Document:

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                                                                  EXHIBIT 10.42

                                    EXHIBIT A

                              CONSULTING AGREEMENT

        This Consulting Agreement is made and entered into AUGUST 21, 2001 by
and between MTI TECHNOLOGY CORPORATION, A DELAWARE CORPORATION ("MTI" or "the
COMPANY") at 4905 E. La Palma Avenue, Anaheim, CA 92807 and DALE WIGHT
("CONSULTANT").

                                    RECITALS

        WHEREAS, Consultant represents that he has expertise in the area of
______________________________.

        WHEREAS, MTI, in reliance on Consultant's representations, is willing to
engage Consultant as an independent contractor, and not as an employee to
perform services as described in Exhibit "A" attached hereto. Consultant desires
to provide these services to the Company pursuant to the terms and conditions
set forth below.

        WHEREAS, THE COMPANY has spent significant time, effort, and money
developing its Proprietary Information, which is vital to the Company's business
and goodwill. The Company necessarily will reveal this Proprietary Information
to Consultant during the Term of this Agreement. Hence, the Company and the
Consultant have agreed that the Company will only retain Consultant's services
if Consultant agrees to maintain all Proprietary Information in strict
confidence pursuant to the terms of this Agreement.

        WHEREAS, THE COMPANY and Consultant have agreed that Consultant will
provide consulting services as an independent contractor pursuant to the terms
and conditions set forth in this Agreement.

                                    AGREEMENT

        NOW, THEREFORE, in consideration of the recitals listed above, and the
mutual promises contained in this Agreement, Consultant and the Company agree,
covenant, and represent as follows:

        1. Duties of Consultant.

           a. The Company hereby retains Consultant as an independent contractor
to provide the services as described in Exhibit "A" attached hereto. Consultant
shall provide such additional services as to MTI's senior management. Consultant
will devote his best efforts to the performance of these services.

           b. Consultant's relationship with the Company will be that of an
independent contractor. Nothing in this Agreement will be construed to create a
partnership, joint venture, or

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employer-employee relationship between Consultant and the Company. Accordingly,
MTI and Consultant agree, covenant, and represent that:

               (i) The parties acknowledge and agree that the Company has no
right to control the manner, means, or method by which Consultant performs the
services called for by this Agreement except to: (1) direct Consultant with
respect to the elements of the services to be performed by Consultant and the
results to be derived by the Company, (2) to inform Consultant as to where and
when such services will be performed, and (3) to review and assess the
performance of the services by Consultant for the limited purposes of ensuring
that the services have been performed and confirming that results are
satisfactory.

               (ii) Consultant will provide his or her own tools of the trade
and will not be required to work exclusively on the Company's premises, and will
not have any responsibility for hiring or supervising any of the Company's
employees. The Company and Consultant will mutually agree upon the place or
places at which the services required by this Agreement are to be performed.

        2. Compensation.

           a. In consideration of the services to be performed by Consultant,
the Company will pay Consultant the fees shown in Exhibit "B". Consultant will
invoice the Company on a monthly basis for all hours worked under this Agreement
during the preceding month. Within forty-five (45) days after receipt of
Consultant's invoice, the Company will pay the agreed-upon amount.

           b. The Company and Consultant agree, covenant, and represent that,
because Consultant is an independent contractor and not an employee of the
Company, the Company will not withhold from Consultant's professional fee and
Consultant will be responsible for paying, any federal, state or local payroll,
social security, disability, workers' compensation, self-employment insurance,
income and other taxes or assessments. Consultant will, at his or her cost and
expense, pay and be fully liable and responsible for, and indemnify and hold the
Company harmless for, any taxes, assessments, fines or penalties relating to the
Company's failure to pay or withhold any and all taxes relating to any
compensation paid pursuant to this Agreement.

        3. Expenses. Consultant is responsible for paying all ordinary and
necessary expenses arising from the Consultant's performance of the services
under this Agreement, including his or her own business, unless agreed to in
writing by the parties. Any travel and other expenses requested by the Company
will be paid for by the Company and may be billed to Company by Consultant above
the compensation defined in Section 2.

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        4. Rights in Data.

           a. Any MTI Work Product will be considered a "work for hire" and will
remain the exclusive property of MTI.

           b. "MTI Work Product" means only the ideas, processes, methods,
programming aids, reports, programs, manuals, tapes, software, flowcharts,
systems or improvements, enhancements, or modifications, that the Consultant
produces, develops, prepares, conceives, makes, or suggests in the performance
of the services under this Agreement, including all related developments
originated or conceived during the term of this Agreement but completed or
reduced to practice after termination.

           c. All right, title, and interest in and to any programs, systems,
data, and materials furnished to MTI and/or developed, at private expense, by
Consultant outside the scope of this Agreement are and will remain the exclusive
property of Consultant. These "Consultant Products" anticipated to be relevant
to this Agreement, if any, are listed in Exhibit "D".

        5. Term and Termination.

           a. This Agreement is effective beginning August 21, 2001 and
terminates August 21, 2002 (the "Term"). The Company and Consultant agree that
this Agreement will remain in effect for the full term as set forth above. The
Parties agree, however, that this Agreement may be terminated for any reason,
with or without cause, by the Company or Consultant upon 30 days' written notice
to the other party.

           b. If either party materially breaches any of the provisions of this
Agreement, the non-breaching party may terminate this Agreement by giving
written notification to the breaching party. Termination will be effective
immediately on receipt of the written notification by the breaching party, or
five days after mailing of the notice to the address set forth in the notice
provisions below, whichever occurs first. For purposes of this section, material
breach of this Agreement will include but not be limited to the following: (i)
the Company's failure to pay for Consultant's services, or to reimburse
Consultant's expenses as agreed in writing, within forty-five (45) days after
receipt of Consultant's written demand for payment in accordance with the notice
provisions set forth below; and (ii) failure of Consultant to adequately perform
the services required by Consultant under this Agreement, as determined by the
Company in its sole discretion.

           c. This Agreement will terminate automatically on the occurrence of
any of the following events:

               i. the appointment of a receiver, liquidator, or trustee for
either party by decree of competent authority in connection with any
adjudication or determination by such authority that either Party is bankrupt or
insolvent; the filing by either Party of a petition in voluntary bankruptcy, the
making of an assignment for the benefit of its creditors, or the entering into
of a composition with its creditors; or (c) any formal action of MTI's Board of
Directors to terminate the Company's existence or otherwise to wind up Company's
affairs;

               ii. Sale of the business, or change in control, of either party;
or

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               iii. Consultant's death.

           d. Within 30 days after termination of this Agreement for any reason,
Consultant will submit to MTI a final itemized invoice for any outstanding fees
or expenses under this Agreement. Upon termination of this Agreement and payment
of the final invoice, the Company will owe Consultant no further amounts or
obligations.

        6. Benefits.

           a. Consultant enters into this Agreement as, and will continue to be,
an independent contractor. Therefore, Consultant will not be entitled to any
benefits accorded to MTI's employees including, but not limited to: workers'
compensation insurance, unemployment insurance, disability insurance, medical
insurance, dental insurance, retirement plans, 401(k) plans, stock option plans,
stock purchase plans, vacation pay, and sick pay.

           b. Consultant will be responsible for providing, at Consultant's
expense and in Consultant's name, disability, workers' compensation, and other
insurance as well as licenses and permits usual or necessary for performing the
services contemplated by this Agreement.

           c. The Company and Consultant acknowledge that the services that
Consultant will provide pursuant to the terms of this Agreement are specialized
in nature, that the parties established Consultant's professional fee to ensure
that Consultant could provide his or her own benefits, and that Consultant has
no current or future expectation that he will be entitled to participate in any
of the benefits of employment that the Company may from time to time provide its
employees. Accordingly, the Company and Consultant agree, covenant, and
represent that, even if Consultant's working relationship with the Company is
reclassified from the relationship of independent contractor to the relationship
of employer-employee, Consultant will be entitled to participate in any benefits
of employment that the Company may from time to time provide to its employees.

           d. Consultant's exclusion from benefit programs maintained by Company
is a material component of the terms of compensation negotiated by the parties,
and is not premised on Consultant's status as a non-employee with respect to the
Company. To the extent that Consultant may become eligible for any benefit
programs maintained by Company (regardless of the timing of or reason for
eligibility), Consultant hereby waives Consultant's right to participate in the
programs. Consultant's waiver is not conditioned on any representation or
assumption concerning Consultant's status as an independent contractor.
Consultant also agrees that, consistent with Consultant's independent contractor
status, Consultant will not apply for any government-sponsored benefits that are
intended to apply to employees, including, but not limited to, unemployment
benefits.

        7. Proprietary Information and Ownership of Intellectual Property. The
Company has spent significant time and money developing Proprietary Information
(as defined in Exhibit "C") that is vital to the Company's business and
goodwill. The Company and Consultant acknowledge that Consultant, in performing
the terms and conditions of this Agreement and the Former Agreement, has and
will continue to directly or indirectly gain access to information about the
Company and its operations, including, but not limited to, its modes and methods
of

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conducting its business and producing and marketing its services; its employees,
customers, vendors and referral source lists; its trade secrets; its copyrighted
and non-copyrighted or non-protected computer software programs; its financial
structure; and its weakness, if any. Therefore, as part of this Agreement,
Consultant agrees to execute, and be bound by, the Company's "Independent
Contractor Proprietary Information Agreement," a copy of which is attached
hereto as Exhibit "C".

        8. Subsequent Consulting and Employment. After the termination of this
Agreement with the Company, Consultant agrees, covenants, and represents that he
will not enter into any agreement that conflicts with the Consultant's
obligations under this Agreement and the Proprietary Information Agreement
attached as Exhibit "C". Consultant further agrees that it will inform any
subsequent parties who engage Consultant's services, or with whom Consultant
becomes employed, of Consultant's obligations under this Agreement and the
Proprietary Information Agreement.

        9. Consultant's Representations and Indemnities.

           a. Consultant represents that Consultant has the qualifications and
ability to perform the services under this Agreement in a professional manner
without the advice, control, or supervision of the Company's management.
Consultant will be solely responsible for the professional performance of the
services and will receive no assistance, direction, or control from MTI.
Consultant will have sole discretion and control of Consultant's services and
the manner in which they are to be performed. The parties acknowledge and agree
that, although MTI has no right to control the manner by which Consultant
performs the services called for by this Agreement, MTI is entitled to: (i)
advise Consultant with respect to the elements of the services to be performed
by Consultant under this Agreement; and (ii) to review and assess the
performance of the services by Consultant for the limited purpose of assuring
that the services have been performed, and confirming that the results are
satisfactory.

           b. Consultant will and does hereby indemnify, defend, and hold
harmless the Company, and the Company's officers, directors, employees and
shareholders, from and against any and all claims, demands, losses, costs,
expenses, obligations, liabilities, damages, recoveries, and deficiencies,
including interest and penalties that the Company may incur or suffer and that
result from, or are related to, any breach or failure of Consultant to perform
any of the representations, warranties, and agreements in this Agreement.

        10. Confidentiality and Publicity.

            a. Consultant agrees, covenants, and represents that the facts
relating to the existence of this Agreement, the negotiations leading to the
execution of this Agreement, and the terms of this Agreement will be held in
confidence and will not be disclosed or communicated to any person, other than
those who must perform tasks to effectuate this Agreement, unless required by
law or with advance written consent from an officer of the Company to each
disclosure.

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            b. Consultant will not at any time use MTI's name or any MTI
trademarks or trade names in any advertising, without first obtaining the
Company's advance written consent to each disclosure.

        11. Arbitration. All disputes between Consultant and MTI relating in any
manner whatsoever to Consultant's consulting relationship with MTI or the
termination of Consultant's consulting relationship with MTI ("Arbitrable
Claims") including, without limitation, all disputes relating to the validity,
interpretation, or enforcement of this Agreement, will be resolved exclusively
by arbitration in Orange County, California, by the Judicial Arbitration &
Mediation Services, Inc. (the "JAMS"). Such arbitration will be conducted in
accordance with the then-existing arbitration rules of JAMS, with the cost of
such arbitration to be borne equally by the parties. The parties to this
Agreement, and all who claim thereunder, will be (i) conclusively bound by the
arbitrator's decision or award, which will not be subject to appeal; and (ii)
have the right to have any decision or award rendered in accordance with this
provision entered as a judgment in a court in the State of California or any
other court having jurisdiction. The arbitrator will have the authority to award
or grant legal, equitable, and declaratory relief. The parties hereby waive any
rights they may have to trial by jury. The Federal Arbitration Act will govern
the interpretation and enforcement of this Section pertaining to arbitration,
unless it is found inapplicable in which case the California Arbitration Act
will control.

        12. Notices. Any notice under this Agreement must be in writing and will
be effective upon delivery by hand or five (5) business days after deposit in
the United States mail, postage prepaid, certified or registered, and addressed
to Company or to Consultant at the corresponding address below. Consultant will
be obligated to notify Company in writing of any change in Consultant's address.

        Company's Notice Address:             Consultant's Notice Address:

        MTI Technology Corporation            Dale Wight
        4905 E La Palma Ave                   ____________________________
        Anaheim, CA 92807                     ____________________________
        Facsimile: (714) 693-2607
        Attention: Legal Department

        Notice of change of address will be effective only when done in
accordance with this Section.

        13. Assignments; Successors and Assigns. Consultant agrees that
Consultant will not assign, delegate, transfer, or otherwise dispose of, whether
voluntarily or involuntarily or by operation of law, any rights or obligations
under this Agreement without the written consent of MTI. Any purported
assignment, transfer, or delegation shall be null and void. Nothing in this
Agreement will prevent the consolidation of the Company with, or its merger
into, any other corporation, or the sale by the Company of all or substantially
all of its properties or assets, or the assignment by the Company of this
Agreement and the performance of its obligations hereunder to any successor in
interest or any affiliated Company. Subject to the foregoing, this Agreement
will be binding upon and will inure to the benefit of the parties and their
respective

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heirs, legal representatives, successors, and permitted assigns, and will not
benefit any person or entity other than those enumerated above.

        14. Amendments; Waivers. This Agreement will not be varied, altered,
modified, changed or in any way amended except by an instrument in writing
executed by an officer of Consultant and the President of the Company. By an
instrument in writing similarly executed, either party may waive compliance by
the other party with any provision of this Agreement that such other party was
or is obligated to comply with or perform; provided, however, that such waiver
will not operate as a waiver of any other or subsequent failure. No failure to
exercise and no delay in exercising any right, remedy, or power hereunder will
operate as a waiver thereof, nor shall any single or partial exercise of any
right, remedy, or power hereunder preclude any other or further exercise thereof
or the exercise of any other right, remedy, or power provided herein or by law
or in equity.

        15. Severability; Enforcement.

            a. If any provision of this Agreement, or the application thereof to
any person, place, or circumstance, will be held by an arbitrator or a court of
competent jurisdiction to be invalid, unenforceable, or void, the remainder of
this Agreement and such provisions as applied to other persons, places, and
circumstances will remain in full force and effect, and such provision will be
enforced to fullest extent consistent with applicable law.

            b. This Agreement has been reviewed by the parties and by their
respective attorneys. The parties have had a full opportunity to negotiate the
contents of this Agreement. The parties to this Agreement expressly waive any
common-law or statutory rule of construction that ambiguities should be
construed against the drafter of the Agreement, and agree that the language in
all parts of this Agreement will be construed as a whole, according to its fair
meaning, and not in favor of or against any party.

        16. Headings. The headings contained in this Agreement are provided for
the convenience of the reader only. Accordingly, the headings and section
numbers in this Agreement shall not in any way define, limit, construe, or
describe the scope or intent of the provisions of this Agreement, and should be
ignored in the interpretation of this Agreement.

        17. Governing Law. Except as otherwise provided, the validity,
interpretation, enforceability, and performance of this Agreement will be
governed by and construed in accordance with the law of the State of California,
without giving effect to its law regarding the conflict of laws.

        18. Acknowledgment. The parties acknowledge that (i) they have each had
the opportunity to consult with independent counsel of their own choice
concerning this Agreement and have done so to the extent they deem necessary,
and (ii) they each have read and understand the Agreement, are fully aware of
its legal effect, and have entered into it voluntarily and freely based on their
own judgment and not on any promises or representations other than those
contained in the Agreement.

        19. Entire Agreement. The terms of this Agreement; and the Proprietary
Information Agreement attached as Exhibit "A" are intended by the parties to be
the final expression of their

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agreement with respect to the retention of Consultant by the Company, and may
not be contradicted by evidence of any prior or contemporaneous agreement. The
parties further intend that this Agreement; and the Proprietary Information
Agreement attached as Exhibit "A" will constitute the complete and exclusive
statement of its terms and that no extrinsic evidence whatsoever may be
introduced in any judicial, administrative, or other legal proceeding involving
this Agreement. This Agreement; and the Proprietary Information Agreement
attached as Exhibit "A" supersede any prior oral or written consulting or other
agreements between Consultant and MTI.

EXECUTED BY:

MTI TECHNOLOGY CORPORATION,
A DELAWARE CORPORATION                           DALE WIGHT

By: /s/ PAUL W. EMERY, II                        By: /s/ DALE WIGHT
    --------------------------                       --------------------------
Title: COO                                       Title: Consultant
       -----------------------                          ----------------------

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                                   EXHIBIT "A"

                                  SCOPE OF WORK

Consultant will provide information and conduct research as requested by MTI to
assist in providing financial advice and analysis.

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                                   EXHIBIT "B"

                                      FEES

MTI agrees to pay Consultant $84.00 per hour per assignment, with the number of
billable hours per assignment to be mutually agreed upon by both MTI and
Consultant, in writing, prior to Consultant providing any services relating the
respective assignment, MTI retains the unilateral and sole right to determine if
any services are to be requested of the Consultant, and Consultant agrees not to
undertake any actions or provide any services under this Agreement unless
directed to do so by the appropriate representatives of MTI.

                                 PAYMENT TERMS

Upon completion of an assignment as set forth in Exhibit A and submission of an
invoice, the agreed-upon amount of the assignment's billable hours multiplied at
the rate of $84.00 per hour will be paid on a net forty-five (45) days.

                                   ASSIGNMENTS

The number of assignments that Consultant will be asked to be engage will be
solely determined by MTI. MTI may, at its sole discretion, elect not to engage
the Consultant for any assignment during the term of this Agreement. Unless the
Agreement is terminated by the Consultant pursuant to the terms and conditions
as set forth above. Consultant agrees that he will perform services as requested
if he is available to MTI at the requested time period during the term of the
Agreement.

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                                   EXHIBIT "C"

                    CONFIDENTIALITY/NON-DISCLOSURE AGREEMENT

In consideration of MTI TECHNOLOGY CORPORATION, A DELAWARE CORPORATION (herein
"MTI") granting me access to MTI facilities and information, I agree as follows:

1.      As a Consultant, it is my understanding that, pursuant to the CONSULTING
        AGREEMENT dated AUGUST 21, 2001 between MTI and DALE WIGHT, I will have
        access to and acquire techniques, know-how, or other information of a
        confidential nature concerning MTI experimental and developmental work,
        trade secrets, secret procedures, business matters or affairs including,
        but not limited to, information relating to ideas, discoveries,
        inventions, disclosures, processes, methods, systems, formulas, patents,
        patent applications, machines. materials, research plans and activities,
        research results, and business marketing information, plans, operations,
        activities, and results. I WILL NOT DISCLOSE ANY SUCH INFORMATION TO ANY
        PERSON OR ENTITY OR USE ANY SUCH INFORMATION WITHOUT MTI'S PRIOR WRITTEN
        CONSENT. Information will, for purposes of this Agreement, be considered
        to be confidential if not known in the field generally, even though such
        information has been disclosed to one or more third parties pursuant to
        joint research agreements, consulting agreements, or other agreements
        entered into by MTI or any of its affiliates. Excluded from the
        obligations of confidentiality and non-discloser agreed to herein is
        information (i) that I can establish I knew prior to my acquiring it
        from MTI; (ii) that I receive from a third party who, when providing it
        to me, is not under an obligation to MTI to keep the information
        confidential; or (iii) that enters the public domain through no fault of
        mine.

2.      If, as a consequence of my access to MTI facilities or information, I
        conceive of or make, alone or with others, ideas, inventions and
        improvements thereof of know-how related thereto that relate in any
        manner to the actual or anticipated business of MTI, I will assign and
        do hereby assign to MTI my right, title, and interest in each of the
        ideas, inventions and improvements thereof described in this paragraph.
        I will, at MTI's expense, execute, acknowledge, and deliver such
        documents.

3.      I agree that, upon the earlier of the completion of my work for MTI, as
        a Consultant or upon the termination of the Consulting Agreement between
        MTI and myself, I will deliver to MTI (and will not keep in my
        possession or deliver to anyone else) any and all devices, records,
        data, notebooks, notes, reports, proposals, lists, correspondence,
        specifications, drawings, blueprints, sketches, materials, equipment,
        other documents or property, or reproductions of any aforementioned
        items belonging to MTI, its successors or assigns.

4.      I agree to execute any proper oath or verify any proper document
        required to carry out the terms of this Agreement. I represent that my
        performance of all the terms of this Agreement will not breach any
        agreement to keep in confidence proprietary information acquired by me
        in confidence or in trust prior to my commencing work for MTI. I have
        not

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        entered into, and I agree I will not enter into, any oral or written
        agreement in conflict herewith.

5.      This Agreement will be governed by the laws of the State of California.

6.      This Agreement sets forth the entire Agreement and understanding between
        MTI and me relating to the subject matter herein and merges all prior
        discussions between us. No modification of or amendment to this
        Agreement, nor any waiver of any rights under this agreement, will be
        effective unless in writing signed by the party to be charged. Any
        subsequent change or changes in my duties, salary or compensation will
        not affect the validity or scope of this Agreement.

7.      If one or more of the provisions in this Agreement are deemed void by
        law, then the remaining provisions will continue in full force and
        effect.

8.      This Agreement will be binding upon my heirs, executors, administrators
        and other legal representatives and will be for the benefit of MTI, its
        successors, and its assigns.

9.      This Agreement will remain in full force and effect so long as any
        materials referred to in paragraph 1 of Exhibit "A"remain trade secrets
        of MTI

Date:      10/2/01                           Signature: /s/ DALE WIGHT
      -------------------------                         ------------------------

Witness: Cecilia Dinh                        Print Name: Dale Wight
         ----------------------                          -----------------------

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                                   EXHIBIT "D"

                               CONSULTANT PRODUCTS

                                    (IF ANY)

(None known to be relevant or applicable to the Scope of Work in this
Agreement.)

                                       13<PAGE>

                                                                  EXHIBIT 10.43

                            INDEMNIFICATION AGREEMENT

        This INDEMNIFICATION AGREEMENT (the "Agreement") is made and entered
into as of _______, 2001 (the "Effective Date") by and between MTI Technology
Corporation, a Delaware corporation (the "Company"), and Kent Smith (the
"Indemnitee").

        WHEREAS, it is essential to the Company to retain and attract as
directors the most capable persons available;

        WHEREAS, Indemnitee is a director of the Company;

        WHEREAS, both the Company and Indemnitee recognize the increased risk of
litigation and other claims being asserted against directors of public companies
in today's environment; and

        WHEREAS, the Company's Bylaws (the "Bylaws") require the Company to
indemnify and advance expenses to its officers to the fullest extent permitted
by law, and the Indemnitee has agreed to serve as a director of the Company in
part in reliance on the Bylaws;

        WHEREAS, in recognition of Indemnitee's need for (i) substantial
protection against personal liability based on Indemnitee's reliance on the
Bylaws, (ii) specific contractual assurance that the protection promised by the
Bylaws will be available to Indemnitee, regardless of, among other things, any
amendment to or revocation of the Bylaws or any change in the composition of the
Company's Board of Directors or acquisition transaction relating to the Company,
and (iii) an inducement to provide effective services to the Company as a
director thereof, the Company wishes to provide for the indemnification of
Indemnitee and to advance expenses to Indemnitee to the fullest extent permitted
by law and as set forth in this Agreement, and, to the extent insurance is
maintained, to provide for the continued coverage of Indemnitee under the
Company's directors' and officers' liability insurance policies.

        NOW, THEREFORE, in consideration of the premises contained herein and of
Indemnitee continuing to serve the Company directly or, at its request, with
another enterprise, and intending to be legally bound hereby, the parties hereto
agree as follows:

        1. CERTAIN DEFINITIONS:

           (a) "Affiliate": any corporation that directly, or indirectly through
one or more intermediaries, controls or is controlled by, or is under common
control with, the person specified.

           (b) "Change in Control": shall be deemed to have occurred if

               (i) any "person," as such term is used in Sections 13(d) and
14(d) of the Securities Exchange Act of 1934 (the "Exchange Act"), as amended,
other than (a) a trustee or other fiduciary holding securities under an employee
benefit plan of the Company, (b) a corporation owned, directly or indirectly, by
the stockholders of the Company in substantially the same proportions as their
ownership of stock of the Company, or (c) any current beneficial

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stockholder or group, as defined by Rule 13d-5 of the Exchange Act, including
the heirs, assigns and successors thereof of beneficial ownership, within the
meaning of Rule 13d-3 of the Exchange Act, of securities possessing more than
fifty percent (50%) of the total combined voting power of the Company's
outstanding securities, hereafter becomes the "beneficial owner," as defined in
Rule 13d-3 under of the Exchange Act, directly or indirectly, of securities of
the Company representing twenty percent (20%) or more of the total voting power
represented by the Company's then outstanding Voting Securities, or

               (ii) during any period of two consecutive years, individuals who
at the beginning of such period constitute the Board of Directors of the Company
and any new director whose election by the Board of Directors or nomination for
election by the Company's stockholders was approved by a vote of at least
two-thirds (2/3) of the directors then still in office who either were directors
at the beginning of the period or whose election or nomination for election was
previously so approved, cease for any reason to constitute a majority thereof,
or

               (iii) the stockholders of the Company approve a merger or
consolidation of the Company with any other corporation, other than a merger or
consolidation which would result in the

Voting Securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into Voting Securities of the surviving entity) at least eighty percent (80%) of
the total voting power represented by the Voting Securities of the Company or
such surviving entity outstanding immediately after such merger or
consolidation, or the stockholders of the Company approve a plan of complete
liquidation of the Company or an agreement for the sale or disposition by the
Company, in one transaction or a series of transactions, of all or substantially
all of the Company's assets.

           (c) "Expense": includes attorneys' fees and all other costs, expenses
and obligations paid or incurred in connection with investigating, defending,
being a witness in or participating in (including on appeal), or preparing to
defend, be a witness in or participate in any Proceeding relating to any
Indemnifiable Event.

           (d) "Indemnifiable Event": any event or occurrence that takes place
either prior to or after the execution of this Agreement, related to the fact
that Indemnitee is or was an officer of the Company, or while an officer is or
was serving at the request of the Company as a director, officer, employee,
trustee, agent or fiduciary of another corporation, partnership, joint venture,
employee benefit plan, trust or other enterprise or by reason of anything done
or not done by Indemnitee in any such capacity.

           (e) "Potential Change in Control": shall be deemed to have occurred
if

               (i) the Company enters into an agreement or arrangement, the
consummation of which would result in the occurrence of a Change in Control,

               (ii) any person, including the Company, publicly announces an
intention to take or to consider taking actions which if consummated would
constitute a Change in Control,

               (iii) any person, other than (x) a trustee or other fiduciary
holding securities under an employee benefit plan of the Company acting in such
capacity, (y) a corporation owned, directly or indirectly, by the stockholders
of the Company in substantially the

                                       2
<PAGE>

same proportions as their ownership of stock of the Company, or (z) any current
beneficial stockholder or group, as defined by Rule 13d-5 of the Exchange Act,
holding in excess of fifty percent (50%) of the combined voting power of the
Company's outstanding securities, including the heirs, assigns and successors
thereof of beneficial ownership, within the meaning of Rule 13d-3 of the
Exchange Act, of securities possessing more than fifty percent (50%) of the
total combined voting power of the Company's outstanding securities, hereafter
becomes the beneficial owner, directly or indirectly, of securities of the
Company representing ten percent (10%) or more of the combined voting power of
the Company's then outstanding Voting Securities, increases his beneficial
ownership of such securities by five percent (5%) or more over the percentage so
owned by such person on the date hereof, or

               (iv) the Board adopts a resolution to the effect that, for
purposes of this Agreement, a Potential Change in Control has occurred.

           (f) "Proceeding": any threatened, pending or completed action, suit
or proceeding, or any inquiry, hearing or investigation, whether conducted by
the Company or any other party, that Indemnitee in good faith believes might
lead to the institution of any such action, suit or proceeding, whether civil,
criminal, administrative, investigative or other.

           (g) "Reviewing Party": any appropriate person or body consisting of a
member or members of the Company's Board of Directors or any other person or
body appointed by the Board (including the special, independent counsel referred
to in Section 3) who is not a party to the particular Proceeding with respect to
which Indemnitee is seeking Indemnification.

           (h) "Voting Securities": any securities of the Company which vote
generally in the election of directors.

        2. AGREEMENT TO INDEMNIFY.

           (a) In the event Indemnitee was, is or becomes a party to or witness
or other participant in, or is threatened to be made a party to or witness or
other participant in, a Proceeding by reason of (or arising in part out of) an
Indemnifiable Event, the Company shall indemnify Indemnitee to the fullest
extent permitted by law, as soon as practicable but in any event no later than
thirty (30) days after written demand is presented to the Company, against any
and all Expenses, judgments, fines, penalties and amounts paid in settlement
(including all interest, assessments and other charges paid or payable in
connection with or in respect of such Expenses, judgments, fines, penalties or
amounts paid in settlement) of such Proceeding and any federal, state, local or
foreign taxes imposed on the Indemnitee as a result of the actual or deemed
receipt of any payments under this Agreement, including the creation of the
Trust pursuant to Section 4 hereof. Notwithstanding anything in this Agreement
to the contrary and except as provided in Section 5, Indemnitee shall not be
entitled to indemnification pursuant to this Agreement in connection with any
Proceeding initiated by Indemnitee against the Company or any director or
officer of the Company unless the Company has joined in or consented to the
initiation of such Proceeding. If so requested by Indemnitee, the Company shall
advance, within ten (10) business days of such request, any and all Expenses to
Indemnitee (an "Expense Advance"); provided, however, that such Expenses shall
be advanced only upon delivery to the Company of an undertaking by or on behalf
of the Indemnitee to repay such amount if it is ultimately determined that
Indemnitee is not entitled to be indemnified by the Company.

                                       3
<PAGE>

           (b) Notwithstanding the foregoing, (i) the obligations of the Company
under Section 2(a) shall be subject to the condition that the Reviewing Party
shall not have determined (in a written opinion, in any case in which the
special, independent counsel referred to in Section 3 hereof is involved) that
Indemnitee would not be permitted to be indemnified under applicable law, and
(ii) the obligation of the Company to make an Expense Advance pursuant to
Section 2(a) shall be subject to the condition that, if, when and to the extent
that the Reviewing Party determines that Indemnitee would not be permitted to be
so indemnified under applicable law, the Company shall be entitled to be
reimbursed by Indemnitee (who hereby agrees to reimburse the Company) for all
such amounts theretofore paid; provided, however, that if Indemnitee has
commenced legal proceedings in a court of competent jurisdiction to secure a
determination that Indemnitee should be indemnified under applicable law, any
determination made by the Reviewing Party that Indemnitee would not be permitted
to be indemnified under applicable law shall not be binding and Indemnitee shall
not be required to reimburse the Company for any Expense Advance until a final
judicial determination is made with respect thereto (as to which all rights of
appeal therefrom have been exhausted or have lapsed). Indemnitee's obligation to
reimburse the Company for Expense Advances shall be unsecured and no interest
shall be charged thereon. If there has not been a Change in Control, the
Reviewing Party shall be selected by the Board of Directors, and if there has
been such a Change in Control, other than a Change in Control which has been
approved by a majority of the Company's Board of Directors who were directors
immediately prior to such Change in Control, the Reviewing Party shall be the
special, independent counsel referred to in Section 3 hereof. If there has been
no determination by the Reviewing Party or if the Reviewing Party determines
that Indemnitee substantively would not be permitted to be indemnified in whole
or in part under applicable law, Indemnitee shall have the right to commence
litigation in any court in the States of California or Delaware having subject
matter jurisdiction thereof and in which venue is proper seeking an initial
determination by the court or challenging any such determination by the
Reviewing Party or any aspect thereof, and the Company hereby consents to
service of process and to appear in any such proceeding. Any determination by
the Reviewing Party otherwise shall be conclusive and binding on the Company and
Indemnitee.

        3. CHANGE IN CONTROL. The Company agrees that if there is a Change in
Control of the Company, other than a Change in Control which has been approved
by a majority of the Company's Board of Directors who were directors immediately
prior to such Change in Control, then with respect to all matters thereafter
arising concerning the rights of Indemnitee to indemnity payments and Expense
Advances under this Agreement or any other agreement or under applicable law or
the Company's Certificate of Incorporation or Bylaws now or hereafter in effect
relating to indemnification for Indemnifiable Events, the Company shall seek
legal advice only from special, independent counsel selected by Indemnitee and
approved by the Company, which approval shall not be unreasonably withheld. Such
special, independent counsel shall not have otherwise performed services for the
Company or the Indemnitee, other than in connection with such matters, within
the last five (5) years. Such independent counsel shall not include any person
who, under the applicable standards of professional conduct then prevailing,
would have a conflict of interest in representing either the Company or
Indemnitee in an action to determine Indemnitee's rights under this Agreement.
Such counsel, among other things, shall render its written opinion to the
Company and Indemnitee as to whether and to what extent the Indemnitee would be
permitted to be indemnified under applicable law. The Company agrees to pay the
reasonable fees of the special, independent counsel referred to above and to

                                       4
<PAGE>

indemnify fully such counsel against any and all expenses (including attorneys'
fees), claims, liabilities and damages arising out of or relating to this
Agreement or the engagement of special, independent counsel pursuant hereto.

        4. ESTABLISHMENT OF TRUST. In the event of a Potential Change in
Control, the Company shall, upon written request by Indemnitee, create a trust
for the benefit of the Indemnitee (the "Trust") and from time to time upon
written request of Indemnitee shall fund such Trust in an amount sufficient to
satisfy any and all Expenses reasonably anticipated at the time of each such
request to be incurred in connection with investigating, preparing for and
defending any Proceeding relating to an Indemnifiable Event, and any and all
judgments, fines, penalties and settlement amounts of any and all Proceedings
relating to an Indemnifiable Event from time to time actually paid or claimed,
reasonably anticipated or proposed to be paid. The amount or amounts to be
deposited in the Trust pursuant to the foregoing funding obligation shall be
determined by the Reviewing Party, in any case in which the special, independent
counsel referred to above is involved. The terms of the Trust shall provide that
upon a Change in Control (i) the Trust shall not be revoked or the principal
thereof invaded, without the written consent of the Indemnitee, (ii) the trustee
shall advance, within ten (10) business days of a request by the Indemnitee,
upon Indemnitee's having made the undertaking required under Section 2(a)
hereof, any and all Expenses to the Indemnitee (and the Indemnitee hereby agrees
to reimburse the Trust under the circumstances under which the Indemnitee would
be required to reimburse the Company under Section 2(b) of this Agreement),
(iii) the Trust shall continue to be funded by the Company in accordance with
the funding obligation set forth above, (iv) the trustee shall promptly pay to
the Indemnitee all amounts for which the Indemnitee shall be entitled to
indemnification pursuant to this Agreement or otherwise, and (v) all unexpended
funds in such Trust shall revert to the Company upon a final determination by
the Reviewing Party or a court of competent jurisdiction, as the case may be,
that the Indemnitee has been fully indemnified under the terms of this
Agreement. The trustee shall be chosen by the Indemnitee. Nothing in this
Section 4 shall relieve the Company of any of its obligations under this
Agreement. All income earned on the assets held in the Trust shall be reported
as income by the Company for federal, state, local and foreign tax purposes.

        5. INDEMNIFICATION FOR EXPENSES INCURRED IN ENFORCING THIS AGREEMENT.
The Company shall indemnify Indemnitee against any and all expenses (including
attorneys' fees), and, if requested by Indemnitee, shall, within ten (10)
business days of such request, advance such expenses to Indemnitee, which are
incurred by Indemnitee in connection with any claim asserted against or action
brought by Indemnitee for (i) indemnification or advance payment of Expenses by
the Company under this Agreement or any other agreement or relating to
indemnification for Indemnifiable Events and/or (ii) recovery under any
directors' and officers' liability insurance policies maintained by the Company,
regardless of whether Indemnitee ultimately is determined to be entitled to such
indemnification, advance expense payment or insurance recovery, as the case may
be. Expenses shall be advanced, however, only upon delivery to the Company of an
undertaking by or on behalf of the Indemnitee to repay such amount if it is
ultimately determined that Indemnitee is not entitled to be indemnified by the
Company.

        6. PARTIAL INDEMNITY. If Indemnitee is entitled under any provision of
this Agreement to indemnification by the Company for some or a portion of the
Expenses, judgments, fines, penalties and amounts paid in settlement of a
Proceeding but not, however, for

                                       5
<PAGE>

all of the total amount thereof, the Company shall nevertheless indemnify
Indemnitee for the portion thereof to which Indemnitee is entitled. Moreover,
notwithstanding any other provision of this Agreement, to the extent that
Indemnitee has been successful on the merits or otherwise in defense of any or
all Proceedings relating in whole or in part to an Indemnifiable Event or in
defense of any issue or matter therein, including dismissal without prejudice,
Indemnitee shall be indemnified against all Expenses incurred in connection
therewith.

        7. DEFENSE TO INDEMNIFICATION, BURDEN OF PROOF AND PRESUMPTIONS. It
shall be a defense to any action brought by the Indemnitee against the Company
to enforce this Agreement (other than an action brought to enforce a claim for
expenses incurred in defending a Proceeding in advance of its final disposition
where the required undertaking has been tendered to the Company) that the
Indemnitee has not met the standards of conduct that make it permissible under
the Delaware General Corporation Law for the Company to indemnify the Indemnitee
for the amount claimed. In connection with any determination by the Reviewing
Party or otherwise as to whether the Indemnitee is entitled to be indemnified
hereunder, the burden of proving such right to indemnification shall be on the
Indemnitee. Neither the failure of the Company (including its Board of
Directors, independent legal counsel, or its stockholders) to have made a
determination prior to the commencement of such action by the Indemnitee that
indemnification of the claimant is proper under the circumstances because he has
met the applicable standard of conduct set forth in the Delaware General
Corporation Law, nor an actual determination by the Company (including its Board
of Directors, independent legal counsel, or its stockholders) that the
Indemnitee had not met such applicable standard of conduct, shall be a defense
to the action or create a presumption that the Indemnitee has not met the
applicable standard of conduct. For purposes of this Agreement, the termination
of any claim, action, suit or proceeding, by judgment, order, settlement
(whether with or without court approval) or conviction, or upon a plea of nolo
contendere, or its equivalent, shall not create a presumption that Indemnitee
did not meet any particular standard of conduct or have any particular belief or
that a court has determined that indemnification is not permitted by applicable
law.

        8. NON-EXCLUSIVITY. The rights of the Indemnitee hereunder shall be in
addition to any other rights Indemnitee may have under the Company's Certificate
of Incorporation or Bylaws or the Delaware General Corporation Law or otherwise;
provided, however, that this Agreement shall supersede any prior indemnification
by agreement between the Company and the Indemnitee. To the extent that a change
in the Delaware General Corporation Law (whether by statute or judicial
decision) permits greater indemnification by agreement than would be afforded
currently under the Company's Certificate of Incorporation and Bylaws and this
Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by
this Agreement the greater benefits so afforded by such change.

        9. LIABILITY INSURANCE. To the extent the Company maintains an insurance
policy or policies providing directors' and officers' liability insurance,
Indemnitee shall be covered by such policy or policies, in accordance with its
or their terms, to the maximum extent of the coverage available for any Company
director or officer.

        10. PERIOD OF LIMITATIONS. No legal action shall be brought and no cause
of action shall be asserted by or on behalf of the Company or any affiliate of
the Company against Indemnitee, Indemnitee's spouse, heirs, executors or
personal or legal representatives after the expiration of two years from the
date of accrual of such cause of action, or such longer period as

                                       6
<PAGE>

may be required by state law under the circumstances, and any claim or cause of
action of the Company or its affiliate shall be extinguished and deemed released
unless asserted by the timely filing of a legal action within such period;
provided, however, that if any shorter period of limitations is otherwise
applicable to any such cause of action, such shorter period shall govern.

        11. AMENDMENT OF THIS AGREEMENT. No supplement, modification or
amendment of this Agreement shall be binding unless executed in writing by both
of the parties hereto. No waiver of any of the provisions of this Agreement
shall be deemed or shall constitute a waiver of any other provisions hereof
(whether or not similar), nor shall such waiver constitute a continuing waiver.
Except as specifically provided herein, no failure to exercise or any delay in
exercising any right or remedy hereunder shall constitute a waiver thereof.

        12. SUBROGATION. In the event of payment under this Agreement, the
Company shall be subrogated to the extent of such payment to all of the rights
of recovery of Indemnitee, who shall execute all papers required and shall do
everything that may be necessary to secure such rights, including the execution
of such documents necessary to enable the Company effectively to bring suit to
enforce such rights.

        13. NO DUPLICATION OF PAYMENTS. The Company shall not be liable under
this Agreement to make any payment in connection with any claim made against
Indemnitee to the extent Indemnitee has otherwise actually received payment
(under any insurance policy, Bylaw or otherwise) of the amounts otherwise
indemnifiable hereunder.

        14. SETTLEMENT OF CLAIMS. The Company shall not be liable to indemnify
Indemnitee under this Agreement for any amounts paid in settlement of any action
or claim effected without the Company's written consent. The Company shall not
settle any action or claim in any manner which would impose any penalty or
limitation on Indemnitee without Indemnitee's written consent. Neither the
Company nor the Indemnitee will unreasonably withhold their consent to any
proposed settlement. The Company shall not be liable to indemnify the Indemnitee
under this Agreement with regard to any judicial award if the Company was not
given a reasonable and timely opportunity, at its expense, to participate in the
defense of such action.

        15. BINDING EFFECT. This Agreement shall be binding upon and inure to
the benefit of and be enforceable by the parties hereto and their respective
successors, assigns, including any direct or indirect successor by purchase,
merger, consolidation or otherwise to all or substantially all of the business
and/or assets of the Company, spouses, heirs, and personal and legal
representatives. The Company shall require and cause any successor (whether
direct or indirect by purchase, merger, consolidation or otherwise) to all,
substantially all, or a substantial part, of the business and/or assets of the
Company, by written agreement in form and substance satisfactory to the
Indemnitee, expressly to assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform if
no such succession had taken place. This Agreement shall continue in effect
regardless of whether Indemnitee continues to serve as a director or officer of
the Company or of any other enterprise at the Company's request.

        16. SEVERABILITY. The provisions of this Agreement shall be severable in
the event that any of the provisions hereof (including any provision within a
single section, paragraph or sentence) is held by a court of competent
jurisdiction to be invalid, void or otherwise

                                       7
<PAGE>

unenforceable, and the remaining provisions shall remain enforceable to the
fullest extent permitted by law. Furthermore, to the fullest extent possible,
the provisions of this agreement (including, without limitation, each portion of
this Agreement containing any provision held to be invalid, void or otherwise
unenforceable, that is not itself invalid, void or unenforceable) shall be
construed so as to give effect to the intent manifested by the provision held
invalid, illegal or unenforceable.

        17. GOVERNING LAW. This Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of Delaware applicable to
contracts made and to be performed in such State without giving effect to the
principles of conflicts of laws.

        18. COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

        19. NOTICES. All notices, demands, and other communications required or
permitted hereunder shall be made in writing and shall be deemed to have been
duly given if delivered by hand, against receipt, or mailed, postage prepaid,
certified or registered mail, return receipt requested, and addressed to the
Company at:

                                MTI Technology Corporation
                                4905 East La Palma Avenue
                                Anaheim, California 92807
                                Attention:  Corporate Secretary

and to Indemnitee at:

                                ---------------------------------
                                ---------------------------------
                                Attention: Kent Smith

                                       8
<PAGE>

        Notice of change of address shall be effective only when done in
accordance with this Section. All notices complying with this Section shall be
deemed to have been received on the date of delivery or on the third business
day after mailing.

        IN WITNESS WHEREOF, the parties hereto have duly executed and delivered
this Agreement as of the day first set forth above.

                                          MTI TECHNOLOGY CORPORATION

                                          By: /s/ PAUL W. EMERY, II
                                              ----------------------------------
                                              Paul Emery
                                              Chief Operating Officer

                                           /s/ KENT SMITH
                                           -------------------------------------
                                           Kent Smith
                                           Indemnitee

                                       9

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