<SUBMISSION>
<ACCESSION-NUMBER>0001047469-04-034290
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20041112
<ITEMS>1.01
<ITEMS>9.01
<FILING-DATE>20041115
<DATE-OF-FILING-DATE-CHANGE>20041115
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>OVERSTOCK COM INC
<CIK>0001130713
<ASSIGNED-SIC>7389
<IRS-NUMBER>870634302
<STATE-OF-INCORPORATION>UT
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>000-49799
<FILM-NUMBER>041143449
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>6322 SOUTH 3000 EAST
<STREET2>STE 100
<CITY>SALT LAKE CITY
<STATE>UT
<ZIP>84121
<PHONE>8019473100
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>6322 SOUTH 3000 EAST
<STREET2>STE 100
<CITY>SALT LAKE CITY
<STATE>UT
<ZIP>84121
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a2146744z8-k.htm
<DESCRIPTION>8-K
<TEXT>
<HTML>
<HEAD>
</HEAD>
<BODY BGCOLOR="#FFFFFF" LINK=BLUE  VLINK=PURPLE>
<BR>
<FONT SIZE=3 ><A HREF="#04DEN2744_1">QuickLinks</A></FONT>
<font size=3> -- Click here to rapidly navigate through this document</font>

<P><FONT SIZE=2>
<hr noshade width=100% align=left size=4>
<hr noshade width=100% align=left size=1> </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=5><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>  </B></FONT><FONT SIZE=2><B>Washington, D.C. 20549  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=5><B>FORM 8-K  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=3><B>CURRENT REPORT<BR>
Pursuant to Section 13 or 15(d) of<BR>
the Securities Exchange Act of 1934  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>November 15, 2004 (November 12, 2004)<BR>  </B></FONT><FONT SIZE=2>Date of Report (date of earliest event reported) </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=5><B>Overstock.com, Inc.<BR>  </B></FONT><FONT SIZE=2>(Exact name of Registrant as specified in its charter) </FONT></P>

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<TD WIDTH="32%" ALIGN="CENTER"><FONT SIZE=2><B>Delaware</B></FONT><FONT SIZE=2><BR>
(State or other jurisdiction of incorporation or organization)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="32%" ALIGN="CENTER"><FONT SIZE=2><B>000-49799</B></FONT><FONT SIZE=2><BR>
(Commission File Number)</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="32%" ALIGN="CENTER"><FONT SIZE=2><B>87-0634302</B></FONT><FONT SIZE=2><BR>
(I.R.S. Employer<BR>
Identification Number)</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2><B>6322 South 3000 East, Suite 100<BR>
Salt Lake City, Utah 84121<BR>  </B></FONT><FONT SIZE=2>(Address of principal executive offices) </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>(801) 947-3100<BR>  </B></FONT><FONT SIZE=2>(Registrant's telephone number, including area code) </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>(Former
name or former address, if changed since last report.) </FONT></P>

<P><FONT SIZE=2>Check
the appropriate box below if the Form&nbsp;8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: </FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT></FONT></DT><DD><FONT SIZE=2>Written
communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT></FONT></DT><DD><FONT SIZE=2>Soliciting
material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT></FONT></DT><DD><FONT SIZE=2>Pre-commencement
communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2><FONT FACE="WINGDINGS">&#111;</FONT></FONT></DT><DD><FONT SIZE=2>Pre-commencement
communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c)) </FONT></DD></DL>
<BR>

<P><FONT SIZE=2><hr
noshade width=100% align=left size=1>
<hr noshade width=100% align=left size=4> </FONT></P>

<HR NOSHADE>
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<P><FONT SIZE=2><A
NAME="de2744_item_1.01._entry_into_a__de201883"> </A>
<A NAME="toc_de2744_1"> </A>
<BR></FONT><FONT SIZE=2><B>Item 1.01. Entry into a Material Definitive Agreement.    <BR>    </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On November&nbsp;12, 2004, Overstock.com,&nbsp;Inc. (the "Company") entered into an amendment of the Loan and Security Agreement (the "Agreement") dated as of
May&nbsp;6, 2004 by and between the Company and Wells Fargo Foothill,&nbsp;Inc. The amendment modified certain negative covenants contained in the Agreement including covenants related to
limitations on the Company's ability to incur additional debt. </FONT></P>

<P><FONT SIZE=2><A
NAME="de2744_item_9.01._financial_statements_and_exhibits."> </A>
<A NAME="toc_de2744_2"> </A>
<BR></FONT><FONT SIZE=2><B>Item 9.01. Financial Statements and Exhibits.    <BR>    </B></FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2>Exhibits
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>99.1</FONT></DT><DD><FONT SIZE=2>First
Amendment to Loan and Security Agreement dated as of November&nbsp;12, 2004 between Overstock.com,&nbsp;Inc. and Wells Fargo Foothill,&nbsp;Inc. </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>1</FONT></P>

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<UL>
<UL>
</UL>
</UL>
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NAME="page_jc2744_1_2"> </A> </FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="jc2744_signature"> </A>
<A NAME="toc_jc2744_1"> </A>
<BR></FONT><FONT SIZE=2><B>SIGNATURE    <BR>    </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized. </FONT></P>

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<TD WIDTH="39%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2>OVERSTOCK.COM,&nbsp;INC.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="39%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="54%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>DAVID K. CHIDESTER</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> David K. Chidester<BR>
Vice President, Finance</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="39%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="54%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="39%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2>Date:&nbsp;&nbsp;&nbsp;&nbsp;November&nbsp;12, 2004</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

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NAME="page_ka2744_1_3"> </A> </FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ka2744_exhibit_index"> </A>
<A NAME="toc_ka2744_1"> </A>
<BR></FONT><FONT SIZE=2><B>EXHIBIT INDEX    <BR>    </B></FONT></P>

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<TR VALIGN="BOTTOM">
<TH WIDTH="10%" ALIGN="CENTER"><FONT SIZE=1><B>Exhibit<BR>
Number</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="88%" ALIGN="CENTER"><FONT SIZE=1><B>Description</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>(c</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>)</FONT></TD>
<TD WIDTH="88%"><FONT SIZE=2>Exhibits</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2><BR>
99.1</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="88%"><FONT SIZE=2><BR>
First Amendment to Loan and Security Agreement dated as of November 12, 2004 between Overstock.com, Inc. and Wells Fargo Foothill, Inc.</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

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<BR>
<P><br><A NAME="04DEN2744_1">QuickLinks</A><br></P><!-- TOC_BEGIN -->
<UL>
<FONT SIZE=2><A HREF="#toc_de2744_1">Item 1.01. Entry into a Material Definitive Agreement.</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_de2744_2">Item 9.01. Financial Statements and Exhibits.</A></FONT><BR>
</UL>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_jc2744_1">SIGNATURE</A></FONT><BR>
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<FONT SIZE=2><A HREF="#toc_ka2744_1">EXHIBIT INDEX</A></FONT><BR>
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</BODY>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a2146744zex-99_1.htm
<DESCRIPTION>EX-99.1
<TEXT>
<HTML>
<HEAD>
</HEAD>
<BODY BGCOLOR="#FFFFFF" LINK=BLUE  VLINK=PURPLE>
<BR>
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<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="kg2744_exhibit_99.1"> </A>
<A NAME="toc_kg2744_1"> </A>
<BR></FONT><FONT SIZE=2><B>Exhibit 99.1    <BR>    </B></FONT></P>

<P ALIGN="RIGHT"><FONT SIZE=2><B>Execution Copy</B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kg2744_first_amendment_to_loan_and_security_agreement"> </A>
<A NAME="toc_kg2744_2"> </A>
<BR></FONT><FONT SIZE=2><B>FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT (this "<U>First Amendment</U>") is made and entered into as of November&nbsp;12, 2004,
by and between Overstock.com,&nbsp;Inc., a Delaware corporation, as Borrower ("<U>Borrower</U>"), and Wells Fargo Foothill,&nbsp;Inc., a California corporation, as Lender
("<U>Lender</U>"). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
Borrower and Lender have entered into a Loan and Security Agreement, dated as of May&nbsp;6, 2004 (the "<U>Loan Agreement</U>"); and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
Borrower and Lender wish to amend the Loan Agreement as herein provided so as to permit Borrower issue the Convertible Senior Notes (as such term is defined below) and to take
the actions contemplated by the confidential Offering Memorandum relating thereto; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW,
THEREFORE, in consideration of the agreements and provisions herein contained, the parties hereto do hereby agree as follows: </FONT></P>


<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1.<U>Definitions</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Any capitalized terms used but not otherwise defined herein shall have
the meanings ascribed to such terms in the Loan Agreement. </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2.<U>Amendments to Loan Agreement</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Loan Agreement is hereby amended, effective as of
the date this First Amendment becomes effective in accordance with <U>Section&nbsp;4</U> hereof, as follows: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>2.01.&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendments to Definitions in Section&nbsp;1.1</U></B></FONT><FONT SIZE=2>. </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;The
following definitions are hereby added to <U>Section&nbsp;1.1</U> of the Loan Agreement in proper alphabetical order: </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<U>Convertible
Senior Notes</U>" shall mean the Convertible Senior Notes Due 2011 to be issued pursuant to an Indenture to be dated on or about November&nbsp;18,
2004. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"<U>Convertible
Senior Notes Closing Date</U>" shall mean the date on which the Convertible Senior Notes are issued. </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;The
definition of "Triggering Event Date" is hereby amended to replace "$15,000,000" with "$30,000,000." </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>2.02.&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendment to Section&nbsp;7.1(d)</U></B></FONT><FONT SIZE=2>. <U>Section&nbsp;7.1(d)</U> of
the Loan Agreement is hereby amended to add "and, with respect to the Convertible Senior Notes, (g)" after "(c)." </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>2.03.&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendment to Section&nbsp;7.1(g)</U></B></FONT><FONT SIZE=2>. <U>Section&nbsp;7.1(g)</U> of
the Loan Agreement is hereby deleted in its entirety and replaced by the following: </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"(g)&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;additional
unsecured Indebtedness of the Borrower and any of its Subsidiaries in an aggregate principal amount not to exceed $75,000,000 at any time
outstanding so long as immediately prior to and after giving effect thereto (a)&nbsp;no Default or Event of Default shall have occurred and be continuing or will result therefrom and (b)&nbsp;no
Triggering Event Date shall have occurred or will result therefrom; and (ii)&nbsp;additional unsecured Indebtedness of the Borrower and any of its Subsidiaries in an aggregate principal amount not
to exceed $25,000,000 at any time outstanding so long as immediately prior to and after giving effect thereto (a)&nbsp;no Default or Event of Default shall have occurred and be continuing or will
result therefrom and (b)&nbsp;no Triggering Event Date shall have occurred or will result therefrom, and so long as such Indebtedness is incurred pursuant to the offering of the Convertible Senior
Notes and incurred within 30&nbsp;days after the Convertible Senior Notes Closing Date." </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>2.04.&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendment to Section&nbsp;7.7(a)</U></B></FONT><FONT SIZE=2>. <U>Section&nbsp;7.7(a)</U> of
the Loan Agreement is hereby amended by adding the following proviso at the end of the sentence before the comma: "; <U>provided</U> that nothing in this Section&nbsp;7.7(a) or
elsewhere in Section&nbsp;7 of this Agreement shall restrict Borrower's ability to </FONT></P>

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<P><FONT SIZE=2>comply
with its obligations under the Convertible Senior Notes or the Indenture governing the Convertible Senior Notes (including without limitation the provisions requiring Borrower to redeem or
repurchase any or all of the Convertible Senior Notes in accordance with the terms of the Convertible Senior Notes and the Indenture, and nothing herein shall limit the ability of Borrower to
effectuate a conversion of the Convertible Senior Notes into Stock." </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>2.05.&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendment to Section&nbsp;7.7(b)</U></B></FONT><FONT SIZE=2>. <U>Section&nbsp;7.7(b)</U> of
the Loan Agreement is hereby amended by adding "or the Convertible Senior Notes" after the "(c)" and prior to the period at the end of the sentence. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>2.06.&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendment to Section&nbsp;7.10</U>.</B></FONT><FONT SIZE=2> <U>Section&nbsp;7.10</U> of the
Loan Agreement is hereby amended by adding the following proviso at the end of the Section prior to the period: </FONT></P>

<P><FONT SIZE=2>";
<U>provided</U> <U>further</U> that nothing herein shall prevent or restrict Borrower from paying interest on the Convertible Senior Notes or taking any
action with respect to the Convertible Senior Notes." </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>2.07.&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendment to Section&nbsp;8.9</U></B></FONT><FONT SIZE=2>. <U>Section&nbsp;8.9</U> of the
Loan Agreement is hereby deleted and replaced in its entirety with the following: </FONT></P>

<P><FONT SIZE=2>"(i)&nbsp;If
there is a default in any material agreement to which Borrower or any of its Subsidiaries is a party and such default (a)&nbsp;occurs at the final maturity of the obligations
thereunder, or (b)&nbsp;results in a right by the other party thereto, irrespective of whether exercised, to accelerate the maturity of Borrower's or its Subsidiaries' obligations thereunder or to
terminate such agreement; or (ii)&nbsp;if the Convertible Senior Notes shall be required to be prepaid, redeemed or repurchased (other than by a regularly scheduled required prepayment or
redemption), prior to the stated maturity thereof." </FONT></P>


<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3.<U>Representations and Warranties</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;In order to induce Lender to enter into this First
Amendment, Borrower hereby represents and warrants that: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>3.01.&nbsp;&nbsp;&nbsp;&nbsp;<U>No Default</U>.</B></FONT><FONT SIZE=2> At and as of the date of this First Amendment and at and as of the Effective
Date (as defined below), and both prior to and after giving effect to this First Amendment, no Default or Event of Default exists. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>3.02.&nbsp;&nbsp;&nbsp;&nbsp;<U>Representations and Warranties True and Correct</U>.</B></FONT><FONT SIZE=2> At and as of the date of this First
Amendment and at and as of the Effective Date and both prior to and after giving effect to this First Amendment, each of the representations and warranties contained in the Loan Agreement and the
other Loan Documents is true and correct in all material respects (except to the extent that such representations and warranties relate solely to an earlier date, in which case such representations
and warranties are true and correct in all material respects as of such earlier date). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>3.03.&nbsp;&nbsp;&nbsp;&nbsp;<U>Corporate Power, Etc.</U></B></FONT><FONT SIZE=2> Borrower (a)&nbsp;has all requisite corporate power and authority
to execute and deliver this First Amendment and to consummate the transactions contemplated hereby and (b)&nbsp;has taken all action, corporate or otherwise, necessary to authorize the execution and
delivery of this First Amendment and the consummation of the transactions contemplated hereby. Borrower is entering into this First Amendment in accordance with Section&nbsp;15.1 of the Loan
Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>3.04.&nbsp;&nbsp;&nbsp;&nbsp;<U>No Conflict</U>.</B></FONT><FONT SIZE=2> The execution, delivery and performance by Borrower of this First Amendment
will not (a)&nbsp;violate any provision of federal, state, or local law or regulation applicable to Borrower, the Governing Documents of Borrower, or any order, judgment, or decree of any court or
other Governmental Authority binding on Borrower, (b)&nbsp;conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under any material contractual
obligation of Borrower, (c)&nbsp;result in or require the creation or imposition of any Lien of any nature whatsoever upon any properties or assets of any Borrower, other than Permitted Liens, or
(d)&nbsp;require any unobtained approval of Borrower's shareholders or any unobtained approval or consent of any Person under any material contractual obligation of Borrower. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

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<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>3.05.&nbsp;&nbsp;&nbsp;&nbsp;<U>Binding Effect</U>.</B></FONT><FONT SIZE=2> This First Amendment has been duly executed and delivered by Borrower and
constitutes the legal, valid and binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by (a)&nbsp;applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws, now or hereafter in effect, relating to or affecting the enforcement of creditors' rights generally, and (b)&nbsp;the
application of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). </FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4.<U>Conditions</U>.</B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This First Amendment shall be effective as of November&nbsp;12, 2004
(the "<U>Effective Date</U>") upon the fulfillment by Borrower, in a manner satisfactory to Lender, of all of the following conditions precedent set forth in this
<U>Section&nbsp;4</U>: </FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>4.01.</B></FONT></DT><DD><FONT SIZE=2><B><U>Execution of the First Amendment</U>.</B></FONT><FONT SIZE=2> Each of the parties hereto shall have executed and delivered an
original counterpart of this First Amendment by facsimile or other means of electronic transmission. </FONT></DD></DL>

<P><FONT SIZE=2><B>SECTION 5.<U>Miscellaneous</U>.  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2><B>5.01.&nbsp;&nbsp;&nbsp;&nbsp;<U>Continuing Effect</U>.</B></FONT><FONT SIZE=2> Except as specifically provided herein, the
Loan Agreement and the other Loan Documents shall remain in full force and effect in accordance with their respective terms and are hereby ratified and confirmed in all respects. Lender's execution
and delivery of, or acceptance of, this First Amendment and any other documents and instruments in connection herewith shall not be deemed to create a course of dealing or otherwise create any express
or implied duty by it to provide any other or further amendments, consents or waivers in the future. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>5.02.&nbsp;&nbsp;&nbsp;&nbsp;<U>No Waiver</U>.</B></FONT><FONT SIZE=2> This First Amendment is limited as specified and the execution, delivery and
effectiveness of this First Amendment shall not operate as a modification, acceptance or waiver of any provision of the Loan Agreement or any other Loan Document, except as specifically set forth
herein. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>5.03.&nbsp;&nbsp;&nbsp;&nbsp;References</B></FONT><FONT SIZE=2>. </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;From
and after the Effective Date, the Loan Agreement, the other Loan Documents and all agreements, instruments and documents executed and delivered in connection with
any of the foregoing shall each be deemed amended hereby to the extent necessary, if any, to give effect to the provisions of this First Amendment. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;From
and after the Effective Date, (i)&nbsp;all references in the Loan Agreement to "this Agreement", "hereto", "hereof", "hereunder" or words of like import referring
to the Loan Agreement shall mean the Loan Agreement as amended hereby and (ii)&nbsp;all references in the Loan Agreement, the other Loan Documents or any other agreement, instrument or document
executed and delivered in connection therewith to "Loan Agreement", "thereto", "thereof", "thereunder" or words of like import referring to the Loan Agreement shall mean the Loan Agreement as amended
hereby. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>5.04.&nbsp;&nbsp;&nbsp;&nbsp;<U>Governing Law</U>.</B></FONT><FONT SIZE=2> THIS FIRST AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF CALIFORNIA. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>5.05.&nbsp;&nbsp;&nbsp;&nbsp;<U>Severability</U>.</B></FONT><FONT SIZE=2> The provisions of this First Amendment are severable, and if any clause or
provision shall be held invalid or unenforceable in whole or in part in any jurisdiction, then such invalidity or unenforceability shall affect only such clause or provision, or part thereof, in such
jurisdiction and shall not in any manner affect such clause or provision in any other jurisdiction, or any other clause or provision in this First Amendment in any jurisdiction. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>5.06.&nbsp;&nbsp;&nbsp;&nbsp;<U>Counterparts</U>.</B></FONT><FONT SIZE=2> This First Amendment may be executed in any number of counterparts, each of
which counterparts when executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. A complete set of counterparts shall be lodged with
Borrower and Lender. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_kg2744_1_4"> </A>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>5.07.&nbsp;&nbsp;&nbsp;&nbsp;<U>Headings</U>.</B></FONT><FONT SIZE=2> Section headings in this First Amendment are included herein for convenience of
reference only and shall not constitute a part of this First Amendment for any other purpose. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>5.08.&nbsp;&nbsp;&nbsp;&nbsp;<U>Binding Effect; Assignment</U>.</B></FONT><FONT SIZE=2> This First Amendment shall be binding upon and inure to the
benefit of the Borrower and Lender and their respective successors and assigns; <U>provided</U>, <U>however</U>, that the rights and obligations of Borrower
under this First Amendment shall not be assigned or delegated without the prior written consent of Lender. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>5.09.&nbsp;&nbsp;&nbsp;&nbsp;<U>Expenses</U>.</B></FONT><FONT SIZE=2> Borrower agrees to pay Lender upon demand for all Lender Expenses incurred in
connection with the preparation, negotiation and execution of this First Amendment and any document required to be furnished herewith. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>[Signature
pages to follow] </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_kg2744_1_5"> </A>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed by their respective officers thereunto duly authorized, as of the date first above written. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="39%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2><B>OVERSTOCK.COM, INC.,</B></FONT><FONT SIZE=2><BR>
as Borrower</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="39%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="54%" ALIGN="CENTER"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>DAVID K. CHIDESTER</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="39%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2>Name:&nbsp;&nbsp;&nbsp;&nbsp;David K. Chidester</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="39%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2>Title:&nbsp;&nbsp;&nbsp;&nbsp;Vice President, Finance</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="39%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=2><BR><FONT SIZE=2><B>WELLS FARGO FOOTHILL, INC.,</B></FONT><FONT SIZE=2><BR>
as Lender</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="39%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="54%" ALIGN="CENTER"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>JEFF ROYSTON</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="39%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2>Name:&nbsp;&nbsp;&nbsp;&nbsp;Jeff Royston</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="39%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2>Title:&nbsp;&nbsp;&nbsp;&nbsp;Vice President</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<BR>
<P><br><A NAME="04DEN2744_2">QuickLinks</A><br></P><!-- TOC_BEGIN -->
<UL>
<FONT SIZE=2><A HREF="#toc_kg2744_1">Exhibit 99.1</A></FONT><BR>
</UL>
<FONT SIZE=2><A HREF="#toc_kg2744_2">FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT</A></FONT><BR>

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