OVERLAND STORAGE INC
EX-10.3
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<p align="right" style="font-weight:bold;margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXHIBIT 10.3</font></b></p>

<p align="left" style="font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<p align="left" style="font-weight:bold;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">Confidential
portions of this document have been redacted and filed separately with the
Commission.</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">SECOND AMENDMENT TO<br>
VR<sup>2 </sup>TECHNOLOGY LICENSE AGREEMENT</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THIS SECOND AMENDMENT TO VR<sup>2</sup> TECHNOLOGY
LICENSE<b><font style="font-weight:bold;">  </font></b>AGREEMENT
(this &#147;<u>Amendment</u>&#148;) is made and entered into as of this 7<sup>th</sup>
day of November, 2003 (the &#147;<u>Amendment Effective Date</u>&#148;), by and between
Overland Storage, Inc., a California corporation, having a place of business at
4820 Overland Avenue, San Diego, CA&#160;
92123 (&#147;<u>Overland</u>&#148;), and Storage Technology Corp., a Delaware
corporation, having a place of business at One Storage Tek Drive, Louisville,
CO 80028<b><font style="font-weight:bold;">  </font></b>(&#147;<u>StorageTek</u>&#148;).</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">RECITALS</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Overland
and StorageTek are parties to that certain VR<sup>2 <b><font style="font-weight:bold;">&#160;</font></b></sup>Technology
License Agreement, dated effective as of April 27, 2000 (the &#147;<u>Original
Agreement</u>&#148;) and whereby, Overland granted a license to StorageTek with
respect to the VR<sup>2 </sup>Intellectual Property, VR<sup>2 </sup>Intellectual
Property Derivatives and know-how of the VR<sup>2</sup> 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 VR<sup>2</sup> Intellectual Property, VR<sup>2</sup>
Intellectual Property Derivatives and know-how of the VR<sup>2</sup> Core all
as set forth in the Original Agreement.&#160;
The Original Agreement was amended by mutual agreement of the parties by
that certain Amendment to VR<sup>2 <b><font style="font-weight:bold;">&#160;</font></b></sup>Technology
License Agreement, as of June 18, 2002 (the &#147;<u>First Amendment</u>&#148;).</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">B.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; StorageTek
and Overland have agreed to amend the Original Agreement in several respects
and under the terms and conditions herein and specifically relating to changes
in the royalty schedule to go into effect for VR<sup>2 </sup>Compliant Products
shipped on or after January 1, 2004.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">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:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <i><u><font style="font-style:italic;">Definitions</font></u></i>.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 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.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <i><u><font style="font-style:italic;">Amendment
to Section 4.3</font></u>.</i>&#160;&#160; Section
4.3 of the Original Agreement, as amended by the First Amendment, is hereby
deleted in its entirety and replaced with the following:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4.3&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Royalty.</font></b>&#160; In consideration for the Core License, for
each VR<sup>2</sup> 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 VR<sup>2</sup> Compliant Product [***] in accordance with
the terms and conditions set forth in <u>Exhibit B-1</u> [***].&#160;&#160; StorageTek shall deliver such royalty
payments to Overland not later than [***] days after the end of each Quarter<b><font style="font-weight:bold;">  </font></b>during
the Term of this Agreement.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p>


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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <i><u><font style="font-style:italic;">No Other
Changes</font></u></i><u>.</u>&#160; Except
as expressly provided in this Amendment, the Original Agreement remains un-amended
and unmodified and in full force and effect.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <i><u><font style="font-style:italic;">General</font></u></i>.
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.&#160; This
Amendment may be modified only by a subsequent written agreement signed by the
parties.&#160; If any provision of this
Amendment is held to be unenforceable, the remaining provisions will continue
unaffected.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <i><u><font style="font-style:italic;">Governing
Law</font></u></i>.&#160;&#160; 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.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their duly authorized representatives as of the Amendment Effective
Date.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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  <td width="56%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:56.44%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Overland Storage, Inc.:</font></b></p>
  </td>
  <td width="43%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:43.56%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Storage Technology Corp.:</font></b></p>
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  <p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="43%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:43.56%;">
  <p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
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  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.02%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="35%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:35.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/
  Vernon A. LoForti</font></p>
  </td>
  <td width="18%" valign="top" style="padding:0in 0in 0in 0in;width:18.42%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="40%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:40.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;/s/ Chris Durkeee</font></p>
  </td>
 </tr>
 <tr>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.02%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="53%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:53.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vernon A. LoForti</font></p>
  </td>
  <td width="43%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:43.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;Chris Durkeee</font></p>
  </td>
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 <tr>
  <td width="56%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:56.44%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Vice President and
  Chief Financial Officer</font></p>
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  <td width="43%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:43.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Contracts Administrator
  Sr. Consultant</font></p>
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  <td width="252" style="border:none;"></td>
  <td width="133" style="border:none;"></td>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>


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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT B-1</font></b></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">[***]</font></b></p>

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  <p style="margin:0in 0in .0001pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">[***]</font></b></p>
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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1) <b><font style="font-weight:bold;">[***]</font></b>.</font></p>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2) <b><font style="font-weight:bold;">[***]</font></b>.</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>


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