Document:

Exhibit 10.2

 

April 4, 2008

 

Mr. Ravi Pendekanti

 

Pleasanton, CA 94566

 

Dear Ravi:

 

Overland Storage, Inc. is pleased to offer you the position of
Vice President, Worldwide Marketing reporting to Vern LoForti, President and
Chief Executive Officer.  This position
is an “Executive Officer” position as defined by the Securities and Exchange
Commission and you will be subject to Section 16 reporting rules and
Overland’s Supplemental Insider Trading Policy. 
The position will be based in our San Diego, California office.

 

The terms for the position are as follows:

 

	
  Compensation:

  	
   

  	
  $9,615.38 bi-weekly, which equals $250,000 annually, subject to all
  applicable federal and state payroll taxes.

  
	
   

  	
   

  	
   

  
	
  Signing Bonus:

  	
   

  	
  $50,000 one-time signing bonus is offered, subject to all applicable
  federal and state payroll taxes, and subject to the Company’s standard
  Reimbursement Agreement (copy attached) which provides that the bonus is
  fully earned after 12 months of employment. The bonus will be paid on your
  first pay check.

  
	
   

  	
   

  	
   

  
	
  Relocation:

  	
   

  	
  The goal is for you to relocate to San Diego as soon as practicable.
  We understand that you will need some time to evaluate the impact of the
  current market conditions in the San Francisco Bay Area relative to San
  Diego. Additionally, we also understand that you have a family with children
  and would not relocate until after the current school year is complete.
  Therefore, the initial goal is that you would relocate by August 31,
  2008. We agree to revisit this goal depending on market conditions.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If you so desire, Overland will pay for limited services (to be
  agreed in advance by the Company) of a relocation advisor such as Katherine
  Kennedy at Relocation Coordinates or other similar advisor to assist you with
  an overview of the San Diego area, its school systems and targeting specific
  communities in which to live.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  You will receive a relocation allowance of $50,000, subject to all
  applicable federal and state payroll taxes, which will be paid to you upon
  confirmation of your relocation to San Diego County. The amount will be
  subject to the same Reimbursement Agreement identified under the Signing
  Bonus above.

  
	
   

  	
   

  	
   

  
	
  Temporary

  Housing

  	
   

  	
  Pending your relocation, Overland will provide you with a corporate
  apartment or other form of temporary housing near the Company’s facility.
  Meals, laundry expenses and phone calls while in temporary housing will be
  your own responsibility. Overland will reimburse you for one round-trip
  flight per week pursuant to our standard travel policy during this period.

  
	
   

  	
   

  	
   

  
	
  Stock Options:

  	
   

  	
  Subject to the approval of the Overland Storage, Inc. Board of
  Directors at their next regularly scheduled meeting, you will be granted an
  option to purchase 100,000 shares of Overland common stock. The option will
  be priced at the closing market price on the date of grant and will contain
  special vesting provisions which provide for full vesting over a 12-month
  period on a ratable basis at the end of each month and with a 3-year life.
  Additionally, the option will contain language that will result in full
  vesting in the event of a change of control of Overland. All other terms of
  the option will be governed by the Overland 2003 Equity Incentive Plan.

  
	
   

  	
   

  	
   

  
	
  Termination Clause:

  	
   

  	
  If you are terminated without cause within the first twelve (12)
  months of employment, Overland agrees to provide severance in the amount of
  six (6) months base pay and twelve (12) months medical COBRA coverage.
  There is no guaranteed offer of severance beyond the first year of employment
  or if you are terminated for cause.

  
	
   

  	
   

  	
   

  
	
  Change of Control:

  	
   

  	
  You will be offered an executive Retention Agreement under which you
  will be entitled to receive severance in a lump-sum amount equal to twelve
  (12) months base salary plus target bonus and twelve (12) months medical
  COBRA coverage in the event you are terminated for a reason other than Cause
  within two (2) years of a Change of Control of the Company.

  

 

 

This offer of employment is contingent on the following two conditions:

1.             Third party
background checks results.

2.             Pre-employment,
post-offer drug screen results.

 

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.  To meet these objectives,
Overland requires successful completion of both a drug screen test and third
party criminal background investigation as conditions of employment. Once we
have completed the third party verification and obtain the successful results
of the post offer drug screening, we will contact you to confirm your start
date.

 

Your Overland benefits will be effective on the 1st day of the month
following your start date. Overland is committed to making available excellent
benefit programs and family services that respond to the needs of our
employees.  We believe we offer a
flexible and competitive package.  As an
executive officer and member of senior staff, you will be entitled to
participate in our Executive Health Care Reimbursement Program that provides
for reimbursement of expenses not covered by our group policies.

 

The Immigration Reform and Control Act of 1986 requires 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; a
list of acceptable documents is enclosed. In order to begin your employment
with us, and as part of our normal process, please bring your I-9 documents
with you on your first day of work. We greatly look forward to having you join
Overland and become a member of our team. However, we recognize that you retain
the option, as does Overland, of ending your employment with Overland Storage, Inc.
at any time, with or without notice and with or without cause. As such, your
employment with Overland is at-will and neither this letter nor any other oral
or written representations may be considered a contract for any specific period
of time.

 

As an Overland employee, you will be asked to continually support our
vision by living up to our values of Respect, Innovation,
Winning, Customers, and Knowledge. Please see the attached Values
information and/or visit us at our website www.overlandstorage.com. You will
learn more about Overland and our values during your new hire orientation.
Please feel free to bring any questions you may have to that discussion.

 

In order to document your acceptance, please sign and return this
document no later than noon on April 7, 2008, via fax (858)
571-3551.  Please feel free to contact
Veritta Wells, Human Resources Director, at (858) 495-4144 with any additional
questions.

 

	
  Sincerely,

  
	
   

  
	
  /s/ V.A. LoForti

  	
   

  
	
   

  
	
  Vernon A. LoForti

  
	
  President and CEO

  

 

By signing, I understand and acknowledge the terms of this offer.

 

 

	
  Acceptance:

  	
  /s/ Ravi Pendekanti

  	
   

  
	
   

  	
   Ravi Pendekanti

  	
   

  

 

My expected start date is on or before: 
April 21, 2008

 

 

SIGN-ON BONUS AND RELOCATION ALLOWANCE

PRO-RATED REPAYMENT AGREEMENT

 

In consideration of the one-time payment of a sign-on bonus in the
amount of $50,000.00 gross of taxes, AND a relocation allowance of $50,000.00
gross of taxes, by Overland Storage, Inc. (“Overland” or the “Company”) I, Ravi Pendekanti, agree to repay to Overland at the time of
termination, a prorated amount of the sign-on bonus AND the relocation
allowance, which amount shall be calculated on a monthly basis, should I
voluntarily terminate my employment with the Company or am terminated for cause
within the first twelve (12) months of my hire date or my relocation date,
respectively.  If I voluntarily terminate
my employment with the Company or am terminated for cause within the first
twelve (12) months of my hire date, the repayment amount for the sign-on bonus
shall be the $50,000.00 divided by twelve and multiplied by the number of full
months not completed within the first year. 
Similarly, if I voluntarily terminate my employment with the Company or
am terminated for cause within the first twelve (12) months of my relocation
date, the repayment amount for the relocation allowance shall be the $50,000.00
divided by twelve and multiplied by the number of full months not completed
within the first year.

 

In the event that Overland is compelled to bring action or assert a
claim against me in order to recover the prorated amounts, I agree to pay the
Company all costs and expenses incurred in connection with litigating such
action or claim, including but not limited to all attorney’s fees.

 

I understand and agree that my consent to and execution of this
Agreement shall not alter in any way the at-will nature of my employment with
Overland and shall not be construed as in any way obligating Overland to
continue my employment for twelve (12) months or any other period of time.

 

 

	
  ACCEPTED AND AGREED:

  
	
   

  
	
   

  
	
      /s/ Ravi Pendekanti

  	
   

  
	
  Ravi Pendekanti

  
	
   

  
	
   

  
	
  Date: April 7, 2008

  

 

 

April 21, 2008

 

Ravi Pendekanti

 

Pleasanton, CA 94566

 

Re:  Termination Clause

 

Dear Ravi:

 

As a term of
your employment, the Company has agreed to the following severance payments:

 

“If you are terminated without cause within the first twelve (12)
months of employment, Overland agrees to provide severance in the amount of six
(6) months base pay and twelve (12) months medical COBRA coverage.  There is no guaranteed offer of severance
beyond the first year of employment or if you are terminated for cause.”

 

You acknowledge and agree that the severance payments set forth above
are subject to and contingent upon your execution and non-revocation of a
release of all claims against the Company as of your termination date as set
forth in the standard Company form, a copy of which has been provided to you.
You further agree and acknowledge that these severance payments are not in
addition to the benefits available pursuant to the Retention Agreement in the
event that you are terminated without cause after a Change in Control as
defined therein. In such event, the benefits pursuant to the Retention
Agreement would solely apply.

 

Please sign and return this document to Denise Garrett.  Please feel free to contact me with questions
related to this matter.

 

	
  Sincerely,

  
	
   

  
	
  /s/ V.A LoForti

  	
   

  
	
   

  
	
  Vernon A. LoForti

  
	
  President and CEO

  

 

 

By signing, I understand and acknowledge the terms and conditions of
the severance payments set forth above.

 

 

	
  Acceptance:

  	
      /s/ Ravi Pendekanti

  	
   

  
	
   

  	
   Ravi PendekantiEXHIBIT
10.3

 

SECOND
TRANSITION AMENDMENT [* * *]

 

THIS SECOND TRANSITION AMENDMENT (the “Second Amendment”) is made and
entered into as of this 29th day of June, 2007 (the “Effective Date’)
by and between SANMINA-SCI Corporation, a Delaware corporation having its
principal place of business at 2700 North First Street, San Jose, California
95134 on behalf of itself and its subsidiaries and affiliates (collectively “SANMINA-SCI”)
and Overland Storage, Inc., a California corporation having its principal
place of business at 4820 Overland Avenue, San Diego, CA 92123 (“Overland”).  SANMINA-SCI and Overland are collectively
referred to as the “Parties.”

 

W  I  T  N  E  S  S
E  T  H

 

WHEREAS, the Parties are parties to a Transition Amendment [* * *] dated September 29, 2006 (“Transition Amendment”)
pursuant to which they amended the Manufacturing and Supply Agreement dated as
of November 23, 2004, as amended by Amendment No. 1 dated May 30,
2005 and as amended by Amendment No. 2, dated January 1, 2006 (as so
amended (the “Agreement”) pursuant to which SANMINA-SCI has agreed to
manufacture certain products for Overland; and

 

WHEREAS, the Parties have resolved all open issues in the Transition
Amendment, including the Transition Plan and wish to amend the Transition
Amendment to reflect such resolutions

 

NOW, THEREFORE, in consideration of the premises and covenants
contained herein and for other consideration, the receipt and sufficiency of
all such consideration being expressly acknowledged by the parties hereto, the
parties agree as follows:

 

1.                                       [* * *].  Overland
hereby agrees that Sanmina-SCI has met all conditions for [* * *] provided
for in paragraph 4(a) of the Transition Agreement to transfer the
manufacture of the Products from Sanmina-SCI to Overland in accordance with the
transition plan set forth in Exhibit A of the Transition Agreement (the “Transition
Plan”).

 

2.                                       [* * *].  Upon
Overland’s payment to Sanmina-SCI of the Settlement Amount (as adjusted as set
forth below), Sanmina-SCI hereby agrees that Overland will have met all
conditions for [* * *] provided for in paragraph
4(b) of the Transition Agreement to transfer the manufacture of the
Products from Sanmina-SCI to Overland in accordance with the Transition
Plan.  The Settlement Amount shall be [* * *] (as adjusted pursuant to paragraph e below) and will
be paid in accordance with the following:

 

a.               On
or before June 29, 2007, Overland shall issue to Sanmina-SCI a purchase
order [* * *] (the “June Order”), which
reflects the value of the Obsolete Components at Sanmina-SCI. Sanmina-SCI
shall, under Overland’s observation and verification, dispose of the Obsolete
Components, at Sanmina-SCI’s factory or warehouse, on or before July 31,
2007. Overland shall pay the entire amount of the June Order no later than
July 31, 2007.

 

b.              In
addition to the June Order (which relates to the obsolete Components), on
or before September 1, 2007, Overland shall issue to Sanmina-SCI purchase
orders for “Active Components” [* * *], less
the aggregate value of previously issued purchase orders for Active Components,
and subject to adjustment as indicated in paragraph e below (all such purchase
orders in the aggregate face amount of [* * *] being
collectively referred to as the “September Order”).  The parties expressly agree that the June Order
(which covers Obsolete Components rather than Active Components) does not
constitute a “previously issued purchase order for Active Components.”  Sanmina-SCI shall deliver the Active
Components no later than September 30, 2007. Overland shall pay for the September Order
(as adjusted below) no later than 30 days after the delivery date.

 

1

 

c.               Attached
as Exhibit A is a preliminary statement of the [* * *] worth
of raw material, parts and components to which Overland acquires ownership as a
result of the June Order and September Order (the “Purchased
Components”).  Sanmina-SCI shall arrange
for the Purchased Components to be warehoused at a location of its choosing and
at its expense. Title and risk of loss of the Purchased Components shall
transfer to Overland Ex Works Sanmina-SCI’s facility (Incoterms 2000) at the
time Sanmina-SCI delivers (or in the case of the June Order makes the
Purchased Components available for inspection) the Purchased Components to
Overland at Sanmina-SCI’s facility.

 

d.              Sanmina-SCI
shall retain ownership of, and Overland shall have no liability for, all other
raw material, parts and components not included in the Purchased
Components.  Sanmina-SCI shall be
entitled to dispose of such other material, parts and components as Sanmina-SCI
sees fit, and Sanmina-SCI shall retain all sums received as a result of their
disposition.

 

e.               The
parties acknowledge that Exhibit A may not be precisely accurate and that
the actual amount of the Purchased Components delivered to Overland will be
subject to Overland’s (1) verification of quantity with respect to the June Order
and (2) inspection and verification of the quantity and condition with
respect to the September Order, with the result that the total amounts due
from Overland will be the lesser of (i) [* * *] or
(ii) such lesser amount resulting from adjustment based upon the Purchased
Assets actually delivered.

 

f.                 As
an example, assume that the parties’ final count of the components constituting
the June Order is [* * *] ([* * *]short of the [* * *] face
amount of the June Order).  Overland
shall pay the [* * *], and shall deduct the [* * *] off of the September Order. In the event the
parties’ count of the components constituting the September Order is [* * *] ([* * *] short
of the [* * *] set forth in (b)), then
Overland shall be required to revise the amount of the September Order by
a total of [* * *] (the [* * *] from
the June Order and the [* * *] from
the September Order) and issue a purchase order in the amount of [* * *].

 

g.              Sanmina-SCI
shall pay for all costs to warehouse the Purchased Components through September 30,
2007.  At that time, Overland shall
either (i) transfer the Purchased Components to another location or (ii) enter
into its own lease with the owner of the warehouse.

 

3.                                       [* * *]

 

4.                                       Sections
15.1 (Integration) and 15.5 (Governing Law) of the Agreement shall apply to
this Second Amendment.

 

5.                                       Any
capitalized terms contained in this Transition Amendment and not defined in
this Second Amendment have the meanings for such terms as are set forth in the
Agreement.

 

6.                                       Except
as expressly provided in or required as a consequence of this Second Amendment,
the Agreement remains un-amended and unmodified and in full force and effect.

 

7.                                       This
Second Amendment, the Transition Amendment, the Agreement, Amendment No. 1
and Amendment No. 2, 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. 
Notwithstanding the foregoing or paragraphs 4 or 6 above, with respect
to component related liability and any other obligation of either party with
respect to raw materials, parts and components, this Second Amendment
represents the entire agreement of the parties and in the event of any conflict
between this Second Amendment and any of the other aforementioned documents,
this Second Amendment shall control.

 

2

 

8.                                       This
Second Agreement may be modified only by a subsequent written agreement signed
by the parties.

 

9.                                       If
any provision of this Second Amendment is held to be unenforceable, the
remaining provisions will continue unaffected.

 

IN WITNESS WHEREOF, the undersigned hereunto set their
hands and seals this as of the date first written above.

 

 

	
  SANMINA-SCI CORPORATION

  	
   

  	
  OVERLAND STORAGE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Tom Clawson

  	
   

  	
  /s/ Vernon A. LoForti

  
	
  By: Tom Clawson

  	
   

  	
  By: Vernon
  A. LoForti

  
	
  Title: Executive Vice President

  	
   

  	
  Title: Chief Financial Officer

  

 

3

 

Exhibit A

 

Components

 

[* * *]

 

4

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