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...

                                  Exhibit 10.1

                           HILCOAST DEVELOPMENT CORP.
                              000 Xxxxxxx Xxxxxxxxx
                         Xxxx Xxxx Xxxxx. Florida 33417

(000) 000-0000                                                Fax (000) 000-0000


March 6, 2002


Xx. Xxxxxx Xxxxxx
nStor Technologies, Inc.
00000 Xxxx Xxx Xxxx
Xxx Xxxxx, XX 00000

Dear Xxx,

Hilcoast Development Corp.  ("Hilcoast") xxxxxx 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: _________________________________
    Xxxx X. Xxxx, Vice President


Agreed:

nStor Technologies, Inc.

By: _________________________________
    Xxxxxx Xxxxxx, Vice President