offset
that Bank or other holder of the Loan may have under applicable law, Bank or
other holder of any note issued hereunder  shall, upon the occurrence of any
Event of Default or any event which with the passage of time or notice would
constitute such an Event of Default, have the right to appropriate and apply to
the payment of the Loan any and all balances, credits, deposits, accounts or
monies of Borrower then or thereafter with Bank or other holder, within ten (10)
days after the Event of Default, and notice of the occurrence of any Event of
Default by Bank to Borrower.

7.08      SEVERABILITY.  Should any one or more provisions of the Agreement be
determined to be illegal or unenforceable, all other provisions nevertheless
shall be effective.

7.09      TIME OF THE ESSENCE. Time is hereby declared to be of the essence of
this Agreement and of every part hereof.

                                       10

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT
REQUEST.  REDACTED MATERIAL IS MARKED WITH A *** AND HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

<PAGE>

                                               CONFIDENTIAL TREATMENT REQUESTED

7.10      ACCOUNTING.  All accounting terms shall have the meanings applied
under generally accepted accounting principles unless otherwise specified.

7.11      REFERENCE PROVISION.

(a)    Other than (i) nonjudicial foreclosure and all matters in connection
therewith regarding security interests in real or personal property; or (ii) the
appointment of a receiver, or the exercise of other provisional remedies (any
and all of which may be initiated pursuant to applicable law), each controversy,
dispute or claim between the parties arising out of or relating to this Credit
Agreement, any security agreement executed by Borrower in favor of Bank or any
note executed by Borrower in favor of Bank  or any other agreement or instrument
issued in favor of Bank by Borrower (collectively in this Section, the
"Agreement") which controversy, dispute or claim is not settled in writing
within thirty (30) days after the "CLAIM DATE" (defined as the date on which a
party subject to this Agreement gives written notice to all other parties that a
controversy, dispute or claim exists), will be settled by a reference proceeding
in California in accordance with the provisions of Section 638 ET SEQ. of the
California Code of Civil Procedure, or their successor section ("CCP"), which
shall constitute the exclusive remedy for the settlement of any controversy,
dispute or claim concerning this Agreement, including whether such controversy,
dispute or claim is subject to the reference proceeding and except as set forth
above, the parties waive their rights to initiate any legal proceedings against
each other in any court or jurisdiction other than the Superior Court in the
County where the Real Property, if any, is located or Los Angeles County if none
(the "COURT").  The referee shall be a retired Judge of the Court selected by
mutual agreement of the parties, and if they cannot so agree within forty-five
(45) days after the Claim Date, the referee shall be promptly selected by the
Presiding Judge of the Court (or his representative).  The referee shall be
appointed to sit as a temporary judge, with all of the powers for a temporary
judge, as authorized by law, and upon selection should take and subscribe to the
oath of office as provided for in Rule 244 of the California Rules of Court (or
any subsequently enacted Rule).  Each party shall have one peremptory challenge
pursuant to CCP Section 170.6.  The referee shall (a) be requested to set the
matter for hearing within sixty (60) days after the date of selection of the
referee and (b) try any and all issues of law or fact and report a statement of
decision upon them, if possible, within ninety (90) days of the Claim Date.  Any
decision rendered by the referee will be final, binding and conclusive and
judgment shall be entered pursuant to CCP Section 644 in any court in the state
of California having jurisdiction.  Any party may apply for a reference
proceeding at any time after thirty (30) days following notice to any other
party of the nature of the controversy, dispute or claim, by filing a petition
for a hearing and/or trial.  All discovery permitted by this Agreement  shall be
completed no later than fifteen (15) days before the first hearing date
established by the referee.  The referee may extend such period in the event of
a party's refusal to provide requested discovery for any reason whatsoever,
including, without limitation, legal objections raised to such discovery or
unavailability of a witness due to absence or illness.  No party shall be
entitled to "priority" in conducting discovery.  Depositions may be taken by
either party upon seven (7) days written notice, and request for production or
inspection of documents shall be responded to within ten (10) days after
service.  All disputes relating to discovery which cannot be resolved by the
parties shall be submitted to the referee whose decision shall be final and
binding upon the parties.  Pending appointment of the referee as provided
herein, the Superior Court is empowered to issue temporary and/or provisional
remedies, as appropriate.

                                       11

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT
REQUEST.  REDACTED MATERIAL IS MARKED WITH A *** AND HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

<PAGE>

                                               CONFIDENTIAL TREATMENT REQUESTED

(b)    Except as expressly set forth in this Agreement, the referee shall
determine the manner in which the reference proceeding is conducted including
the time and place of all hearings, the order of presentation of evidence, and
all other questions that arise with respect to the course of the reference
proceeding.  All proceedings and hearings conducted before the referee, except
for trial, shall be conducted without a court reporter except that when any
party so requests, a court reporter will be used at any hearing conducted before
the referee.  The party making such a request shall have the obligation to
arrange for and pay for the court reporter.  The costs of the court reporter at
the trial shall be borne equally by the parties.

(c)    The referee shall be required to determine all issues in accordance with
existing case law and the statutory laws of the state of California.  The rules
of evidence applicable to proceedings at law in the state of California will be
applicable to the reference proceeding.  The referee shall be empowered to enter
equitable as well as legal relief, to provide all temporary and/or provisional
remedies and to enter equitable orders that will be binding upon the parties.
The referee shall issue a single judgment at the close of the reference
proceeding which shall dispose of all of the claims of the parties that are the
subject of the reference.  The parties hereto expressly reserve the right to
contest or appeal from the final judgment or any appealable order or appealable
judgment entered by the referee.  The parties hereto expressly reserve the right
to findings of fact, conclusions of laws, a written statement of decision, and
the right to move for a new trial or a different judgment, which new trial, if
granted, is also to be a reference proceeding under this provision.

(d)    In the event that the enabling legislation which provides for appointment
of a referee is repealed (and no successor statute is enacted), any dispute
between the parties that would otherwise be determined by the reference
procedure herein described will be resolved and determined by arbitration.  The
arbitration will be conducted by a retired judge of the Court, in accordance
with the California Arbitration Act, Section 1280 through Section 1294.2 of the
CCP as amended from time to time.  The limitations with respect to discovery as
set forth hereinabove shall apply to any such arbitration proceeding.

7.12      SURETYSHIP WAIVERS AND CONSENTS.       Each Borrower agrees that it is
jointly and severally, directly, and primarily liable to Bank for payment in
full of all obligations under the Loan Documents ("Obligations") and that such
liability is independent of the duties, obligations and liabilities of the other
Borrower.  The Loan Documents are a primary and original obligation of each
Borrower, are not the creation of a surety relationship, and are an absolute,
unconditional, and continuing promise of payment and performance which shall
remain in full force and effect without respect to future changes in conditions,
including any change of law or any invalidity or irregularity with respect to
the Loan Documents.  Each Borrower acknowledges that the obligations of such
Borrower undertaken herein might be construed to consist, at least in part, of
the guaranty of obligations of persons or entities other than such Borrower
(including any other Borrower party hereto) and, in full recognition of that
fact, each Borrower consents and agrees that the Bank  may, at any time and from
time to time, without notice or demand, whether before or after any actual or
purported termination, repudiation, or revocation of this Agreement by any one
or more Borrowers, and without affecting the enforceability or continuing
effectiveness hereof as to each Borrower: (a) supplement, restate, modify,
amend, increase, decrease, extend, renew, accelerate, or otherwise change the
time for payment or the terms of the Obligations or

                                       12

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT
REQUEST.  REDACTED MATERIAL IS MARKED WITH A *** AND HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

<PAGE>

                                               CONFIDENTIAL TREATMENT REQUESTED

any part thereof, including any increase or decrease of the rate(s) of
interest thereon; (b) supplement restate, modify, amend, increase, decrease
or waive, or enter into or give any agreement, approval, or consent with
respect to, the Obligations or any part thereof, or any of the Loan Documents
or any additional security or guaranties, or any condition covenant, default,
remedy, right, representation or term thereof or thereunder; (c) accept new
or additional instruments, documents or agreements in exchange for or
relative to any of the Loan Documents or the Obligations or any part thereof;
(d) accept partial payments on the Obligations; (e) receive and hold
additional security or guaranties for the Obligations or any part hereof; (f)
release, reconvey, terminate, waive, abandon, fail to perfect, subordinate,
exchange, substitute, transfer, or enforce any security or guaranties, and
apply any security and direct the order or manner of sale thereof as the Bank
in its sole and absolute discretion may determine; (g) release any Person
from any personal liability with respect to the Obligations or any part
thereof; (h) settle, release on terms satisfactory to the Bank or by
operation of applicable laws, or otherwise liquidate or enforce any
Obligations and any security therefor or guaranty thereof in any manner,
consent to the transfer of any security and bid and purchase at any sale; or
(i) consent to the merger, change, or any other restructuring or termination
of the corporate or partnership existence of any Borrower or any other
Person, and correspondingly restructure the Obligations, and any such merger,
change, restructuring, or termination shall not affect the liability of any
Borrower or the continuing effectiveness hereof, or the enforceability hereof
with respect to all or any part of the Obligations.

        Upon the occurrence and during the continuance of any Event of Default,
the Bank  may enforce this Agreement independently as to each Borrower and
independently of any other remedy or security the Bank  at any time may have or
hold in connection with the Obligations, and it shall not be necessary for the
Bank to marshal assets in favor of any Borrower or any other Person or to
proceed upon or against or exhaust any security or remedy before proceeding to
enforce this Agreement.  Each Borrower expressly waives any right to require the
Bank to marshal assets in favor of any Borrower or any other Person or to
proceed against any other Borrower or any Collateral provided by any Person, and
agrees that the Bank may proceed against Borrowers or any Collateral in such
order as it shall determine in its sole and absolute discretion.

       The Bank  may file a separate action or actions against any Borrower,
whether action is brought or prosecuted with respect to any security or against
any other person, or whether any other person is joined in any such action or
actions.  Each Borrower agrees that the Bank and any Borrower and any affiliate
of any Borrower may deal with each other in connection with the Obligations or
otherwise, or alter any contracts or agreements now or hereafter existing
between any of them, in any manner whatsoever, all without in any way altering
or affecting the continuing efficacy of this Agreement.

       The Bank's hereunder shall be reinstated and revived, and the
enforceability of this Agreement shall continue, with respect to any amount at
any time paid on account of the Obligations which thereafter shall be required
to be restored or returned by the Bank, all as though such amount had not been
paid.  The rights of the Bank  created or granted herein and the enforceability
of this Agreement  at all times shall remain effective to cover the full amount
of all the Obligations even though the Obligations, including any part thereof
or any other security or guaranty therefor, may be or hereafter

                                       13

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT
REQUEST.  REDACTED MATERIAL IS MARKED WITH A *** AND HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

<PAGE>

                                               CONFIDENTIAL TREATMENT REQUESTED

may become invalid or otherwise unenforceable as against any Borrower and
whether or not any other Borrower shall have any personal liability with
respect thereto.

       To the maximum extent permitted by applicable law and to the extent that
a Borrower is deemed a guarantor, each Borrower expressly waives any and all
defenses now or hereafter arising or asserted by reason of (a) any disability or
other defense of any other Borrower with respect to the Obligations, (b) the
unenforceability or invalidity of any security or guaranty for the Obligations
or lack of perfection or continuing perfection or failure of priority of any
security for the Obligations, (c) the cessation for any cause whatsoever of the
liability of any other Borrower (other than by reason of the full payment and
performance of all Obligations), (d) any failure of the to marshal assets in
favor Bank of any Borrower or any other person, (e) any failure of the Bank to
give notice of sale or other disposition of collateral to any Borrower or any
other Person or any defect in any notice that may be given in connection with
any sale or disposition of collateral, (f) any failure of the Bank  to comply
with applicable law in connection with the sale or other disposition of any
collateral or other security for any Obligation, including any failure of the
Bank to conduct a commercially reasonable sale or other disposition of any
collateral or other security for any Obligation, (g) any act or omission of the
Bank or others that directly or indirectly results in or aids the discharge or
release of any Borrower or the Obligations or any security or guaranty therefor
by operation of law or otherwise, (h) any law which provides that the obligation
of a surety or guarantor must neither be larger in amount nor in other respects
more burdensome than that of the principal or which reduces a surety's or
guarantor's obligation in proportion to the principal obligation, (i) any
failure of the Bank to file or enforce a claim in any bankruptcy or other
proceeding with respect to any Person, (j) the election by the Bank of the
application or non-application of Section 1111(b)(2) of the United States
Bankruptcy code, (k) any extension of credit or the grant of any lien under
Section 364 of the United States Bankruptcy code, (1) any use of cash collateral
under Section 363 of the United States Bankruptcy Code, (m) any agreement or
stipulation with respect to the provision of adequate protection in any
bankruptcy proceeding of any Person, (n) the avoidance of any lien in favor of
the Bank for any reason, or (o) any action taken by the Bank that is authorized
by this section or any other provision of any Loan Document.  Until such time as
all of the Obligations have been fully, finally, and indefeasibly paid in full
in cash: (i) each Borrower hereby waives and postpones any right of subrogation
it has or may have as against any other Borrower respect to the Obligations; and
(ii) in addition, each borrower also hereby waives and postpones any right to
proceed or to seek recourse against or with respect to any property or asset of
any other Borrower.  Each borrower expressly waives all setoffs and
counterclaims and all presentments, demands for payment or performance, notices
of nonpayment or nonperformance, protests, notices of protest, notices of
dishonor and all other notices or demands of any kind or nature whatsoever with
respect to the Obligations, and all notices of acceptance of this Agreement or
of the existence, creation or incurring of new or additional Obligations.

          In the event that all or any part of the Obligations at any time are
secured by any one or more deeds of trust or mortgages or other instruments
creating or granting liens on any interests in real property, each Borrower
authorizes the Bank, upon the occurrence of and during the continuance of any
Event of Default, at its sole option, without notice or demand and without
affecting the obligations of any Borrower, the enforceability of this Agreement,
or the validity or enforceability of any Liens of the Bank,

                                       14

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT
REQUEST.  REDACTED MATERIAL IS MARKED WITH A *** AND HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

<PAGE>

                                               CONFIDENTIAL TREATMENT REQUESTED

to foreclose any or all of such deeds of trust or mortgages or other
instruments by judicial or nonjudicial sale.

       To the fullest extent permitted by applicable law, to the extent that a
Borrower is deemed a guarantor, each Borrower expressly waives any defenses to
the enforcement of this Agreement or any rights of the Bank created or granted
hereby or to the recovery by the Bank against any Borrower or any other Person
liable therefor of any deficiency after a judicial or nonjudicial foreclosure or
sale, even though such a foreclosure or sale may impair the subrogation rights
of Borrowers and may preclude Borrowers from obtaining reimbursement or
contribution from other Borrowers.  To the fullest extent permitted by
applicable law, each Borrower expressly waives any suretyship defenses or
benefits that it otherwise might or would have under applicable law.  WITHOUT
LIMITING THE GENERALITY OF ANY OTHER WAIVER OR OTHER PROVISION SET FORTH IN THIS
SECTION, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH BORROWER WAIVES
ALL RIGHTS AND DEFENSES ARISING OUT OF AN ELECTION OF REMEDIES BY THE BANK, EVEN
THOUGH THAT ELECTION OF REMEDIES, SUCH AS A NONJUDICIAL FORECLOSURE WITH RESPECT
TO SECURITY FOR THE OBLIGATIONS, HAS DESTROYED SUCH BORROWER'S RIGHTS OF
SUBROGATION AND REIMBURSEMENT AGAINST THE OTHER BORROWERS BY THE OPERATION LAW,
INCLUDING BUT NOT LIMITED TO SECTION 580d OF THE CODE OF CIVIL PROCEDURE, OR
OTHERWISE.

       Borrower and each of them warrant and agree that each of the waivers and
consents set forth herein are made after consultation with legal counsel and
with full knowledge of their significance and consequences, with the
understanding that events giving rise to any defense or right waived may
diminish, destroy or otherwise adversely affect rights which Borrower otherwise
may have against any other Borrower, the Bank or others, or against Collateral.
If any of the waivers or consents herein are determined to be contrary to any
applicable law or public policy, such waivers and consents shall be effective to
the maximum extent permitted by law.

7.13   This Agreement may be modified only by a  writing signed by all parties
hereto.

                                       15

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT
REQUEST.  REDACTED MATERIAL IS MARKED WITH A *** AND HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

<PAGE>

                                               CONFIDENTIAL TREATMENT REQUESTED

This Agreement is executed on behalf of the parties by duly authorized officers
as of the date first above written.

IMPERIAL BANK                                    OVERLAND DATA, INC.
("BANK")                                         ("BORROWER")

By: /s/ Tracy M. Fredricks                       By: /s/ Scott McClendon
    Tracy M. Fredricks                               Scott McClendon

    Its: Vice President                              Its: President/CEO

                                                 By: /s/ Vernon A. LoForti
                                                     Vernon A. LoForti

                                                     Its:   Vice President/CFO

                                       16

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT
REQUEST.  REDACTED MATERIAL IS MARKED WITH A *** AND HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

<PAGE>

                                               CONFIDENTIAL TREATMENT REQUESTED

IMPERIAL BANK

MEMBER FDIC

                                   PROMISSORY NOTE

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
            PRINCIPAL      LOAN DATE       MATURITY     LOAN NO.     CALL        COLLATERAL      ACCOUNT   OFFICER      INITIALS
          <S>              <C>            <C>          <C>           <C>         <C>             <C>       <C>          <C>
          $5,000,000.00    11-10-1999     11-05-2001      ***                    000             ***        ***
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

     References in the shaded area are for Lender's use only and do not limit
the applicability of this document to any particular loan or item.
------------------------------------------------------------------------------

BORROWER: OVERLAND DATA, INC.             LENDER:   IMPERIAL BANK
          8975 BALBOA AVENUE                        SAN DIEGO REGIONAL OFFICE
          SAN DIEGO, CA 92123                       701 B STREET, SUITE 600
                                                    SAN DIEGO, CA 92101-8120
==============================================================================

PRINCIPAL AMOUNT: $5,000,000.00      INITIAL RATE: 8.500%
           DATE OF NOTE: NOVEMBER 10, 1999

PROMISE TO PAY. OVERLAND DATA, INC. ("BORROWER") promises to pay to Imperial
Bank ("LENDER"), or order, in lawful money of the United States of America,
the principal amount of Five Million $ 00/100 Dollars ($5,000,000.00) or so
much as may be outstanding, together with interest on the unpaid principal
balance of each advance. Interest shall be calculated from the date of each
advance until repayment of each advance.

PAYMENT:  Borrower will pay this loan in one payment of all outstanding
principal plus all accrued unpaid interest on November 5, 2001. In addition,
Borrower will pay regular monthly payments of accrued unpaid interest
beginning December 5, 1999, and all subsequent interest payments are due on
the same day of each month after that. The annual interest rate for this
Note is computed on a 365/360 basis; that is, by applying the ratio of the
annual interest rate over a year of 360 days, multiplied by the outstanding
principal balance, multiplied by the actual number of days he principal
balance is outstanding. Borrower will pay Lender a Lender's address shown
above or at such other place as Lender may designate in writing. Unless
otherwise agreed or required by applicable law, payments will be applied
first to any unpaid collection costs and any late charges, then to any unpaid
interest, and any remaining amount to principal.

VARIABLE INTEREST RATE. The interest rate on this Note is subject to change
from time to time based on changes in an index which is the Imperial Bank
Prime Rate (the "Index"). The Prime Rate is the rate announced by Lender as
its Prime Rate of interest from time to time. Lender will tell Borrower the
current index rate upon Borrower's request. Borrower understands that Lender
may make loans based on other rates as well. The interest rate change will
not occur more often than each day. THE INDEX CURRENTLY IS 8.500%. THE
INTEREST RATE TO BE APPLIED TO THE UNPAID PRINCIPAL BALANCE OF THIS NOTE WILL
BE AT A RATE EQUAL TO THE INDEX, RESULTING IN AN INITIAL RATE OF 8.500%.
NOTICE: Under no circumstances will the interest rate on this Note be more
than the maximum rate allowed by applicable law.

PREPAYMENT: MINIMUM INTEREST CHARGE. Borrower agrees that all loan fees and
other prepaid finance charges are earned fully as of the date of the loan and
will not be subject to refund upon early payment (whether voluntary or as a
result of default), except as otherwise required by law. In any event, even
upon full prepayment of this Note, Borrower understands that Lender is
entitled to A MINIMUM INTEREST CHARGE OF $250.00. Other than borrower's
obligation to pay any minimum interest charge, Borrower may pay without
penalty all or a portion of the amount owed earlier than it is due. Early
payments will not, unless agreed to by Lender in writing, relieve Borrower of
Borrower's obligation to continue to make payments of accrued unpaid
interest. Rather, they will reduce the principal balance due.

LATE CHARGE. If a payment is 10 DAYS OR MORE LATE, Borrower will be charged
5.000% of the unpaid portion of the regularly scheduled payment.

DEFAULT. Borrower will be in default if any of the following happens: (a)
Borrower fails to make any payment when due. (b) Borrower breaks any promise
Borrower has made to Lender, or Borrower fails to comply with or to perform
when due any other term, obligation, covenant, or condition contained in this
Note or any agreement related to this Note, or in any other agreement or loan
Borrower has with Lender. (c) Any representation or statement made or
furnished to Lender by Borrower or on Borrower's behalf is false or
misleading in any material respect either now or at the time made or
furnished. (d) Borrower becomes insolvent, a receiver is appointed for any
part of Borrower's property, Borrower makes an assignment for the benefit of
creditors, or any proceeding is commenced either by Borrower or against
Borrower under any bankruptcy or insolvency laws. (e) Any creditor tries to
take any of Borrower's property on or in which Lender has a lien or security
interest. This includes a garnishment of any of Borrower's accounts with
Lender. (f) Any guarantor dies or any of the other events described in this
default section occurs with respect to any guarantor of this Note. (g) A
material adverse change occurs in Borrower's financial condition, or Lender
believes the prospect of payment or performance of the indebtedness is
impaired. (h) Lender in good faith deems itself insecure.

If any default, other than a default in payment, is curable and if Borrower
has not been given a notice of a breach of the same provision of this Note
within the preceding twelve (12) months, it may be cured (and no event of
default will have occurred) if Borrower, after receiving written notice from
Lender demanding cure of such default: (a) cures the default within ten (10)
days; or (b) if the cure requires more than ten (10) days, immediately
initiates steps which Lender deems in Lender's sole discretion to be
sufficient to cure the default and thereafter continues and completes all
reasonable and necessary steps sufficient to produce compliance as soon as
reasonably practical.

LENDER'S RIGHTS. Upon default, Lender may declare the entire unpaid principal
balance on this Note and all accrued unpaid interest immediately due, without
notice, and then Borrower will pay that amount. Upon Borrower's failure to
pay all amounts declared due pursuant to this section, including failure to
pay upon final maturity, Lender, at its option, may also, if permitted under
applicable law, do one or both of the following: (a) increase the variable
interest rate on this Note to 5.000 percentage points over the index, and (b)
add any unpaid accrued interest to principal and such sum will bear interest
therefrom until paid at the rate provided in this Note (including any
increased rate). Lender may hire or pay someone else to help collect this
Note if Borrower does not pay. Borrower also will pay Lender that amount.
This includes, subject to any limits under applicable law, Lender's
attorneys' fees and Lender's legal expenses whether or not there is a
lawsuit, including attorneys' fees and legal expenses for bankruptcy
proceedings (including efforts to modify or vacate any automatic stay or
injunction), appeals, and any anticipated post-judgment collection services.
Borrower also will pay any court costs, in addition to all other sums
provided by law. THIS NOTE HAS BEEN DELIVERED TO LENDER AND ACCEPTED BY
LENDER IN THE STATE OF CALIFORNIA. IF THERE IS A LAWSUIT, BORROWER AGREES
UPON LENDER'S REQUEST TO SUBMIT TO THE JURISDICTION OF THE COURTS OF LOS
ANGELES COUNTY, THE STATE OF CALIFORNIA. LENDER AND BORROWER HEREBY WAIVE THE
RIGHT TO ANY JURY TRIAL IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM BROUGHT BY
EITHER LENDER OF BORROWER AGAINST THE OTHER. (INITIAL HERE SM/VAL) THIS
NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF CALIFORNIA.

DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $25.00 if Borrower
makes a payment on Borrower's loan and the check or preauthorized charge with
which Borrower pays is later dishonored.

RIGHT OF SETOFF. Borrower grants to Lender a contractual security interest
in, and hereby assigns, conveys, delivers, pledges, and transfers to Lender
all Borrower's right, title and interest in and to, Borrower's accounts with
Lender (whether checking, savings, or some other account), including without
limitation all accounts held jointly with someone else and all accounts
Borrower may open in the future, excluding however all IRA and Keogh
accounts, and all trust accounts for which the grant of a security interest
would be prohibited by law. Borrower authorized Lender, to the extent
permitted by applicable law, to charge or setoff all sums owing on this Note
against any and all such accounts.

LINE OF CREDIT. This Note evidences a revolving line of credit. Advances
under this Note may be requested orally by Borrower or by an authorized
person. All oral requests shall be confirmed in writing on the day of the
request. All communications, instructions, or directions by telephone or
otherwise to Lender are to be directed to Lender's office shown above. The
following party or parties are authorized to request advances under the line
of credit until Lender receives from Borrower at Lender's address shown above
written notice of revocation of their authority: SCOTT MCCLENDON,
PRESIDENT/CEO; VERNON A. LOFORTI, VP/CFO; AND MARTIN D. GRAY, SECRETARY.
Borrower agrees to be liable for all sums either: (a) advanced in accordance
with the instructions of an authorized person or (b) credited to any of
Borrower's accounts with Lender. The unpaid principal balance owing on this
Note at any time may be evidenced by endorsements on this Note or by Lender's
internal records, including daily computer print-outs. Lender will have no
obligation to advance funds under this Note if: (a) Borrower or any guarantor
is in default under the terms of this Note or any agreement that Borrower or
any guarantor has with Lender, including any agreement made in connection
with the signing of this Note: (b) Borrower of any guarantor ceases doing
business or is insolvent; (c) any guarantor seeks, claims or otherwise
attempts to limit, modify or revoke such guarantor's guarantee of this Note
or any other loan with Lender; (d) Borrower has applied funds provided
pursuant to this Note for purposes other than those authorized by Lender; or
(e) Lender in good faith deems itself insecure under this Note or any other
agreement between Lender and Borrower.

CREDIT AGREEMENT. This Note is subject to the provisions of the Credit
Agreement dated November 10, 1999, and all amendments thereto and
replacements therefor.

GENERAL PROVISIONS. Lender may delay or forgo enforcing any of its rights or
remedies under this Note without losing them. Borrower and any other person
who signs, guarantees or endorses this Note, to the extent allowed by law,
waive any applicable statute of limitations, presentment, demand for payment,
protest and notice of dishonor. Upon any change in the terms of this Note,
and unless otherwise expressly stated in writing, no party who signs this
Note, whether as maker, guarantor, accommodation maker or endorser, shall be
released from liability. All such parties agree that Lender may renew or
extend (repeatedly and for any length of time) this loan, or release any
party or guarantor or collateral; or impair, fail to realize upon or perfect
Lender's security interest in the collateral; and take any other action
deemed necessary by Lender without the consent of or notice to anyone. All
such parties also agree that Lender may modify this loan without the consent
of or notice to anyone other than the party with whom the modification is
made.

PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS
OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER
AGREES TO THE TERMS OF THE NOTE AND ACKNOWLEDGES RECEIPT OF A COMPLETED COPY
OF THE NOTE.

BORROWER:

OVERLAND DATA, INC.

By: /s/ V.A. LoForti                    By: /s/ Scott McClendon
   ---------------------------             ----------------------------------
   AUTHORIZED OFFICER                      AUTHORIZED OFFICER

=============================================================================

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT
REQUEST.  REDACTED MATERIAL IS MARKED WITH A *** AND HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

<PAGE>

                                               CONFIDENTIAL TREATMENT REQUESTED

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
   PRINCIPAL        LOAN DATE     MATURITY       LOAN NO.        CALL      COLLATERAL     ACCOUNT        OFFICER        INITIALS
<S>                 <C>           <C>            <C>             <C>       <C>            <C>            <C>            <C>
$5,000,000.00       11-10-1999    11-05-2001       ***                     000             ***            ***
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>

     References in the shaded area are for Lender's use only and do not limit
the applicability of this document to any particular loan or item.
--------------------------------------------------------------------------------

BORROWER:      OVERLAND DATA, INC.      LENDER:   IMPERIAL BANK
               8975 BALBOA AVENUE                 SAN DIEGO REGIONAL OFFICE
               SAN DIEGO, CA  92123               701 B STREET, SUITE 600
                                                  SAN DIEGO, CA 92101-8120
================================================================================

I, the undersigned Secretary or Assistant Secretary of OVERLAND DATA, INC. (the
"Corporation"), HEREBY CERTIFY that the Corporation is organized and existing
under and by virtue of the laws of the State of California as a corporation for
profit, with its principal office at 8975 BALBOA AVENUE, SAN DIEGO, CA 92123,
and is duly authorized to transact business in the State of California.

I FURTHER CERTIFY that at a meeting of the Directors of the Corporation, duly
called and held on November 8, 1999, at which a quorum was present and voting,
or by other duly authorized corporate action in lieu of a meeting, the following
resolutions were adopted:

BE IT RESOLVED, that any two (2) of the following named officers, employees, or
agents of this Corporation, whose actual signatures are shown below:

     NAMES                         POSITIONS           ACTUAL SIGNATURES
     -----                         ---------           -----------------

     SCOTT MCCLENDON               PRESIDENT/CEO       X /s/ Scott McClendon
                                                        ------------------------

     VERNON A. LOFORTI             VP/CFO, SECRETARY   X /s/ Vernon A. Loforti
                                                        ------------------------

     MARTIN D. GRAY                ASST. SECRETARY/    X /s/ Martin D. Gray
                                   VP/CTO               ------------------------

acting for and on behalf of the Corporation and as its act and deed be, and they
hereby are, authorized and empowered:

     BORROW MONEY.  To borrow from time to time from Imperial Bank ("Lender"),
     on such terms as may be agreed upon between the Corporation and Lender,
     such sum or sums of money as in their judgment should be borrowed; however,
     not exceeding at any one time the amount of Five Million Three Hundred
     Thousand & 00/100 Dollars ($5,300,000.00).  In addition to such sum or sums
     of money as may be currently borrowed by the Corporation from Lender.

     EXECUTE NOTES.  To execute and deliver to Lender the promissory note or
     notes, or other evidence of credit accommodations of the Corporation, on
     Lender's forms, at such rates of interest and on such terms as may be
     agreed upon, evidencing the sums of money so borrowed or any indebtedness
     of the Corporation to Lender, and also to execute and deliver to Lender one
     or more renewals, extensions, modifications, refinancings, consolidations,
     or substitutions for one or more of the notes, any portion of the notes, or
     any other evidence of credit accommodations.

     GRANT SECURITY.  To mortgage, pledge, transfer, endorse, hypothecate, or
     otherwise encumber and deliver to Lender, as security for the payment of
     any loans or credit accommodations so obtained, any promissory notes so
     executed (including any amendments to or modifications, renewals, and
     extensions of such promissory notes), or any other or further indebtedness
     of the Corporation to Lender at any time owing, however the same may be
     evidenced, any property now or hereafter belonging to the Corporation or in
     which the Corporation now or hereafter may have an interest, including
     without limitation all real property and all personal property (tangible or
     intangible) of the Corporation.  Such property may be mortgaged, pledged,
     transferred, endorsed, hypothecated, or encumbered at the time such loans
     are obtained or such indebtedness is incurred, or at any other time or
     times, and may be either in addition to or in lieu of any property
     theretofore mortgaged, pledged, transferred, endorsed, hypothecated, or
     encumbered.

     EXECUTE SECURITY DOCUMENTS.  To execute and deliver to Lender the forms of
     mortgage, deed of trust, pledge agreement, hypothecation agreement, and
     other security agreements and financing statements which may be required by
     Lender, and which shall evidence the terms and conditions under and
     pursuant to which such liens and encumbrances, or any of them, are given;
     and also to execute and deliver to Lender any other written instruments,
     any chattel paper, or any other collateral, of any kind or nature, which
     Lender may deem necessary or proper in connection with or pertaining to the
     giving of the liens and encumbrances.  Notwithstanding the foregoing, any
     one of the above authorized persons may execute, deliver, or record
     financing statements.

     NEGOTIATE ITEMS.  To draw, endorse, and discount with Lender all drafts,
     trade acceptances, promissory notes, or other evidences of indebtedness
     payable to or belonging to the Corporation in which the Corporation may
     have an interest, and either to receive cash for the same or to cause such
     proceeds to be credited to the account of the Corporation with Lender, or
     to cause such other disposition of the proceeds derived therefrom as they
     may deem advisable.

     FURTHER ACTS.  In the case of lines of credit, to designate additional or
     alternate individuals as being authorized to request advances thereunder,
     and in all cases, to do and perform such other acts and things, to pay any
     and all fees and costs, and to execute and deliver such other documents and
     agreements, including agreements waiving the right to a trial by jury, as
     they may in their discretion deem reasonable necessary or proper in order
     to carry into effect the provisions of these Resolutions.  The following
     person or persons currently are authorized to request advances and
     authorize payments under the line of credit until Lender receives written
     notice of revocation of their authority: SCOTT MCCLENDON, PRESIDENT/CEO;
     VERNON A. LOFORTI, VP/CFO; and MARTIN D. GRAY, SECRETARY.

BE IT FURTHER RESOLVED, that any and all acts authorized pursuant to these
Resolutions and performed prior to the passage of these Resolutions are hereby
ratified and approved, that these Resolutions shall remain in full force and
effect and Lender may rely on these Resolutions until written notice of their
revocation shall have been delivered to and received by Lender.  Any such notice
shall not affect any of the Corporation's agreements or commitments in effect at
the time notice is given.

BE IT FURTHER RESOLVED, that the Corporation will notify Lender in writing at
Lender's address shown above (or such other addresses as Lender may designate
from time to time) prior to any (a) change in the name of the Corporation, (b)
change in the assumed business name(s) of the Corporation, (c) change in the
management of the Corporation, (d) change in the authorized signer(s), (e)
conversion of the Corporation to a new or different type of business entity, or
(f) change in any other aspect of the Corporation that directly or indirectly
relates to any agreements between the Corporation and Lender.  No change in the
name of the Corporation will take effect until after Lender has been notified.

SIGNATURE AUTHORIZATION.  An exhibit titled "SIGNATURE AUTHORIZATION" is
attached to this Resolution and by this reference is made a part of this
Resolution just as if all the provisions, terms and conditions of the Exhibit
had been fully set forth in this Resolution.

I FURTHER CERTIFY that the officers, employees, and agents named above are duly
elected, appointed, or employed by or for the Corporation, as the case may be,
and occupy the positions set opposite their respective names; that the foregoing
Resolutions now stand of record on the books of the Corporation; and that the
Resolutions are in full force and affect and have not been modified or revoked
in any manner whatsoever.  The Corporation has no corporate seal, and therefore,
no seal is affixed to this certificate.

IN TESTIMONY WHEREOF, I HAVE HEREUNTO SET MY HAND ON NOVEMBER 10, 1999 AND
ATTEST THAT THE SIGNATURES SET OPPOSITE THE NAMES LISTED ABOVE ARE THEIR GENUINE
SIGNATURES.

                                             CERTIFIED TO AND ATTESTED BY:

                                             X /s/ Martin D. Gray
                                              ----------------------------------

                                             X /s/ Vernon A. Loforti
                                              ----------------------------------

NOTE: In case the Secretary or other certifying officer is designated by the
foregoing resolutions as one of the signing officers, it is advisable to have
this certificate signed by a second Officer or Director of the Corporation.

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT
REQUEST.  REDACTED MATERIAL IS MARKED WITH A *** AND HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

<PAGE>

                                               CONFIDENTIAL TREATMENT REQUESTED

               =================================================================

BORROWER:      OVERLAND DATA, INC.      LENDER:   IMPERIAL BANK
               8975 BALBOA AVENUE                 SAN DIEGO REGIONAL OFFICE
               SAN DIEGO, CA  92123               701 B STREET, SUITE 600
                                                  SAN DIEGO, CA 92101-8120

               =================================================================

THIS SIGNATURE AUTHORIZATION IS ATTACHED TO AND BY THIS REFERENCE IS MADE A PART
OF EACH BORROWING RESOLUTION, DATED NOVEMBER 10, 1999, AND EXECUTED IN
CONNECTION WITH A LOAN OR OTHER FINANCIAL ACCOMMODATIONS BETWEEN IMPERIAL BANK
AND OVERLAND DATA, INC..

The individuals named below, any one acting alone, are hereby authorized and
appointed for and on behalf of Borrower from time to time to do any of the
following:

(1)  To request advances of credit under the Agreement and to effect repayment
of any credit outstanding under the Agreement;

(2)  To execute and deliver assignments, borrowing certificates, instruments,
schedules, reports, invoices, bills, shipping documents and such other documents
or certificates as may be necessary or appropriate under the Agreement or any
other agreement or instrument relating thereto or delivered in connection
therewith;

(3)  To transfer and endorse to Bank in payment of Borrower's obligations to
Bank any checks, drafts, notes or other instruments payable to Borrower; and

(4)  To do or perform any and all other acts or matters in any way relating to
any or all of the foregoing.

The undersigned individuals each further certifies that the specimen signatures
below are the genuine signatures of the individuals designated herein and that
their signatures shall be binding on Borrower until Bank receives written notice
of termination of the authority of any such designated individuals.

Signature:  /s/ Scott McClendon
          -----------------------------------

Name:  Scott McClendon
     ----------------------------------------

Signature:  /s/ V.A. LoForti
          -----------------------------------

Name:  V.A. LoForti
     ----------------------------------------    THIS SECTION IS FOR INDIVIDUALS
                                                 AUTHORIZED TO PERFORM ITEMS
Signature:  /s/ Martin D. Gray                   1 THROUGH 4 MENTIONED ABOVE.
          -----------------------------------
                                                 NAMES & SIGNATURES
Name:  Martin D. Gray
     ----------------------------------------

Signature:
          -----------------------------------

Name:
     ----------------------------------------

THIS SIGNATURE AUTHORIZATION IS EXECUTED ON NOVEMBER 10, 1999.

BORROWER:

OVERLAND DATA, INC.

By:  /s/ V.A. LoForti
   ------------------------------------------
   AUTHORIZED OFFICER

By:  /s/ Scott McClendon
   ------------------------------------------
   AUTHORIZED OFFICER

LENDER:

Imperial Bank

By:
   ------------------------------------------
   Authorized Officer

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT
REQUEST.  REDACTED MATERIAL IS MARKED WITH A *** AND HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

<PAGE>

                                               CONFIDENTIAL TREATMENT REQUESTED

     [LOGO]
    IMPERIAL BANK

     Member FDIC

          DISBURSEMENT REQUEST AND AUTHORIZATION

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------
    Principal      Loan Date    Maturity     Loan No     Call   Collateral   Account   Officer  Initials
  <S>              <C>         <C>          <C>          <C>    <C>          <C>       <C>      <C>
  $5,000,000.00    11-10-1999  11-05-2001    ***                 000          ***       ***
---------------------------------------------------------------------------------------------------------
</TABLE>

    References in the shaded area are for Lender's use only and do not limit the
    applicability of this document to any particular loan or item.
-------------------------------------------------------------------------------

BORROWER:  OVERLAND DATA, INC.              LENDER:  Imperial Bank
           8975 BALBOA AVENUE                        San Diego Regional Office
           SAN DIEGO, CA 92123                       701 B Street, Suite 600
                                                     San Diego, CA 92101-8120
===============================================================================

LOAN TYPE. This is a Variable Rate (at Imperial Bank Prime Rate, making an
initial rate of 8.500%). Revolving Line of Credit Loan to a Corporation for
$5,000,000.00 due on November 5, 2001.

PRIMARY PURPOSE OF LOAN. The primary purpose of this loan is for (please
initial):
        / / ________ Personal, Family, or Household Purposes or Personal
                     Investment.
        /X/  VAL     Business (Including Real Estate Investment).
            --------
            [ILLEGIBLE]
SPECIFIC PURPOSE. The specific purpose of this loan is: RENEW LINE ORIGINALLY
FOR WORKING CAPITAL AND SUPPORT LETTER OF CREDIT ACTIVITY.

DISBURSEMENT INSTRUCTIONS. Borrower understands that no loan proceeds will be
disbursed until all of Lender's conditions for making the loan have been
satisfied. Please disburse the loan proceeds of $5,000,000.00 as follows:

             AMOUNT PAID TO BORROWER DIRECTLY:                   $5,000,000.00
               $5,000,000.00 Deposited to Account # ***          --------------

             NOTE PRINCIPAL:                                     $5,000,000.00

CHARGES PAID IN CASH. Borrower has paid or will pay in cash as agreed the
following charges:

             PREPAID FINANCE CHARGES PAID IN CASH:
                 $250.00 Documentation Fee                            $250.00
                                                                ---------------
             TOTAL CHARGES PAID IN CASH:                              $250.00

DISBURSEMENT PROVISION. *or by Cashier's Checks or by wire transfers when
advances are requested.

INTERNATIONAL SUB-LIMITS. Subject to conditions and limitations as specified
in the Credit Agreement dated November 10, 1999, as it may be revised from
time to time. Proceeds are to be available and applied as required for
International transactions.

AUTOMATIC PAYMENTS. Borrower hereby authorizes Lender automatically to deduct
from Borrower's account numbered *** the amount of any loan payment.
If the funds in the account are insufficient to cover any payment, Lender
shall not be obligated to advance funds to cover the payment.

FINANCIAL CONDITION. BY SIGNING THIS AUTHORIZATION, BORROWER REPRESENTS AND
WARRANTS TO LENDER THAT THE INFORMATION PROVIDED ABOVE IS TRUE AND CORRECT
AND THAT THERE HAS BEEN NO MATERIAL ADVERSE CHANGE IN BORROWER'S FINANCIAL
CONDITION AS DISCLOSED IN BORROWER'S MOST RECENT FINANCIAL STATEMENT TO
LENDER. THIS AUTHORIZATION IS DATED NOVEMBER 10, 1999.

BORROWER:

OVERLAND DATA, INC.

By: /s/ V.A. LoForti                           By: /s/ Scott McClendon
   ---------------------------------           --------------------------------
   AUTHORIZED OFFICER                          AUTHORIZED OFFICER
===============================================================================

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT
REQUEST.  REDACTED MATERIAL IS MARKED WITH A *** AND HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

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