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EXHIBIT 10.11    
  

 
 

Confidential Treatment Requested    
  

AMENDMENT TO

VR2 TECHNOLOGY LICENSE AGREEMENT  

        THIS AMENDMENT TO VR2 TECHNOLOGY LICENSE AGREEMENT (this "Amendment") is made and entered into as of
this 18th day of June 2002 (the "Amendment Effective Date"), by and between Overland Data, Inc., a California corporation,
having a place of business at 4820 Overland Avenue, San Diego, CA 92123 ("Overland"), and Storage Technology Corp., a Delaware corporation, having a
place of business at One Storage Tek Drive, Louisville, CO 80028 ("StorageTek"). 

RECITALS  

        A. Overland and StorageTek are parties to that certain VR2 Technology License Agreement, dated effective as of April 27, 2000 (the
"Original Agreement") and whereby, Overland granted a license to StorageTek with respect to the VR2 Intellectual Property,
VR2 Intellectual Property Derivatives and know-how of the VR2 Core (as each such capitalized term is defined in the Original Agreement) to develop, make, use,
sell and offer for sale tape drive products incorporating application specific integrated circuits embodying such VR2 Intellectual Property, VR2Intellectual Property
Derivatives and know-how of the VR2 Core all as set forth in the Original Agreement. 

        B.
StorageTek and Overland have agreed to amend the Original Agreement in several respects and under the terms and conditions herein. 

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

        1.
Definitions. For purposes of this Amendment, any capitalized terms used herein will have the meanings ascribed to such terms or, if no
meaning is ascribed herein, such capitalized terms will have the meanings ascribed in the Original Agreement. 

        2.
Delivery of ***. As soon after the completion of the third engineering deliverable set forth on Appendix 1 (acceptance of the
Engineering Deliverable to documented specifications) as is reasonably practicable, Overland will deliver to StorageTek ***. 

        3.
Amendments to Original Agreement: 

	(a)
	Amendment
to Section 1.3. Section Section 1.3 of the Original Agreement is hereby deleted in its entirety and replaced with the following: 

1.3
Core License. The term "Core License" means a *** to: (i) use the VR2
Intellectual Property solely for the purposes of designing, manufacturing and having manufactured VR2 Compliant Products; (ii) incorporate such VR2 Compliant
Products solely into tape drives manufactured by or for StorageTek; (iii) promote, make, have made, copy, use, market, import, offer to sell, sell, and distribute such VR2
Compliant Products as a part of tape drives manufactured by or for StorageTek; (iv) excerpt, reproduce and distribute, subject to the confidentiality provisions of Article 5, the
Documentation solely for the purpose of making such VR2 Compliant Products; and (v) use the Overland Mark in connection with the promotion, marketing, sale, offer for sale, or
distribution of tape drives manufactured by or for StorageTek which contain the VR2 Compliant Products. 

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

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	(b)
	Amendment to Section 1.11. Section 1.11 of the Original Agreement is hereby deleted in its entirety and replaced with the
following: 

1.11 VR2 Core. The term "VR2 Core" means the single Channel core with
diversity as described and identified in the specification set forth in Exhibit A-1 excluding: (i) any analog to digital
circuitry or any references thereto; and (ii) those items identified in Exhibit D hereto that do not constitute part of the
VR2 Technology. 

	(c)
	Amendment to Section 1.16. Section 1.16 of the Original Agreement is hereby deleted in its entirety and replaced with the
following: 

1.16 VR2 Technology. The term "VR2 Technology" means the VHDL Model and the
data encoding and decoding channel technology for linear magnetic tape formats developed by Overland, as identified in Exhibit D hereto as ***,
and includes solid state circuits embodied in semiconductor chips, associated specifications, designs, drawings, data, test qualification, and other documented technical and application information
related thereto. 

	(d)
	New Section 1.18. A new Section 1.18 is hereby added to the Original Agreement as follows: 

1.18 ***. The term "***" means ***. 

	(e)
	Amendment to Section 4.2. Section 4.2 of the Original Agreement is hereby amended and supplemented by adding the
following new paragraph: 

From
the Amendment Effective Date until the completion of verification testing by Overland of the Implementation Compliant Core for use in a StorageTek tape drive ("Core
Verification Date"), Overland will provide to StorageTek contract engineering services covering (a) modification of VR2 Core to support StorageTek NGD tape
drive; (b) technical support to integrate and verify the VR2 Core with an ASIC vendor of StorageTek's choosing; (c) assistance with verification of the system design and
Channel performance and (d) such other engineering services as the parties may mutually agree. As consideration for such contract engineering services, StorageTek will pay to Overland ***. In
addition, StorageTek will also pay directly or reimburse ***. StorageTek will deliver the payments as set forth on the Schedule of Service Fee Payments attached as  Appendix 1. 

	(f)
	Amendment to Section 4.3. Section 4.3 of the Original Agreement is hereby deleted in its entirety and replaced with the
following: 

4.3 Royalty. In consideration for the Core License, for each VR2 Compliant Product sold by StorageTek as part of a tape drive, StorageTek
shall pay to Overland a royalty amount for each Channel contained within such VR2 Compliant Product *** in accordance with the terms and conditions set forth in  Exhibit B ***. StorageTek
shall deliver such royalty payments to Overland not later than *** days after the end of each Quarter during the Term
of this Agreement. 

	(g)
	Amendment to Section 7.2. Section 7.2 of the Original Agreement is hereby deleted in its entirety and replaced with the
following: 

7.2 Indemnity by Overland. Overland will indemnify and hold harmless StorageTek and its directors, officers, employees, agents, successors and assigns
from and against any and all liability, damages, losses, claims, demands, actions, judgments, costs, attorneys' fees, disbursements and expenses incurred in connection with any action, claim or demand
against StorageTek by reason of injury to or death of any person or damage to or destruction of property or the environment arising out of or resulting from (a) any material breach of this
Agreement by Overland, (b) any breach of any representations or warranties made by Overland in this Agreement, (c) any and all activities carried out by Overland pursuant to this 

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Agreement, (d) the negligent, reckless or willful acts or omissions of Overland, its employees, subcontractors or agents in any and all activities carried out under this Agreement, or
(e) infringement based on the making, using, selling or offering for sale of any VR2 Compliant Product manufactured by or for StorageTek, to the extent that such infringement
relates specifically to the VR2 Core. Overland will not be responsible for any such losses, damages, liabilities, claims, actions, judgments, costs, demands, attorneys' fees,
disbursements and expenses to the extent caused by the negligence or willful misconduct of StorageTek, its directors, officers or employees. If an action, claim or demand is filed against StorageTek
for which Overland is to be responsible under this provision, StorageTek will promptly notify Overland in writing of such action, claim or demand. Upon receipt of such notice from StorageTek, if
Overland acknowledges in writing to StorageTek that Overland is obligated to indemnify StorageTek under the terms of this Section 7.2 in connection with such action, claim or demand, then
Overland will be entitled, if it so elects, to take control of the defense and investigation of such action, claim or demand and to employ and engage attorneys of its own choice to handle and defend
the same at Overland's sole cost, risk and expense and StorageTek will thereafter cooperate in all reasonable respects with Overland and its attorneys in the investigation, trial and defense of such
action, claim or demand and any appeal arising therefrom. StorageTek may also, through independent counsel and at its own cost, participate in such investigation, trial and defense of such action,
claim or demand and any appeal arising therefrom. Overland may effect no settlement without the prior written approval of StorageTek, which approval will not be unreasonably withheld. If, due to a
claim covered by clause (e) above, VR2Compliant Products manufactured, used or sold by or for StorageTek (i) are held by a court of competent jurisdiction, or in Overland's
reasonable judgment may be held by such a court, to infringe or (ii) are subject to a valid court order enjoining their manufacture use or sale, or in Overland's reasonable judgment may be
subject to such an order, Overland may in its sole discretion and at its expense, (a) replace or modify the VR2 Technology so that the VR2 Compliant Products will be
non-infringing; (b) obtain a license for StorageTek to continue making, using, selling and distributing the VR2 Compliant Products; or (c) if
non-infringing VR2 Compliant Products or a license cannot reasonably be obtained, Overland will notify StorageTek and allow StorageTek to negotiate its own license agreement
with the party claiming the infringement ***. If StorageTek is unable to reach an agreement
with the infringing party under this section (c) the parties may terminate licenses granted under this Agreement by mutual consent. 

	(h)
	Amendment to Section 7.3. Section 7.3 of the Original Agreement is hereby deleted in its entirety and replaced with the
following: 

7.3 Liability for Injuries to Personnel. Each party will be solely responsible for, and will indemnify the other party against, all claims, losses,
litigation, damages and expenses resulting from injuries to or the death of any of its personnel occurring while any such person is traveling to or from any of the other party's facilities, or is
otherwise engaged in activities incident to this Agreement. Each party will obtain and maintain all necessary workers' compensation, liability as required by statute and other insurance covering any
personnel of either such party while engaging in activities pursuant to this Agreement at the other party's premises and will name such other party as an additional, named insured on all such policies
with minimum limits of ***. 

	(i)
	Amendment to Section 8.5. Section 8.5 of the Original Agreement is hereby deleted in its
entirety and replaced with the following: 

8.5 Consequences of Termination. Upon termination or expiration of this Agreemen, StorageTek will immediately deliver to Overland all Overland Items,
including any and all Confidential Information and other materials related to, embodying, or associated with, any of 

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the Documentation, Functional Test Vectors, VR2 Intellectual Property, VR2 Intellectual Property Derivatives, VR2 Core, VR2 Technical
Information, and/or VR2 Technology, made available to, or produced by, StorageTek pursuant to the terms of this Agreement. Any termination of this Agreement will not eliminate any
liability arising out of the conduct prior to the actual date of termination, and either party may, following such termination, pursue such remedies as may be available with respect to such
liabilities. In addition, the obligations of ***, will survive any termination of this Agreement. Within *** days after termination of this Agreement for any reason whatsoever, StorageTek will:
(i) certify in writing to Overland that StorageTek has satisfied all of its obligations under this Section 8.5; (ii) fill all outstanding purchase orders for any product or device
integrating the VR2 Compliant Product; and (iii) pay all accrued and unpaid royalties pursuant to Section 4.3. Immediately upon termination of this Agreement, StorageTek
will not accept further purchase order of any VR2 Compliant Product and/or any product or device integrating any VR2 Compliant Product. In the event of a material breach of
this Agreement by Overland, ***. In the event of Overland's bankruptcy, insolvency, inability to meet its obligations as they become due, general assignment for the benefit of creditors, petition,
application for (with or without its consent) the appointment of a custodian, receiver, trustee in bankruptcy or similar officer for all or any substantial part of its business or assets, or if
Overland avails itself or becomes subject to any proceeding under the Federal Bankruptcy Code or any similar state, federal or foreign statute relating to bankruptcy, insolvency, reorganization,
receivership, arrangement, adjustment of debts, dissolution or liquidation, which proceeding is not dismissed within sixty (60) days of commencement thereof, ***. 

	(j)
	Amendment to Section 11.2. Section 11.2 of the Original Agreement is hereby deleted in its entirety and replaced with the
following: 

11.2 Assignment. This Agreement will be binding upon all of each party's successors and assigns. Neither party may assign its rights or delegate its
duties under this Agreement without the written consent of the other party; provided, however, that any party may assign its rights and delegate its
duties, either in whole or in part, under this Agreement to any wholly owned or controlled affiliate, provided that such assignment includes an express
assumption of the assignor's obligations hereunder; and, further provided, that the assignor will continue to be responsible, jointly and severally with
the assignee, for its obligations, responsibilities and duties hereunder. The assigning party will give to the other party written notification of any such assignment. Any attempted assignment or
delegation in contravention of this Section 11.2 will be void and of no effect. Notwithstanding the foregoing, either party will have the right
to assign this Agreement as a part of the sale or transfer of all or substantially all of the party's business to which this Agreement relates. 

	(k)
	Amendment to Section 11.3. Section 11.3 of the Original Agreement is hereby deleted in its entirety and replaced with the
following: 

11.3 Notice. Except as otherwise provided in this Agreement, all notices will be deemed to have been duly given when made in writing and delivered in
person, sent by electronic facsimile transmission with return acknowledgement, deposited in the United States Mail, postage prepaid, certified mail, return receipt requested or sent by a express
courier service which provides documented delivery, and addressed as follows: (i) if to Overland, send to Overland Data, Inc., 4820 Overland
Avenue, San Diego, CA 92123 Attention: Chief Financial Officer; and if to StorageTek, send to Storage Technology Corp., One Storage Tek Drive, Louisville, CO 80028, Attention: Software &
Systems Strategic Alliances, Attention: Department Manager. The address to which notices or communications may be given by any party may be changed by written notice given by such party to the other
pursuant to this Section 11.3. 

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        5.
No Other Changes. Except as expressly provided in this Amendment, the Original Agreement remains un-amended and unmodified
and in full force and effect. 

        6.
General. This Amendment contains the entire agreement between the parties with respect to the subject matter hereof and supersedes any
prior agreements, negotiations, or representations between the parties with respect to the subject matter hereof, whether written or oral. This Amendment may be modified only by a subsequent written
agreement signed by the parties. If any provision of this Amendment is held to be unenforceable, the remaining provisions will continue unaffected. 

        7.
Governing Law. This Amendment will be governed in all respects solely and exclusively by the laws of the State of California, U.S.A.
without regard to conflict of law principles. 

[
Remainder of Page Intentionally Left Blank ] 

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IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their duly authorized representatives as of the Amendment Effective Date. 

	Overland Data, Inc.:	 	Storage Technology Corp.:
	
By:	
 	

 	
 	

By:	
 	

 
	 	 	
 Vernon A. LoForti

Vice President and Chief Financial Officer	 	 	 	
 Chris Durkee

Contracts Administrator Sr. Consultant

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APPENDIX 1
  SCHEDULE OF SERVICE FEE PAYMENTS    
  

        *** 

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EXHIBIT A-1    
  

        *** 

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

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EXHIBIT 10.11

Confidential Treatment Requested

APPENDIX 1 SCHEDULE OF SERVICE FEE PAYMENTS

EXHIBIT A-1QuickLinks
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EXHIBIT 10.22    
  

 
 

OVERLAND STORAGE, INC.    
    
    2000 STOCK OPTION PLAN    
    
    (Amended and Restated Effective 8-8-02)    
  

        1.    Purposes of the Plan.    The purposes of this 2000 Stock Option Plan are to attract and retain the best
available personnel, to provide additional incentive to Employees, Directors and Consultants and to promote the success of the Company's business. 

        2.    Definitions.    As used herein, the following definitions shall apply: 

        (a)  "Administrator" means the Board or any of the Committees appointed to administer the Plan. 

        (b)  "Affiliate" and "Associate" shall have the respective meanings ascribed
to such terms in Rule 12b-2 promulgated under the Exchange Act. 

        (c)  "Applicable Laws" means the legal requirements relating to the administration of stock option plans, if any, under
applicable provisions of federal securities laws, state corporate and securities laws, the
Code, the rules of any applicable stock exchange or national market system, and the rules of any foreign jurisdiction applicable to Awards granted to residents therein. 

        (d)  "Assumed" means for the purposes of terminating the Award (in the case of a Corporate Transaction) and the termination of
the Continuous Service of the Grantee (in the case of a Related Entity Disposition) (i) pursuant to a Corporate Transaction or Related Entity Disposition, as applicable, that the Award is
replaced with a comparable Award with respect to shares of capital stock of the successor entity or its parent in connection with the Corporate Transaction or Related Entity Disposition or
(ii) pursuant to a Corporate Transaction defined in Section 2(p)(iv) or 2(p)(v), that the
Award is affirmed by the Company. In addition, for purposes of accelerating the vesting and release of restrictions applicable to Awards, "Assumed" also means that, pursuant to a Corporate Transaction
or Related Entity Disposition, the Award is replaced with a cash incentive program of the successor entity or Parent thereof which preserves the compensation element of such Award existing at the time
of the Corporate Transaction or Related Entity Disposition and provides for subsequent payout in accordance with the same vesting schedule applicable to such Award. The determination of Award
comparability shall be made by the Administrator and its determination shall be final, binding and conclusive. 

        (e)  "Award" means the grant of an Option or other right or benefit under the Plan. 

        (f)    "Award Agreement" means the written agreement evidencing the grant of an Award executed by the Company and the Grantee,
including any amendments thereto. 

        (g)  "Board" means the Board of Directors of the Company. 

        (h)  "Change in Control" means a change in ownership or control of the Company effected through either of the following
transactions: 

          (i)  the
direct or indirect acquisition by any person or related group of persons (other than an acquisition from or by the Company or by a Company-sponsored employee
benefit plan or by a person that directly or indirectly controls, is controlled by, or is under common control with, the Company) of beneficial ownership (within the meaning of
Rule 13d-3 of the Exchange Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Company's outstanding securities pursuant to a
tender or exchange offer made directly to the Company's shareholders which a majority of the Continuing Directors 

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who are not Affiliates or Associates of the offeror do not recommend such shareholders accept, or 

        (ii)  a
change in the composition of the Board over a period of thirty-six (36) months or less such that a majority of the Board members (rounded up to the
next whole number) ceases, by reason of one or more contested elections for Board membership, to be comprised of individuals who are Continuing Directors. 

        (i)    "Code" means the Internal Revenue Code of 1986, as amended. 

        (j)    "Committee" means any committee appointed by the Board to administer the Plan. 

        (k)  "Common Stock" means the common stock, no par value per share, of the Company. 

        (l)    "Company" means Overland Storage, Inc., a California corporation. 

        (m)  "Consultant" means any person (other than an Employee or a Director, solely with respect to rendering services in such
person's capacity as a Director) who is engaged by the Company or any Related Entity to render consulting or advisory services to the Company or such Related Entity. 

        (n)  "Continuing Directors" means members of the Board who either (i) have been Board members continuously for a period
of at least thirty-six (36) months or (ii) have been Board members for less than thirty-six (36) months and were elected or nominated for election as Board
members by at least a majority of the Board members described in clause (i) who were still in office at the time such election or nomination was approved by the Board. 

        (o)  "Continuous Service" means that the provision of services to the Company or a Related Entity in any capacity of Employee,
Director or Consultant, is not interrupted or terminated. Continuous Service shall not be considered interrupted in the case of (i) any approved leave of absence, (ii) transfers among
the Company, any Related Entity, or any successor, in any capacity of Employee, Director or Consultant, or (iii) any change in status as long as the individual remains in the service of the
Company or a Related Entity in any capacity of Employee, Director or Consultant (except as otherwise provided in the Award Agreement). An approved leave of absence shall include sick leave, military
leave, or any other authorized personal leave. For purposes of each Incentive Stock Option granted under the Plan, if such leave exceeds ninety (90) days, and reemployment upon expiration of
such leave is not guaranteed by statute or contract, then the Incentive Stock Option shall be treated as a Non-Qualified Stock Option on the day three (3) months and one
(1) day following the expiration of such ninety (90) day period. 

        (p)  "Corporate Transaction" means any of the following transactions: 

          (i)  a
merger or consolidation in which the Company is not the surviving entity, except for a transaction the principal purpose of which is to change the state in which the
Company is incorporated; 

        (ii)  the
sale, transfer or other disposition of all or substantially all of the assets of the Company (including the capital stock of the Company's subsidiary corporations); 

        (iii)  approval
by the Company's shareholders of any plan or proposal for the complete liquidation or dissolution of the Company; 

        (iv)  any
reverse merger in which the Company is the surviving entity but in which securities possessing more than fifty percent (50%) of the total combined voting power of
the Company's outstanding securities are transferred to a person or persons different from those who held such securities immediately prior to such merger; or 

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        (v)  acquisition
by any person or related group of persons (other than the Company or by a Company-sponsored employee benefit plan) of beneficial ownership (within the
meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Company's outstanding securities (whether
or not in a transaction also constituting a Change in Control), but excluding any such transaction that the Administrator determines shall not be a Corporate Transaction. 

        (q)  "Covered Employee" means an Employee who is a "covered employee" under Section 162(m)(3) of the Code. 

        (r)  "Director" means a member of the Board or the board of directors of any Related Entity. 

        (s)  "Employee" means any person, including an Officer or Director, who is an employee of the Company or any Related Entity.
The payment of a director's fee by the Company or a Related Entity shall not be sufficient to constitute "employment" by the Company. 

        (t)    "Exchange Act" means the Securities Exchange Act of 1934, as amended. 

        (u)  "Fair Market Value" means, as of any date, the value of Common Stock determined as follows: 

          (i)  if
the Common Stock is at the time traded on The Nasdaq Stock Market, then the Fair Market Value shall be the closing selling price per share of Common Stock on the
date in question, as such price is reported by the National Association of Securities Dealers on The Nasdaq Stock Market. If there is no closing selling price for the Common Stock on the date in
question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists; 

        (ii)  if
the Common Stock is at the time listed on any Stock Exchange, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in
question on the Stock Exchange determined by the Plan Administrator to be the primary market for the Common Stock, as such price is officially quoted in the composite tape of transactions on such
exchange. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such
quotation exists; or 

        (iii)  in
the absence of an established market for the Common Stock of the type described in (i) and (ii), above, the Fair Market Value thereof shall be determined by
the Administrator in good faith. 

        (u)  "Grantee" means an Employee, Director or Consultant who receives an Award pursuant to an Award Agreement under the Plan. 

        (v)  "Immediate Family" means any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse,
sibling, niece, nephew, mother-in-law, father-in-law, son-in law, daughter-in-law,
brother-in-law, or sister-in-law, including adoptive relationships, any person sharing the Grantee's household (other than a tenant or employee), a
trust in which these persons have more than fifty percent (50%) of the beneficial interest, a foundation in which these persons (or the Grantee) control the management of assets, and any other entity
in which these persons (or the Grantee) own more than fifty percent (50%) of the voting interests. 

        (w)  "Incentive Stock Option" means an Option intended to qualify as an incentive stock option within the meaning of
Section 422 of the Code. 

        (x)  "Non-Qualified Stock Option" means an Option not intended to qualify as an Incentive Stock Option. 

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        (y)  "Officer" means a person who is an officer of the Company or a Related Entity within the meaning of Section 16 of
the Exchange Act and the rules and regulations promulgated thereunder. 

        (z)  "Option" means an option to purchase Shares pursuant to an Award Agreement granted under the Plan. 

        (aa)    "Parent" means a "parent corporation," whether now or hereafter existing, as defined in Section 424(e) of the
Code. 

        (bb)    "Performance-Based Compensation" means compensation qualifying as "performance-based compensation" under
Section 162(m) of the Code. 

        (cc)    "Plan" means this 2000 Stock Option Plan. 

        (dd)    "Related Entity" means any Parent, Subsidiary and any business, corporation, partnership, limited liability company or
other entity in which the Company, a Parent or a Subsidiary holds a substantial ownership interest, directly or indirectly. 

        (ee)    "Related Entity Disposition" means the sale, distribution or other disposition by the Company, a Parent or a Subsidiary
of all or substantially all of the interests of the Company, a Parent or a Subsidiary in any Related Entity effected by a sale, merger or consolidation or other transaction involving that Related
Entity or the sale of all or substantially all of the assets of that Related Entity, other than any Related Entity Disposition to the Company, a Parent or a Subsidiary. 

        (ff)    "Rule 16b-3" means Rule 16b-3 promulgated under the Exchange Act or any successor
thereto. 

        (gg)    "Share" means a share of the Common Stock. 

        (hh)    "Subsidiary" means a "subsidiary corporation," whether now or hereafter existing, as defined in Section 424(f) of
the Code. 

        3.    Shares Subject to the Plan.    

        (a)  Subject
to the provisions of Section 10, below, the maximum aggregate number of Shares which may be issued
pursuant to all Awards (including Incentive Stock Options) is Two Million (2,000,000). The Shares to be issued pursuant to Awards may be authorized, but unissued, or reacquired Common Stock. 

        (b)  Any
Shares covered by an Award (or portion of an Award) which is forfeited or canceled, expires or is settled in cash, shall be deemed not to have been issued for
purposes of determining the maximum aggregate number of Shares which may be issued under the Plan. Shares that actually have been issued under the Plan pursuant to an Award shall not be returned to
the Plan and shall not become available for future issuance under the Plan, except that if unvested Shares are forfeited, or repurchased by the Company at their original purchase price, such Shares
shall become available for future grant under the Plan. 

        4.    Administration of the Plan.    

        (a)    Plan Administrator.    

        (i)    Administration with Respect to Directors and Officers.    With respect to grants of Awards to Directors or
Employees who are also Officers or Directors of the Company, the Plan shall be administered by (A) the Board or (B) a Committee designated by the Board, which Committee shall be
constituted in such a manner as to satisfy the Applicable Laws and to permit such grants and related transactions under the Plan to be exempt from Section 16(b) of the Exchange Act in 

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accordance with Rule 16b-3. Once appointed, such Committee shall continue to serve in its designated capacity until otherwise directed by the Board. 

        (ii)    Administration With Respect to Consultants and Other Employees.    With respect to grants of Awards to
Employees or Consultants who are neither Directors nor Officers of the Company, the Plan shall be administered by (A) the Board or (B) a Committee designated by the Board, which
Committee shall be constituted in such a manner as to satisfy the Applicable Laws. Once appointed, such Committee shall continue to serve in its designated capacity until otherwise directed by the
Board. The Board may authorize one or more Officers to grant such Awards and may limit such authority as the Board determines from time to time. 

        (iii)    Administration With Respect to Covered Employees.    Notwithstanding the foregoing, grants of Awards to any
Covered Employee intended to qualify as Performance-Based Compensation shall be made only by a Committee (or subcommittee of a Committee) which is comprised solely of two or more Directors eligible to
serve on a committee making Awards qualifying as Performance-Based Compensation. In the case of such Awards granted to Covered Employees, references to the "Administrator" or to a "Committee" shall be
deemed to be references to such Committee or subcommittee. 

        (iv)    Administration Errors.    In the event an Award is granted in a manner inconsistent with the provisions of
this subsection (a), such Award shall be presumptively valid as of its grant date to the extent permitted by the Applicable Laws. 

        (b)    Powers of the Administrator.    Subject to Applicable Laws and the provisions of the Plan (including any other
powers given to the Administrator hereunder), and except as otherwise provided by the Board, the Administrator shall have the authority, in its discretion: 

          (i)  to
select the Employees, Directors and Consultants to whom Awards may be granted from time to time hereunder; 

        (ii)  to
determine whether and to what extent Awards are granted hereunder; 

        (iii)  to
determine the number of Shares or the amount of other consideration to be covered by each Award granted hereunder; 

        (iv)  to
approve forms of Award Agreements for use under the Plan; 

        (v)  to
determine the terms and conditions of any Award granted hereunder; 

        (vi)  to
amend the terms of any outstanding Award granted under the Plan, provided that any amendment that would adversely affect the Grantee's rights under an outstanding
Award shall not be made without the Grantee's written consent; 

      (vii)  to
construe and interpret the terms of the Plan and Awards granted pursuant to the Plan, including without limitation, any notice of Award or Award Agreement, granted
pursuant to the Plan; 

      (viii)  to
establish additional terms, conditions, rules or procedures to accommodate the rules or laws of applicable foreign jurisdictions and to afford Grantees favorable
treatment under such laws; provided, however, that no Award shall be granted under any such additional terms, conditions, rules or procedures with terms
or conditions which are inconsistent with the provisions of the Plan; and 

        (ix)  to
take such other action, not inconsistent with the terms of the Plan, as the Administrator deems appropriate. 

        5.    Eligibility.    Awards other than Incentive Stock Options may be granted to Employees, Directors and
Consultants. Incentive Stock Options may be granted only to Employees of the 

5

 

Company, a Parent or a Subsidiary. An Employee, Director or Consultant who has been granted an Award may, if otherwise eligible, be granted additional Awards. Awards may be granted to such Employees,
Directors or Consultants who are residing in foreign jurisdictions as the Administrator may determine from time to time. 

        6.    Terms and Conditions of Awards.    

        (a)    Type of Awards.    The Administrator is authorized under the Plan to award any type of arrangement to an
Employee, Director or Consultant that is not inconsistent with the provisions of the Plan and that by its terms involves or might involve the issuance of (i) Shares, (ii) an Option or
similar right with a fixed or variable price related to the Fair Market Value of the Shares and with an exercise or conversion privilege related to the passage of time, the occurrence of one or more
events, or the satisfaction of performance criteria or other conditions, or (iii) any other security with the value derived from the value of the Shares. 

        (b)    Designation of Award.    Each Award shall be designated in the Award Agreement. In the case of an Option, the
Option shall be designated as either an Incentive Stock Option or a Non-Qualified Stock Option. However, notwithstanding such designation, to the extent that the aggregate Fair Market
Value of Shares subject to Options designated as Incentive Stock Options which become exercisable for the first time by a Grantee during any calendar year (under all plans of the Company or any Parent
or Subsidiary) exceeds $100,000, such excess Options, to the extent of the Shares covered thereby in excess of the foregoing limitation, shall be treated as Non-Qualified Stock Options.
For this purpose, Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair Market Value of the Shares shall be determined as of the date the Option
with respect to such Shares is granted. 

        (c)    Conditions of Award.    Subject to the terms of the Plan, the Administrator shall determine the provisions,
terms, and conditions of each Award including, but not limited to, the Award vesting schedule, repurchase provisions, rights of first refusal, forfeiture provisions, form of payment (cash,
Shares, or other consideration) upon settlement of the Award, payment contingencies, and satisfaction of any performance criteria. The performance criteria established by the Administrator may be
based on any one of, or combination of, increase in share price, earnings per share, total shareholder return, return on equity, return on assets, return on investment, net operating income, cash
flow, revenue, economic value added, personal management objectives, or other measure of performance selected by the Administrator. Partial achievement of the specified criteria may result in a
payment or vesting corresponding to the degree of achievement as specified in the Award Agreement. 

        (d)    Acquisitions and Other Transactions.    The Administrator may issue Awards under the Plan in settlement,
assumption or substitution for, outstanding awards or obligations to grant future awards in connection with the Company or a Related Entity acquiring another entity, an interest in another entity or
an additional interest in a Related Entity whether by merger, stock purchase, asset purchase or other form of transaction. 

        (e)    Deferral of Award Payment.    The Administrator may establish one or more programs under the Plan to permit
selected Grantees the opportunity to elect to defer receipt of consideration upon exercise of an Award, satisfaction of performance criteria, or other event that absent the election would entitle the
Grantee to payment or receipt of Shares or other consideration under an Award. The Administrator may establish the election procedures, the timing of such elections, the mechanisms for payments of,
and accrual of interest or other earnings, if any, on amounts, Shares or other consideration so deferred, and such other terms, conditions, rules and procedures that the Administrator deems advisable
for the administration of any such deferral program. 

        (f)    Award Exchange Programs.    The Administrator may establish one or more programs under the Plan to permit
selected Grantees to exchange an Award under the Plan for one or more other 

6

 

types of Awards under the Plan on such terms and conditions as determined by the Administrator from time to time. 

        (g)    Separate Programs.    The Administrator may establish one or more separate programs under the Plan for the
purpose of issuing particular forms of Awards to one or more classes of Grantees on such terms and conditions as determined by the Administrator from time to time. 

        (h)    Individual Option Limit.    The maximum number of Shares with respect to which Options may be granted to any
Grantee in any fiscal year of the Company shall be Five Hundred Thousand (500,000). In connection with a Grantee's commencement of Continuous Service, a Grantee may be granted Options for up to an
additional Five Hundred Thousand (500,000) Shares which shall not count against the limit set forth in the previous sentence. The foregoing limitations shall be adjusted proportionately in connection
with any change in the Company's capitalization pursuant to Section 10, below. To the extent required by Section 162(m) of the Code or the
regulations thereunder, in applying the foregoing limitations with respect to a Grantee, if any Option is canceled, the canceled Option shall continue to count against the maximum number of Shares
with respect to which Options may be granted to the
Grantee. For this purpose, the repricing of an Option shall be treated as the cancellation of the existing Option and the grant of a new Option. 

        (i)    Early Exercise.    The Award Agreement may, but need not, include a provision whereby the Grantee may elect at
any time while an Employee, Director or Consultant to exercise any part or all of the Award prior to full vesting of the Award. Any unvested Shares received pursuant to such exercise may be subject to
a repurchase right in favor of the Company or a Related Entity or to any other restriction the Administrator determines to be appropriate. 

        (j)    Term of Award.    The term of each Award shall be the term stated in the Award Agreement,  provided, however, that the term
of an Award shall be no more than ten (10) years from the date of grant thereof. However, in the case of an
Incentive Stock Option granted to a Grantee who, at the time the Option is granted, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or
any Parent or Subsidiary, the term of the Incentive Stock Option shall be five (5) years from the date of grant thereof or such shorter term as may be provided in the Award Agreement. 

        (k)    Transferability of Awards.    Incentive Stock Options may not be sold, pledged, assigned, hypothecated,
transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Grantee, only by the Grantee;  provided, however,
that the Grantee may designate a beneficiary of the Grantee's Incentive Stock Option in the event of the Grantee's death on a
beneficiary designation form provided by the Administrator. Other Awards may be transferred by gift or through a domestic relations order to members of the Grantee's Immediate Family to the extent
provided in the Award Agreement or in the manner and to the extent determined by the Administrator. 

        (l)    Time of Granting Awards.    The date of grant of an Award shall for all purposes be the date on which the
Administrator makes the determination to grant such Award, or such other date as is determined by the Administrator. Notice of the grant determination shall be given to each Employee, Director or
Consultant to whom an Award is so granted within a reasonable time after the date of such grant. 

7

 

        7.    Award Exercise or Purchase Price, Consideration and Taxes.    

        (a)    Exercise or Purchase Price.    The exercise or purchase price, if any, for an Award shall be as follows: 

          (i)  In
the case of an Incentive Stock Option: 

        (A)  granted
to an Employee who, at the time of the grant of such Incentive Stock Option owns stock representing more than ten percent (10%) of the voting power of all
classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price shall be not less than one hundred ten percent (110%) of the Fair Market Value per Share on the date of grant;
or 

        (B)  granted
to any Employee other than an Employee described in the preceding paragraph, the per Share exercise price shall be not less than one hundred percent (100%) of
the Fair Market Value per Share on the date of grant. 

        (ii)  In
the case of a Non-Qualified Stock Option, the per Share exercise price shall be not less than eighty-five percent (85%) of the Fair Market
Value per Share on the date of grant.

        (iii)  In
the case of Awards intended to qualify as Performance-Based Compensation, the exercise or purchase price, if any, shall be not less than one hundred percent (100%)
of the Fair Market Value per Share on the date of grant. 

        (iv)  In
the case of other Awards, such price as is determined by the Administrator. 

        (v)  Notwithstanding
the foregoing provisions of this Section 7(a), in the case of an Award issued pursuant to  Section 6(d), above, the exercise or purchase price for
the Award shall be determined in accordance with the principles of Section 424(a)
of the Code. 

        (b)    Consideration.    Subject to Applicable Laws, the consideration to be paid for the Shares to be issued upon
exercise or purchase of an Award including the method of payment, shall be determined by the Administrator (and, in the case of an Incentive Stock Option, shall be determined at the time of grant). In
addition to any other types of consideration the Administrator may determine, the Administrator is authorized to accept as consideration for Shares issued under the Plan the following: 

          (i)  cash;

        (ii)  check;

        (iii)  delivery
of Grantee's promissory note with such recourse, interest, security, and redemption provisions as the Administrator determines as appropriate; 

        (iv)  surrender
of Shares or delivery of a properly executed form of attestation of ownership of Shares as the Administrator may require (including withholding of Shares
otherwise deliverable upon exercise of the Award) which have a Fair Market Value on the date of surrender or attestation equal to the aggregate exercise price of the Shares as to which said Award
shall be exercised (but only to the extent that such exercise of the Award would not result in an accounting compensation charge with respect to the Shares used to pay the exercise price unless
otherwise determined by the Administrator); 

        (v)  with
respect to Options, payment through a broker-dealer sale and remittance procedure pursuant to which the Grantee (A) shall provide written instructions to a
Company designated brokerage firm to effect the immediate sale of some or all of the purchased Shares and remit to the Company, out of the sale proceeds available on the settlement date, sufficient
funds to cover the aggregate exercise price payable for the purchased Shares and (B) shall provide written directives to the Company to deliver the certificates for the purchased Shares
directly to such brokerage firm in order to complete the sale transaction; or 

8

 

        (vi)  any
combination of the foregoing methods of payment. 

        (c)    Taxes.    No Shares shall be delivered under the Plan to any Grantee or other person until such Grantee or
other person has made arrangements acceptable to the Administrator for the satisfaction of any foreign, federal, state, or local income and employment tax withholding obligations, including, without
limitation, obligations incident to the receipt of Shares or the disqualifying disposition of Shares received on exercise of an Incentive Stock Option. Upon exercise of an Award, the Company shall
withhold or collect from Grantee an amount sufficient to satisfy such tax obligations. 

        8.    Exercise of Award.    

        (a)    Procedure for Exercise; Rights as a Shareholder.    

          (i)  Any
Award granted hereunder shall be exercisable at such times and under such conditions as determined by the Administrator under the terms of the Plan and specified in
the Award Agreement. 

        (ii)  An
Award shall be deemed to be exercised when written notice of such exercise has been given to the Company in accordance with the terms of the Award by the person
entitled to exercise the Award and full payment for the Shares with respect to which the Award is exercised, including, to the extent selected, use of the broker-dealer sale and remittance procedure
to pay the purchase price as provided in Section 7(b)(v). Until the issuance (as evidenced by the appropriate entry on the books of the Company
or of a duly authorized transfer agent of the Company) of the stock certificate evidencing such Shares, no right to vote or receive dividends or any other rights as a shareholder shall exist with
respect to Shares subject to an Award, notwithstanding the exercise of an Option or other Award. The Company shall issue (or cause to be issued) such stock certificate promptly upon exercise of the
Award. No adjustment will be made for a dividend or other right for which the record date is prior to the date the stock certificate is issued, except as provided in the Award Agreement or  Section 10, below. 

        (b)    Exercise of Award Following Termination of Continuous Service.    

          (i)  An
Award may not be exercised after the termination date of such Award set forth in the Award Agreement and may be exercised following the termination of a Grantee's
Continuous Service only to the extent provided in the Award Agreement. 

        (ii)  Where
the Award Agreement permits a Grantee to exercise an Award following the termination of the Grantee's Continuous Service for a specified period, the Award shall
terminate to the extent not exercised on the last day of the specified period or the last day of the original term of the Award, whichever occurs first. 

        (iii)  Any
Award designated as an Incentive Stock Option to the extent not exercised within the time permitted by law for the exercise of Incentive Stock Options following
the termination of a Grantee's Continuous Service shall convert automatically to a Non-Qualified Stock Option and thereafter shall be exercisable as such to the extent exercisable by its
terms for the period specified in the Award Agreement. 

        9.    Conditions Upon Issuance of Shares.    

        (a)  Shares
shall not be issued pursuant to the exercise of an Award unless the exercise of such Award and the issuance and delivery of such Shares pursuant thereto shall
comply with all Applicable Laws, and shall be further subject to the approval of counsel for the Company with respect to such compliance. 

        (b)  As
a condition to the exercise of an Award, the Company may require the person exercising such Award to represent and warrant at the time of any such exercise that the
Shares are being 

9

 

purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required by any Applicable
Laws. 

        10.    Adjustments Upon Changes in Capitalization.    Subject to any required action by the shareholders of the
Company, the number of Shares covered by each outstanding Award, and the number of Shares which have been authorized for issuance under the Plan but as to which no Awards have yet been granted or
which have been returned to the Plan, the exercise or purchase price of each such outstanding Award, the maximum number of Shares with respect to which Options and may be granted to any Grantee in any
fiscal year of the Company, as well as any other terms that the Administrator determines require adjustment shall be proportionately adjusted for (i) any increase or decrease in the number of
issued Shares resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Shares, or similar event affecting the Shares, (ii) any other increase or
decrease in the number of issued Shares effected without receipt of consideration by the Company, or (iii) as the Administrator may determine in its discretion, any other transaction with
respect to Common Stock to which Section 424(a) of the Code applies or any similar transaction; provided, however that conversion of any
convertible securities of the Company shall not be deemed to have been "effected without receipt of consideration." Such adjustment shall be made by the Administrator and its determination shall be
final, binding and conclusive. Except as the Administrator determines, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall
affect, and no adjustment by reason hereof shall be made with respect to, the number or price of Shares subject to an Award. 

        11.    Corporate Transactions/Changes in Control/Related Entity Dispositions.    Except as may be provided in an Award
Agreement: 

        (a)  Effective
upon the consummation of a Corporate Transaction, all outstanding Awards under the Plan shall terminate. However, all such Awards shall not terminate if they
are, in connection with the Corporate Transaction, assumed by the successor corporation or Parent thereof. 

        (b)  Effective
upon the consummation of a Related Entity Disposition, for purposes of the Plan and all Awards, the Continuous Service of each Grantee who is at the time
engaged primarily in service to the Related Entity involved in such Related Entity Disposition shall be deemed to terminate and each Award of such Grantee which is at the time outstanding under the
Plan shall be exercisable in accordance with the terms of the Award Agreement evidencing such Award. However, such Continuous Service shall not be deemed to terminate if such Award is, in connection
with the Related Entity Disposition, assumed by the successor entity or its parent. 

        (c)  The
portion of any Incentive Stock Option that is accelerated pursuant to the terms and conditions of an Award Agreement in connection with a Corporate Transaction,
Change in Control or Related Entity Disposition shall remain exercisable as an Incentive Stock Option under the Code only to the extent the $100,000 limitation of Section 422(d) of the Code is
not exceeded. To the extent such dollar
limitation is exceeded, the accelerated excess portion of such Option shall be exercisable as a Non-Qualified Stock Option. 

        12.    Effective Date and Term of Plan.    The Plan shall become effective upon the earlier to occur of its adoption
by the Board or its approval by the shareholders of the Company. It shall continue in effect for a term of ten (10) years unless sooner terminated. Subject to  Section 17, below, and Applicable
Laws, Awards may be granted under the Plan upon its becoming effective. 

        13.    Amendment, Suspension or Termination of the Plan.    

        (a)  The
Board may at any time amend, suspend or terminate the Plan. To the extent necessary to comply with Applicable Laws, the Company shall obtain shareholder approval of
any Plan amendment in such a manner and to such a degree as required. 

10

 

        (b)  No
Award may be granted during any suspension of the Plan or after termination of the Plan. 

        (c)  Any
amendment, suspension or termination of the Plan (including termination of the Plan under Section 12, above)
shall not affect Awards already granted, and such Awards shall remain in full force and effect as if the Plan had not been amended, suspended or terminated, unless mutually agreed otherwise between
the Grantee and the Administrator, which agreement must be in writing and signed by the Grantee and the Company. 

        14.    Reservation of Shares.    

        (a)  The
Company, during the term of the Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the
Plan. 

        (b)  The
inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company's counsel to be necessary to the
lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have
been obtained. 

        15.    No Effect on Terms of Employment/Consulting Relationship.    The Plan shall not confer upon any Grantee any
right with respect to the Grantee's Continuous Service, nor shall it interfere in any way with his or her right or the Company's right to terminate the Grantee's Continuous Service at any time, with
or without cause. 

        16.    No Effect on Retirement and Other Benefit Plans.    Except as specifically provided in a retirement or other
benefit plan of the Company or a Related Entity, Awards shall not be deemed compensation for purposes of computing benefits or contributions under any retirement plan of the Company or a Related
Entity, and shall not affect any benefits under any other benefit plan of any kind or any benefit plan subsequently instituted under which the availability or amount of benefits is related to level of
compensation. The Plan is not a "Retirement Plan" or "Welfare Plan" under the Employee Retirement Income Security Act of 1974, as amended. 

        17.    Shareholder Approval.    The grant of Incentive Stock Options under the Plan shall be subject to approval by
the shareholders of the Company within twelve (12) months before or after the date the Plan is adopted excluding Incentive Stock Options issued in substitution for outstanding Incentive Stock
Options pursuant to Section 424(a) of the Code. Such shareholder approval shall be obtained in the degree and manner required under Applicable Laws. The Administrator may grant Incentive Stock
Options under the Plan prior to approval by the shareholders, but until such approval is obtained, no such Incentive Stock Option shall be exercisable. In the event that shareholder approval is not
obtained within the twelve (12) month period provided above, all Incentive Stock Options previously granted under the Plan shall be exercisable as Non-Qualified Stock Options. 

11

QuickLinks

EXHIBIT 10.22

OVERLAND STORAGE, INC. 2000 STOCK OPTION PLAN (Amended and Restated Effective 8-8-02)

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