Document:

<PAGE>

                                                                     EXHIBIT 4.1

THIS WARRANT, AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS
WARRANT, HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR APPLICABLE STATE SECURITIES LAWS. THIS WARRANT AND THE SHARES OF COMMON STOCK
ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
UNDER SAID ACT AND APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL
REASONABLY SATISFACTORY TO MTI TECHNOLOGY CORPORATION THAT SUCH REGISTRATION IS
NOT REQUIRED.

Warrant No. __________                              Number of Shares: __________
                                                         (subject to adjustment)

Date of Issuance: July __, 2006

                           MTI TECHNOLOGY CORPORATION

                          Common Stock Purchase Warrant

                           (Void after July __, 2016)

     MTI Technology Corporation, a Delaware corporation (the "Company"), for
value received, hereby certifies that _______________ (the "Registered Holder"),
is entitled, subject to the terms and conditions set forth below, to purchase
from the Company, at any time or from time to time during the period beginning
July __, 2007 and ending at 5:00 p.m. (Pacific time) on July __, 2017 (the
"Exercise Period"), Three Hundred Thousand (300,000) shares of Common Stock,
$0.001 par value per share, of the Company ("Common Stock"). The purchase price
shall be $1.32 per share. The shares purchasable upon exercise of this Warrant,
and the purchase price per share, each as adjusted from time to time pursuant to
the provisions of this Warrant, are hereinafter referred to as the "Warrant
Shares" and the "Purchase Price," respectively. For purposes of this Warrant,
"Warrant Issue Date" shall mean the date on which this Warrant was first issued,
regardless of any subsequent transfer or partial exercise of this Warrant that
may occur after such date.

     1. Exercise

          (a) Exercise for Cash. The Registered Holder may, at its option, elect
     to exercise this Warrant, in whole or in part and at any time or from time
     to time during the Exercise Period, by surrendering this Warrant, with the
     purchase form appended hereto as Exhibit I duly executed by or on behalf of
     the Registered Holder, at the principal office of the Company, or at such
     other office or agency as the Company may designate, accompanied by payment
     in full, in lawful money of the United States, of the Purchase Price
     payable in respect of the number of Warrant Shares purchased upon such
     exercise.

<PAGE>

          (b) Cashless Exercise

               (i) The Registered Holder may, at its option, elect to exercise
          this Warrant, in whole or in part and at any time or from time to time
          during the Exercise Period, on a cashless basis, by surrendering this
          Warrant, with the purchase form appended hereto as Exhibit I duly
          executed by or on behalf of the Registered Holder, at the principal
          office of the Company, or at such other office or agency as the
          Company may designate, by canceling a portion of this Warrant in
          payment of the Purchase Price payable in respect of the number of
          Warrant Shares purchased upon such exercise. In the event of an
          exercise pursuant to this subsection 1(b), the number of Warrant
          Shares issued to the Registered Holder shall be determined according
          to the following formula:

                                     Y(A-B)
                                 X = ------
                                        A

          Where: X = the number of Warrant Shares that shall be issued to the
                     Registered Holder pursuant to the cashless exercise;

                 Y = the number of Warrant Shares for which this Warrant is
                     being exercised (which shall include both the number of
                     Warrant Shares issued to the Registered Holder and the
                     number of Warrant Shares subject to the portion of the
                     Warrant being cancelled in payment of the Purchase Price);

                 A = the Fair Market Value (as defined below) of one share of
                     Common Stock; and

                 B = the Purchase Price then in effect.

               (ii) For purpose of this Warrant, "Fair Market Value" per share
          of Common Stock shall be determined as follows:

                    (A) If the Common Stock is listed on a national securities
               exchange, the Nasdaq Capital Market or another nationally
               recognized trading system as of the Exercise Date, the Fair
               Market Value per share of Common Stock shall be deemed to be the
               average of the high and low reported sale prices per share of
               Common Stock thereon on the five (5) trading days immediately
               preceding (and not including) the Exercise Date.

                    (B) If as of the Exercise Date the Common Stock is not
               listed on a national securities exchange, the Nasdaq Capital
               Market or another nationally recognized trading system as of the
               Exercise Date, the Fair Market Value per share of Common Stock
               shall be deemed to be the amount most recently determined by the
               Board of Directors of the Company (the "Board") to represent the
               fair market value per share of the Common Stock (including a
               determination for purposes of granting Common Stock options or
               issuing Common Stock under any plan,

                                      -2-

<PAGE>

               agreement or arrangement with employees of the Company); and,
               upon request of the Registered Holder, such Board (or a
               representative thereof) shall, as promptly as reasonably
               practicable but in any event not later than five (5) days after
               such request, notify the Registered Holder of the Fair Market
               Value per share of Common Stock and furnish the Registered Holder
               with reasonable documentation of such Board's determination of
               such Fair Market Value. Notwithstanding the foregoing, if the
               Board has not made such a determination within the three-month
               period prior to the Exercise Date, then (a) the Board shall make,
               and shall provide or cause to be provided to the Registered
               Holder notice of, a determination of the Fair Market Value per
               share of the Common Stock within fifteen (15) days of a request
               by the Registered Holder that it do so, and (b) the exercise of
               this Warrant pursuant to this subsection 1(b) shall be delayed
               until such determination is made and notice thereof is provided
               to the Registered Holder.

          (c) Exercise Date. Each exercise of this Warrant shall be deemed to
     have been effected immediately prior to the close of business on the day on
     which this Warrant shall have been surrendered to the Company as provided
     in subsection 1(a) or 1(b) above (the "Exercise Date"). At such time, the
     person or persons in whose name or names any certificates for Warrant
     Shares shall be issuable upon such exercise as provided in subsection 1(d)
     below shall be deemed to have become the holder or holders of record of the
     Warrant Shares represented by such certificates.

          (d) Issuance of Certificates. As soon as practicable after the
     exercise of this Warrant in whole or in part, and in any event within three
     (3) Trading Days (as defined below) thereafter, the Company, at its
     expense, shall cause to be issued in the name of, and delivered to, the
     Registered Holder, or as the Registered Holder (upon payment by the
     Registered Holder of any applicable transfer taxes) may direct:

               (i)  a certificate or certificates for the number of full Warrant
                    Shares to which the Registered Holder shall be entitled upon
                    such exercise plus, in lieu of any fractional share to which
                    the Registered Holder would otherwise be entitled, cash in
                    an amount determined pursuant to Section 3 below; and

               (ii) in case such exercise is in part only, a new warrant or
                    warrants of like tenor, calling in the aggregate on the face
                    or faces thereof for the number of Warrant Shares equal
                    (without giving effect to any adjustment therein) to the
                    number of such shares called for on the face of this Warrant
                    minus the number of Warrant Shares for which this Warrant
                    was so exercised.

     For purposes of this Warrant, "Trading Day" shall mean (a) any day on which
     quotations or listings with respect to the Common Stock are provided on the
     Nasdaq Capital Market or another nationally recognized quotation or trading
     system or (b) if the Common Stock is not then listed or quoted on the
     Nasdaq Capital Market or another nationally recognized trading system, then
     a day on which trading occurs on the New York Stock Exchange (or any
     successor thereto).

                                      -3-

<PAGE>

     2. Adjustments

          (a) Adjustment for Stock Splits and Combinations. If the Company shall
     at any time or from time to time after the Warrant Issue Date (i) effect a
     subdivision of the outstanding shares of Common Stock (whether by stock
     split, stock dividend or otherwise), or (ii) combine the outstanding shares
     of Common Stock (whether by reverse stock split or otherwise), the Purchase
     Price in effect immediately before that subdivision or combination shall be
     proportionately adjusted. Any adjustment under this paragraph shall become
     effective concurrently with the effectiveness of the applicable subdivision
     or combination of the outstanding shares of Common Stock. Notwithstanding
     Section 13 hereof or the foregoing, in the event (a) the Company effects a
     split of the Common Stock by means of a stock dividend and the Purchase
     Price of and the number of Warrant Shares are adjusted as of the date of
     the distribution of the dividend (rather than as of the record date for
     such dividend) and (b) the Registered Holder exercises this Warrant between
     the record date and the distribution date for such stock dividend, the
     Registered Holder shall be entitled to receive, on the distribution date,
     the stock dividend with respect to the shares of Common Stock acquired upon
     such exercise, notwithstanding the fact that such shares were not
     outstanding as of the close of business on the record date for such stock
     dividend.

          (b) Adjustments for Dividends and Other Distributions. In the event
     the Company at any time or from time to time after the Warrant Issue Date
     shall make or issue, or fix a record date for the determination of holders
     of Common Stock entitled to receive, a dividend or other distribution
     payable in shares of Common Stock or other securities of the Company or in
     cash or other property, then, and in each such event, the Registered Holder
     shall receive upon exercise hereof, in addition to the number of shares of
     Common Stock to be received upon such exercise, the kind and amount of
     securities of the Company, cash or other property that they would have been
     entitled to receive had this Warrant been exercised (without use of the
     cashless exercise provisions) for shares of Common Stock immediately prior
     to such event and had they thereafter, during the period from the date of
     such event to and including the exercise date, retained such securities,
     giving application to all adjustments called for during such period under
     this paragraph with respect to the rights of the Registered Holder.

          (c) Adjustment for Merger or Reorganization, etc. If there shall occur
     any reorganization, recapitalization, reclassification, consolidation or
     merger involving the Company in which the Common Stock is converted into or
     exchanged for securities, cash or other property (other than a transaction
     covered by Subsections 2(a) or 2(b)), then, following any such
     reorganization, recapitalization, reclassification, consolidation or
     merger, this Warrant shall be exercisable in accordance with its terms into
     the kind and amount of securities, cash or other property that a holder of
     the number of shares of Common Stock of the Company issuable upon exercise
     of this Warrant immediately prior to such reorganization, recapitalization,
     reclassification, consolidation or merger would have been entitled to
     receive pursuant to such transaction; and, in such case, appropriate
     adjustment (as determined in good faith by the Board) shall be made in the
     application of the provisions in this Warrant with respect to the rights
     and interests thereafter of the Registered Holder, to the end that the
     provisions set forth in this Warrant (including provisions with respect to
     changes in and other adjustments of the Purchase Price) shall

                                      -4-

<PAGE>

     thereafter be applicable, as nearly as reasonably may be, in relation to
     any securities or other property thereafter deliverable upon the exercise
     of this Warrant.

          (d) Rounding of Calculations. All calculations under this Warrant
     shall be made to the nearest whole number of shares, with five tenths (0.5)
     of a share rounded up. The number of shares of Common Stock outstanding at
     any given time shall not include shares owned or held by or for the account
     of the Company, and the disposition of any such shares shall be considered
     an issue or sale of Common Stock.

          (e) Certificate as to Adjustments. Upon the occurrence of each
     adjustment pursuant to this Warrant, the Company at its expense will
     promptly compute such adjustment in accordance with the terms hereof and
     prepare a certificate describing in reasonable detail such adjustment and
     the transactions giving rise thereto, including all facts upon which such
     adjustment is based. The Company will promptly deliver a copy of each such
     certificate to the Registered Holder and to the Company's Transfer Agent.
     The Company shall, as promptly as reasonably practicable after the written
     request at any time of any Registered Holder (but in any event not later
     than ten (10) days thereafter), furnish or cause to be furnished to such
     Registered Holder a certificate setting forth (i) the Purchase Price then
     in effect, and (ii) the number of shares of Common Stock and the amount, if
     any, of other securities, cash or property that then would be received upon
     the exercise of this Warrant.

     3. Fractional Shares. The Company shall not be required upon the exercise
of this Warrant to issue any fractional shares, but shall pay the value thereof
to the Registered Holder in cash on the basis of the Fair Market Value per share
of Common Stock.

     4. Compliance with Securities Laws; Investment Representations.

          (a) The Registered Holder is acquiring the Warrant for investment and
     not with a view to the resale or distribution of the Warrant or the Warrant
     Shares, or any interest therein, without prejudice, however, to the
     Registered Holder's right, subject to compliance with the Asset Purchase
     Agreement dated June 6, 2006 between the Company and the Registered Holder
     (the "Asset Purchase Agreement"), at all times to sell or otherwise dispose
     of all or any part of such Warrant or Warrant Shares pursuant to an
     effective registration statement under the Securities Act or under an
     exemption from such registration and in compliance with applicable federal
     and state securities laws. Nothing contained herein shall be deemed a
     representation or warranty by the Registered Holder to hold any of the
     Warrant or Warrant Shares for any period of time. The Registered Holder is
     acquiring the Warrant hereunder in the ordinary course of business. Except
     as contemplated by the Asset Purchase Agreement, the Registered Holder has
     no agreement, undertaking, arrangement, obligation or commitment providing
     for the disposition of such Warrant or Warrant Shares. The Registered
     Holder has not been organized, reorganized or recapitalized specifically
     for the purpose of investing in the Purchased Securities. At all times
     since the time the Registered Holder was initially offered the Warrant,
     such Purchaser has been an "accredited investor" as such term is defined in
     Regulation D under the Securities Act of 1933, as amended.

                                      -5-

<PAGE>

          (b) The Registered Holder has substantial experience in evaluating and
     investing in private placement transactions of securities in companies
     similar to the Company so that it is capable of evaluating the merits and
     risks of its investment in the Company and has the capacity to protect its
     own interests. The Registered Holder will bear the economic risk of this
     investment until the Warrant or Warrant Shares are registered pursuant to
     the Securities Act, or an exemption from registration is available.

          (c) Unless a registration statement under the Act is effective with
     respect to the Warrant Shares to be issued upon the exercise of this
     Warrant, the certificate representing such Warrant Shares shall bear the
     following legend, in addition to any legend imposed by applicable state
     securities laws:

               THE SHARES OF COMMON STOCK EVIDENCED BY THIS CERTIFICATE HAVE NOT
               BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
               APPLICABLE STATE SECURITIES LAWS. THESE SHARES MAY NOT BE SOLD,
               OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN
               EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT AND APPLICABLE
               STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL REASONABLY
               SATISFACTORY TO MTI TECHNOLOGY CORPORATION THAT SUCH REGISTRATION
               IS NOT REQUIRED.

     5. Transfers, etc.

          (a) The Company shall maintain a register containing the name and
     address of the Registered Holder of this Warrant. The Registered Holder may
     change its address as shown on the warrant register by written notice to
     the Company requesting such change.

          (b) Subject to the provisions of this Section 5 and the Asset Purchase
     Agreement, this Warrant and all rights hereunder are transferable, in whole
     or in part, upon surrender of this Warrant with a properly executed
     assignment (in the form of Exhibit II hereto) at the principal office of
     the Company (or, if another office or agency has been designated by the
     Company for such purpose, then at such other office or agency); provided,
     however, that any such transfer must be in compliance with all applicable
     federal and state securities laws and must include the delivery to the
     Company of representations of the transferee substantially similar to those
     set forth in Section 4 hereof and, if this Warrant or any rights hereunder
     are sold, pledged or hypothecated in whole or in part, legal opinions with
     respect thereto in a form reasonably satisfactory to the Company, if such
     are requested by the Company; and provided, further, that notwithstanding
     the foregoing, no such legal opinions shall be requested by the Company in
     connection with any transfer by the Registered Holder to Pencom Systems,
     Incorporated or by Pencom Systems, Incorporated to Edward Ateyeh, Jr., Wade
     Saadi or Edgar Saadi.

     6. Remedies. Nothing herein shall limit a Registered Holder's right to
pursue any other remedies available to it hereunder, at law or in equity,
including a decree of specific performance

                                      -6-

<PAGE>

and/or injunctive relief with respect to the Company's failure to timely deliver
certificates representing shares of Common Stock upon exercise of this Warrant
as required pursuant to the terms hereof.

     7. Repurchase on Sale, Merger, or Consolidation of the Company.

          (a) Acquisition. For the purpose of this Warrant, "Acquisition" means
     any sale, license, or other disposition of all or substantially all of the
     assets (including intellectual property) of the Company, or any
     reorganization, consolidation, or merger of the Company where the holders
     of the Company's securities before the transaction beneficially own less
     than fifty percent (50%) of the outstanding voting securities of the
     surviving entity after the transaction. This Warrant shall become fully
     exercisable immediately prior to the closing of any Acquisition that occurs
     within one (1) year from the date hereof notwithstanding that the Exercise
     Period shall not have commenced as of such time.

          (b) Assumption of Warrant. If upon the closing of any Acquisition the
     successor entity assumes the obligations of this Warrant, then this Warrant
     shall be exercisable for the same securities, cash, and property as would
     be payable for the shares of Common Stock issuable upon exercise of the
     unexercised portion of this Warrant as if such shares were outstanding on
     the record date for the Acquisition and subsequent closing. The Exercise
     Price shall be adjusted accordingly. With respect to any Acquisition in
     which successor entity stock is issued as part or all of the consideration
     to be received by the Company or its securityholders in connection with
     such Acquisition, the Company shall use commercially reasonable efforts to
     require such successor entity to assume the obligations of this Warrant.

          (c) Nonassumption. If upon the closing of any Acquisition the
     successor entity does not assume the obligations of this Warrant and the
     Registered Holder has not otherwise exercised this Warrant in full, then
     the unexercised portion of this Warrant shall be deemed to have been
     automatically converted pursuant to Section 1(b) and thereafter the
     Registered Holder shall participate in the Acquisition on the same terms as
     other holders of the same class of securities of the Company.

     8. Charges, Taxes and Expenses. The Company shall pay any and all issue and
other similar taxes that may be payable in respect of any issuance or delivery
of shares of Common Stock upon exercise of this Warrant. The Company shall not,
however, be required to pay any tax that may be payable in respect of any
transfer involved in the issuance and delivery of Warrant Shares or Warrants in
a name other than that in which this Warrant is registered.

     9. Reservation of Stock. The Company shall at all times reserve and keep
available, solely for issuance and delivery upon the exercise of this Warrant,
such number of Warrant Shares and other securities, cash and/or property, as
from time to time shall be issuable upon the exercise of this Warrant. If the
number of shares of Common Stock so reserved is insufficient, in addition to any
other remedy available to the Registered Holder, the Company shall take any
corporate action that is necessary to make available a sufficient number of
authorized but unissued and otherwise unreserved shares of Common Stock within
sixty (60) days after the occurrence of such deficiency.

                                      -7-

<PAGE>

     10. Obtaining Approvals and Listings. The Company will, at its own expense,
obtain and keep effective any and all permits, consents and approvals of
governmental agencies and authorities which may from time to time be required of
the Company in order to issue shares of Common Stock upon the exercise of the
Warrants and otherwise to perform its obligations hereunder, except, in each
case, for any such permits, consents and approvals (other than those relating to
blue sky laws) required as a result of the status of a Registered Holder of the
Warrants. The Company will, at its expense, obtain promptly and maintain the
approval for listing on the Nasdaq Capital Market or any successor thereto or
comparable system, upon official notice of issuance, the shares of Common Stock
issuable upon exercise of the then outstanding Warrants and maintain the listing
or quoting of such shares after their issuance so long as the Common Stock is so
listed or quoted.

     11. Exchange or Replacement of Warrants

          (a) Upon the surrender by the Registered Holder, properly endorsed, to
     the Company at the principal office of the Company, the Company shall,
     subject to the provisions of Section 5 above, issue and deliver to or upon
     the order of the Registered Holder, at the Company's expense, a new Warrant
     or Warrants of like tenor, in the name of the Registered Holder or as the
     Registered Holder (upon payment by the Registered Holder of any applicable
     transfer taxes) may direct, calling in the aggregate on the face or faces
     thereof for the number of shares of Common Stock (or other securities, cash
     and/or property) then issuable upon exercise of this Warrant.

          (b) Upon receipt of evidence reasonably satisfactory to the Company of
     the loss, theft, destruction or mutilation of this Warrant and (in the case
     of loss, theft or destruction) upon delivery of an indemnity agreement to
     the Company, or (in the case of mutilation) upon surrender and cancellation
     of this Warrant, the Company will issue, in lieu thereof, a new Warrant of
     like tenor.

     12. Notices. All notices and other communications from the Company to the
Registered Holder in connection herewith shall be mailed by certified or
registered mail, postage prepaid, or sent via a reputable nationwide overnight
courier service guaranteeing next business day delivery, to the address last
furnished to the Company in writing by the Registered Holder. All notices and
other communications from the Registered Holder to the Company in connection
herewith shall be mailed by certified or registered mail, postage prepaid, or
sent via a reputable nationwide overnight courier service guaranteeing next
business day delivery, to the Company at its principal office. If the Company
should at any time change the location of its principal office to a place other
than its current principal office, it shall give prompt written notice to the
Registered Holder and thereafter all references in this Warrant to the location
of its principal office at the particular time shall be as so specified in such
notice. All such notices and communications shall be deemed delivered (a) two
(2) business days after being sent by certified or registered mail, return
receipt requested, postage prepaid, or (b) one (1) business day after being sent
via a reputable nationwide overnight courier service guaranteeing next business
day delivery.

     13. No Rights as Stockholder. Subject to Section 2 and Section 7 hereof,
the Registered Holder shall not be entitled to vote or receive dividends or be
deemed the holder of Common

                                      -8-

<PAGE>

Stock or any other securities of the Company that may at any time be issuable on
the exercise hereof for any purpose, nor shall anything contained herein be
construed to confer upon the Registered Holder, as such, any of the rights of a
stockholder of the Company or any right to vote for the election of directors or
upon any matter submitted to stockholders at any meeting thereof, or to give or
withhold consent to any corporate action (whether upon any recapitalization,
issuance of stock, reclassification of stock, change of par value, or change of
stock to no par value, consolidation, merger, conveyance, or otherwise) or to
receive notice of meetings, or to receive dividends or otherwise until and to
the extent the Warrant shall have been exercised as provided herein.

     14. Amendment. This Warrant may be amended only by a writing signed by both
the Company and the Registered Holder (or their respective successors or
assigns).

     15. Construction. The section headings in this Warrant are for the
convenience of the parties and in no way alter, modify, amend, limit or restrict
the contractual obligations of the parties. The word "including" as used herein
shall not be construed so as to exclude any other thing not referred to or
described. In case any one or more of the provisions of this Warrant shall be
invalid or unenforceable in any respect, the validity and enforceability of the
remaining terms and provisions of this Warrant shall not in any way be affected
or impaired thereby and the parties will attempt in good faith to agree upon a
valid and enforceable provision which shall be a commercially reasonable
substitute therefor, and upon so agreeing, shall incorporate such substitute
provision in this Warrant.

     16. Governing Law; Waiver of Jury Trial. All questions concerning the
construction, validity, enforcement and interpretation of this Warrant shall be
governed by and construed and enforced in accordance with the internal laws of
the State of Delaware. Each party hereby irrevocably waives personal service of
process and consents to process being served in any such suit, action or
proceeding by mailing a copy thereof via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in
effect for notices to it under this Warrant and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to serve process
in any manner permitted by law. Each of the Company and the Registered Holder
hereby waives all rights to a trial by jury.

     17. Facsimile Signature. This Warrant may be executed by facsimile
signature.

                            [signature page follows]

                                      -9-

<PAGE>

     EXECUTED as of the Date of Issuance indicated above.

                                        MTI TECHNOLOGY CORPORATION

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

ATTEST:

By:
    ---------------------------------
Name:
      -------------------------------
Title:
       ------------------------------

<PAGE>

                                                                       EXHIBIT I

                                  PURCHASE FORM

To: MTI Technology Corporation                               Dated: ____________

     The undersigned is the Registered Holder of Warrant No. W-____ (the
"Warrant") issued by MTI Technology Corporation, a Delaware corporation (the
"Company"). Capitalized terms used herein and not otherwise defined have the
respective meanings set forth in the Warrant.

     a.   The Warrant is currently exercisable to purchase a total of ________
          Warrant Shares.

     b.   The Registered Holder hereby exercises its right to purchase
          _________________ Warrant Shares pursuant to the Warrant. Following
          this exercise, the Warrant shall be exercisable to purchase a total of
          ____________ shares.

     c.   The Registered Holder intends that payment of the Purchase Price shall
          be made as (check one):

          ____ "Cash Exercise" under Subsection 1(a) of the Warrant

          ____ "Cashless Exercise" under Subsection 1(b) of the Warrant

     d.   If the holder has elected a Cash Exercise, the Registered Holder shall
          pay the sum of $____________ to the Company in accordance with the
          terms of the Warrant.

     e.   Pursuant to this exercise, the Company shall deliver to the Registered
          Holder _______________ Warrant Shares in accordance with the terms of
          the Warrant.

     The undersigned hereby represents and warrants to the Company that: (i) the
Warrant Shares acquired hereby are being acquired solely for the Registered
Holder's own account and not as a nominee for any other party, and solely for
investment, and the Registered Holder will not offer, sell or otherwise dispose
of any Warrant Shares acquired hereby except under circumstances that will not
result in a violation of the Securities Act of 1933, as amended (the "Act"), or
any applicable state securities laws; (ii) it is an "accredited investor" within
the meaning of Rule 501 promulgated under the Act; (iii) it has such knowledge
and experience in financial and business matters as to be capable of evaluating
the merits and risks of its investment in the Warrant Shares acquired hereby and
has the ability to bear the economic risks of its investment in the Warrant
Shares acquired hereby; and (iv) it has made such inquiry of and concerning the
Company and its business and personnel as it has deemed appropriate.

     The undersigned hereby agrees to be bound by the terms and conditions of
the Investor Rights Agreement with respect to all Warrant Shares received upon
said exercise of the Warrant.

Dated:          ,                       Registered Holder:
      ----------  ----                                     ---------------------

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------
                                        (Signature must conform in all respects
                                        to name of holder as specified on the
                                        face of the Warrant)

                                       I-1

<PAGE>

                                 ASSIGNMENT FORM

     FOR VALUE RECEIVED, ___________________________________ hereby sells,
assigns and transfers all of the rights of the undersigned under the attached
Warrant (No. W-____) with respect to the number of shares of Common Stock of MTI
Technology Corporation. covered thereby set forth below, unto:

<TABLE>
<CAPTION>
Name of Assignee   Address   No. of Shares
----------------   -------   -------------
<S>                <C>       <C>

</TABLE>

Dated:                                  Registered Holder:
      ----------------                                     ---------------------

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------
                                        (Signature must conform in all respects
                                        to name of holder as specified on the
                                        face of the Warrant)

SIGNATURE GUARANTEED:

By:
    ---------------------------------

     The signature should be guaranteed
by an eligible guarantor institution
(banks, stockbrokers, savings and loan
associations and credit unions with
membership in an approved signature
guarantee medallion program) pursuant to
Rule 17Ad-15 under the Securities
Exchange Act of 1934.

                                       I-1<PAGE>

                                                                     EXHIBIT 4.2

                          REGISTRATION RIGHTS AGREEMENT

     This Registration Rights Agreement ("Agreement") is made as of July 5,
2006, by and among MTI Technology Corporation, a Delaware corporation (the
"Company"), and Collective Technologies, LLC, a Delaware limited liability
company (the "Investor").

                                    RECITALS

     A. The Investor and the Company are parties to the Asset Purchase Agreement
dated June 6, 2006 (the "Purchase Agreement").

     B. The obligations of the Company and the Investor under the Purchase
Agreement are conditioned, among other things, upon the execution and delivery
of this Agreement by the Investor and the Company.

     NOW, THEREFORE, in consideration of the mutual promises and covenants
hereinafter set forth, the parties hereto agree as follows:

1. Certain Definitions. Capitalized terms used herein without definition shall
have the meanings ascribed to them in the Purchase Agreement. As used in this
Agreement, the following terms shall have the following respective meanings:

     "Adverse Disclosure" means public disclosure of material non-public
information, which disclosure in the good faith judgment of the Board of
Directors (after consultation with external legal counsel) (a) would be required
to be made in any Registration Statement so that such Registration Statement
would not be materially misleading, (b) would not be required to be made at such
time but for the filing, effectiveness or continued use of such Registration
Statement, and (c) would be materially detrimental to the Company's ability to
affect a material proposed merger, acquisition or sale, or otherwise materially
detrimental to the Company.

     "Commission" shall mean the Securities and Exchange Commission or any other
federal agency at the time administering the Securities Act.

     "Common Stock" shall mean the Common Stock of the Company.

     "Holder" shall mean (i) any Investor holding Registrable Securities, and
(ii) any person holding Registrable Securities to whom the rights under this
Agreement have been transferred in accordance with Section 5 hereof.

     "Prospectus" shall mean the prospectus included in any Registration
Statement (including, without limitation, any prospectus subject to completion
and a prospectus that includes any information previously omitted from a
prospectus filed as part of an effective registration statement in reliance upon
Rule 430A promulgated under the Securities Act), as amended or supplemented by
any prospectus supplement, and all other amendments and supplements to the
Prospectus, including post-effective amendments, and all material incorporated
by reference or deemed to be incorporated by reference in such Prospectus.

     "Registrable Securities" means the Shares and the shares of the Company's
Common Stock issuable upon exercise of the Warrant, and any shares of Common
Stock issued or issuable in respect thereto upon any stock split, stock
dividend, recapitalization or similar event, or any

<PAGE>

Common Stock otherwise issuable, with respect thereto. "Registrable Securities"
shall not at any time include any securities (a) registered and sold pursuant to
the Securities Act or (b) sold to the public pursuant to Rule 144 promulgated
under the Securities Act.

     The terms "register," "registered" and "registration" refer to a
registration effected by preparing and filing a registration statement in
compliance with the Securities Act, and the declaration or ordering of the
effectiveness of such registration statement.

     "Registration Statement" means a registration statement filed by the
Company with the Commission for a public offering and sale of securities of the
Company, other than (a) a registration statement on Form S-4 or Form S-8, or
their successors, or any other form for a similar limited purpose, or (b) any
registration statement covering only securities proposed to be issued in
exchange for securities or assets of another entity.

     "Rule 144" shall mean Rule 144 promulgated under the Securities At, as such
Rule may be amended from time to time, or any similar rule (other than Rule
144A) or regulation hereafter adopted by the SEC providing for offers and sales
of securities made in compliance therewith resulting in offers and sales by
subsequent holders that are not affiliates of an issuer of such securities being
free of the registration and prospectus delivery requirements of the Securities
Act.

     "Rule 144A" shall mean Rule 144A promulgated under the Securities Act, as
such Rule may be amended from time to time, or any similar rule (other than Rule
144) or regulation hereafter adopted by the SEC.

     "Securities Act" shall mean the Securities Act of 1933, as amended, or any
similar federal statute and the rules and regulations of the Commission
thereunder, all as the same shall be in effect at the time.

     "Selling Holder" shall mean on any date, any Holder that has registered
Registrable Shares for sale pursuant to any Registration Statement on or prior
to such date.

2. Registration.

     2.1 "Piggyback" Registration.

          (a) If, prior to the time at which all the Registrable Securities can
be sold under Rule 144 in a 90-day period, the Company proposes to file a
Registration Statement covering shares of Common Stock (other than a
Registration Statement filed in accordance with the requirements of a written
agreement entered into prior to the date hereof, except in any such case to the
extent expressly permitted therein), it shall, prior to such filing, give
written notice to Investor and each other Holder of its intention to do so;
provided that no such notice need be given if no Registrable Securities are to
be included therein as a result of a written notice from the managing
underwriter pursuant to Section 2.1(b). Upon the written request of Investor and
any other Holder given within 10 days after the Company provides such notice
(which request shall state the intended method of disposition of such
Registrable Securities), the Company shall use its best efforts to cause all
Registrable Securities that the Company has been requested by Investor or such
other Holders to register to be registered under the Securities Act to the
extent necessary to permit their sale or other disposition in accordance with
the intended methods of distribution specified in the request of Investor and
such Holders; provided that the Company

                                       2

<PAGE>

shall have the right to postpone or withdraw any registration effected pursuant
to this Section 2.1 without obligation upon 10 days' advance written notice to
Investor and such Holders. Each Holder shall provide the Company or any managing
underwriter with all reasonably requested information in connection with any
registration of Registrable Securities pursuant hereto. The Company shall have
no obligation to register any Registrable Securities on more than three (3)
Registration Statements.

          (b) If the registration for which the Company gives notice pursuant to
Section 2.1(a) is a registered public offering involving an underwriting, the
Company shall so advise Investor and each other Holder as a part of the written
notice given pursuant to Section 2.1(a). In such event, (i) the right of
Investor and such Holders to include Registrable Securities in such registration
pursuant to this Section 2.1 shall be conditioned upon Investor's and such
Holders' participation in such underwriting on the terms set forth herein and
(ii) Investor and each such Holder, in connection with its including Registrable
Securities in such registration, shall enter into an underwriting agreement upon
customary terms with the underwriter or underwriters selected for the
underwriting by the Company. If Investor or any such Holder, in connection with
its requested inclusion of its Registrable Securities in such registration as
provided above, disapproves of the terms of the underwriting, Investor and such
Holder may elect, by written notice to the Company, to withdraw its shares from
such Registration Statement and underwriting.

          (c) If the managing underwriter in any such registration advises the
Company in writing that marketing factors require a limitation on the number of
shares to be underwritten, the shares held by Persons other than Investor and
any such Holders shall be excluded from such Registration Statement and
underwriting to the extent deemed advisable by the managing underwriter, and if
a further reduction of the number of shares is required, the number of shares
that may be included in such Registration Statement and underwriting shall be
allocated amongst Investor and such Holders on a pro rata basis in proportion to
the percentage of the aggregate number of Registrable Shares requested to be
registered by Investor and such Holders in accordance herewith. Notwithstanding
the foregoing or anything else herein to the contrary, the rights granted hereby
to the Investor and all Holders are subordinate and subject to the prior rights
granted pursuant to that certain Amended and Restated Investor Rights Agreement,
dated November 2, 2005, by and among the Company and the persons listed on the
signature pages thereto, and to the extent the rights granted hereunder are in
any way inconsistent or in conflict with the rights granted pursuant to that
agreement the rights granted pursuant to that agreement shall have priority and
control.

     2.2 Registration Expenses.

          (a) All fees and expenses incident to the performance of or compliance
with this Agreement by the Company shall be borne by the Company, including,
without limitation, (i) all registration and filing fees (including, without
limitation, (A) fees with respect to filings required to be made with the NASD
in connection with an underwritten offering and (B) fees and expenses of
compliance with state securities or Blue Sky laws (including, without
limitation, reasonable fees and disbursements of counsel in connection with Blue
Sky qualifications of the Registrable Securities and determination of the
eligibility of the Registrable Securities for investment under the laws of such
jurisdictions as provided in Section 2.3(h) hereof), (ii) printing expenses,
including, without limitation, printing prospectuses if the printing of
prospectuses is requested by the managing underwriter or underwriters, if any,
or by the Holders of a majority of

                                       3

<PAGE>

the Registrable Securities included in such Registration Statement, (iii)
messenger, telephone and delivery expenses relating to the performance of the
Company's obligations hereunder, (iv) fees and disbursements of counsel for the
Company, (v) fees and disbursements of all independent certified public
accountants referred to in Section 2.3(l)(iii) hereof (including, without
limitation, the expenses of any special audit and "cold comfort" letters
required by or incident to such performance), (vi) Securities Act liability
insurance, if the Company desires such insurance, (vii) fees and expenses of all
other Persons retained by the Company, (viii) internal expenses of the Company
(including, without limitation, all salaries and expenses of officers and
employees of the Company performing legal or accounting duties), (ix) the
expense of any annual audit, (x) the fees and expenses incurred in connection
with the listing of the securities to be registered on any securities exchange,
if applicable, and (xi) the expenses relating to printing, word processing and
distributing all such Registration Statements, underwriting agreements,
securities sales agreements and any other documents necessary in order to comply
with this Agreement. Notwithstanding anything in this Agreement to the contrary,
each Holder shall pay all taxes, underwriting discounts and brokerage
commissions with respect to any Registrable Securities sold by it pursuant to
the Registration Statement, and the Company shall not be responsible for the
fees and expenses of any counsel for the managing underwriter or underwriters,
if any.

          (b) The Company shall reimburse the Holders of the Registrable
Securities being registered on the Registration Statement in accordance herewith
for the reasonable fees and disbursements of not more than one counsel chosen by
the Holders of a majority of the Registrable Securities to be included in such
Registration Statement.

     2.3 Registration Procedures.

     In connection with the filing of a Registration Statement pursuant to and
as described in Section 2 hereof, the Company shall effect such registrations to
permit the sale of the securities covered thereby in accordance with the
intended method or methods of disposition thereof, and pursuant thereto and in
connection with any Registration Statement filed by the Company hereunder the
Company shall:

          (a) Before filing the Registration Statement or Prospectus or any
amendments or supplements thereto (other than documents that are incorporated by
reference or deemed to be incorporated by reference therein), furnish to and
afford a single counsel of the Holders of the Registrable Securities covered by
such Registration Statement and the managing underwriter or underwriters, if
any, a reasonable opportunity to review copies of all such documents proposed to
be filed (in each case, where possible, at least five (5) Business Days prior to
such filing, or such later date as is reasonable under the circumstances). The
Company shall not file the Registration Statement or Prospectus or any
amendments or supplements thereto if the Holders of a majority of the
Registrable Securities covered by such Registration Statement or the managing
underwriter or underwriters, if any, shall reasonably object.

          (b) Cause the Prospectus included in such Registration Statement to be
supplemented by any Prospectus supplement required by applicable law, and as so
supplemented to be filed pursuant to Rule 424 (or any similar provisions then in
force) promulgated under the Securities Act; and comply with the provisions of
the Securities Act and the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), applicable to it with respect to the disposition of all
Registrable Securities covered by such Registration Statement as so amended or
in such Prospectus as so supplemented.

                                       4

<PAGE>

          (c) Notify the Selling Holders, a single counsel to such Holders
(chosen in accordance with Section 2.2(b) and the managing underwriter or
underwriters, if any, promptly (but in any event within two (2) Business Days),
(i) when a Prospectus or any prospectus supplement or post-effective amendment
has been filed, and, with respect to the Registration Statement or any
post-effective amendment, when the same has become effective under the
Securities Act (including in such notice a written statement that any Holder
may, upon request, obtain, at the sole expense of the Company, one conformed
copy of such Registration Statement or post-effective amendment including
financial statements and schedules, to the extent included therein and excluding
documents incorporated or deemed to be incorporated by reference and exhibits),
(ii) of the issuance by the Commission of any stop order suspending the
effectiveness of the Registration Statement or of any order preventing or
suspending the use of any preliminary prospectus or the initiation of any
proceedings for that purpose, (iii) of the happening of any event, the existence
of any condition or any information becoming known that makes any statement made
in such Registration Statement or related Prospectus or any document
incorporated or deemed to be incorporated therein by reference untrue in any
material respect or that requires the making of any changes in or amendments or
supplements to such Registration Statement, Prospectus or documents so that, in
the case of the Registration Statement, it will not contain any untrue statement
of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein not misleading, and that in
the case of the Prospectus, it will not contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading and (iv) of the Company's
determination that a post-effective amendment to the Registration Statement
would be appropriate.

          (d) Use all reasonable efforts to prevent the issuance of any order
suspending the effectiveness of the Registration Statement or of any order
preventing or suspending the use of a Prospectus and, if any such order is
issued, to use all reasonable efforts to obtain the withdrawal of any such order
at the earliest possible moment, and provide immediate notice to the Selling
Holders and the managing underwriter or underwriters, if any, of the withdrawal
of any such order.

          (e) If requested by the managing underwriter or underwriters, if any,
or the Holders of a majority of the Registrable Securities being sold in
connection with an underwritten offering, (i) promptly incorporate in a
prospectus supplement or post-effective amendment such information as the
managing underwriter or underwriters (if any), or such Holders reasonably
determine is necessary to be included therein, (ii) make all required filings of
such prospectus supplement or such post-effective amendment as soon as
reasonably practicable after the Company has received notification of the
matters to be incorporated in such prospectus supplement or post-effective
amendment and (iii) supplement or make amendments to such Registration
Statement.

          (f) Furnish to each Selling Holder, a single counsel to such Holders
(chosen in accordance with Section 2.2(b)) and the managing underwriter or
underwriters, if any, at the sole expense of the Company, one conformed copy of
the Registration Statement and each post-effective amendment thereto, including
financial statements and schedules to the extent included therein, excluding all
documents incorporated or deemed to be incorporated therein by reference and all
exhibits.

                                       5

<PAGE>

          (g) Deliver to each Selling Holder, a single counsel to such Holders
(chosen in accordance with Section 2.2(b)) and the managing underwriter or
underwriters, if any, at the sole expense of the Company, as many copies of the
Prospectus (including each form of preliminary prospectus) and each amendment or
supplement thereto, excluding any documents incorporated by reference therein as
such Persons may reasonably request; and, subject to the second paragraph of
Section 2.3(q) hereof, the Company hereby consents to the use of such Prospectus
and each amendment or supplement thereto by each of the Selling Holders of
Registrable Securities and the managing underwriter or underwriters or agents,
if any, and dealers (if any), in connection with the offering and sale of the
Registrable Securities covered by such Prospectus and any amendment or
supplement thereto.

          (h) Prior to any public offering of Registrable Securities, to use
best efforts to register or qualify, to the extent required by applicable law,
and to cooperate with the Selling Holders and the managing underwriter or
underwriters, if any, and their respective counsel in connection with the
registration or qualification (or exemption from such registration or
qualification) of such Registrable Securities or offer and sale under the
securities or Blue Sky laws of California, Delaware, New York and Texas;
provided, however, that where Registrable Securities are offered other than
through an underwritten offering, the Company agrees to cause the Company's
counsel to perform Blue Sky investigations and file registrations and
qualifications required to be filed pursuant to this Section 2.3(h), keep each
such registration or qualification (or exemption therefrom) effective through
the termination of the offering registered pursuant to such Registration
Statement and do any and all other acts or things reasonably necessary to enable
the disposition in such jurisdictions of the Registrable Securities covered by
the applicable Registration Statement; provided, however, that, unless arising
due to the acts or omissions of the Company or its employees or agents, the
Company shall not be required to (i) qualify generally to do business in any
jurisdiction where it is not then so qualified, (ii) take any action that would
subject it to general service of process in any such jurisdiction where it is
not then so subject or (iii) subject itself to taxation in excess of a nominal
dollar amount in any such jurisdiction where it is not then so subject.

          (i) Cooperate with the Selling Holders and the managing underwriter or
underwriters, if any, and their respective counsel to facilitate the timely
preparation and delivery of certificates representing shares of Registrable
Securities to be sold, which certificates shall not bear any restrictive
legends; and enable such shares of Registrable Securities to be in such
denominations and registered in such names as the managing underwriter or
underwriters, if any, or Holders may reasonably request.

          (j) Upon the occurrence of any event contemplated by Section
2.3(c)(ii), 2.3(c)(iii) or 2.3(c)(iv) hereof, and except as set forth in Section
2.4, as promptly as practicable prepare and (subject to Section 2.3(a) hereof)
file with the SEC, at the sole expense of the Company, a supplement or
post-effective amendment to the Registration Statement or a supplement to the
related Prospectus or any document incorporated or deemed to be incorporated
therein by reference, or file any other required document so that, as thereafter
delivered to the purchasers of the Registrable Securities being sold thereunder,
any such Prospectus will not contain an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary to make
the statements therein, in the light of the circumstances under which they were
made, not misleading.

                                       6

<PAGE>

          (k) In connection with any underwritten offering of Registrable
Securities pursuant to a Registration Statement, enter into an underwriting
agreement as is customary in underwritten offerings of securities similar to the
Registrable Securities and take all such other actions as are reasonably
requested by the managing underwriter or underwriters in order to expedite or
facilitate the registration or the disposition of such Registrable Securities
and, in such connection, (i) make such representations and warranties to, and
covenants with, the managing underwriter or underwriters with respect to the
business of the Company and its subsidiaries (including any acquired business,
properties or entity, if applicable) and the Registration Statement, Prospectus
and documents, if any, incorporated or deemed to be incorporated by reference
therein, in each case, as are customarily made by issuers to underwriters in
underwritten offerings of securities similar to the Registrable Securities and
confirm the same in writing if and when requested; (ii) obtain the written
opinion of counsel to the Company and written updates thereof in form, scope and
substance reasonably satisfactory to the managing underwriter or underwriters,
addressed to the managing underwriter or underwriters covering the matters
customarily covered in opinions requested in underwritten offerings of
securities similar to the Registrable Securities and such other matters as may
be reasonably requested by the managing underwriter or underwriters; and (iii)
obtain "cold comfort" letters and updates thereof in form, scope and substance
reasonably satisfactory to the managing underwriter or underwriters from the
independent certified public accountants of the Company (and, if necessary, any
other independent certified public accountants of any subsidiary of the Company
or of any business acquired by the Company for which financial statements and
financial data are, or are required to be, included or incorporated by reference
in the Registration Statement), addressed to each of the underwriters, such
letters to be in customary form and covering matters of the type customarily
covered in "cold comfort" letters in connection with underwritten offerings of
securities similar to the Registrable Securities and such other matters as
reasonably requested by the managing underwriter or underwriters as permitted by
the Statement on Auditing Standards No. 72. The above shall be done as and to
the extent required by such underwriting agreement.

          (l) Make available for inspection by any managing underwriter or
underwriters participating in any such disposition of Registrable Securities, if
any, and any attorney, accountant or other agent retained by any Selling Holder
of such Registrable Securities being sold, solely to the extent requested in
connection with such sale, or underwriter (collectively, the "Inspectors"), at
the offices where normally kept, during reasonable business hours at such time
or times as shall be mutually convenient for the Company and the Inspectors as a
group, all financial and other records, pertinent corporate documents and
instruments of the Company and its subsidiaries (collectively, the "Records") as
shall be reasonably necessary to enable them to exercise any applicable due
diligence responsibilities, and cause the officers, directors and employees of
the Company and its subsidiaries to supply all information reasonably requested
by any such Inspector in connection with such Registration Statement. Records
that the Company determines, in good faith, to be confidential and any Records
that it notifies the Inspectors are confidential shall not be disclosed by any
Inspector unless (i) the disclosure of such Records is necessary to avoid or
correct a material misstatement or material omission in such Registration
Statement, (ii) the release of such Records is ordered pursuant to a subpoena or
other order from a court of competent jurisdiction, (iii) disclosure of such
information is, in the opinion of counsel for any Inspector, necessary or
advisable in connection with any action, claim, suit or proceeding, directly
involving or potentially involving such Inspector and arising out of, based
upon, relating to, or involving this Agreement or any

                                       7

<PAGE>

transactions contemplated hereby or arising hereunder or (iv) the information in
such Records has been made generally available to the public other than through
the acts of such Inspector; provided, however, that prior notice shall be
provided as soon as practicable to the Company of the potential disclosure of
any information by such Inspector pursuant to clauses (ii) or (iii) of this
sentence to permit the Company to obtain a protective order (or waive the
provisions of this Section 2.3(l)). Each Inspector shall take such actions as
are reasonably necessary to protect the confidentiality of such information (if
practicable) to the extent such actions are otherwise not inconsistent with, an
impairment of or in derogation of the rights and interests of the Holder or any
Inspector, unless and until such information in such Records has been made
generally available to the public other than as a result of a breach of this
Agreement.

          (m) Provide (i) the Holders of the Registrable Securities to be
included in such Registration Statement and not more than one counsel for all
the Holders of such Registrable Securities chosen in accordance with Section
2.2(b) the reasonable opportunity to participate in the preparation of such
Registration Statement, each prospectus included therein or filed with the SEC,
and each amendment or supplement thereto, it being understood that such
participation shall be limited to reviewing and commenting on such documents in
accordance with Section 2.3(a) hereof, (ii) the managing underwriter or
underwriters (which term, for purposes of this Registration Rights Agreement,
shall include a Person deemed to be an underwriter within the meaning of Section
2(11) of the Securities Act), if any, thereof, (iii) the sales or placement
agent, if any, thereof, and (iv) one counsel for such underwriters or agents,
reasonable opportunity to participate in the preparation of such Registration
Statement, each prospectus included therein or filed with the SEC, and each
amendment or supplement thereto.

          (n) Comply with all applicable rules and regulations of the SEC and
make generally available to its security holders earning statements satisfying
the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder
(or any similar rule promulgated under the Securities Act) no later than
forty-five (45) days after the end of any twelve (12) month period (or ninety
(90) days after the end of any twelve (12) month period if such period is a
fiscal year) (i) commencing at the end of any fiscal quarter in which
Registrable Securities are sold to underwriters in a firm commitment or best
efforts underwritten offering and (ii) if not sold to underwriters in such an
offering, commencing on the first day of the first fiscal quarter of the Company
after the effective date of a Registration Statement, which statements shall
cover said twelve (12) month periods.

          (o) Cooperate with each Selling Holder of Registrable Securities
covered by the Registration Statement and the managing underwriter or
underwriters, if any, participating in the disposition of such Registrable
Securities and their respective counsel in connection with any filings required
to be made with the National Association of Securities Dealers, Inc. (the
"NASD"), including, if the Conduct Rules of the NASD or any successor thereto as
amended from time to time so require, engaging a "qualified independent
underwriter" ("QIU") as contemplated therein and making Records available to
such QIU as though it were a participating underwriter for the purposes of
Section 2.3(m) and otherwise applying the provisions of this Agreement to such
QIU (including indemnification) as though it were a participating underwriter.

          (p) Use all reasonable efforts to take all other steps necessary or
advisable to effect the registration of the Registrable Securities covered by a
Registration Statement contemplated hereby.

                                       8

<PAGE>

     Each Holder agrees, by acquisition of the Registrable Securities, that no
Holder shall be entitled to sell any of such Registrable Securities pursuant to
a Registration Statement or to receive a Prospectus relating thereto, unless
such Holder has furnished the Company with all information reasonably requested
by the Company or any managing underwriter pursuant to Section 2.2(a) hereof and
the information set forth in the next sentence. Each Selling Holder agrees
promptly to furnish to the Company all information required to be disclosed in
order to make the information previously furnished to the Company by such
Selling Holder not misleading and any other information regarding such Selling
Holder and the distribution of such Registrable Securities as the Company may
from time to time reasonably request. Any sale of any Registrable Securities by
any Holder shall constitute a representation and warranty by such Holder that
the information relating to such Holder and its plan of distribution is as set
forth in the Prospectus delivered by such Holder in connection with such
disposition, that such Prospectus does not as of the time of such sale contain
any untrue statement of a material fact relating to or provided by such Holder
or its plan of distribution and that such Prospectus does not as of the time of
such sale omit to state any material fact relating to or provided by such Holder
or its plan of distribution necessary to make the statements in such Prospectus,
in the light of the circumstances under which they were made, not misleading.

     The Company may require each Selling Holder of Registrable Securities as to
which any registration is being effected to furnish to the Company such
additional information regarding such Holder and the distribution of such
Registrable Securities as the Company may, from time to time, reasonably request
to the extent necessary or advisable to comply with the Securities Act. The
Company may exclude from such registration the Registrable Securities of any
Selling Holder if such Holder fails to furnish such additional information
within twenty (20) Business Days after receiving such request and, in any case,
the Company may exclude from such registration the Registrable Securities of any
Selling Holder who fails to furnish such additional information until such
information is so furnished. Each Selling Holder as to which any registration is
being effected agrees to furnish promptly to the Company all information
required to be disclosed so that the information previously furnished to the
Company by such Holder is not materially misleading and does not omit to state
any material fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances under which they
were made.

     Each Holder of Registrable Securities agrees by acquisition of such
Registrable Securities that, upon the happening of any event of the kind
described in Section 2.3(c)(ii), 2.3(c)(iii) or 2.3(c)(iv) hereof and as set
forth in Section 2.4, such Holder will forthwith discontinue disposition of such
Registrable Securities covered by such Registration Statement or Prospectus
until such Holder's receipt of the copies of the supplemented or amended
Prospectus contemplated by Section 2.3(j) hereof, or until it is advised in
writing by the Company that the use of the applicable Prospectus may be resumed,
and has received copies of any amendments or supplements thereto.

     2.4 Adverse Disclosure. Notwithstanding anything in this Agreement to the
contrary, in the event the Company reasonably determines that it is advisable to
suspend use of a Prospectus included in a Registration Statement because
continued use would require Adverse Disclosure, the Company shall notify, in
writing, all Selling Holders to such effect and, upon receipt of such written
notice, each such Selling Holder shall immediately discontinue any sale of
Registrable Securities pursuant to such Registration Statement until such
Selling Holder has received copies of a supplemental or amended Prospectus or
until such Selling Holder is advised

                                       9

<PAGE>

in writing by the Company that the then-current Prospectus may be used and has
received copies of any additional or supplemental filings that are incorporated
or deemed incorporated by reference in such Prospectus. Notwithstanding anything
to the contrary herein, the Company shall not exercise its rights under this
Section 2.4 to suspend sales of Registrable Shares for a period in excess of
sixty (60) consecutive days or a total of ninety (90) days in any 365-day
period; provided that the Company may suspend such sales for a period of up to
ninety (90) consecutive days (and a total of 120 days in a 365-day period) if
the reason for the continued suspension beyond sixty (60) days relates solely to
the preparation of financial statements required to be filed in accordance with
Item 9.01 of Form 8-K under the Exchange Act (in which event the Company shall
use its best efforts to cause such financial statements to be prepared as
promptly as reasonably practicable in the circumstances), and such suspension
period shall automatically terminate two (2) Trading Days after the filing of
such financial statements.

     2.5 Termination of Registration Rights. The rights granted to any Holder
pursuant to this Section 2 shall terminate upon the effectiveness of the third
(3rd) Registration Statement including Registrable Shares held by such Holder or
such earlier date as all the Registrable Securities can be sold under Rule 144
in a 90-day period.

3. Indemnification.

     The Company agrees to indemnify and hold harmless (a) each Holder (which,
for the absence of doubt, for purposes of this Section 3 shall include the
Investor); (b) each Person, if any, who controls (within the meaning of either
Section 15 of the Securities Act or Section 20 of the Exchange Act) any Holder
(any of the Persons referred to in this Section 3(b) being hereinafter referred
to as a "Controlling Person"); (c) the respective officers, directors, partners,
employees, representatives, assigns, heirs and agents of any Holder (including
any predecessor holder) or any Controlling Person (any person referred to in
clause (a), (b) or (c) may hereinafter be referred to as an "Indemnified
Holder"), from and against any losses, claims, damages or liabilities, joint or
several, or any actions or proceedings with respect thereof, to which such
Indemnified Holder may become subject under the Securities Act, the Exchange Act
or otherwise, insofar as such losses, claims, damages or liabilities (or actions
or proceedings in respect thereof) arise out of or are based upon (i) any untrue
statement or alleged untrue statement of any material fact contained in any
Registration Statement or Prospectus, including any document incorporated by
reference therein, or any amendment or supplement thereto or any related
preliminary prospectus or (ii) the omission or alleged omission to state therein
a material fact required to be stated therein or necessary to make the
statements therein not misleading; provided, however, that the Company will not
be liable under this paragraph, (x) to the extent that any such loss, claim,
damage or liability arises out of or is based upon an untrue statement or
alleged untrue statement, or omission or alleged omission made in any such
Registration Statement or Prospectus, or any amendment or supplement thereto or
any related preliminary prospectus in reliance upon and in conformity with
written information relating to such Holder furnished to the Company by or on
behalf of such Holder specifically for use in therein or (y) with respect to any
untrue statement or alleged untrue statement, or omission or alleged omission
made in any preliminary prospectus if the person asserting any such loss, claim,
damage or liability who purchased Registrable Securities which are the subject
thereof did not receive a copy of the Prospectus (or of the preliminary
prospectus as then amended or supplemented if the Company shall have furnished
such Indemnified Holder with such amendment or supplement thereto on a timely
basis) at or prior to the written confirmation of the sale of such Registrable
Securities to such person and, in any case where such delivery is required by
applicable law and

                                       10

<PAGE>

the untrue statement or alleged untrue statement or omission or alleged omission
of a material fact made in such preliminary prospectus was corrected in the
Prospectus (or the preliminary prospectus as then amended or supplemented if the
Company shall have furnished such Indemnified Holder with such amendment or
supplement thereto on a timely basis). The Company shall notify such Indemnified
Holder in writing promptly of the institution, threat or assertion of any claim,
proceeding (including any governmental investigation) or litigation in
connection with the matters addressed by this Agreement which involves the
Company or such Indemnified Holder.

     The Company agrees to reimburse each Indemnified Holder upon demand for any
legal or other out-of-pocket expenses, as incurred, by such Indemnified Holder
in connection with investigating or defending any such loss, claim, damage or
liability, action or proceeding or in responding to a subpoena or governmental
inquiry related to the offering of the Registrable Securities, if such
Indemnified Holder is, or is reasonably likely to become, a party to any action
or proceeding. In the event that it is finally judicially determined that an
Indemnified Holder was not entitled to receive payments for legal and other
expenses pursuant to this paragraph, such Indemnified Holder will promptly
return all sums that had been advanced pursuant hereto.

     Each Holder agrees, severally and not jointly, to indemnify and hold
harmless the Company, its directors and officers and each Person who controls
the Company (within the meaning of either Section 15 of the Securities Act or
Section 20 of the Exchange Act) to the same extent as the indemnity provided in
the first paragraph of this Section 3 from the Company to each Holder, but only
with reference to such losses, claims, damages or liabilities which are caused
by any untrue statement or omission or alleged untrue statement or omission made
in reliance upon and in conformity with information relating to a Holder
furnished to the Company in writing by such Holder expressly for use in any
Registration Statement or Prospectus, or any amendment or supplement thereto or
any related preliminary prospectus.

     In case any proceeding (including any governmental investigation) shall be
instituted involving any Person in respect of which indemnity may be sought
pursuant to either of the first and third paragraphs of this Section 3, such
Person (the "Indemnified Person") shall promptly notify the Person or Persons
against whom such indemnity may be sought (each an "Indemnifying Person") in
writing. No indemnification provided for in the first or third paragraphs of
this Section 3 shall be available to any Person who shall have failed to give
notice as provided in this paragraph if the party to whom notice was not given
was unaware of the proceeding to which such notice would have related and was
materially prejudiced by the failure to give such notice, but the failure to
give such notice shall not relieve the Indemnifying Person or Persons from any
liability which it or they may have to the Indemnified Person for contribution
or otherwise than on account of the provisions of the first and third paragraphs
of this Section 3. In case any such proceeding shall be brought against any
Indemnified Person and it shall notify the Indemnifying Person of the
commencement thereof, the Indemnifying Person shall be entitled to participate
therein and, to the extent that it shall wish, jointly with any other
Indemnifying Person similarly notified, to assume the defense thereof, with
counsel reasonably satisfactory to such Indemnified Person and shall pay as
incurred (or within thirty (30) days of presentation) the fees and disbursements
of such counsel related to such proceeding. In any such proceeding, any
Indemnified Person shall have the right to retain its own counsel at its own
expense. Notwithstanding the foregoing, the Indemnifying Person shall pay as
incurred (or within (30) days of presentation) the fees and expenses of the
counsel retained by the Indemnified Person in the event (a) the Indemnifying
Person and the Indemnified Person shall

                                       11

<PAGE>

have mutually agreed to the retention of such counsel, (b) the named parties to
any such proceeding (including any impleaded parties) include both the
Indemnifying Person and the Indemnified Person and representation of both
parties by the same counsel would be inappropriate due to actual or potential
differing interests between them or (c) the Indemnifying Person shall have
failed to assume the defense and employ counsel reasonably acceptable to the
Indemnified Person within a reasonable period of time after notice of
commencement of the action. It is understood that the Indemnifying Person shall
not, in connection with any proceeding or related proceedings in the same
jurisdiction, be liable for the reasonable fees and expenses of more than one
separate firm for all such Indemnified Persons. Such firm shall be designated in
writing by a majority of the Registrable Securities in the case of parties
indemnified pursuant to the first paragraph of this Section 3 and by the Company
in the case of parties indemnified pursuant to the third paragraph of this
Section 3. The Indemnifying Person shall not be liable for any settlement of any
proceeding effected without its written consent but if settled with such consent
or if there be a final judgment for the plaintiff, the Indemnifying Person
agrees to indemnify the Indemnified Person from and against any loss or
liability by reason of such settlement or judgment. In addition, the
Indemnifying Person will not, without the prior written consent of the
Indemnified Person, settle or compromise or consent to the entry of any judgment
in any pending or threatened claim, action or proceeding of which
indemnification may be sought hereunder (whether or not any Indemnified Person
is an actual or potential party to such claim, action or proceeding) unless such
settlement, compromise or consent includes an unconditional release of each
Indemnified Person from all liability arising out of such claim, action or
proceeding.

     To the extent the indemnification provided for in this Section 3 is
unavailable to or insufficient to hold harmless an Indemnified Person under the
first or third paragraph of this Section 3 in respect of any losses, claims,
damages or liabilities (or actions or proceedings in respect thereof) referred
to therein, except by reason of the exceptions set forth in the first or third
paragraphs of this Section 3 or the failure of the Indemnified Person to give
notice as required in the fourth paragraph of this Section 3, then each
Indemnifying Person shall contribute to the amount paid or payable by such
Indemnified Person as a result of such losses, claims, damages or liabilities
(or actions or proceedings in respect thereof) in such proportion as is
appropriate to reflect the relative fault of the Company on the one hand and the
Selling Holders on the other hand in connection with the statements or omissions
that resulted in such losses, claims, damages or liabilities, as well as any
other relevant equitable considerations. The relative fault shall be determined
by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by the Company on the one hand or
such Indemnified Holder on the other and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission.

     The Company and the Investor agree that it would not be just and equitable
if contributions pursuant to the immediately preceding paragraph of this Section
3 were determined by pro rata allocation or by any other method of allocation
which does not take account of the equitable considerations referred to in the
immediately preceding paragraph. The amount paid or payable by an Indemnified
Person as a result of the losses, claims, damages or liabilities (or actions or
proceedings in respect thereof) referred to in the immediately preceding
paragraph shall be deemed to include any legal or other expenses reasonably
incurred by such Indemnified Person in connection with investigating or
defending any such action or claim or enforcing any rights hereunder.
Notwithstanding the provisions of this paragraph and the immediately

                                       12

<PAGE>

preceding paragraph of this Section 3, (a) in no event shall any Holder be
required to contribute any amount in excess of the amount by which the net
proceeds received by such Holder from the offering or sale of the Registrable
Securities pursuant to a Shelf Registration Statement exceeds the amount of
damages which such Holder would have otherwise been required to pay by reason of
such untrue or alleged untrue statement or omission or alleged omission and (b)
no Person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any Person
who was not guilty of such fraudulent misrepresentation.

     Except as otherwise provided in this Section 3, any losses, claims,
damages, liabilities or expenses for which an Indemnified Person is entitled to
indemnification or contribution under this Section 3 shall be paid by the
Indemnifying Person to the Indemnified Person as such losses, claims, damages,
liabilities or expenses are incurred (or within 30 days of presentation).

     The remedies provided for in this Section 3 are not exclusive and shall not
limit any rights or remedies that may otherwise be available to any indemnified
party at law or in equity.

     The indemnity and contribution agreements contained in this Section 3 shall
remain operative and in full force and effect regardless of (a) any termination
of this Agreement, (b) any investigation made by or on behalf of any Holder or
any Person controlling any Holder or by or on behalf of the Company, its
officers or directors or any other Person controlling any of the Company and (c)
acceptance of and payment for any of the Registrable Securities.

4. Rule 144 and 144A. The Company covenants that it will file the reports
required to be filed by it under the Securities Act and the Exchange Act and the
rules and regulations adopted by the SEC thereunder in a timely manner in
accordance with the requirements of the Securities Act and the Exchange Act and,
for so long as any Registrable Securities remain outstanding, if at any time the
Company is not required to file such reports, it will, upon the request of any
Holder or beneficial owner of Registrable Securities, make available such
information necessary to permit sales pursuant to Rule 144A under the Securities
Act. The Company further covenants that, for so long as any Registrable
Securities remain outstanding, it will use all reasonable efforts to take such
further action as any Holder of Registrable Securities may reasonably request,
all to the extent required from time to time to enable such holder to sell
Registrable Securities without registration under the Securities Act within the
limitation of the exemptions provided by (a) Rule 144(k) and Rule 144A under the
Securities Act, as such rules may be amended from time to time, or (b) any
similar rule or regulation hereafter adopted by the SEC. Notwithstanding the
foregoing, nothing in this Section 4 shall be deemed to require the Company to
register any of its securities pursuant to the Exchange Act.

5. Transfer of Registration Rights. The rights to cause the Company to register
Registrable Securities granted Investor under Sections 2.1 may be assigned to a
transferee or assignee in connection with any transfer or assignment of
Registrable Securities by the Investor, provided that: (a) such transfer may be
effected in accordance with the Purchase Agreement and applicable securities
laws, (b) such assignee or transferee is (i) an affiliated entity or constituent
entity or retired entity of Investor, or (ii) an officer, director, member or
shareholder or a subsidiary, parent or affiliated entity of Investor or Pencom
Systems, Incorporated, or (iii) a family member or trust for the benefit of
Investor who is an individual, (c) written notice is promptly given to the
Company and (d) such transferee agrees to be bound by the provisions of this
Agreement and the Purchase Agreement.

                                       13

<PAGE>

6. Amendment. Any provision of this Agreement may be amended or the observance
thereof may be waived (either generally or in a particular instance and either
retroactively or prospectively) only with the written consent of the Company and
the holders of a majority of the Registrable Securities then outstanding. Any
amendment or waiver effected in accordance with this Section 6 shall be binding
upon each Investor and each Holder of Registrable Securities at the time
outstanding, each future holder of all such securities, and the Company.

7. Governing Law. This Agreement and the legal relations between the parties
arising hereunder shall be governed by and interpreted in accordance with the
substantive laws of the State of Delaware. The parties hereto agree to submit to
the jurisdiction of the federal and state courts of the State of Delaware with
respect to the breach or interpretation of this Agreement or the enforcement of
any and all rights, duties, liabilities, obligations, powers and other relations
between the parties arising under this Agreement.

8. Entire Agreement. This Agreement constitutes the full and entire
understanding and agreement between the parties regarding the matters set forth
herein. Except as otherwise expressly provided herein, the provisions hereof
shall inure to the benefit of, and be binding upon, the successors, assigns,
heirs, executors and administrators of the parties hereto.

9. Notices, etc. All notices and other communications required or permitted
hereunder shall be in writing and shall be deemed effectively given upon
personal delivery to the party to be notified or twenty-four (24) hours after
confirmed transmission of a facsimile addressed (a) if to Investor, at
Investor's address as set forth on the signature pages hereto, or at such other
address as such Investor shall have furnished to the Company in writing in
accordance with Section 12.4 of the Purchase Agreement, (b) if to any Holder, at
such address as such Holder shall have furnished the Company in writing in
accordance with this Section 9, or, until any such holder so furnishes an
address to the Company, then to and at the address of the Investor, or (c) if to
the Company, at its principal office.

10. Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be an original, but all of which together shall constitute
one instrument.

                            [SIGNATURE PAGE FOLLOWS]

                                       14

<PAGE>

     IN WITNESS WHEREOF, the undersigned have caused this Registration Rights
Agreement to be executed as of the day and year first written above.

                                        "Company"

                                        MTI Technology Corporation

                                        By: /s/ Scott J. Poteracki
                                            ------------------------------------
                                        Name: Scott J. Poteracki
                                        Title: Chief Financial Officer and
                                               Secretary

                                        "Investor"

                                        Collective Technologies, LLC

                                        By: /s/ Edward C. Ateyeh, Jr.
                                            ------------------------------------
                                        Name: Edward C. Ateyeh, Jr.
                                        Title: President

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