Document:

EX 10.10 Gast Employment Letter

Exhibit 10.10

July 31, 2012                    

Randy Gast
xxxxxxxxx
xxxxxxxxx

Dear Randy,

Overland Storage, Inc. (“Overland”) is pleased to extend the following offer of employment under the general terms set forth below:

Position:        Senior Vice President of Strategic Alliances and Client Services
Location:        125 South Market Street San Jose, CA 95135
Reports to:        Eric Kelly, President & Chief Executive Officer

		
	Compensation:
	$240,000 annual compensation paid in accordance with our normal payroll practices and subject to normal withholding. You will be eligible to participate in the executive incentive plan upon final approval of the Compensation Committee of the Board of Directors (the “Committee”).  Management currently intends to propose an executive incentive plan based on corporate and individual goals to be established by the Committee with a target compensation of 50% of your annual compensation.

 
		
	Stock Options:   
	Management will recommend that the Committee award you 200,000 Restricted Stock Units (RSUs) and 50,000 options at the Committee’s next meeting.  The recommended RSU’s will vest over a three years with 1/6th of the total number of RSU vesting on every six months, and the options will vest monthly 1/36th of your first day of employment with Overland. Additionally, the recommended RSU’s will contain language that will provide that if your employment with Overland is terminated by you for Good Reason or by the Company without Cause during the two year period following a Change of Control, then any unvested portion of the option and other equity-based awards granted by the Company to you shall vest in full as of the date of such termination, which benefit will be more fully described in a retention agreement between you and Overland to be entered into following the execution of this agreement.   If the unvested portion of the option is not assumed by the acquirer in connection with a Change of Control or otherwise settled in cash or other property in connection with such Change of Control, then you’re unvested portion of the option not so assumed or settled will accelerate and become fully vested and exercisable immediately prior to the closing of such Change of Control.

The retention agreement, will provide that, for purposes of the foregoing, the following definitions shall apply: 

(a) a “Change of Control” will be defined to have occurred if, and only if, during the term of your employment with Overland: 

(i) any individual, partnership, firm, corporation, association, trust, unincorporated organization or other entity or person, or any syndicate or group deemed to be a person under Section 14(d)(2) of the Securities Exchange Act of 1934 (“Exchange Act”) is or becomes the “Beneficial Owner” (as defined in Rule 13d-3 of the General Rules and Regulations under the Exchange Act), directly or indirectly, of securities of the Company representing 30% or more of the combined voting power of the Company’s then outstanding securities entitled to vote in the election of directors of the Company (other than as a result of a purchase of shares directly from the Company in a capital-raising transaction); 

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

(iii) all or substantially all of the assets of the Company are sold, liquidated or distributed;

(b) “Cause” shall mean any of the following: (i) your acts or omissions constituting reckless or willful misconduct with respect to your obligations or otherwise relating to the business of Overland that causes material harm to Overland or its reputation; (ii) your material breach of agreements with Overland, which breach you fail to cure within 30 days after receiving written notice from Overland that specifies the specific conduct giving rise to the alleged breach (if such breach is curable); (iii) your conviction or entry of a plea of nolo contendere for fraud, theft or embezzlement, or any felony or crime of moral turpitude; or (iv) your willful neglect of duties as determined in the sole and exclusive discretion of Overland, which you fail to cure within 30 days after receiving written notice from Overland that specifies the specific duties that you have failed to perform (if such conduct is curable); and

(c) you will be deemed to have resigned for “Good Reason” if you voluntarily terminate employment with the Company: (i) a reduction by Overland in your base salary as in effect immediately prior to such reduction unless (A) such reduction is part of a salary reduction plan across the Overland’s entire senior management team, (B) such reduction does not have a materially disproportionate effect on you in comparison to other members of the senior management team and (C) such reduction is not in excess of 10% of your base salary, (ii) a material and adverse change in your duties, position, reporting relationship or responsibilities, or the removal of you from such duties, position or responsibilities, (iii) a material breach of the any agreement between you and Overland; or (iv) the relocation of you to a facility or a location more than fifty (50) miles from your then present employment location; provided that, in any such case, you first provide written notice to Overland of the existence of the one or more of the above conditions within ninety (90) days of its initial existence, Overland has failed to cure such condition within the thirty (30) day period thereafter and you terminate employment within thirty (30) days of the end of such cure period.

Severance and
		
	Change of Control:
	Management will recommend to the Committee that you become party to a retention agreement that will provide that, in the event your employment is terminated by Overland without Cause or by you for Good Reason, Overland will provide severance benefits equal to the following:  (a) six (6) months’ base salary (based upon of the greater of your then current base salary or the base salary as of your start date), (b) a pro-rated portion of your target bonus for the year of termination (based on the number of days you were employed during the period on which the target bonus is based) and (c) and an amount equal to twelve (12) months of your COBRA premiums, provided you timely elect and remain eligible for COBRA coverage.  The base salary and bonus shall be paid in accordance with the Overland’s standard payroll procedures over the six (6) month period following your termination date and amount based upon the cost of COBRA premiums shall paid in accordance with Overland’s standard payroll procedures over twelve (12) months following termination.  In the event you are terminated without Cause by Overland or you terminate your employment for Good Reason within two (2) years following a Change of Control, Overland (or its successor) will pay you a lump sum equal to the sum of the following:  (a)  twelve (12) months’ base salary (based upon of the greater of your then current base salary or the base salary as of your start date), (b) a pro-rated portion of your target bonus for the year of termination (based on the number of days you were employed during the period on which the target bonus is based) and (c) and an amount equal to twelve (12) months of your COBRA premiums, provided you timely elect and remain eligible for COBRA coverage.  The retention agreement will set forth the eligibility and other terms and conditions of these benefits, including the condition that you first sign and not revoke a general release of claims in favor of the Company and its affiliates within no more than 55 days of the termination of your employment in order to receive any of the above severance benefits (provided that any time periods contained in the release will fully comply with any requirements then in effect under Section 409A).  Management will recommend that the eligibility and other terms and conditions (other than the amount of the benefits) you will receive be substantially the same as those for other Vice Presidents.

		
	Section 409A 
	Notwithstanding anything to the contrary in this agreement, no Deferred Compensation Separation Benefits payable under this agreement will be considered due or payable until and unless you have a “separation from service” within the meaning of Section 409A of the U.S. Internal Revenue Code of 1986, as amended (the “Code”) and the final regulations and any guidance promulgated under Section 409A, as each may be amended from time to time (together, “Section 409A”).  Notwithstanding anything to the contrary in this agreement, if you are a “specified employee” within the meaning of Section 409A at the time of your “separation from service” other than due to death, then any severance benefits payable pursuant to this agreement and any other severance payments or separation benefits, that in each case when considered together may be considered deferred compensation under Section 409A (together, the “Deferred Compensation Separation Benefits”) and are otherwise due to you on or within the six (6) month period following your “separation from service” will accrue during such six (6) month period and will instead become payable in a lump sum payment on the date six (6) months and one (1) day following the date of your “separation from service.”  All subsequent Deferred Compensation Separation Benefits, if any, will be payable in 

accordance with the payment schedule applicable to each payment or benefit.  Each payment and benefit payable under this agreement is intended to constitute separate payments for purposes of Section 1.409A‐2(b)(2) of the Treasury Regulations.  Notwithstanding anything to the contrary in this agreement, if you die following his “separation from service” but prior to the six (6) month anniversary of the date of you “separation from service,” then any Deferred Compensation Separation Benefits delayed in accordance with this paragraph will be payable in a lump sum as soon as administratively practicable after the date of your death, but not later than ninety (90) days after the date of your death, and all other Deferred Compensation Separation Benefits will be payable in accordance with the payment schedule applicable to each payment or benefit.  It is the intent of this agreement to comply with the requirements of Section 409A so that none of the severance payments and benefits to be provided under this agreement will be subject to the additional tax imposed under Section 409A, and any ambiguities in this agreement will be interpreted to so comply.  Overland and you agree to work together in good faith to consider amendments to this agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition under Section 409A prior to actual payment to you.
 
At Overland we strive to maintain a safe, drug-free work environment conducive to effective business operations.  We require that our personnel and operating practices be consistent with the highest standards of health and safety.  

Overland pays 100% of your benefits and they will be effective on the first day of the month following your start date. You will meet with our Human Resources Department upon your arrival so that they can explain your new benefits and sign you up for coverage. 

The Immigration Reform and Control Act of 1986 require employers to provide verification of a new employee’s identity and employment eligibility on their first day of employment.  It is necessary, therefore, that you complete the US Government and Employment Eligibility Verification Form (I-9) and provide documentation to verify your identity and employment eligibility.  

Your employment with Overland will be "at-will".  This means that it is not for any specified period of time and can be terminated by you or by Overland at any time, with or without advance notice, and for any or no particular reason or cause.  It also means that your job duties, title, responsibilities, reporting level, compensation and benefits, as well as Overland’s personnel policies and procedures may be changed with or without notice at any time in the sole discretion of Overland, subject to benefits you may be entitled to under the Employment and Severance Agreement referenced above.  The "at-will" nature of your employment will remain unchanged during your tenure as an employee and may be changed only by an express written agreement that is signed by you and by the Chief Executive Officer.

In order to document your acceptance, please countersign this letter no later than close of business Wednesday, August 1, 2011 and return to Eric Kelly. Your employment is conditioned on our receipt of your executed copy of this letter.

Randy, we look forward to you joining the Overland Executive Management Team.  

Sincerely,

/s/ Eric Kelly

Eric Kelly
President and Chief Executive Officer

Acceptance:   /s/ Randy Gast            

By signing, I understand, acknowledge and agree to all of the terms of this offer.EX 10.25 Special Form of Notice

Exhibit 10.25
Overland Storage, Inc.
2009 Equity Incentive Plan
Notice of Stock Unit Award
You have been granted units representing shares of Common Stock of Overland Storage, Inc. (the “Company”) on the following terms:	
		
	Name of Recipient:
	 

	Total Number of Units Granted:
	 

	Date of Grant:
	May 13, 2014

	Vesting Commencement Date:
	May 13, 2014

	Vesting Schedule:
	The units subject to this award will vest in six (6) equal installments, with the first installment vesting six (6) months after the Vesting Commencement Date and an additional installment vesting at the end of each six-month period thereafter, subject in each case to your continued “Service” (as defined in the Plan) through the applicable vesting date.  Each date on which an installment of this award vests is referred to as a “Vesting Date.”

	Vesting Installments:
	-- shares on November 13, 2014
-- shares on May 13, 2015
-- shares on November 13, 2015
-- shares on May 13, 2016
-- shares on November 13, 2016
-- shares on May 13, 2017

You and the Company agree that these units are granted under and governed by the terms and conditions of the Overland Storage, Inc. 2009 Equity Incentive Plan (the “Plan”) and the Stock Unit Agreement, both of which are attached to and made a part of this document.
You further agree that the Company may deliver by email all documents relating to the Plan or this award (including, without limitation, prospectuses required by the Securities and Exchange Commission) and all other documents that the Company is required to deliver to its security holders (including, without limitation, annual reports and proxy statements).  You also agree that the Company may deliver these documents by posting them on a web site maintained by the Company or by a third party under contract with the Company.  If the Company posts these documents on a web site, it will notify you by email.
	
		
	Participant:
	Overland Storage, Inc.

	 
	By:
      

Overland Storage, Inc.
2009 Equity Incentive Plan
Stock Unit Agreement
	
		
	Payment for Units
	No payment is required for the units that you are receiving.

	
		
	Vesting
	The units vest in installments, as shown in the Notice of Stock Unit Award. 

	 
	To the extent then outstanding and unvested, the units will vest in full (i) if your Service terminates because of your Disability or death, or (ii) if a Change in Control occurs.  

	 
	In the event that your Service is terminated by the Company without Cause or by you for Good Reason and you are not entitled to full vesting as provided above, (a) this award will vest on the date of termination of your Service (the “Termination Date”) with respect to a number of units determined by multiplying (x) the number of then-outstanding and unvested units that would have otherwise vested on the next Vesting Date (if any) following your Termination Date (had your employment not terminated), by (y) a fraction, the numerator of which will be the number of whole months that have elapsed between the Vesting Date that immediately preceded your Termination Date (or, in the case of a termination prior to the initial Vesting Date, the Vesting Commencement Date) and your Termination Date, and the denominator of which will be six (6); and (b) any units subject to this award that are not vested after giving effect to the foregoing clause (a) shall terminate.

	 
	The units are also subject to any rights to accelerated vesting you may have under any employment, severance, retention or similar agreement with the Company in effect on the Date of Grant (with any such acceleration rights to be applied, in the case of a termination of your Service other than in connection with a Change in Control, after giving effect to the prorated vesting described above).

	Forfeiture
	Except as described above, if your Service terminates for any reason, then your units will be forfeited to the extent that they have not vested before the termination date and do not vest as a result of the termination.  This means that the units will immediately be cancelled.  You receive no payment for units that are forfeited.

	 
	The Company determines when your Service terminates for this purpose.

	Leaves of Absence and Part-Time Work
	For purposes of this award, your Service does not terminate when you go on a military leave, a sick leave or another bona fide leave of absence, if the leave was approved by the Company in writing and if continued crediting of Service is required by applicable law, the Company’s leave of absence policy or the terms of your leave.  But your Service terminates when the approved leave ends, unless you immediately return to active work.

	 
	If you go on a leave of absence, then the vesting schedule specified in the Notice of Stock Unit Award may be adjusted in accordance with the Company’s leave of absence policy or the terms of your leave.  If you commence working on a part-time basis, then the vesting schedule specified in the Notice of Stock Unit Award may be adjusted in accordance with the Company’s part-time work policy or the terms of an agreement between you and the Company pertaining to your part-time schedule.

	Nature of Units
	Your units are mere bookkeeping entries.  They represent only the Company’s unfunded and unsecured promise, subject to vesting and the other terms and conditions of this Agreement, to issue shares of Common Stock on a future date.  As a holder of units, you have no rights other than the rights of a general creditor of the Company.

	No Voting Rights or Dividends
	Your units carry neither voting rights nor rights to cash dividends.  You have no rights as a shareholder of the Company unless and until your units are settled by issuing shares of the Company’s Common Stock.

	
		
	Units Nontransferable
	You may not sell, transfer, assign, pledge or otherwise dispose of any units, except pursuant to a Domestic Relations Order.  For instance, you may not use your units as security for a loan.

	Settlement of Units
	Your units that become vested in accordance with the terms of this Agreement will be settled in shares of the Company’s Common Stock on a one-for-one basis.  Each unit that becomes vested on a Vesting Date will be settled on the earlier to occur of (x) the date that is two (2) trading days after the Company’s next earnings release that follows the applicable Vesting Date, and (y) the date that is seventy (70) days following the Vesting Date; provided, however, that in the event you have (prior to the applicable Vesting Date) entered into an irrevocable arrangement (on terms reasonably acceptable to the Company) with a third-party broker to use the proceeds of a sale of shares on the market to provide for tax withholding in connection with such vesting event and provided the terms of such arrangement to the Company (a “Broker Arrangement”), you and the Company agree that, unless and until otherwise provided by the Company, at the time of settlement of the vested units, the Company will (a) deliver to your designated broker a number of whole shares, valued at their then Fair Market Value, with a value equal to the withholding obligations of the Company or its Subsidiaries with respect to the portion of the award that vested on the related Vesting Date at the minimum applicable withholding rates (the “Minimum Withholding Obligations”), (b) retain a number of whole shares, valued at their then Fair Market Value, with a value equal to the Minimum Withholding Obligations (the “Retained Shares”), and (c) deliver to you the balance of the shares otherwise payable in respect of the vested units.  In the case of a Broker Arrangement, the Company will deliver the Retained Shares to you promptly upon the Company’s receipt of payment of the Minimum Withholding Obligations.

	 
	In the event that any of your units vest in connection with your death or Disability or a termination of your Service, in each case as provided under “Vesting” above, such vested units will be settled upon or promptly following (and in all events not later than two and one-half months following) the date of such vesting event (or, in the event that you are entitled to additional vesting of your units as a result of a Change in Control as provided above, the date of the Change in Control event as to any additional units vesting on that event).

	Withholding; Taxes
	No payment of the units will be made to you unless you have made acceptable arrangements to pay any withholding taxes that may be due as a result of such payment.  With the Company’s consent and subject to all applicable laws and Company policies (including insider-trading policies), these arrangements may include (a) withholding shares of Company stock that otherwise would be issued to you when the units are settled, (b) surrendering shares that you previously acquired or (c) a Broker Arrangement (as defined above). In the case of clauses (a) and (b) above, the Fair Market Value of these shares, determined as of the date when taxes otherwise would have been withheld in cash, will be applied to the withholding taxes.     
The award is intended as a “short-term deferral” under Section 409A of the Code and this Agreement shall be interpreted consistent with that intent.  Except for the Company’s withholding right set forth in the preceding paragraph, you will be responsible for any and all taxes that arise with respect to your award.

	
		
	Restrictions on Resale
	You agree not to sell any shares at a time when Applicable Law, Company policies or an agreement between the Company and its underwriters prohibit a sale.  This restriction will apply as long as your Service continues and for such period of time after the termination of your Service as the Company may specify.

	No Retention Rights
	Your award or this Agreement does not give you the right to be retained by the Company or a subsidiary of the Company in any capacity.  The Company and its subsidiaries reserve the right to terminate your Service at any time, with or without cause.

	Adjustments
	In the event of a stock split, a stock dividend or a similar change in Company stock, the number of your units will be adjusted accordingly, as the Company may determine pursuant to the Plan.

	Beneficiary Designation
	You may dispose of your units in a written beneficiary designation.  A beneficiary designation must be filed with the Company on the proper form.  It will be recognized only if it has been received at the Company’s headquarters before your death.  If you file no beneficiary designation or if none of your designated beneficiaries survives you, then your estate will receive any vested units that you hold at the time of your death.

	Definition of Cause
	For purposes of this Agreement, “Cause” has the meaning given to such term in any employment agreement between you and the Company as in effect on the Date of Grant or, if there is no such agreement (or such agreement does not include a definition of such term), shall mean: (a) acts or omissions constituting reckless or willful misconduct on your part with respect to your obligations or otherwise relating to the business of the Company that causes material harm to the Company or its reputation; (b) your material breach of any agreement between you and the Company, which breach you fail to cure within 30 days after receiving written notice from the Board that specifies the specific conduct giving rise to the alleged breach; (c) your conviction or entry of a plea of nolo contendere for fraud, theft or embezzlement, or any felony or crime of moral turpitude; or (d) your willful neglect of duties as reasonably determined by the Board of Directors of the Company, which you fail to cure within 30 days after receiving written notice from the Board that specifies the specific duties that you have failed to perform.

	
		
	Definition of Good Reason
	For purposes of this Agreement, “Good Reason” has the meaning given to such term in any employment agreement between you and the Company as in effect on the Date of Grant or, if there is no such agreement (or such agreement does not include a definition of such term), shall mean a voluntary termination by you of your employment with the Company within one year after the initial occurrence of one or more of the following: (a) the Company reduces your base compensation (including commissions) by more than ten percent (10%), (b) your authority, responsibilities and/or duties are materially reduced so that your duties are no longer consistent with your position as of the Date of Grant and you no longer report directly to the President or Chief Executive Officer of the Company; (c) a material breach by the Company of any agreement between you and the Company; or (d) the Company relocates your principal place of work to a location more than fifty (50) miles from the Company’s current office location as of the Date of Grant without your prior written approval; provided, however, that such a termination by you shall not be a termination for Good Reason unless you notify the Company in writing within 60 days following the initial existence of one of the circumstances constituting “Good Reason”, the Company is given 30 days from the receipt of such notice in which the Company may remedy or cure such condition, and the Company fails to remedy or cure the condition set forth in your notice within 30 days of receipt of such notice.  For purposes of the foregoing, if you do not timely provide notice to the Company, then you are deemed to have waived this right.

	Governing Law
	This Agreement will be interpreted and enforced under the laws of the State of California (without regard to its choice-of-law provisions).

	The Plan and Other Agreements
	The text of the Plan is incorporated in this Agreement by reference.  Capitalized terms not otherwise defined herein have the meanings given to them in the Plan document.

	 
	This Agreement and the Plan constitute the entire understanding between you and the Company regarding this award.  Any prior agreements, commitments or negotiations concerning this award are superseded.  This Agreement may be amended only by another written agreement between the parties.

By signing the cover sheet of this Agreement, you agree to all of the terms and conditions described above and in the Plan.

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