Exhibit 10.1

 

FOURTH AMENDMENT

 

TO

 

HILLSIDE – AMPEX/SHERBORNE AGREEMENT

 

This Fourth Amendment, made as of June 30, 2004, by and among the undersigned
parties to the Hillside-Ampex/Sherborne Agreement, dated as of December 1, 1994,
by and among (i) Ampex Corporation and each other member of the Ampex Group (as
defined in the Agreement), (ii) Hillside Capital Incorporated and each other
member of the Limited Hillside Group (as defined in the Agreement), and (iii)
Sherborne Holdings Incorporated and each other member of the Sherborne Group (as
defined in the Agreement), as amended by a First Amendment thereto, dated as of
November 30, 1995, and as amended by a Second Amendment thereto, dated as of
September 2002, and as amended by a Third Amendment thereto, dated as of March
2, 2004 (as so amended, the “Agreement”).

 

All capitalized terms defined in the Agreement when used herein shall have the
same meaning as in the Agreement.

 

W I T N E S S E T H:

 

WHEREAS, the parties desire to amend the Agreement in certain respects;

 

NOW, THEREFORE, each entity in the Ampex Group, Sherborne Group and Limited
Hillside Group hereby agrees as follows:

 

  1. Effective as of the date hereof, clause (b) of Section 7.1 of the Agreement
is amended and restated to read in full as follows:

 

“(b) During the period of time that this Agreement is in effect:

 

(i) no more than seventy percent (70%) of the portfolio held by each Plan shall
be invested in equities and

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no more than sixty percent (60%) of the portfolio held by each Plan shall be
invested in fixed income securities, including cash and cash equivalents for the
purposes of this Section (7.1);

 

(ii) at least forty percent (40%) of the equity portfolio held by each Plan
shall be invested in domestic companies that fall within the Russell 1000
Universe or international companies that fall within the MSCI EAFE Index;

 

(iii) no more than thirty percent (30%) of the equity portfolio held by each
Plan shall be invested in foreign securities;

 

(iv) the dollar-weighted average maturity of the overall fixed income portfolio
held by each Plan shall not exceed fourteen (14) years;

 

(v) no more thirty percent (30%) of the fixed income portfolio held by each Plan
shall be invested in non-investment grade securities;

 

(vi) no more than twenty percent (20%) of the portfolio held by each plan shall
be invested in alternative investments (private equity and hedge funds) (for
purposes of the this subsection the value of an alternative investment shall be
deemed equal to the cost of the alternative investment at the time of the
original investment less returns of capital);

 

(vii) not less than ninety percent (90%) of each Plan’s portfolio shall be
managed by investment managers, within the meaning of Section 3(38) of ERISA;

 

(viii) generally, no manager shall control more than thirty-five percent (35%)
of each Plan’s portfolio, except that there may be a single manager of fixed
income securities;

 

(ix) at least ninety percent (90%) of each Plan’s portfolio shall be managed by
managers each having at least $100 million of assets under management; and

 

(x) at least fifty percent (50%) of each Plan’s portfolio shall be managed by
managers each having at least $500 million of assets under management;

 

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(excluding in each case for the purposes of clauses (ix) and (x) funds managed
on behalf of the manager or any of its affiliates or on behalf of the members of
the Ampex Group or the Sherborne Group of any of their benefit plans, including
but not limited to the Plans). Assets shall be valued as of the last day of each
Plan Year after the date of this Agreement and any resulting reduction or
reallocations as between managers or investment categories, if any, shall be
completed within ninety (90) days after year end. For purposes of clause (i)
only, non-investments grade securities and alternative investments shall be
treated as equities. Direct obligations of the U.S. Treasury with maturities of
two (2) years or less shall be treated as cash for purposes of this subsection
(b). Pooled investments shall be included in an appropriate category under
subsection (b) based upon the primary investment strategy at the time the Plans
make the investment.”

 

  2. This Fourth Amendment shall be interpreted in accordance with and governed
by the law of the State of New York (without regard to choice of law
provisions), except to the extent preempted by Federal law.

 

  3. This Fourth Amendment may be executed in any number of identical
counterparts, each of which shall be an original as against the party who signed
it, and all of which together shall constitute one and the same instrument. No
party to this Fourth Amendment shall be bound by the Fourth Amendment until a
counterpart has been executed by or on behalf of each party hereto.

 

  4. The Agreement remains in full force and effect without modification or
amendment (except as se forth herein).

 

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IN WITNESS WHEREOF, the parties have executed this Fourth Amendment as of the
date set forth herein above.

 

AMPEX GROUP

 

AMPEX CORPORATION

By:

 

/s/Craig McKibben

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Name: Craig McKibben

   

Title: V.P.

AMPEX DATA SYSTEMS CORPORATION

By:

 

/s/Craig McKibben

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Name: Craig McKibben

   

Title: V.P.

AMPEX FINANCE CORPORATION

By:

 

/s/Craig McKibben

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Name: Craig McKibben

   

Title: V.P.

AMPEX INTERNATIONAL CREDIT CORPORATION

By:

 

/s/Craig McKibben

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Name: Craig McKibben

   

Title: V.P.

AMPEX INTERNATIONAL SALES CORPORATION

By:

 

/s/ Joel Talcott

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Name: Joel Talcott

   

Title:

AMPEX LEASING CORPORATION

By:

 

/s/ Joel Talcott

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Name: Joel Talcott

   

Title:

 

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LIMITED HILLSIDE GROUP

 

HILLSIDE CAPITAL INCORPORATED

By:

 

/s/ Raymond F. Weldon

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Name: Raymond F. Weldon

   

Title: Managing Director

BROOKSIDE INTERNATIONAL INCORPORATED

By:

 

/s/ Rosemary Kindelan

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Name: Rosemary Kindelan

   

Title: Secretary

BROOKSIDE INTERNATIONAL LLC

By Cliffdale Advisors, Inc., its Manager

By:

 

/s/ Raymond F. Weldon

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Name: Raymond F. Weldon

   

Title: Assistant Treasurer

 

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SHERBORNE GROUP

 

NEWHILL PARTNERS, L.P.

By: Sherborne and Company, Inc., General Partner

By:

 

/s/Craig McKibben

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Name: Craig McKibben

   

Title: V.P.

SHERBORNE HOLDINGS INCORPORATED

By:

 

/s/Craig McKibben

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Name: Craig McKibben

   

Title: V.P.

NH BOND CORP.

By:

 

/s/Craig McKibben

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Name: Craig McKibben

   

Title: President

XEPMA II INC.

By:

 

/s/Craig McKibben

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Name: Craig McKibben

   

Title: V.P.

XEPMA III INC.

By:

 

/s/Craig McKibben

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Name: Craig McKibben

   

Title: V.P.

 

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