X0202 4 2006-12-20 0000889930 OVERLAND STORAGE INC OVRL 0001290936 Barrenechea Mark J C/O OVERLAND STORAGE, INC. 4820 OVERLAND AVENUE SAN DIEGO CA 92123 1 0 0 0 Stock Option (right to buy) 4.29 2006-12-20 4 A 0 60000 0 A 2016-12-20 Common Stock 60000 60000 D The option is immediately vested as to 10,000 shares with the remainder vesting at a rate of 10,000 shares on the first day of the month commencing January 1, 2007 through May 1, 2007 so long as Mr. Barrenechea is serving as chairman of the strategy committee of the issuer's board of directors. Denise Garrett, attorney-in-fact for Mark J. Barrenechea 2006-12-22