NSTOR TECHNOLOGIES INC
EXHIBIT 10.1 FORM OF AGREEMENT
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>3
<FILENAME>exhibit10-1.txt
<DESCRIPTION>EXHIBIT 10.1 FORM OF AGREEMENT
<TEXT>
                                  Exhibit 10.1

                           HILCOAST DEVELOPMENT CORP.
                              100 Century Boulevard
                         West Palm Beach. Florida 33417

(561) 640-3105                                                Fax (561) 640-3160


March 6, 2002


Mr. Thomas Gruber
nStor Technologies, Inc.
10140 Mesa Rim Road
San Diego, CA 92121

Dear Tom,

Hilcoast Development Corp.  ("Hilcoast") hereby agrees to purchase  ______shares
of American Realty Investors, Inc. (ARL) from nStor Technologies, Inc. ("nStor")
for a total purchase price of $________ cash. In conjunction therewith, Hilcoast
hereby  grants to nStor an option  through July 6, 2002 to  repurchase  all or a
portion of these shares at a  repurchase  price equal to $___ per ARL share plus
10% per annum, computed daily.



Very truly yours,



Hilcoast Development Corp

By: _________________________________
    Mark F. Levy, Vice President


Agreed:

nStor Technologies, Inc.

By: _________________________________
    Thomas Gruber, Vice President

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