Document:

Exhibit
10.1

SECOND
AMENDMENT TO SERVICES AGREEMENT

This SECOND AMENDMENT TO
SERVICES AGREEMENT (this “Amendment”)
dated as of August 20, 2007 is made by and between InfoLogix, Inc., a Delaware
corporation, and Futura Services, Inc., a Pennsylvania corporation.

WHEREAS, the parties to
this Amendment are party to a certain Services Agreement, dated as of July 17,
2006, as amended by the Amendment dated as of October 9, 2006 (the “Services Agreement”); and

WHEREAS, the parties
desire to amend or modify certain terms of the Services Agreement in certain
respects on the terms and conditions set forth below.

NOW, THEREFORE, the
parties hereto, intending to be legally bound, hereby agree as follows:

1.             Upon execution of this Amendment by
each of the parties to this Amendment, the Services Agreement is amended in
each of the following respects:

(a)           The Annual Minimum Purchase set forth
in Section 1.3 of the Services Agreement shall be increased from $700,000 to
$1,500,000.

(b)           The Termination Fee set forth in
Section 9.3 of the Services Agreement shall be increased from $700,000 to
$1,500,000.

2.             This Amendment shall be governed by and construed under
the laws of the Commonwealth of Pennsylvania without regard to conflicts of
laws principles that would require the application of any other law.

3.             Capitalized terms used but not
defined in this Amendment shall have the meanings ascribed thereto in the
Services Agreement.

4.             Except as otherwise expressly
provided in this Amendment, the terms of the Services Agreement shall continue
in full force and effect.  This Amendment
may be executed in one or more counterparts, each of which shall be deemed to
be an original and all of which, when taken together, shall be deemed to
constitute one and the same agreement. 
The exchange of copies of this Amendment and of signature pages by
facsimile transmission shall constitute effective execution and delivery of
this Amendment and may be used in lieu of the original Amendment for all
purposes.

[signature page
follows]

 

IN WITNESS WHEREOF, each
of the parties to this Amendment has duly executed this Amendment all as of the
date first above written.

	
  

  	
  INFOLOGIX, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Gulian

  
	
   

  	
   

  	
  Name:

  	
  David Gulian

  
	
   

  	
   

  	
  Title:

  	
  President and Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  FUTURA SERVICES,
  INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Janet E. DiNicola

  
	
   

  	
   

  	
  Name:

  	
  Janet E. DiNicola

  
	
   

  	
   

  	
  Title:

  	
  President

  

[SIGNATURE PAGE TO SECOND AMENDMENT TO SERVICES
AGREEMENT]Exhibit 10.42

OVERLAND STORAGE, INC.

SUMMARY SHEET

OF

DIRECTOR AND EXECUTIVE OFFICER COMPENSATION

Non-Employee Director Compensation 

Our
compensation plan for non-employee directors consists of both a cash component
and an equity component. We pay each non-employee director $5,000 per quarter,
plus $2,500 for each Board meeting attended ($1,250 if held telephonically),
plus reimbursement for expenses. The Chairman of the Board receives an
additional $2,500 per quarter in addition to the non-employee director fee of
$5,000 per quarter. Members of the Audit Committee and the Compensation
Committee receive a retainer of $500 per quarter in lieu of a fee for committee
meetings attended during a quarter and members of the Nominating and Governance
Committee receive $500 for each committee meeting attended ($250 if held
telephonically and no fee if held the same day as a Board meeting). Members of
the Shareholder Value Committee will receive $500 for each committee meeting
attended (whether telephonically or in person). Such fee will not be paid for
committee meetings in joint session with the full board.

In
addition to the cash component of compensation, each non-employee director
receives stock options. Under our 2003 Equity Incentive Plan, which we refer to
as the 2003 Incentive Plan, each non-employee director receives a ten-year
nonqualified stock option to purchase 18,000 shares on the same date as the
company’s annual meeting of shareholders. These options are exercisable at fair
market value on the date of grant and vest in equal monthly installments over a
12-month period, as measured from the grant date. When a new non-employee
director joins the board, such director will be awarded a new option for a
number of shares determined by multiplying 1,500 by the number of months
remaining until the next scheduled annual meeting date, giving credit for any
partial month. Such option will vest at the rate of 1,500 shares per month and
will be fully vested at the next annual meeting date, at which time the
director will receive the normal annual grant.

On
November 14, 2006, the date of our last annual meeting of shareholders, Robert
Degan, Bill Miller and Michael Norkus each received an option for 18,000
shares.

Compensation of Executive Officers

Our
executive officers serve at the discretion of the Board of Directors. From time
to time, the Compensation Committee of the Board of Directors reviews and
determines the salaries that are paid to our executive officers. The following
table sets forth the annual salary rates for our current executive officers as
of the date of this report on Form 10-K:

	
  W. Michael Gawarecki

  	
   

  	
  $

  	
  246,500

  	
   

  
	
  Kurt L.
  Kalbfleisch

  	
   

  	
  $

  	
  200,000

  	
   

  
	
  Michael S.
  Kerman

  	
   

  	
  $

  	
  225,000

  	
   

  
	
  Vernon A.
  LoForti

  	
   

  	
  $

  	
  400,000

  	
   

  
	
  Robert J. Scroop

  	
   

  	
  $

  	
  220,500

  	
   

  

 

Employment Arrangements with Current Executive Officers

The
following discussion summarizes the employment arrangements between us and our
current executive officers as of the date of this report on Form 10-K:

W. Michael Gawarecki.  As
our Vice President of Operations, Mr. Gawarecki is an at-will employee and may
be terminated by us for any reason, with or without notice. He currently earns
an annual salary of $246,500. On August 13, 2007, he received an option to
purchase up to 100,000 shares of the Company’s common stock at the purchase
price of $1.62 per share (the closing price of the Company’s common stock on
the date of grant) pursuant to the 2003 Incentive Plan. The option will 

vest
over one year in equal monthly installments. The option will accelerate upon a “Change
in Control” as defined in the 2003 Incentive Plan. The option has a three-year
life, subject to continuous service to the Company.

Kurt L.
Kalbfleisch. As our Interim Chief Financial Officer and Vice
President of Finance, Mr. Kalbfleisch is an at-will employee and may be
terminated by us for any reason, with or without notice. He currently earns an
annual salary of $200,000 per year and will earn cash bonuses of $10,000 each
in October 2007, January 2008, April 2008 and July 2008, subject to his
continued employment at our company at those times. On August 13, 2007, he
received an option to purchase up to 75,000 shares of the Company’s common
stock at the purchase price of $1.62 per share (the closing price of the
Company’s common stock on the date of grant) pursuant to the 2003 Incentive
Plan. The option will vest over one year in equal monthly installments. The
option will accelerate upon a “Change in Control” as defined in the 2003
Incentive Plan. The option has a three-year life, subject to continuous service
to the Company.

Michael S. Kerman. Mr. Kerman, our Vice President of Marketing and Chief
Strategy Officer, is an at-will employee and may be terminated by us for any
reason, with or without notice. Mr. Kerman currently earns an annual salary of
$225,000 per year. On August 13, 2007, he received an option to purchase up to
150,000 shares of the Company’s common stock at the purchase price of $1.62 per
share (the closing price of the Company’s common stock on the date of grant)
pursuant to the 2003 Incentive Plan. The option will vest over one year in
equal monthly installments. The option will accelerate upon a “Change in
Control” as defined in the 2003 Incentive Plan. The option has a three-year
life, subject to continuous service to the Company.

Vernon A. LoForti. In connection with his appointment as President and
Chief Executive Officer on August 7, 2007, Mr. LoForti’s annual base salary was
increased from $297,750 to $400,000. We entered into an employment agreement
with Mr. LoForti on December 4, 2000 pursuant to which Mr. LoForti was employed
as our Vice President and Chief Financial Officer. Other than conforming
changes to reflect Mr. LoForti’s new positions and base salary, there will be
no material changes to Mr. LoForti’s employment agreement. The employment
agreement has a one-year term, automatically renews for successive one-year
terms, and provides that our Board may unilaterally modify Mr. LoForti’s
compensation at any time. If we terminate Mr. LoForti’s employment without
cause, then we are obligated to pay him a severance payment equal to his base
salary, payable on a pro-rated basis according to our normal payroll cycle for
the 12 months following his termination. In addition, he is entitled to
receive accelerated vesting for any stock options that would otherwise have
vested during the 12-month period following his termination. He is also
entitled to receive the cash severance payment if he resigns for good reason
because of any of the following events: (i) reduction in compensation of more
than 10%; (ii) change in position or duties so that his duties are no longer
consistent with his previous position; or (iii) change in principal place of
work to more than 50 miles from our current facility without his approval. On
August 13, 2007, he received an option to purchase up to 250,000 shares of the
Company’s common stock at the purchase price of $1.62 per share (the closing
price of the Company’s common stock on the date of grant) pursuant to the 2003
Incentive Plan. The option will vest over one year in equal monthly
installments. The option will accelerate upon a “Change in Control” as defined
in the 2003 Incentive Plan. The option has a three-year life, subject to
continuous service to the Company.

Robert J. Scroop. As our Vice President, New Product Delivery, Mr.
Scroop is an at-will employee and may be terminated by us for any reason, with
or without notice. Mr. Scroop currently earns an annual salary of $220,500 per
year. On August 13, 2007, he received an option to purchase up to 75,000 shares
of the Company’s common stock at the purchase price of $1.62 per share (the
closing price of the Company’s common stock on the date of grant) pursuant to
the 2003 Incentive Plan. The option will vest over one year in equal monthly
installments. The option will accelerate upon a “Change in Control” as defined
in the 2003 Incentive Plan. The option has a three-year life, subject to
continuous service to the Company.

Retention Agreements

We entered into retention
agreements with Messrs. LoForti, Scroop and Gawarecki effective
January 27, 2000, with Mr. Kerman effective August 30, 2004, and with
Mr. Kalbfleisch effective July 23, 2007. These agreements provide that the
officer will receive a severance payment if, within two years of the
consummation of a change in control of Overland, he is terminated without cause
or resigns with good reason. These severance payments are based on the officer’s
base salary at the time of the consummation of the change in control or the
termination date, whichever is higher, plus his or her target bonus for the
year prior to the consummation of the change in control. The agreements provide
that, upon a change in control, Mr. LoForti would be entitled to receive
an amount equal to 2.0 times his base salary plus target bonus; and
Messrs. Gawarecki, Kalbfleisch, Kerman, and Scroop each would be entitled
to an amount equal to his respective base salary plus target bonus. If any
portion of any payment under any of the agreements would constitute an “excess
parachute payment” within the meaning of Section 280G of the Internal
Revenue Code, then that payment will be reduced to an amount that is one dollar
less than the threshold for triggering the tax imposed by Section 4999 of
the Internal Revenue Code.

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