1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

SCOTT C. CLARKSON, ESQ. SBN 143271 EVE A. MARSELLA, ESQ. SBN 165797 CLARKSON, GORE & MARSELLA A PROFESSIONAL LAW CORPORATION 3424 Carson Street, Suite 350 Torrance, California 90503 (310) 542-0111 Telephone (310) 214-7254 Facsimile Attorneys for MTI Technology Corporation, Debtor and Debtor in Possession

FILED & ENTERED DEC 18 2007

UNITED STATES BANKRUPTCY COURT CENTRAL DISTRICT OF CALIFORNIA, SANTA ANA DIVISION In re MTI TECHNOLOGY CORPORATION, a Delaware corporation, Debtor and Debtor in Possession. Case No. SA 07-13347-ES Chapter 11 ORDER ON MOTION TO REJECT UNEXPIRED NON-RESIDENTIAL REAL PROPERTY LEASES Date: (No Hearing Required) Time: Ctrm:

The United States Bankruptcy Court having considered the motion of debtor and debtor in possession, MTI Technology Corporation, a Delaware corporation (the "Debtor"), pursuant to 11 U.S.C. 365, for an Order rejecting certain non-residential real property leases (collectively, the Leases and, respectively, the Motion) and the Declaration in support thereof, and finding that no opposition or request for hearing has been filed from any interested person including the Office of the United States Trustee and that a hearing is not required, for good cause appearing /// /// /// ///
Order on Motion Rejecting Certain Executory Contracts and Leases

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

therefore, hereby GRANTS the Motion. The Leases identified on the attached Exhibit A are rejected. IT IS SO ORDERED. ###

26 DATED: December 18, 2007 27 28

United States Bankruptcy Judge

1 2 3 4 5 6 7 8 9 10 11 12

EXHIBIT A

1. Nonresidential real property lease between the Debtor and Allianz Life Insurance Co. for property located at 11575 Great Oaks Way, Suite 315, Alpharetta, GA 30022 (see Exhibit A attached to the Motion). The summary terms of this lease are as follows: Term: 06/01/05 08/31/08 Rent: $4,332.08 plus CAMs of approximately $278.07 Square feet: 2,875 Deposit: $4,902.19 Premises vacated 9/30/07. Lease payments paid through 9/30/07 2. Nonresidential real property lease between the Debtor and OHare Centre Venture for property located at 1350 E. Touhy Avenue, Des Plains, IL 60018 (see attached Exhibit B attached to the Motion). The summary terms of this lease are as follows:

13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Order on Motion Rejecting Certain Executory Contracts and Leases

Term: 06/01/05-05/31/08 Rent: $2,000.00 plus CAMs of approximately $1,673.00 Square feet: 1,500 Deposit: $2,000.00 Premises vacated 9/30/07. Lease payments paid through 9/30/07

3. Nonresidential real property lease between the Debtor and Great Plains Venture, LLC for real property located at 1116 Great Plain Avenue, Needham, MA 02492 (see attached Exhibit C attached to the Motion). The summary terms of this lease are as follows: Term: 06/15/06-06/14/07 Rent: $400.00 Square feet: 250 Deposit: $325.00 Premises vacated 10/14/07. Lease payments paid through 9/30/07

1 2 3 4

4. Nonresidential real property lease between the Debtor and Quakerbridge, LLC for real property located at 788 Shrewsbury Avenue, Tinton Falls, NJ 07724 (see attached Exhibit D attached to the Motion). The summary terms of this lease are as follows:

5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Order on Motion Rejecting Certain Executory Contracts and Leases

Term: 03/01/03-02/29-08 Rent: $6,547.17 plus utilities of approximately $421.13 Square feet: 4,079 Deposit: $10,000.00 Premises vacated 9/30/07. Lease payments paid through 9/30/07 5. Nonresidential real property lease between the Debtor and Hall 2611 Internet Associates, LLC for real property located at 2611 Internet Blvd., Suite 114, Frisco, TX 75034 (see attached Exhibit E attached to the Motion). The summary terms of this lease are as follows: Term: 01/01/06-12/31/08 Rent: $4,337.13 plus utilities of approximately $391.45 Square feet: 2,669 Deposit: $8,674.25 Premises vacated 9/30/07. Lease payments paid through 9/30/07 6. Nonresidential real property lease between FM 2244 Crystal Mountain, LP and Collective Technologies/PSA, assigned to the Debtor in June, 2007 for real property located at 9433 Bee Caves Road, Building 111, Suite 100, Austin, TX 78733 (see attached Exhibit F attached to the Motion) and related sublease with Centex Solutions, Inc (see attached Exhibit G attached to the Motion). The summary terms of this lease and sublease are as follows: Lease: Term: 02/01/06-3/31/11 Rent: $24,180.56 Square feet: 17,215 Deposit: $70,691.52

1 2 3 4 5 6 7 8

Premises vacated 9/30/07 by Debtor and occupied by The Collective Group Lease payments paid through 9/30/07 Sublease: Term: 04/01/07-3/31/08 Rent: $2,675.00 paid directly to Master Lessor Square feet: 1,647 1st floor, suite 105, of leased premises. Deposit: $2,675.00 paid directly to Master Lessor Premises currently occupied Sublease payments current 7. Nonresidential real property lease between the Debtor and Merritt Properties, LLC for real property located at 21630 Ridgetop Circle, Suite 100-110, Sterling, VA 20166

9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Order on Motion Rejecting Certain Executory Contracts and Leases

(see attached Exhibit H attached to the Motion). The summary terms of this lease are as follows: Term: 12/01/04-11/30/07 Rent: $6,364.05 plus CAMs of approximately $1,678.00 Square feet: 4,833 Deposit: $5,418.00 Premises vacated 9/30/07. Lease payments paid through 9/30/07

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 [X] STATE OF CALIFORNIA, COUNTY OF LOS ANGELES

PROOF OF SERVICE

I am employed in the County of Los Angeles, State of California. I am over the age of 18 and not a party to the within action; my business address is 3424 Carson Street, Suite 350, Torrance, California, 90503. On December 14, 2007 I served the foregoing document described as: ORDER ON MOTION TO REJECT UNEXPIRED NON-RESIDENTIAL REAL PROPERTY LEASES on the interested parties in this action by placing the original thereof enclosed in a sealed envelope and by causing such envelope with postage thereon fully prepaid to be placed in the United States mail, at Torrance, California, addressed as follows: See Service List Attached (BY MAIL) As follows: I am "readily familiar" with the firm's practice of collection and processing correspondence for mailing. Under that practice it would be deposited with U.S. postal service on that same day with postage thereon fully prepaid at Torrance, California in the ordinary course of business. I am aware that on motion of the party served, service is presumed invalid if postal cancellation date or postage meter date is more than one day after date of deposit for mailing in affidavit. Executed on December 14, 2007, at Torrance, California. [X] Federal: I declare that I am employed in the office of a member of the bar of this court at whose direction the service was made.

_________/S/_______ Michelle Carpenter

MTI Technology Corporation

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 MTI Technology Corporation Attn.: Thomas P. Raimondi, Jr. 15641 Red Hill Ave., Suite 200 Tustin, CA 92780

MTI Technology Corporation Property Leases Service List United States Trustee 411 West Fourth Street, Suite 904 Santa Ana, CA 92701-4593 Robert Opera, Esq. Winthrop Couchot, P.C. 660 Newport Center Drive, 4th Floor Newport Beach, CA 92660

Order on Motion Rejecting Certain Executory Contracts and Leases

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Order on Motion Rejecting Certain Executory Contracts and Leases

SERVICE LIST FOR ENTERED ORDER SERVED ELECTRONICALLY Clarkson, Gore & Marsella 3424 Carson Street, Suite 350 Torrance CA 90503 Robert Opera, Esq. Winthrop Couchot, P.C. 660 Newport Center Drive, 4th Floor Newport Beach, CA 92660 United States Trustee Attn.: Frank Cadigan Terry Biers 411 West Fourth Street, Suite 904 Santa Ana, CA 92701-4593 Robert L. Eisenbach III Cooley Godward Kronish LLP 101 California Street, 5th Floor San Francisco, CA 94111-5800 Clarkson, Gore & Marsella, APLC 3424 Carson Street, Suite 350 Torrance, CA 90503 SERVED BY U.S. MAIL MTI Technology Corporation Attn.: Thomas P. Raimondi, Jr 15641 Red Hill Ave., Suite 200 Tustin, CA 92780 William F. Govier Bingham, McCutchen, LLP 335 S, Grand Ave. Los Angeles, CA 90071 Allianz Life Insurance Company of North America c/o Allianz of America, Inc Attn: Senior Asset Manager 55 Greens Farms Road P.O. Box 5160 Westport, CT 06881-5160 Transwestern Commercial Services Attn.: Property Manager, C. Channell Brown 11575 Great Oaks Way, Suite 320 Alpharetta, GA 30022 Pramana, Inc. Attn.: Sanjay Sehgal 11575 Great Oaks Way, Suite 315 Alpharetta, GA 30022 OHare Centre Venture Attn.: Christi Culotta 1350 E. Touhy Avenue Des Plaines, IL 60018 Sigi M. Offenbach Pitler and Mandell 39 South LaSalle Street, Suite 1220 Chicago, IL 60603 Great Plain Ventures, LLC c/o Northeast Property Management, Inc. 831 Beacon Street, Suite 327 Newton, MA 02459

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Great Plain Venture, LLC c/o Northeast Properties Mgmt 20 Park Plaza, Suite 328 Boston, MA 02116 Quakerbridge Venture, LLC Attn.: Joseph E. Pintinalli 140 Franklin Corner Road Lawrenceville, NJ 08648 Hall 2611 Internet Associates, LTD Attn: Laurie Biddle 6801 Gaylord Parkway, Suite 100 Frisco, TX 75034 Hall Financial Group, LTD Attn.: Mark Depker 6801 Gaylord Parkway, Suite 100 Frisco, TX 75934 Berns Commercial Properties Attn.: Richard Berns 1515 S. Capital of Texas Hwy., Suite 140 Austin, TX 78746 Key Corp Real Estate Capital Markets, Inc. d/b/a KeyBank Real Estate Capital 911 Main Street, Suite 1500 Kansas City, MO 64105 Daniel Flanigan, Esq. Polsinelli, White, Vardeman & Shalton 700 W. 47th Street, Suite 1000 Kansas City, MO 64112 Centex Solution Incorporated Attn.: Jody Breaux 1105 San Augustine Drive Austin, TX, 78733 Merritt Properties, LLC Attn.: Sherry Duvall 2066 Lord Baltimore Drive Baltimore, MD 21244

Order on Motion Rejecting Certain Executory Contracts and Leases

Bankruptcy Noticing Center 2525 Network Place, 3rd Floor Herndon, Virginia 20171-3514 District/off: 0973-8 Case: 07-13347

CERTIFICATE OF SERVICE
User: admin Form ID: pdf031 Page 1 of 1 Total Served: 20 Date Rcvd: Dec 18, 2007

The following entities were served by first class mail on Dec 20, 2007. db +MTI Technology Corporation, 15641 Red Hill Avenue, Suite 200, Tustin, CA 92780-7323 aty +Clarkson, Gore & Marsella, APLC, 3424 Carson St Ste 350, Torrance, CA 90503-5716 aty +Eve A Marsella, 3424 Carson St Ste 350, Torrance, CA 90503-5716 aty +Gilbert B. Weisman 2, Becket & Lee LLP, 16 General Warren Blvd., P.O. Box 3001, Malvern, PA 19355-0701 aty +Ivan L Kallick, 11355 W Olympic Blvd, Los Angeles, CA 90064-1631 aty +Lesley A Hawes, 444 S Flower St 8th Fl, Los Angeles, CA 90071-2901 aty +Manatt Phelps & Phil, 11355 W Olympic Blvd, Los Angeles, CA 90064-1631 aty +Mark A Shaiken, 1201 Walnut St Ste 2700, Kansas City, MO 64106-2139 aty +Michael B Reynolds, Snell & Wilmer LLP, 600 Anton Blvd Ste 1400, Costa Mesa, CA 92626-7689 aty +Richard H Golubow, Winthrop Couchot, 660 Newport Center Drive Ste 400, Newport Beach, CA 92660-6427 aty +Robert E Opera, 660 Newport Center Dr Ste 400, Newport Beach, CA 92660-6427 aty +Robert L Eisenbach, III, 101 Califonia St 5th Fl, San Francisco, CA 94111-5800 aty +Scott C Clarkson, 3424 Carson St Ste 350, Torrance, CA 90503-5716 aty Sheryl L. Moreau, Missouri Dept of Revenue, General Counsels Office, 301 W High St Rm 670, POB 475, Jefferson City, MO 65105-0475 ust +United States Trustee (SA), 411 W Fourth St., Suite 9041, Santa Ana, CA 92701-8000 cr American Express Travel Related Svcs Co Inc Corp C, C/O Becket & Lee LLP, PO Box 3001, Malvern, PA 19355-0701 cr +Iron mountain Information Management Inc, C/O R Frederick Linfesty, 745 Atlantic Ave 10th floor, Boston, MA 02111-2735 cr Missouri Department of Revenue, c/o Bankruptcy Unit, Attn Sheryl L Moreau, POB 475, Jefferson City, MO 65105-0475 cr +Office of Unemployment Compensation Tax Services (, Department of Labor and Industry, Commonwealth of Pennsylvania, 333 Market St 16th Fl, Harrisburg, PA 17101-2234 op +Winthrop Couchot, PC, 660 Newport Center Drive, Ste 400, Newport Beach, CA 92660-6427 The following entities were served by electronic transmission. NONE. intp cr crcm cr intp cr ***** BYPASSED RECIPIENTS (undeliverable, * duplicate) ***** Copper Holdings LLC Frank Parsons Paper Company, Inc Official Committee of Unsecured Creditors Rockwell Collins, Inc The Canopy Group, Inc Verizon Business Global LLC TOTALS: 6, * 0 Addresses marked + were corrected by inserting the ZIP or replacing an incorrect ZIP. USPS regulations require that automation-compatible mail display the correct ZIP. TOTAL: 0

I, Joseph Speetjens, declare under the penalty of perjury that I have served the attached document on the above listed entities in the manner shown, and prepared the Certificate of Service and that it is true and correct to the best of my information and belief. Meeting of Creditor Notices only (Official Form 9): Pursuant to Fed. R. Bank. P. 2002(a)(1), a notice containing the complete Social Security Number (SSN) of the debtor(s) was furnished to all parties listed. This official court copy contains the redacted SSN as required by the bankruptcy rules and the Judiciarys privacy policies.

Date: Dec 20, 2007

Signature: