NSTOR TECHNOLOGIES INC
EXHIBIT 10.3 LETTER AGREEMENT DATED 3/20/03
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>8
<FILENAME>exhibit10-3.txt
<DESCRIPTION>EXHIBIT 10.3 LETTER AGREEMENT DATED 3/20/03
<TEXT>
                                                                    EXHIBIT 10.3

                            nStor Technologies, Inc.
                              100 Century Boulevard
                            West Palm Beach, FL 33417




March 20, 2003


H. Irwin Levy
nStor Technologies, Inc.
100 Century Blvd
West Palm Beach, FL  33417

Dear Mr. Levy:

In connection with that certain 8% Convertible  Promissory  Note, dated February
19, 2003, in the amount of $200,000 (the "Note"), payable by nStor Technologies,
Inc. ("nStor") to H. Irwin Levy ("Holder"), and the related Amended and Restated
Stock Pledge Agreement dated as of February 19, 2003 ("Stock Pledge Agreement"),
we have agreed to the following amendments:

1) The second  paragraph of page 1 of the Note,  which states that "This Note is
secured by shares of common stock of Stonehouse  Technologies,  Inc. pursuant to
that certain Stock Pledge  Agreement of even date  herewith  between the Company
and Holder",  is hereby  deleted in its entirety and Holder hereby  relinquishes
any and all of rights under the Stock Pledge Agreement.

2) Under  paragraph  1a. of page 2 of the Note,  Holder hereby  relinquishes  it
right to convert  all or a portion of the  outstanding  principal  amount of the
Note  and/or any  accrued and unpaid  interest  into  shares of common  stock of
Stonehouse  Technologies,  Inc. Holder will continue to have  conversion  rights
into shares of nStor  common  stock based on the per share  conversion  price in
said paragraph 1a ($0.29 per share).

Except as set forth in this  letter,  the Note  remains  unmodified  and in full
force and effect.

Please indicate below your concurrence with the foregoing.

Sincerely,                                                Agreed:

/s/ Jack Jaiven
                                                          By: /s/ H. Irwin Levy
Jack Jaiven                                               H. Irwin Levy
Vice President and Treasurer

JJ/dpj

</TEXT>
</DOCUMENT>
