Exhibit 10.4


                                 PROMISSORY NOTE

                                                                   June 14, 2002

U.S. $750,000.00                                           San Diego, California

FOR VALUE  RECEIVED,  the  undersigned  nSTOR  TECHNOLOGIES,  INC.,  a  Delaware
corporation  with its  principal  place of business at 10140 Mesa Rim Road,  San
Diego, California, 92121 (hereinafter called "Maker"), hereby promises to pay to
the order of Hilcoast Development Corp., a Delaware corporation, with a business
address at 100 Century  Boulevard,  West Palm Beach,  Florida 33417 (hereinafter
called  "Payee"),  at the address of Payee's  principal place of business stated
above, or at such other place as the Payee may designate in writing,  the sum of
SEVEN HUNDRED AND FIFTY THOUSAND AND 00/100ths U.S.  Dollars (U.S.  $750,000.00)
(the  "Principal  Amount"),  plus  interest  on the  outstanding  balance of the
Principal  Amount at the rate of eight  percent  (8%) per  annum,  from the date
hereof until the date when said sum is paid in full in accordance with the terms
hereof.  The entire  Principal Amount plus all accrued interest thereon shall be
due and payable in full on December 31, 2002.

It is expressly  agreed that this  Promissory Note evidences a SEVEN HUNDRED AND
FIFTY THOUSAND AND 00/100ths U.S. Dollars (U.S.  $750,000.00)  revolving line of
credit.  The Principal  Amount which may be  outstanding  at any time under such
line of credit shall not exceed SEVEN  HUNDRED AND FIFTY  THOUSAND AND 00/100ths
U.S. Dollars (U.S. $750,000.00). However, this limitation shall not be deemed to
prohibit  Payee from advancing any sum, which may, in Payee's sole and exclusive
discretion,  be  necessary  or  desirable  in order to protect and  preserve the
effect and enforceability of this Promissory Note. Within the limits and subject
to the terms and conditions  hereof,  the Maker may borrow,  repay and re-borrow
under the revolving  line of credit  evidenced by this  Promissory  Note and all
shall be subject to the terms and conditions of this Promissory Note.

Upon the failure by Maker to pay interest in full on or before the date when due
hereunder,  the entire unpaid amount of this Note shall thereupon be immediately
due and payable, and the Payee shall have all rights and remedies provided under
this Note.

Maker shall have the right, in Maker's  discretion at any time,  without payment
of premium or penalty,  to repay in whole or in part the unpaid  balance of this
Note.


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This Note  shall be  governed  by and  construed  under the laws of the State of
Florida.  The exclusive  venue for any litigation in connection  with or arising
out of this Note  shall be Palm  Beach  County,  Florida,  and the Maker  hereby
consents and submits to the jurisdiction of the state and federal courts sitting
in Palm Beach County, Florida.

MAKER HEREBY KNOWINGLY,  VOLUNTARILY AND  INTENTIONALLY  WAIVES THE RIGHT IT MAY
HAVE TO A TRIAL BY JURY IN RESPECT OF ANY  LITIGATION  BASED HEREON,  OR ARISING
OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE.

nSTOR TECHNOLOGIES, INC.


By:     /s/ Thomas L. Gruber
       -------------------------------------
Name:  Thomas L. Gruber
Title: Acting President, Chief Operating and
       Financial Officer