Document:

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                                  EXHIBIT 10.1
                             BUSINESS LOAN AGREEMENT

         This Business Loan Agreement (this "Agreement") is entered into by and
between Comerica Bank-California ("Bank") and OVERLAND DATA, INC., a corporation
("Borrower") as of this 28th day of November, 2002, at Bank's headquarters
office at 333 West Santa Clara Street, San Jose, California 95113.

         1.       LOANS TO BORROWER. Bank and Borrower agree that any loans
which Bank in its sole discretion has made or may now or hereafter make to
Borrower (sometimes hereinafter collectively referred to as the "Loan") shall be
subject to the terms and conditions of this Agreement unless otherwise agreed to
in writing by Bank and Borrower. In the event there are contradictions between
the provisions of this Agreement and any other written agreement with the Bank,
this Agreement shall prevail. Loan shall be subject to the terms and conditions
of this Agreement, promissory note(s) executed in connection herewith and/or
previously or subsequently executed, and all amendments, renewals and extensions
thereof (singularly or collectively, the "Note"), and all those certain security
agreements and/or such other security or other documents as Bank has required or
may now or hereafter require in connection with the Loan (collectively, the
"Loan Documents").

         2.       LEGAL EFFECT. This Agreement supplements the terms and
conditions of the Loan Documents. Except as otherwise specified herein, all
terms used in this Agreement shall have the same meaning as given in the Note
and/or Loan Documents which are incorporated herein by this reference. Any and
all terms used in this Agreement, the Note and/or the Loan Documents shall be
construed and defined in accordance with the meaning and definition of such term
under and pursuant to the California Uniform Commercial Code, as amended. Except
as specifically modified hereby, all of the terms and conditions of the Note
and/or the Loan Documents shall remain in full force and effect.

         3.       INTEREST RATE; PAYMENT TERMS; LOAN FEES. The principal and
interest on the Loan shall be payable on the terms set forth in the Note and/or
the Loan Documents. A loan fee in the sum of One Thousand Dollars ($1,000) shall
be paid concurrently with the execution of this Agreement. In addition, Borrower
shall pay such additional loan fees from time to time in the future as agreed
between Bank and Borrower.

         4.       SECURITY. As security for Borrower's obligations to Bank under
this Agreement, the Note and/or the Loan Documents and all other indebtedness
and liabilities whatsoever of Borrower to Bank, whether direct or indirect,
absolute or contingent, due or to become due, now existing or hereafter arising,
evidenced by the Note and/or the Loan Documents (collectively, the
"Indebtedness"), Borrower hereby grants to Bank, prior to or simultaneously with
the borrowing hereunder, a continuing security interest of first priority in all
accounts receivable, inventory, equipment and intangibles and all proceeds
thereof, and in all collateral provided to Bank pursuant to any security
agreement and/or all collateral that is delivered to Bank and/or which Bank
possesses and all proceeds thereof, (collectively, the "Collateral").

         5.       REPRESENTATIONS AND WARRANTIES OF BORROWER. Borrower
represents and warrants to Bank that as of the date of acceptance of this
Agreement, the Note and/or the Loan Documents, as of the date of borrowing
hereunder and at all times the Loan or any other Indebtedness are outstanding
hereunder:

                  (a)      If Borrower is a corporation, Borrower is duly
organized, validly existing and in good standing under the laws of the state of
its incorporation; if a partnership, Borrower is duly organized and validly
existing under the partnership agreement and the applicable laws of the state in
which the partnership is formed or exists or if a limited liability company,
Borrower is duly organized and validly existing under the operating agreement
and the applicable laws of the state in which the limited liability company is
formed;

                  (b)      Borrower has the legal power and authority, to own
its properties and assets and to carry out its business as now being conducted;
it is qualified to do business in every jurisdiction wherein such qualification
is necessary; it has the legal power and authority to execute and perform this
Agreement, the Note and/or the Loan Documents to borrow money in accordance with
its terms, to execute and deliver this Agreement, the Note and the Loan
Documents, and to do any and all other things required of it hereunder; and this
Agreement, the Note and all the Loan Documents, when executed on behalf of
Borrower by its duly authorized officers, partners or members, as the case may
be, shall be its valid and binding obligations legally enforceable in accordance
with their terms;

                  (c)      The execution, delivery and performance of this
Agreement, the Note and/or the Loan Documents and the borrowings hereunder and
thereunder (i) have been duly authorized by all requisite corporate, partnership
or company action; (ii) do not require governmental approval; (iii) will not
result (with or without notice and/or the passage of time) in any conflict with
or breach or violation of or default under, any provision of law, the articles
of incorporation, articles of organization, operating agreement, bylaws or
partnership agreement of Borrower, any provision of any indenture, agreement or
other instrument to which Borrower is a party, or by which it or any of its
properties or assets are bound; and (iv) will not result in the creation or
imposition of any lien, charge or encumbrance of any nature whatsoever upon any
of the properties or assets of Borrower;

                  (d)      The balance sheet of Borrower as provided to Bank in
connection herewith and the related statement of income of Borrower provided to
Bank for the period ended September 30, 2001, fairly present the financial
condition of Borrower in accordance with generally accepted accounting
principles ("GAAP") consistently applied; and from the date thereof to the date
hereof, there has been no material adverse change in such condition or
operations; and

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                  (e)      There is not pending nor, to the best of Borrower's
knowledge, threatened, any litigation, proceeding or governmental investigation
which could materially and adversely affect its business or its ability to
perform its obligations, pay the Indebtedness and/or comply with the covenants
set forth herein and/or in the Note and/or the other Loan Documents.

         6.       AFFIRMATIVE COVENANTS. Until the Indebtedness is paid in full,
Borrower covenants and agrees to do the following:

                  (a)      Furnish to Bank within forty-five (45) days after the
end of each quarter, an unaudited balance sheet and statement of income covering
Borrower's operations together with copies of the Borrower's Form 10-Q Quarterly
Report. Within ninety (90) days of the end of each of Borrower's fiscal years,
furnish to Bank statements of the financial condition of Borrower for each such
fiscal year, including but not limited to, a balance sheet, profit and loss
statement, and statement of cash flow. Said annual statements shall be audited
by an independent certified public accountant selected by Borrower and
acceptable to Bank together with copies of the Borrower's Form 10-K Annual
Report;

                  (b)      In addition to the financial statements requested
above, Borrower agrees to provide Bank with copies of its accounts receivable,
inventory and fixed assets listings promptly upon Bank's request;

                  (c)      Promptly inform Bank of the occurrence of any default
or event of default as defined in the Note and/or the Loan Documents
(hereinafter referred to as "Default") or of any event which could have a
materially adverse effect upon Borrower's business, properties, financial
condition or ability to comply with its obligations hereunder, including without
limitation: (1) its ability to pay the Indebtedness; (2) a significant loss of
revenue from Compaq; and (3) termination of any contract with Compaq;

                  (d)      Furnish such other information as Bank may reasonably
request;

                  (e)      Keep in full force and effect its own corporate,
company or partnership existence in good standing; continue to conduct and
operate its business substantially as presently conducted and operated and
maintain and protect all franchises and trade names and preserve all the
remainder of its property used or useful in the conduct of its business and keep
the same in good repair and condition;

                  (f)      Comply with the financial covenants set forth in
Addendum A, attached hereto and made a part hereof;

                  (g)      Maintain a standard and modern system of accounting
in accordance with GAAP consistently applied with ledger and account cards
and/or computer tapes and computer disks, computer printouts and computer
records pertaining to the Collateral which contain information as may from time
to time be requested by Bank, not modify or change its method of accounting
without the written consent of Bank first obtained, permit Bank and any of its
employees, officers, or agents, upon demand, during Borrower's usual business
hours, or the usual business hours of any third person having control thereof,
to have access to and examine all of Borrower's records relating to the
Collateral, Borrower's financial condition and the results of Borrower's
operations and in connection therewith, permit Bank or any of its agents,
employees, or officer to copy and make extracts therefrom;

                  (h)      Maintain Borrower's same place of business or chief
executive office or residence as indicated below, and not relocate said address
without giving Bank 30 days prior written notice;

                  (i)      Maintain insurance with such insurers in such amounts
and of a type satisfactory to Bank, with Bank to be designated as the payee of
any such insurance policies under a payee/secured lender clause acceptable to
Bank; and

                  (j)      On a continuing basis from the date of this Agreement
until the Indebtedness is paid in full and Borrower has performed all of its
other obligations hereunder, Borrower represents and agrees that:

                           (1)      There are not and will not be Hazardous
Materials (as later defined) on, in or under any real or personal property
("Property") now or at any time owned, occupied or operated by Borrower which in
any manner violate any Environmental Law (as later defined).

                           (2)      Borrower shall promptly conduct all
investigations, testing and other actions necessary to clean up and remove all
Hazardous Materials on or affecting the Property in accordance with every
Environmental Law.

                           (3)      Borrower shall defend, indemnify and hold
harmless Bank, its employees, agents, officers, shareholders and directors from
and against any and all claims, damages, fines, expenses, liabilities or causes
of action of whatever kind, including without limit consultant fees, legal
expenses and reasonable attorneys' fees, suffered by any of them as a direct or
indirect result of any actual or asserted violation of any Environmental Law.

                           (4)      Upon ten days notice to Borrower (except in
an emergency), Bank may (but is not obligated to) enter on the Property or take
such other actions as it deems appropriate to inspect, test for, clean up,
remove or minimize the impact of any Hazardous Materials upon Bank's receipt of
any notice from any source asserting the existence of any Hazardous Materials in
violation of any Environmental Law. All costs and expenses so incurred by Bank,
including without limit consultant fees, legal expenses and reasonable
attorneys' fees, shall be payable by Borrower upon demand.

                           (5)      The provisions of this section shall survive
the repayment of the Indebtedness, the satisfaction of all other obligations of
Borrower to Bank, the discharge or termination by Bank of any lien or security
interest from Borrower, and the foreclosure of or exercise of rights as to any
collateral given to Bank.

                           (6)      "Hazardous Materials" mean all of the
following: any asbestos, petroleum, petroleum by-products, flammable explosives,
or radioactive materials or any hazardous or toxic materials as defined in the
Comprehensive

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Environmental Response, Compensation and Liability Act of 1980, as amended (42
U.S.C. Sections 9601 et seq.) or in any other Environmental Law.

                           (7)      "Environmental Law" means any federal,
state, local or other law, ordinance, statute, directive, rule, order or
regulation on object of which is to regulate or improve health, safety or the
environment.

         7.       NEGATIVE COVENANTS. Borrower shall not, without Bank's prior
written consent, do any of the following:

                  (a)      Grant a security interest in or permit a lien, claim
or encumbrance upon any of the Collateral to any person, association, firm,
corporation, entity, governmental agency or instrumentality;

                  (b)      Permit any levy, attachment or restraint to be made
affecting any of Borrower's assets;

                  (c)      Permit any judicial officer or assignee to be
appointed or to take possession of any or all of Borrower's assets;

                  (d)      Other than sales of inventory in the ordinary course
of Borrower's business, to sell, lease or otherwise dispose of, move, or
transfer, whether by sale or otherwise, any of Borrower's assets;

                  (e)      Change its name, business structure, corporate
identity or structure; add any new fictitious name, liquidate, merge or
consolidate with or into any other business organization;

                  (f)      Move or relocate any collateral except in the
ordinary course of Borrower's business;

                  (g)      Acquire any other business organization or its assets
for a consideration, including assumption of direct or contingent debt, in
excess of One Million Dollars ($1,000,000) in the aggregate;

                  (h)      Enter into any transaction not in the usual course of
Borrower's business;

                  (i)      Make any investment in securities of any person,
association, firm, entity or corporation other than securities of the United
States of America;

                  (j)      Make any change in Borrower's financial structure or
in any of its business objects, purposes or operations which would adversely
affect the ability of Borrower to pay its obligations;

                  (k)      Incur any debt outside the ordinary course of
Borrower's business;

                  (l)      Make any advance or loan except in the ordinary
course of Borrower's business;

                  (m)      Make loans, advances or extensions of credit to any
person, except for sales on open account and otherwise in the ordinary course of
business;

                  (n)      Guaranty or otherwise, directly or indirectly, in any
way be or become responsible for obligations of any other person, whether by
agreement to purchase the indebtedness of any other person, agreement for the
furnishing of funds to any other person through the furnishing of goods,
supplies or services, by way of stock purchase, capital contribution, advance or
loan, for the purpose of paying and discharging (or causing the payment or
discharge of) the indebtedness of any other person, or otherwise, except for the
endorsement of negotiable instruments by Borrower in the ordinary course of
business for deposit or collection;

                  (o)      Sell, lease, transfer or otherwise dispose of
properties and assets having an aggregate book value of more than Five Hundred
Thousand Dollars ($500,000) (whether in one transaction or in a series of
transactions) except as to the sale of the inventory in the ordinary course of
business; change its name, consolidate with or merge into any corporation,
permit another corporation to merge into it, acquire all or substantially all of
the properties or assets of any other person, enter into any reorganization or
recapitalization or reclassify its capital stock, or enter into any sale-lease
back transaction;

                  (p)      Purchase or hold beneficially any stock or other
securities of, or make any investment or acquire any interest whatsoever in, any
other person, except for the common stock of the subsidiaries owned by Borrower
on the date of this Agreement or other applicable date and except for
certificates of deposit with maturities of one year or less of a United States
commercial bank with capital, surplus and undivided profits in excess of One
Hundred Thousand Dollars ($100,000), direct obligations of the United States
government maturing within one (1) year from the date of acquisition thereof,
and investments held at Banc of America Securities L.L.C. in accordance with the
investment guidelines established by the Borrower's board of directors;

                  (q)      Allow any fact, condition or event to occur or exist
with respect to any employee, pension or profit sharing plan established or
maintained by it which might constitute grounds for termination of any such plan
or for the court appointment of a trustee to administer any such plan;

                  (r)      Without Bank's prior written consent, acquire or
expend for or commit itself to acquire or expend for fixed assets by lease,
purchase or otherwise in an aggregate amount that exceeds One Million Dollars
($1,000,000) in any fiscal year;

                  (s)      Without Bank's prior written consent, pledge or
otherwise hypothecate any of its assets, including but not limited to, any and
all of Borrower's intellectual property, except for liens on any of the
Borrower's assets already existing as of September 30, 2001, or become liable
for borrowed money or finance loans during any fiscal year; or

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                  (t)      Without Bank's prior written consent, make or incur
obligations for operating leases for real or personal property in excess of One
Million Dollars ($1,000,000) in any twelve (12) month period.

         8.       DEFAULT. The terms "Default" or "Event of Default", as used
herein, shall have the meaning given in the Note and/or the Loan Documents. In
addition, the parties agree that any one or more of the following events shall
constitute a default by Borrower under this Agreement, the Note and/or the Loan
Documents:

                  (a)      If Borrower fails or neglects to perform, keep or
observe any term, provision, condition, covenant, agreement, warranty or
representation contained in this Agreement, the Note, the Loan Documents or any
other present or future agreement between Borrower and Bank;

                  (b)      If any material representation, statement, report or
certificate made or delivered by Borrower, or any of its officers, employees or
agents to Bank is not true and correct;

                  (c)      If Borrower fails to pay when due and payable or
declared due and payable, all or any portion of the Indebtedness (whether or
principal, interest, taxes, reimbursement of Bank expenses, or otherwise);

                  (d)      If there is a material impairment of the prospect of
repayment of all or any portion of Borrower's obligations, including without
limitation the Indebtedness or a material impairment of the value or priority of
Bank's security interest in the collateral;

                  (e)      If all or any of Borrower's assets are affected,
become subject to a writ or distress warrant, or are levied upon, or come into
the possession of any judicial officer or assignee and the same are not
released, discharged or bonded against within ten (10) days thereafter;

                  (f)      If any insolvency proceeding is filed or commenced by
or against Borrower without being dismissed within ten (10) days thereafter;

                  (g)      If any bankruptcy or other proceeding is filed or
commenced by or against Borrower for its reorganization, dissolution or
liquidation without being dismissed within ten (10) days of its commencement;

                  (h)      If Borrower is enjoined, restrained or in any way
prevented by court order from continuing to conduct all or any material part of
its business affairs;

                  (i)      If a notice of lien, levy or assessment is filed of
record with respect to any or all of Borrower's assets by the United States
Government, or any department, agency or instrumentality thereof, or by any
state, county, municipal or other government agency, or if any taxes or debts
owing at any time hereafter to any one or more of such entities becomes a lien,
whether inchoate or otherwise, upon any or all of the Borrower's assets and the
same is not paid on the payment date thereof;

                  (j)      If a judgment or other claim becomes a lien or
encumbrance upon any or all of Borrower's assets and the same is not satisfied,
dismissed or bonded against within ten (10) days thereafter;

                  (k)      If Borrower's records are prepared and kept by an
outside computer service bureau at the time this Agreement, the Note and/or the
Loan Documents are entered into or during the term of this Agreement, the Note
and/or the Loan Documents, such an agreement with an outside service bureau is
entered into, and at any time thereafter, without first obtaining the written
consent of Bank, Borrower terminates, modifies, amends or changes its
contractual relationship with said computer service bureau or said computer
service bureau fails to provide Bank with any requested information or financial
data pertaining to Bank's Collateral, Borrower's financial condition or the
results of Borrower's operations;

                  (l)      If Borrower permits a default in any material
agreement to which Borrower is a party with third parties so as to result in an
acceleration of the maturity of Borrower's indebtedness to others, whether under
any indenture, agreement or otherwise;

                  (m)      If Borrower makes any payment on account of
indebtedness which has been subordinated to Borrower's obligations to Bank,
including without limitation the Indebtedness;

                  (n)      If any material misrepresentation exists now or
thereafter in any warranty or representation made to Bank by any officer or
director of Borrower, or if any such warranty or representation is withdrawn by
any officer or director;

                  (o)      If any party subordinating its claims to that of
Bank's or any guarantor of Borrower's obligations terminates its subordination
or guaranty, becomes insolvent or an insolvency proceeding is commenced by or
against any such subordinating party or guarantor;

                  (p)      If Borrower is an individual and Borrower dies;

                  (q)      If there is a change of ownership or control of
Twenty-Five percent (25%) or more of the issued and outstanding stock of
Borrower; or

                  (r)      If any reportable event, which the Bank determines
constitutes grounds for the termination of any deferred compensation plan by the
Pension Benefit Guaranty Corporation or for the appointment by the appropriate
United States District Court of a trustee to administer any such plan, shall
have occurred and be continuing thirty (30) days after written notice of such
determination shall have been given to Borrower by Bank, or any such Plan shall
be terminated within the meaning of Title IV of the Employment Retirement Income
Security Act ("ERISA"), or a trustee shall be appointed by the

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appropriate United States District Court to administer any such plan, or the
Pension Benefit Guaranty Corporation shall institute proceedings to terminate
any plan and in case of any event described in this Section 8, the aggregate
amount of the Borrower's liability to the Pension Benefit Guaranty Corporation
under Sections 4062, 4063 or 4064 of ERISA shall exceed five percent (5%) of
Borrower's Tangible Effective Net Worth.

         Bank shall not be obligated to make advances to Borrower during any
cure period provided for in Sections 8(e), 8(f), 8(j), and 8(r) above.

         9.       RIGHTS AND REMEDIES. The parties have agreed as follows with
respect to Bank's rights and remedies upon Default:

                  (a)      Bank shall have all rights and remedies available
hereunder and under the Note and the Loan Documents and under applicable law;

                  (b)      Bank may at its option without notice, accelerate the
Indebtedness and declare all Indebtedness to be due, owing and payable in full;

                  (c)      Bank may at its option without notice, cease
advancing money or extending credit to or for the benefit of Borrower under this
Agreement or any other agreement between Borrower and Bank.

                  (d)      No Default (as defined in this Agreement, the Note
and/or the Loan Documents) shall be waived by Bank except in writing and a
waiver of any Default shall not be a waiver of any other default or of the same
default on a future occasion;

                  (e)      No single or partial exercise of any right, power or
privilege hereunder, or any delay in the exercise hereof, shall preclude other
or further exercise of the rights of the parties under this Agreement, the Note
and/or the Loan Documents; and

                  (f)      No forbearance on the part of Bank in enforcing any
of its rights under this Agreement, the Note and/or the Loan Documents nor any
renewal, extension or rearrangement of any payment or covenant to be made or
performed by Borrower hereunder shall constitute a waiver of any of the terms of
this Agreement, the Note, and/or the Loan Documents, or of any such right.

         10.      CROSS-DEFAULT. A Default under this Agreement shall also be a
Default under the Note and the Loan Documents, and vice versa. A Default under
this Agreement, the Note and/or the Loan Documents shall also be a Default under
every other note and other agreement between Bank and Borrower, and vice versa.

         11.      CROSS-COLLATERAL. Any Collateral for this Agreement, the Note
and/or the Loan Documents shall also be Collateral for any other obligations
owing by Borrower to Bank. Notwithstanding the above, (i) to the extent that any
portion of the Indebtedness is a consumer loan, that portion shall not be
secured by any deed of trust or mortgage on or other security interest in any of
the undersigned's principal dwelling or in any of the undersigned's real
property which is not a purchase money security interest as to that portion,
unless expressly provided to the contrary in another place, or (ii) if the
undersigned (or any of them) has (have) given or give(s) Bank a deed of trust or
mortgage covering real property, that deed of trust or mortgage shall not secure
this Note or any other indebtedness of the undersigned (or any of them), unless
expressly provided to the contrary in another place.

         12.      SURVIVAL OF COVENANTS, AGREEMENTS, REPRESENTATIONS AND
WARRANTIES. All covenants, agreements, representations and warranties (a)
previously made (except as specifically subsequently modified); (b) made in
connection herewith or with the Note and/or the Loan Documents and/or any
document contemplated hereby; or (c) executed hereafter (unless such document
expressly states that this Agreement does not apply thereto) shall survive the
borrowing hereunder and thereunder and the repayment in full of the Note and/or
the Loan Documents and any amendments, renewals or extensions thereof and shall
be deemed to have been relied upon by Bank. All statements contained in any
certificate or other document delivered to Bank at any time by or on behalf of
Borrower shall constitute representations and warranties by Borrower.

         13.      MISCELLANEOUS. The parties agree to the following
miscellaneous terms:

                  (a)      This Agreement, the Note and the Loan Documents shall
be governed by California law, without regard for the effect of conflict of
laws;

                  (b)      Borrower agrees that it will pay all out of pocket
costs of Bank and expenses (including, without limitation, Bank's attorneys'
fees and costs and/or fees, transfer charges and costs of Bank's in-house
counsel) in connection with the preparation of this Agreement, the Note and/or
the Loan Documents and/or the documents contemplated hereby and the closing of
the Loan;

                  (c)      This Agreement, the Note and/or the Loan Documents
shall inure to the benefit of and shall be binding upon the parties hereto and
their respective successors and assigns; provided, however, that Borrower shall
not assign or transfer its right or obligations under this Agreement, the Note
and/or the Loan Documents without the prior written consent of Bank;

                  (d)      Borrower acknowledges that Bank may provide
information regarding Borrower and the Loan to Bank's parent, subsidiaries and
affiliates and service providers, and

                  (e)      This Agreement is an integrated agreement and
supersedes all prior negotiations and agreements regarding the subject matter
hereof. Any amendments hereto shall be in writing and be signed by all parties
hereto.

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         14.      JURY WAIVER. THE BORROWER AND THE BANK ACKNOWLEDGE THAT THE
RIGHT TO TRIAL BY JURY IS A CONSTITUTIONAL ONE, BUT THAT IT MAY BE WAIVED. EACH
PARTY, AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT) WITH COUNSEL
OF THEIR CHOICE, KNOWINGLY AND VOLUNTARILY, AND FOR THEIR MUTUAL BENEFIT, WAIVES
ANY RIGHT TO TRIAL BY JURY IN THE EVENT OF LITIGATION REGARDING THE PERFORMANCE
OR ENFORCEMENT OF, OR IN ANY WAY RELATED TO, THIS AGREEMENT OR THE INDEBTEDNESS.

         IN WITNESS WHEREOF, the parties have executed this Business Loan
Agreement as of the date first set forth above.

Address of Borrower:                          Borrower:

8975 Balboa Avenue                            OVERLAND DATA, INC.
San Diego, California 92123-1599

                                              By: /s/ Christopher Calisi
                                                  ------------------------------
                                              Title:  President & CEO

                                              By: /s/ Vernon A. LoForti
                                                  ------------------------------
                                              Title: VP & CFO

                                              Comerica Bank-California
                                              ("Bank")

                                              By:  /s/ Tracy Fredricks
                                                   -----------------------------
                                                   Tracy Fredricks
                                                   Vice President

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                      ADDENDUM A TO BUSINESS LOAN AGREEMENT
                              (FINANCIAL COVENANTS)

    1.       DEFINITIONS RELATING TO FINANCIAL COVENANTS.

             CASH FLOW COVERAGE RATIO means the ratio, as of any applicable
period of determination, the numerator of which is net income plus depreciation
plus amortization minus unfunded capital expenditures minus tax expense, and the
denominator of which is the current portion of long term debt plus the current
portion of capital lease payments plus interest for the same period of
determination.

             CURRENT LIABILITIES as used in this Agreement means, as of any
applicable date of determination, (i) all liabilities of Borrower or its
subsidiaries that should be classified as current in accordance with GAAP,
including, without limitation, any portion of the principal of the Indebtedness
under this Agreement, the Note and/or the Loan Documents classified as current
which shall include any principal amount outstanding under the Master Revolving
Note between the Bank and the Borrower of even date herewith, plus (ii) to the
extent not otherwise included, all liabilities of Borrower to any of its
affiliates (including officers, directors, shareholders, subsidiaries and
commonly held companies), whether or not classified as current in accordance
with GAAP unless same shall be the long term portion of Subordinated Debt (as
defined below).

             QUICK ASSETS as used in this Agreement means, as of any applicable
date of determination, unrestricted cash, certificates of deposit or marketable
securities and net accounts receivable arising from the sale of goods and
services, and United States Government securities and/or claims against the
United States Government of Borrower and its subsidiaries.

             TANGIBLE NET WORTH as used in this Agreement means, as of any
applicable date of determination, the excess of:

             (a)      the net book value of all assets of Borrower and its
subsidiaries (other than patents, patent rights, trademarks, trade names,
franchises, copyrights, licenses, goodwill, and similar intangible assets) after
all appropriate deductions in accordance with GAAP (including, without
limitation, reserves for doubtful receivables, obsolescence, depreciation and
amortization), minus

             (b)      all Total Liabilities of Borrower and its subsidiaries;
and

             (c)      any amounts due from the Borrower's stockholders, officers
and affiliates.

             TOTAL LIABILITIES as used in this Agreement means, as of any
applicable date, the total of all items of indebtedness, obligation or liability
which, in accordance with GAAP consistently applied, would be included in
determining the total liabilities of Borrower or its subsidiaries, including,
without limitation, (a) all obligations secured by any mortgage, pledge,
security interest or other lien on property owned or acquired, whether or not
the obligations secured thereby shall have been assumed; (b) all obligations
which are capitalized lease obligations; and (c) all guaranties, endorsements or
other contingent or surety obligations with respect to the indebtedness of
others, whether or not reflected on the balance sheets of Borrower or its
subsidiaries, including, without limitation, any obligation to furnish funds,
directly or indirectly through the purchase of goods, supplies, services, or by
way of stock purchase, capital contribution, advance or loan or any obligation
to enter into a contract for any of the foregoing.

    2.       FINANCIAL COVENANTS. Borrower shall maintain the following
financial ratios and covenants on a consolidated basis, which shall be monitored
on a quarterly basis, except as noted below.

             (a)      A ratio of Quick Assets to Current Liabilities of not less
than 1.00 to 1.00;

             (b)      A ratio of Total Liabilities to Tangible Net Worth of less
than 1.00 to 1.00;

             (c)      A Cash Flow Coverage Ratio of not less than 1.50 to 1.00;
and

             (d)      Profitable operations (meaning a net profit after taxes)
on an annual basis of at least One Dollar ($1.00) and not to incur a net loss
before taxes on any two consecutive fiscal quarters.

         All financial covenants shall be computed in accordance with GAAP
consistently applied except as otherwise specifically set forth in this
Agreement. All monies due from affiliates (including officers, directors and
shareholders) shall be excluded from Borrower's assets for all purposes
hereunder.

                                       7<Page>
                                                                    Exhibit 10.2

                                [COMERICA LOGO]

                               SECURITY AGREEMENT

As of NOVEMBER 28, 2001 , for value received, the undersigned ("Debtor")
pledges, assigns and grants to COMERICA BANK-CALIFORNIA ("Bank"), a CALIFORNIA
banking corporation, whose address is 333 WEST SANTA CLARA STREET, SAN JOSE, CA,
95113, Attention: COMMERCIAL LOAN DOCUMENTATION, Mail Code 4604, a continuing
security interest and lien (any pledge, assignment, security interest or other
lien arising hereunder is sometimes referred to herein as a "security interest")
in the collateral (as defined below) to secure payment when due, whether by
stated maturity, demand acceleration or otherwise, of all existing and future
indebtedness ("Indebtedness") to the Bank of OVERLAND DATA, INC. ("Borrower")
and/or Debtor. Indebtedness includes without limit any and all obligations or
liabilities of the Borrower and/or Debtor to the Bank, whether absolute or
contingent, direct or indirect, voluntary or involuntary, liquidated or
unliquidated, joint or several, known or unknown; any and all obligations or
liabilites for which the Borrower and/or Debtor would otherwise be liable to the
Bank were it not for the invalidity or unenforceability of them by reason of any
bankruptcy, insolvency or other law, or for any other reason; any and all
amendments, modifications, renewals and/or extensions of any of the above; all
costs incurred by Bank in establishing, determining, continuing, or defending
the validity or priority of its security interest, or in pursuing its rights and
remedies under this Agreement or under any other agreement between Bank and
Borrower and/or Debtor or in connection with any proceeding involving Bank as a
result of any financial accommodation to Borrower and/or Debtor; and all other
costs of collecting Indebtedness, including without limit attorney fees. Debtor
agrees to pay Bank all such costs incurred by the Bank, immediately upon demand,
and until paid all costs shall bear interest at the highest per annum rate
applicable to any of the Indebtedness, but not in excess of the maximum rate
permitted by law. Any reference in this Agreement to attorney fees shall be
deemed a reference to reasonable fees, costs, and expenses of both in-house and
outside counsel and paralegals, whether inside or outside counsel is used,
whether or not a suit or action is instituted, and to court costs if a suit or
action is instituted, and whether attorney fees or court costs are incurred at
the trial court level, on appeal, in a bankruptcy, administrative or probate
proceeding or otherwise. Debtor further covenants, agrees and represents as
follows:

1.       Collateral shall mean all of the following property Debtor now or later
         owns or has an interest in, wherever located:

         -        all Accounts Receivable (for purposes of this Agreement,
                  "Accounts Receivable" consists of all accounts, general
                  intangibles, chattel paper (including without limit electronic
                  chattel paper and tangible chattel paper), contract rights,
                  deposit accounts, documents, instruments and rights to payment
                  evidenced by chattel paper, documents or instruments, health
                  care insurance receivables, commercial tort claims, letters of
                  credit, letter of credit rights, supporting obligations, and
                  rights to payment for money or funds advanced or sold),

         -        all Inventory,

         -        all Equipment and Fixtures,

         -        all Software (for purposes of this Agreement "Software"
                  consists of all (i) computer programs and supporting
                  information provided in connection with a transaction relating
                  to the program, and (ii) computer programs embedded in goods
                  and any supporting information provided in connection with a
                  transaction relating to the program whether or not the program
                  is associated with the goods in such a manner that it
                  customarily is considered part of the goods, and whether or
                  not, by becoming the owner of the goods, a person acquires a
                  right to use the program in connection with the goods, and
                  whether or not the program is embedded in goods that consist
                  solely of the medium in which the program is embedded),

         -        specific items listed below and/or on attached Schedule A, if
                  any, is/are also included in Collateral:

         -        all goods, instruments, documents, policies and certificates
                  of insurance, deposits, money or other property (except real
                  property which is not a fixture) which are now or later in
                  possession of Bank, or as to which Bank now or later controls
                  possession by documents or otherwise, and

         -        all additions, attachments, accessions, parts, replacements,
                  substitutions, renewals, interest, dividends, distributions,
                  rights of any kind (including but not limited to stock splits,
                  stock rights, voting and preferential rights), products, and
                  proceeds of or pertaining to the above including, without
                  limit, cash or other property which were proceeds and are
                  recovered by a bankruptcy trustee or otherwise as a
                  preferential transfer by Debtor.

         In the definition of Collateral, a reference to a type of collateral
         shall not be limited by a separate reference to a more specific or
         narrower type of that collateral.

2.       Warranties, Covenants and Agreements. Debtor warrants, covenants and
         agrees as follows:

         2.1      Debtor shall furnish to Bank, in form and at intervals as Bank
                  may request, any information Bank may reasonably request and
                  allow Bank to examine, inspect, and copy any of Debtor's books
                  and records. Debtor shall, at the request of Bank, mark its
                  records and the Collateral to clearly indicate the security
                  interest of Bank under this Agreement.

         2.2      At the time any Collateral becomes, or is represented to be,
                  subject to a security interest in favor of Bank, Debtor shall
                  be deemed to have warranted that (a) Debtor is the lawful
                  owner of the Collateral and has the right and authority to
                  subject it to a security interest granted to Bank; (b) none of
                  the Collateral is subject to any security interest other than
                  that in favor of Bank; (c) there are no financing statements
                  on file, other than in favor of Bank; (d) no person, other
                  than Bank, has possession or control (as defined in the
                  Uniform Commercial Code) of any Collateral of such nature that
                  perfection of a security interest may be accomplished by
                  control; and (e) Debtor acquired its rights in the Collateral
                  in the ordinary course of its business.

         2.3      Debtor will keep the Collateral free at all times from all
                  claims, liens, security interests and encumbrances other than
                  those in favor of Bank. Debtor will not, without the prior
                  written consent of Bank, sell, transfer or lease, or permit to
                  be sold, transferred or leased, any or all of the Collateral,
                  except (where Inventory is pledged as Collateral) for
                  Inventory in the ordinary course of its business and will not
                  return any Inventory to its supplier. Bank or its
                  representatives may at all reasonable times inspect the
                  Collateral and may enter upon all premises where the
                  Collateral is kept or might be located.

         2.4      Debtor will do all acts and will execute or cause to be
                  executed all writings requested by Bank to establish, maintain
                  and continue an exclusive, perfected and first security
                  interest of Bank in the Collateral. Debtor agrees that Bank
                  has no obligation to acquire or perfect any lien on or
                  security interest in any asset(s), whether realty or
                  personalty, to secure payment of the Indebtedness, and Debtor
                  is not relying upon assets in which the Bank may have a lien
                  or security interest for payment of the Indebtedness.

         2.5      Debtor will pay within the time that they can be paid without
                  interest or penalty all taxes, assessments and similar charges
                  which at any time are or may become a lien, charge, or
                  encumbrance upon any Collateral, except to the extent
                  contested in good faith and bonded in a manner satisfactory to
                  Bank. If Debtor fails to pay any of these taxes, assessments,
                  or other charges in the time provided above, Bank has the
                  option (but not the obligation) to do so and Debtor agrees to
                  repay all amounts so expended by Bank immediately upon demand,
                  together with interest at the highest lawful default rate
                  which could be charged by Bank on any Indebtedness.

         2.6      Debtor will keep the Collateral in good condition and will
                  protect it from loss, damage, or deterioration from any cause.
                  Debtor has and will maintain at all times (a) with respect to
                  the Collateral, insurance under an "all risk" policy against
                  fire and other risks customarily insured against, and (b)
                  public liability insurance and other insurance as may be
                  required by law or reasonably required by Bank, all of which
                  insurance shall be in amount, form and content, and written by
                  companies as may be satisfactory to Bank, containing a
                  lender's loss

<Page>

                  payable endorsement acceptable to Bank. Debtor will deliver to
                  Bank immediately upon demand evidence satisfactory to Bank
                  that the required insurance has been procured. If Debtor fails
                  to maintain satisfactory insurance, Bank has the option (but
                  not the obligation) to do so and Debtor agrees to repay all
                  amounts so expended by Bank immediately upon demand, together
                  with interest at the highest lawful default rate which could
                  be charged by Bank on any Indebtedness.

         2.7      On each occasion on which Debtor evidences to Bank the account
                  balances on and the nature and extent of the Accounts
                  Receivable, Debtor shall be deemed to have warranted that
                  except as otherwise indicated (a) each of those Accounts
                  Receivable is valid and enforceable without performance by
                  Debtor of any act; (b) each of those account balances are in
                  fact owing, (c) there are no setoffs, recoupments, credits,
                  contra accounts, counterclaims or defenses against any of
                  those Accounts Receivable, (d) as to any Accounts Receivable
                  represented by a note, trade acceptance, draft or other
                  instrument or by any chattel paper or document, the same have
                  been endorsed and/or delivered by Debtor to Bank, (e) Debtor
                  has not received with respect to any Account Receivable, any
                  notice of the death of the related account debtor, nor of the
                  dissolution, liquidation, termination of existence,
                  insolvency, business failure, appointment of a receiver for,
                  assignment for the benefit of creditors by, or filing of a
                  petition in bankruptcy by or against, the account debtor, and
                  (f) as to each Account Receivable, except as may be expressly
                  permitted by Bank to the contrary in another document, the
                  account debtor is not an affiliate of Debtor, the United
                  States of America or any department, agency or instrumentality
                  of it, or a citizen or resident of any jurisdiction outside of
                  the United States. Debtor will do all acts and will execute
                  all writings requested by Bank to perform, enforce performance
                  of, and collect all Accounts Receivable. Debtor shall neither
                  make nor permit any modification, compromise or substitution
                  for any Account Receivable without the prior written consent
                  of Bank. Debtor shall, at Bank's request, arrange for
                  verification of Accounts Receivable directly with account
                  debtors or by other methods acceptable to Bank.

         2.8      Debtor at all times shall be in strict compliance with all
                  applicable laws, including without limit any laws, ordinances,
                  directives, orders, statutes, or regulations an object of
                  which is to regulate or improve health, safety, or the
                  environment ("Environmental Laws").

         2.9      If Bank, acting in its sole discretion, redelivers Collateral
                  to Debtor or Debtor's designee for the purpose of (a) the
                  ultimate sale or exchange thereof; or (b) presentation,
                  collection, renewal, or registration of transfer thereof; or
                  (c) loading, unloading, storing, shipping, transshipping,
                  manufacturing, processing or otherwise dealing with it
                  preliminary to sale or exchange; such redelivery shall be in
                  trust for the benefit of Bank and shall not constitute a
                  release of Bank's security interest in it or in the proceeds
                  or products of it unless Bank specifically so agrees in
                  writing. If Debtor requests any such redelivery, Debtor will
                  deliver with such request a duly executed financing statement
                  in form and substance satisfactory to Bank. Any proceeds of
                  Collateral coming into Debtor's possession as a result of any
                  such redelivery shall be held in trust for Bank and
                  immediately delivered to Bank for application on the
                  Indebtedness. Bank may (in its sole discretion) deliver any or
                  all of the Collateral to Debtor, and such delivery by Bank
                  shall discharge Bank from all liability or responsibility for
                  such Collateral. Bank, at its option, may require delivery of
                  any Collateral to Bank at any time with such endorsements or
                  assignments of the Collateral as Bank may request.

         2.10     At any time and without notice, Bank may, as to Collateral
                  other than Equipment, Fixtures or Inventory, (a) cause any or
                  all of such Collateral to be transferred to its name or to the
                  name of its nominees; (b) receive or collect by legal
                  proceedings or otherwise all dividends, interest, principal
                  payments and other sums and all other distributions at any
                  time payable or receivable on account of such Collateral, and
                  hold the same as Collateral, or apply the same to the
                  Indebtedness, the manner and distribution of the application
                  to be in the sole discretion of Bank; (c) enter into any
                  extension, subordination, reorganization, deposit, merger or
                  consolidation agreement or any other agreement relating to or
                  affecting such Collateral, and deposit or surrender control of
                  such Collateral, and accept other property in exchange for
                  such Collateral and hold or apply the property or money so
                  received pursuant to this Agreement; and (d) take such actions
                  in its own name or in Debtor's name as Bank, in its sole
                  discretion, deems necessary or appropriate to establish
                  exclusive control (as defined in the Uniform Commercial Code)
                  over any Collateral of such nature that perfection of the
                  Bank's security interest may be accomplished by control.

         2.11     Bank may assign any of the Indebtedness and deliver any or all
                  of the Collateral to its assignee, who then shall have with
                  respect to Collateral so delivered all the rights and powers
                  of Bank under this Agreement, and after that Bank shall be
                  fully discharged from all liability and responsibility with
                  respect to Collateral so delivered.

         2.12     Debtor delivers this Agreement based solely on Debtor's
                  independent investigation of (or decision not to investigate)
                  the financial condition of Borrower and is not relying on any
                  information furnished by Bank. Debtor assumes full
                  responsibility for obtaining any further information
                  concerning the Borrower's financial condition, the status of
                  the Indebtedness or any other matter which the undersigned may
                  deem necessary or appropriate now or later. Debtor waives any
                  duty on the part of Bank, and agrees that Debtor is not
                  relying upon nor expecting Bank to disclose to Debtor any fact
                  now or later known by Bank, whether relating to the operations
                  or condition of Borrower, the existence, liabilities or
                  financial condition of any guarantor of the Indebtedness, the
                  occurrence of any default with respect to the Indebtedness, or
                  otherwise, notwithstanding any effect such fact may have upon
                  Debtor's risk or Debtor's rights against Borrower. Debtor
                  knowingly accepts the full range of risk encompassed in this
                  Agreement, which risk includes without limit the possibility
                  that Borrower may incur Indebtedness to Bank after the
                  financial condition of Borrower, or Borrower's ability to pay
                  debts as they mature, has deteriorated.

         2.13     Debtor shall defend, indemnify and hold harmless Bank, its
                  employees, agents, shareholders, affiliates, officers, and
                  directors from and against any and all claims, damages, fines,
                  expenses, liabilities or causes of action of whatever kind,
                  including without limit consultant fees, legal expenses, and
                  attorney fees, suffered by any of them as a direct or indirect
                  result of any actual or asserted violation of any law,
                  including, without limit, Environmental Laws, or of any
                  remediation relating to any property required by any law,
                  including without limit Environmental Laws, INCLUDING ANY
                  CLAIMS, DAMAGES, FINES, EXPENSES, LIABILITIES OR CAUSES OF
                  ACTION OF WHATEVER KIND RESULTING FROM BANK'S OWN NEGLIGENCE,
                  except and to the extent (but only to the extent) caused by
                  Bank's gross negligence or willful misconduct.

3.       Collection of Proceeds.

         3.1      Debtor agrees to collect and enforce payment of all Collateral
                  until Bank shall direct Debtor to the contrary. Immediately
                  upon notice to Debtor by Bank and at all times after that,
                  Debtor agrees to fully and promptly cooperate and assist Bank
                  in the collection and enforcement of all Collateral and to
                  hold in trust for Bank all payments received in connection
                  with Collateral and from the sale, lease or other disposition
                  of any Collateral, all rights by way of suretyship or
                  guaranty and all rights in the nature of a lien or security
                  interest which Debtor now or later has regarding Collateral.
                  Immediately upon and after such notice, Debtor agrees to (a)
                  endorse to Bank and immediately deliver to Bank all payments
                  received on Collateral or from the sale, lease or other
                  disposition of any Collateral or arising from any other rights
                  or interests of Debtor in the Collateral, in the form received
                  by Debtor without commingling with any other funds, and (b)
                  immediately deliver to Bank all property in Debtor's
                  possession or later coming into Debtor's possession through
                  enforcement of Debtor's rights or interests in the Collateral.
                  Debtor irrevocably authorizes Bank or any Bank employee or
                  agent to endorse the name of Debtor upon any checks or other
                  items which are received in payment for any Collateral, and to
                  do any and all things necessary in order to reduce these items
                  to money. Bank shall have no duty as to the collection or
                  protection of Collateral or the proceeds of it, nor as to the
                  preservation of any related rights, beyond the use of
                  reasonable care in the custody and preservation of Collateral
                  in the possession of Bank. Debtor agrees to take all steps
                  necessary to preserve rights against prior parties with
                  respect to the Collateral. Nothing in this Section 3.1 shall
                  be deemed a consent by Bank to any sale, lease or other
                  disposition of any Collateral.

         3.2      Debtor agrees that immediately upon Bank's request (whether or
                  not any Event of Default exists) the indebtedness shall be on
                  a "remittance basis" as follows: Debtor shall at its sole
                  expense establish and maintain (and Bank, at Bank's option,
                  may establish and maintain at Debtor's expense): (a) an United
                  States Post office lock box (the "Lock Box"), to which Bank
                  shall have exclusive access and control. Debtor expressly
                  authorizes Bank, from time to time, to remove contents from
                  the Lock Box, for disposition in accordance with this
                  Agreement. Debtor agrees

<Page>

                  to notify all account debtors and other parties obligated to
                  Debtor that all payments made to Debtor (other than payments
                  by electronic funds transfer) shall be remitted, for the
                  credit of Debtor, to the Lock Box, and Debtor shall include a
                  like statement on all invoices; and (b) a non-interest bearing
                  deposit account with Bank which shall be titled as designated
                  by Bank (the "Cash Collateral Account") to which Bank shall
                  have exclusive access and control. Debtor agrees to notify all
                  account debtors and other parties obligated to Debtor that all
                  payments made to Debtor by electronic funds transfer shall be
                  remitted to the Cash Collateral Account, and Debtor, at Bank's
                  request, shall include a like statement on all invoices.
                  Debtor shall execute all documents and authorizations as
                  required by Bank to establish and maintain the Lock Box and
                  the Cash Collateral Account.

         3.3      All items or amounts which are remitted to the Lock Box, to
                  the Cash Collateral Account, or otherwise delivered by or for
                  the benefit of Debtor to Bank on account of partial or full
                  payment of, or with respect to, any Collateral shall, at
                  Bank's option, (a) be applied to the payment of the
                  Indebtedness, whether then due or not, in such order or at
                  such time of application as Bank may determine in its sole
                  discretion, or, (b) be deposited to the Cash Collateral
                  Account. Debtor agrees that Bank shall not be liable for any
                  loss or damage which Debtor may suffer as a result of Bank's
                  processing of items or its exercise of any other rights or
                  remedies under this Agreement, including without limitation
                  indirect, special or consequential damages, loss of revenues
                  or profits, or any claim, demand or action by any third party
                  arising out of or in connection with the processing of items
                  or the exercise of any other rights or remedies under this
                  Agreement. Debtor agrees to indemnify and hold Bank harmless
                  from and against all such third party claims, demands or
                  actions, and all related expenses or liabilities, including,
                  without limitation, attorney's fees and INCLUDING CLAIMS,
                  DAMAGES, FINES, EXPENSES, LIABILITIES OR CAUSES OF ACTION OF
                  WHATEVER KIND RESULTING FROM BANK'S OWN NEGLIGENCE except to
                  the extent (but only to the extent) caused by Bank's gross
                  negligence or willful misconduct.

4.       Defaults, Enforcement and Application of Proceeds.

         4.1      Upon the occurrence of any of the following events (each an
                  "Event of Default"), Debtor shall be in default under this
                  Agreement:

                  (a)      Any failure to pay the Indebtedness or any other
                           indebtedness when due, or such portion of it as may
                           be due, by acceleration or otherwise; or

                  (b)      Any failure or neglect to comply with, or breach of
                           or default under, any term of this Agreement, or any
                           other agreement or commitment between Borrower,
                           Debtor, or any guarantor of any of the Indebtedness
                           ("Guarantor") and Bank; or

                  (c)      Any warranty, representation, financial statement, or
                           other information made, given or furnished to Bank by
                           or on behalf of Borrower, Debtor, or any Guarantor
                           shall be, or shall prove to have been, false or
                           materially misleading when made, given, or furnished;
                           or

                  (d)      Any loss, theft, substantial damage or destruction to
                           or of any Collateral, or the issuance or filing of
                           any attachment, levy, garnishment or the commencement
                           of any proceeding in connection with any Collateral
                           or of any other judicial process of, upon or in
                           respect of Borrower, Debtor, any Guarantor, or any
                           Collateral; or

                  (e)      Sale or other disposition by Borrower, Debtor, or any
                           Guarantor of any substantial portion of its assets or
                           property or voluntary suspension of the transaction
                           of business by Borrower, Debtor, or any Guarantor, or
                           death, dissolution, termination of existence, merger,
                           consolidation, insolvency, business failure, or
                           assignment for the benefit of creditors of or by
                           Borrower, Debtor, or any Guarantor; or commencement
                           of any proceedings under any state or federal
                           bankruptcy or insolvency laws or laws for the relief
                           of debtors by or against Borrower, Debtor, or any
                           Guarantor; or the appointment of a receiver, trustee,
                           court appointee, sequestrator or otherwise, for all
                           or any part of the property of Borrower, Debtor, or
                           any Guarantor; or

                  (f)      Bank deems the margin of Collateral insufficient or
                           itself insecure, in good faith believing that the
                           prospect of payment of the Indebtedness or
                           performance of this Agreement is impaired or shall
                           fear deterioration, removal, or waste of Collateral;
                           or

                  (g)      An event of default shall occur under any instrument,
                           agreement or other document evidencing, securing or
                           otherwise relating to any of the Indebtedness.

         4.2      Upon the occurrence of any Event of Default, Bank may at its
                  discretion and without prior notice to Debtor declare any or
                  all of the Indebtedness to be immediately due and payable, and
                  shall have and may exercise any one or more of the following
                  rights and remedies:

                  (a)      Exercise all the rights and remedies upon default, in
                           foreclosure and otherwise, available to secured
                           parties under the provisions of the Uniform
                           Commercial Code and other applicable law;

                  (b)      Institute legal proceedings to foreclose upon the
                           lien and security interest granted by this Agreement,
                           to recover judgment for all amounts then due and
                           owing as Indebtedness, and to collect the same out of
                           any Collateral or the proceeds of any sale of it;

                  (c)      Institute legal proceedings for the sale, under the
                           judgment or decree of any court of competent
                           jurisdiction, of any or all Collateral; and/or

                  (d)      Personally or by agents, attorneys, or appointment of
                           a receiver, enter upon any premises where Collateral
                           may then be located, and take possession of all or
                           any of it and/or render it unusable; and without
                           being responsible for loss or damage to such
                           Collateral, hold, operate, sell, lease, or dispose of
                           all or any Collateral at one or more public or
                           private sales, leasings or other dispositions, at
                           places and times and on terms and conditions as Bank
                           may deem fit, without any previous demand or
                           advertisement; and except as provided in this
                           Agreement, all notice of sale, lease or other
                           disposition, and advertisement, and other notice or
                           demand, any right or equity of redemption, and any
                           obligation of a prospective purchaser or lessee to
                           inquire as to the power and authority of Bank to
                           sell, lease, or otherwise dispose of the Collateral
                           or as to the application by Bank of the proceeds of
                           sale or otherwise, which would otherwise be required
                           by, or available to Debtor under, applicable law are
                           expressly waived by Debtor to the fullest extent
                           permitted.

                           At any sale pursuant to this Section 4.2, whether
                           under the power of sale, by virtue of judicial
                           proceedings or otherwise, it shall not be necessary
                           for Bank or a public officer under order of a court
                           to have present physical or constructive possession
                           of Collateral to be sold. The recitals contained in
                           any conveyances and receipts made and given by Bank
                           or the public officer to any purchaser at any sale
                           made pursuant to this Agreement shall, to the extent
                           permitted by applicable law, conclusively establish
                           the truth and accuracy of the matters stated
                           (including, without limit, as to the amounts of the
                           principal of and interest on the Indebtedness, the
                           accrual and nonpayment of it and advertisement and
                           conduct of the sale); and all prerequisites to the
                           sale shall be presumed to have been satisfied and
                           performed. Upon any sale of any Collateral, the
                           receipt of the officer making the sale under judicial
                           proceedings or of Bank shall be sufficient discharge
                           to the purchaser for the purchase money, and the
                           purchaser shall not be obligated to see to the
                           application of the money. Any sale of any Collateral
                           under this Agreement shall be a perpetual bar against
                           Debtor with respect to that Collateral. At any sale
                           or other disposition of the Collateral pursuant to
                           this Section 4.2, Bank disclaims all warranties which
                           would otherwise be given under the Uniform Commercial
                           Code, including without limit a disclaimer of any
                           warranty relating to title, possession, quiet
                           enjoyment or the like, and Bank may communicate these
                           disclaimers to a purchaser at such disposition. This
                           disclaimer of warranties will not render the sale
                           commercially unreasonable.

         4.3      Debtor shall at the request of Bank, notify the account
                  debtors or obligors of Bank's security interest in the
                  Collateral and direct payment of it to Bank. Bank may, itself,
                  upon the occurrence of any Event of Default so notify and
                  direct any account debtor or obligor. At the request of Bank,
                  whether or not an Event of Default shall have occurred, Debtor
                  shall immediately take such actions as the Bank shall request
                  to establish exclusive control

<Page>

                  (as defined in the Uniform Commercial Code) by Bank over any
                  Collateral which is of such a nature that perfection of a
                  security interest may be accomplished by control.

         4.4      The proceeds of any sale or other disposition of Collateral
                  authorized by this Agreement shall be applied by Bank first
                  upon all expenses authorized by the Uniform Commercial Code
                  and all reasonable attorney fees and legal expenses incurred
                  by Bank; the balance of the proceeds of the sale or other
                  disposition shall be applied in the payment of the
                  Indebtedness, first to interest, then to principal, then to
                  remaining Indebtedness and the surplus, if any, shall be paid
                  over to Debtor or to such other person(s) as may be entitled
                  to it under applicable law. Debtor shall remain liable for any
                  deficiency, which it shall pay to Bank immediately upon
                  demand. Debtor agrees that Secured Party shall be under no
                  obligation to accept any noncash proceeds in connection with
                  any sale or disposition of Collateral unless failure to do so
                  would be commercially unreasonable. If Secured Party agrees in
                  its sole discretion to accept noncash proceeds (unless the
                  failure to do so would be commercially unreasonable), Secured
                  Party may ascribe any commercially reasonable value to such
                  proceeds. Without limiting the foregoing, Secured Party may
                  apply any discount factor in determining the present value of
                  proceeds to be received in the future or may elect to apply
                  proceeds to be received in the future only as and when such
                  proceeds are actually received in cash by Secured Party.

         4.5      Nothing in this Agreement is intended, nor shall it be
                  construed, to preclude Bank from pursuing any other remedy
                  provided by law for the collection of the Indebtedness or for
                  the recovery of any other sum to which Bank may be entitled
                  for the breach of this Agreement by Debtor. Nothing in this
                  Agreement shall reduce or release in any way any rights or
                  security interests of Bank contained in any existing agreement
                  between Borrower, Debtor, or any Guarantor and Bank.

         4.6      No waiver of default or consent to any act by Debtor shall be
                  effective unless in writing and signed by an authorized
                  officer of Bank. No waiver of any default or forbearance on
                  the part of Bank in enforcing any of its rights under this
                  Agreement shall operate as a waiver of any other default or of
                  the same default on a future occasion or of any rights.

         4.7      Debtor (a) irrevocably appoints Bank or any agent of Bank
                  (which appointment is coupled with an interest) the true and
                  lawful attorney of Debtor (with full power of substitution) in
                  the name, place and stead of, and at the expense of, Debtor
                  and (b) authorizes Bank or any agent of Bank, in its own name,
                  at Debtor's expense, to do any of the following, as Bank, in
                  its sole discretion, deems appropriate:

                  (i)      to demand, receive, sue for, and give receipts or
                           acquittances for any moneys due or to become due on
                           any Collateral and to endorse any item representing
                           any payment on or proceeds of the Collateral;

                  (ii)     to execute and file in the name of and on behalf of
                           Debtor all financing statements or other filings
                           deemed necessary or desirable by Bank to evidence,
                           perfect, or continue the security interests granted
                           in this Agreement; and

                  (iii)    to do and perform any act on behalf of Debtor
                           permitted or required under this Agreement.

         4.8      Upon the occurrence of an Event of Default, Debtor also
                  agrees, upon request of Bank, to assemble the Collateral and
                  make it available to Bank at any place designated by Bank
                  which is reasonably convenient to Bank and Debtor.

         4.9      The following shall be the basis for any finder of fact's
                  determination of the value of any Collateral which is the
                  subject matter of a disposition giving rise to a calculation
                  of any surplus or deficiency under Section 9.615(f) of the
                  Uniform Commercial Code (as in effect on or after July 1,
                  2001): (a) The Collateral which is the subject matter of the
                  disposition shall be valued in an "as is" condition as of the
                  date of the disposition, without any assumption or expectation
                  that such Collateral will be repaired or improved in any
                  manner; (b) the valuation shall be based upon an assumption
                  that the transferee of such Collateral desires a resale of the
                  Collateral for cash promptly (but no later than 30 days)
                  following the disposition; (c) all reasonable closing costs
                  customarily borne by the seller in commercial sales
                  transactions relating to property similar to such Collateral
                  shall be deducted including, without limitation, brokerage
                  commissions, tax prorations, attorney's fees, whether inside
                  or outside counsel is used, and marketing costs; (d) the value
                  of the Collateral which is the subject matter of the
                  disposition shall be further discounted to account for any
                  estimated holding costs associated with maintaining such
                  Collateral pending sale (to the extent not accounted for in
                  (c) above), and other maintenance, operational and ownership
                  expenses; and (e) any expert opinion testimony given or
                  considered in connection with a determination of the value of
                  such Collateral must be given by persons having at least 5
                  years experience in appraising property similar to the
                  Collateral and who have conducted and prepared a complete
                  written appraisal of such Collateral taking into consideration
                  the factors set forth above. The "value" of any such
                  Collateral shall be a factor in determining the amount of
                  proceeds which would have been realized in a disposition to a
                  transferee other than a secured party, a person related to a
                  secured party or a secondary obligor under Section 9.615(f) of
                  the Uniform Commercial Code.

5.       Miscellaneous.

         5.1      Until Bank is advised in writing by Debtor to the contrary,
                  all notices, requests and demands required under this
                  Agreement or by law shall be given to, or made upon, Debtor at
                  the first address indicated in Section 5.15 below.

         5.2      Debtor will give Bank not Less than 90 days prior written
                  notice of all contemplated changes in Debtor's name, location,
                  chief executive office, principal place of business, and/or
                  location of any Collateral, but the giving of this notice
                  shall not cure any Event of Default caused by this change.

         5.3      Bank assumes no duty of performance or other responsibility
                  under any contracts contained within the Collateral.

         5.4      Bank has the right to sell, assign, transfer, negotiate or
                  grant participations or any interest in, any or all of the
                  Indebtedness and any related obligations, including without
                  limit this Agreement. In connection with the above, but
                  without limiting its ability to make other disclosures to the
                  full extent allowable, Bank may disclose all documents and
                  information which Bank now or later has relating to Debtor,
                  the Indebtedness or this Agreement, however obtained. Debtor
                  further agrees that Bank may provide information relating to
                  this Agreement or relating to Debtor to the Bank's parent,
                  affiliates, subsidiaries, and service providers.

         5.5      In addition to Bank's other rights, any indebtedness owing
                  from Bank to Debtor can be set off and applied by Bank on any
                  Indebtedness at any time(s) either before or after maturity or
                  demand without notice to anyone. Any such action shall not
                  constitute acceptance of collateral in discharge of any
                  portion of the Indebtedness.

         5.6      Debtor waives any right to require the Bank to: (a) proceed
                  against any person or property; (b) give notice of the terms,
                  time and place of any public or private sale of personal
                  property security held from Borrower or any other person, or
                  otherwise comply with the provisions of Section 9.504 of the
                  Uniform Commercial Code in effect prior to July 1, 2001 or its
                  successor provisions thereafter; or (c) pursue any other
                  remedy in the Bank's power. Debtor waives notice of acceptance
                  of this Agreement and presentment, demand, protest, notice of
                  protest, dishonor, notice of dishonor,  notice of default,
                  notice of intent to accelerate or demand payment of any
                  Indebtedness, any and all other notices to which the
                  undersigned might otherwise be entitled, and diligence in
                  collecting any Indebtedness, and agree(s) that the Bank may,
                  once or any number of times, modify the terms of any
                  Indebtedness, compromise, extend, increase, accelerate, renew
                  or forbear to enforce payment of any or all Indebtedness, or
                  permit Borrower to incur additional Indebtedness, all without
                  notice to Debtor and without affecting in any manner the
                  unconditional obligation of Debtor under this Agreement.
                  Debtor unconditionally and irrevocably waives each and every
                  defense and setoff of any nature which, under principles of
                  guaranty or otherwise, would operate to impair or diminish in
                  any way the obligation of Debtor under this Agreement, and
                  acknowledges that such waiver is by this reference
                  incorporated into each security agreement, collateral
                  assignment, pledge and/or other document from Debtor now or
                  later securing the Indebtedness, and acknowledges that as of
                  the date of this Agreement no such defense or setoff exists.

         5.7      Debtor waives any and all rights (whether by subrogation,
                  indemnity, reimbursement, or otherwise) to recover from

<Page>

                  Borrower any amounts paid or the value of any Collateral given
                  by Debtor pursuant to this Agreement until such time as all of
                  the Indebtedness has been fully paid.

         5.8      In the event that applicable law shall obligate Bank to give
                  prior notice to Debtor of any action to be taken under this
                  Agreement, Debtor agrees that a written notice given to Debtor
                  at least ten days before the date of the act shall be
                  reasonable notice of the act and, specifically, reasonable
                  notification of the time and place of any public sale or of
                  the time after which any private sale, lease, or other
                  disposition is to be made, unless a shorter notice period is
                  reasonable under the circumstances. A notice shall be deemed
                  to be given under this Agreement when delivered to Debtor or
                  when placed in an envelope addressed to Debtor and deposited,
                  with postage prepaid, in a post office or official depository
                  under the exclusive care and custody of the United States
                  Postal Service or delivered to an overnight courier. The
                  mailing shall be by overnight courier, certified, or first
                  class mail.

         5.9      Notwithstanding any prior revocation, termination, surrender,
                  or discharge of this Agreement in whole or in part, the
                  effectiveness of this Agreement shall automatically continue
                  or be reinstated in the event that any payment received or
                  credit given by Bank in respect of the Indebtedness is
                  returned, disgorged, or rescinded under any applicable law,
                  including, without limitation, bankruptcy or insolvency laws,
                  in which case this Agreement, shall be enforceable against
                  Debtor as if the returned, disgorged, or rescinded payment or
                  credit had not been received or given by Bank, and whether or
                  not Bank relied upon this payment or credit or changed its
                  position as a consequence of it. In the event of continuation
                  or reinstatement of this Agreement, Debtor agrees upon demand
                  by Bank to execute and deliver to Bank those documents which
                  Bank determines are appropriate to further evidence (in the
                  public records or otherwise) this continuation or
                  reinstatement, although the failure of Debtor to do so shall
                  not affect in any way the reinstatement or continuation.

         5.10     This Agreement and all the rights and remedies of Bank under
                  this Agreement shall inure to the benefit of Bank's successors
                  and assigns and to any other holder who derives from Bank
                  title to or an interest in the Indebtedness or any portion of
                  it, and shall bind Debtor and the heirs, legal
                  representatives, successors, and assigns of Debtor. Nothing in
                  this Section 5.10 is deemed a consent by Bank to any
                  assignment by Debtor.

         5.11     If there is more than one Debtor, all undertakings, warranties
                  and covenants made by Debtor and all rights, powers and
                  authorities given to or conferred upon Bank are made or given
                  jointly and severally.

         5.12     Except as otherwise provided in this Agreement, all terms in
                  this Agreement have the meanings assigned to them in Division
                  9 (or, absent definition in Division 9, in any other Division)
                  of the Uniform Commercial Code, as those meanings may be
                  amended, revised or replaced from time to time. "Uniform
                  Commercial Code" means the California Uniform Commercial
                  Code, as amended

         5.13     No single or partial exercise, or delay in the exercise, of
                  any right or power under this Agreement, shall preclude other
                  or further exercise of the rights and powers under this
                  Agreement. The unenforceability of any provision of this
                  Agreement shall not affect the enforceability of the remainder
                  of this Agreement. This Agreement constitutes the entire
                  agreement of Debtor and Bank with respect to the subject
                  matter of this Agreement. No amendment or modification of this
                  Agreement shall be effective unless the same shall be in
                  writing and signed by Debtor and an authorized officer of
                  Bank. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
                  ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF CALIFORNIA,
                  WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPALS.

         5.14     To the extent that any of the Indebtedness is payable upon
                  demand, nothing contained in this Agreement shall modify the
                  terms and conditions of that Indebtedness nor shall anything
                  contained in this Agreement prevent Bank from making demand,
                  without notice and with or without reason, for immediate
                  payment of any or all of that Indebtedness at any time(s),
                  whether or not an Event of Default has occurred.

         5.15     Debtor represents and warrants that Debtor's exact name is the
                  name set forth in this Agreement. Debtor further represents
                  and warrants the following and agrees that Debtor is, and at
                  all times shall be, located in the following place :

                  [Debtor is an individual, and Debtor is located (as determined
                  pursuant to the Uniform Commercial Code) at Debtor's principal
                  residence which is (street address, state and county or
                  parish): 8975 BALBOA AVE., SAN DIEGO, CA, 92123, .]

                  [Debtor is a registered organization which is organized under
                  the laws of one of the states comprising the United States
                  (e.g. corporation, limited partnership, registered limited
                  liability partnership or limited liability company), and
                  Debtor is located (as determined pursuant to the Uniform
                  Commercial Code) in the state under the laws of which it was
                  organized, which is (street address, state and county or
                  parish): N/A .]

                  [Debtor is a domestic organization which is not a registered
                  organization under the laws of the United States or any state
                  thereof (e.g. general partnership, joint venture, trust,
                  estate or association), and Debtor is located (as determined
                  pursuant to the Uniform Commercial Code) at its sole place of
                  business or, if it has more than one place of business, at its
                  chief executive office, which is (street address, state and
                  county or parish): N/A.]

                  [Debtor is a registered organization organized under the laws
                  of the United States, and Debtor is located in the state that
                  United States law designates as its location or, if United
                  States law authorizes the Debtor to designate the state for
                  its location, the state designated by Debtor, or if neither of
                  the foregoing are applicable, at the District of Columbia.
                  Based on the foregoing, Debtor is located (as determined
                  pursuant to the Uniform Commercial Code) at (street address,
                  state and county or parish): N/A .]

                  [Debtor is [a foreign individual or foreign organization-or-a
                  branch or agency of a bank that is not organized under the
                  laws of the United States or a state thereof], Debtor is
                  located (as determined pursuant to the Uniform Commercial
                  Code) at (street address, state and county or parish): N/A .]

                  If Collateral is located at other than the address specified
                  above, such Collateral is located and shall be maintained

                  at ___________________________________________________________
                          STREET ADDRESS
                  ______________________________________________________________
                  CITY                 STATE             ZIP CODE      COUNTY

                  Collateral shall be maintained only at the locations
                  identified in this Section 5.15.

         5.16     A carbon, photographic or other reproduction of this Agreement
                  shall be sufficient as a financing statement under the Uniform
                  Commercial Code and may be filed by Bank in any filing office.

         5.17     This Agreement shall be terminated only by the filing of a
                  termination statement in accordance with the applicable
                  provisions of the Uniform Commercial Code, but the obligations
                  contained in Section 2.13 of this Agreement shall survive
                  termination.

         5.18     Debtor agrees to reimburse the Bank upon demand for any and
                  all costs and expenses (including, without limit, court costs,
                  legal expenses and reasonable attorneys' fees, whether inside
                  or outside counsel is used, whether or not suit is instituted
                  and, if suit is instituted, whether at the trial court level,
                  appellate level, in a bankruptcy, probate or administrative
                  proceeding or otherwise) incurred in enforcing or attempting
                  to enforce this Agreement or in exercising or attempting to
                  exercise any right or remedy under this Agreement or incurred
                  in any other matter or proceeding relating to this Security
                  Agreement.

6.       DEBTOR AND BANK ACKNOWLEDGE THAT THE RIGHT TO TRIAL BY JURY IS A
         CONSTITUTIONAL ONE, BUT THAT IT MAY BE WAIVED. EACH PARTY, AFTER
         CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT) WITH COUNSEL OF
         THEIR CHOICE, KNOWINGLY AND VOLUNTARILY, AND FOR THEIR

<Page>

MUTUAL BENEFIT WAIVES ANY RIGHT TO TRIAL BY JURY IN THE EVENT OF LITIGATION
REGARDING THE PERFORMANCE OR ENFORCEMENT OF, OR IN ANY WAY RELATED TO, THIS
AGREEMENT OR THE INDEBTEDNESS.

7.   Special Provisions Applicable to this Agreement. (*None, if left blank)

                                DEBTOR: Overland Data, Inc.
                                        ---------------------------------------
                                        DEBTOR NAME TYPED/PRINTED

                                By:      /s/ Christopher Calisi
                                     ------------------------------------------
                                     SIGNATURE OF

                                Its:    President and CEO
                                     ------------------------------------------
                                     TITLE (If applicable)

                                By:     /s/ Vernon A. LoForti
                                     ------------------------------------------
                                     SIGNATURE OF

                                Its:    VP and CFO
                                     ------------------------------------------
                                     TITLE (If applicable)

                                By:
                                     ------------------------------------------
                                     SIGNATURE OF

                                Its:
                                     ------------------------------------------
                                     TITLE (If applicable)

                                By:
                                     ------------------------------------------
                                     SIGNATURE OF

                                Its:
                                     ------------------------------------------
                                     TITLE (If applicable)

Borrower(s):
Overland Data, Inc.
---------------------

PEDESTAL - Dynamic Security Agreement
Revision Date (4/01) KMA

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