Exhibit 10.1
 
SECOND AMENDMENT
 
TO
 
HILLSIDE—AMPEX/SHERBORNE AGREEMENT
 
This Second Amendment, made as of the 13th day of September 2002, by and among
the undersigned parties to the Hillside-Ampex/Sherborne Agreement, dated
December 1, 1994, as amended as of November 30, 1995 (the “Agreement”), 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).
 
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, Hillside has requested that a member of the Hillside Group become the
named fiduciary, with respect to investment and management of the Plans, and to
become plan administrator, with respect to the designation of the actuary for
the Plans, in place of Ampex, the current such named fiduciary and
administrator; and
 
WHEREAS, pursuant to Section 7.1(e) of the Agreement, Hillside cannot become or
cause a member of the Hillside Group to become such named fiduciary or a plan
administrator until the Ampex Group fails to make, and the Hillside Group does
make, $3.1 million in Required Contributions to the Plans; and
 
WHEREAS, to accommodate Hillside’s request, the Ampex Group will not make the
full Annual Contribution on September 15, 2002, so that the Ampex Group will
have failed to make in the aggregate at least $3.1 million in Required
Contributions; and
 
WHEREAS, in consideration for the Ampex Group’s accommodation of Hillside’s
request, upon Hillside becoming named fiduciary and an administrator of the
Plans, Ampex will be permitted to retain limited control over certain
investments of the Plans and will retain certain rights regarding the selection
of a plan actuary and actuarial assumptions;

--------------------------------------------------------------------------------

 
NOW, THEREFORE, in consideration of the foregoing, each entity in the Ampex
Group, Sherborne Group and Limited Hillside Group hereby agrees as follows:
 
1.  Not later than the fifth business day after Hillside notifies Ampex of its
election to do so, Hillside shall cause a member of the Hillside Group to become
the named fiduciary with respect to investment and management of all assets of
the Plans, except as specifically provided otherwise in Section 2 herein.
 
2.  Notwithstanding the foregoing Section 1, Ampex shall remain named fiduciary
over the Plans’ investments set forth in Attachment A hereto (the “Ampex
Controlled Investments”). However, Ampex agrees that without the express written
consent of Hillside, no current or future asset of the Plans, other than those
assets that are currently Ampex Controlled Investments, or unfunded commitments
thereto, shall be invested or reinvested in or as Ampex Controlled Investments,
and any distributions from or proceeds of liquidation of Ampex Controlled
Investments shall be forthwith transferred to the investment management control
of Hillside or another member of the Hillside Group as directed by Hillside.
 
3.  On the date that a member of the Hillside Group becomes the named fiduciary
with respect to investment and management of the assets of the Plans as provided
in Section 1 herein, Hillside or a member of the Hillside Group shall become the
administrator of the Plans with respect to the engagement of a plan actuary, and
Section 8.1(e) of the Agreement is amended to read as follows:
 
“(e) With respect to any Plan Year commencing prior to January 1, 2005, to the
extent permitted by Applicable Law, Hillside shall not change either Plan’s
actuary without the advance written approval of Ampex, and unless otherwise
imprudent, shall endeavor not to change or consent to change either Plan’s
actuarial methods and assumptions from those used in the January 1, 2002
actuarial report for the Plan for the 2 Plan Years beginning January 1, 2003 and
January 1, 2004.
 
4.  Hillside and Ampex shall take such action as may be necessary or

2

--------------------------------------------------------------------------------

appropriate to effectuate the intent of this Second Amendment, including but not
limited to adoption of Board of Directors resolutions and/or amendment of the
Plans.
 
5.  The Agreement remains in full force and effect without modification or
amendment (except as set forth herein).

3

--------------------------------------------------------------------------------

 
ATTACHMENT A
AMPEX RETIREMENT PLAN
AMPEX CONTROLLED INVESTMENTS
Valued as of July 31, 2002
 

    
Fair value

--------------------------------------------------------------------------------

Distressed Debt Securities:
    
BIII
  
9,328,500
BIIIa
  
6,890,320
BIV (a)
  
495,972
Cybernet Systems
    
46,526 Shares of Common Stock
  
375,000
Ampex Corporation
    
534 Shares of Redeemable Preferred Stock
  
24,030
3,019,772 Shares of Common Stock
  
271,779

--------------------------------------------------------------------------------

(a)  Unfunded commitments at July 31, 2002 totaled $4.5 million of which
$750,000 was funded on August 27, 2002, leaving a remaining commitment of $3.75
million.

4

--------------------------------------------------------------------------------

 
IN WITNESS WHEREOF, the parties have executed this Second Amendment (which may
be executed in separate counterparts with the same effect as if each party had
executed the same counterpart) as of the date set forth herein above.
 
AMPEX GROUP
 
AMPEX CORPORATION
By:
 
/s/ Craig L. McKibben

--------------------------------------------------------------------------------

   
Craig L. McKibben
Title: Vice-President
Telephone No:
Fax No:
AMPEX DATA SYSTEMS
By:
 
/s/ Craig L. McKibben

--------------------------------------------------------------------------------

   
Craig L. McKibben
Title: Vice-President
Telephone No:
Fax No:
AMPEX FINANCE CORPORATION
By:
 
/s/ Craig L. McKibben

--------------------------------------------------------------------------------

   
Craig L. McKibben
Title: Vice-President
Telephone No:
Fax No:
AMPEX INTERNATIONAL CREDIT CORPORATION
By:
 
/s/ Craig L. McKibben

--------------------------------------------------------------------------------

   
Craig L. McKibben
Title: Vice-President
Telephone No:
Fax No:
AMPEX INTERNATIONAL SALES CORPORATION
By:
 
/s/ Joel D. Talcott

--------------------------------------------------------------------------------

   
Joel D. Talcott
Title: Vice-President
Telephone No:
Fax No:

5

--------------------------------------------------------------------------------

AMPEX LEASING CORPORATION
By:
 
/s/ Joel D. Talcott

--------------------------------------------------------------------------------

   
Joel D. Talcott
Title: Vice-President
Telephone No:
Fax No:

6

--------------------------------------------------------------------------------

 
SHERBORNE GROUP
 
NEWHILL PARTNERS, C.P.
By:
 
Sherborne & Company, Inc., General Partner
   
By:
 
/s/ Craig L. McKibben

--------------------------------------------------------------------------------

       
Craig L. McKibben
Title: Vice-President
Telephone No:
Fax No:

 
SHERBORNE HOLDINGS INCORPORATED
By:
 
/s/ Craig L. McKibben

--------------------------------------------------------------------------------

   
Craig L. McKibben
Title: Vice-President
Telephone No:
Fax No:
NH BOND CORP.
By:
 
/s/ Edward J. Bramson

--------------------------------------------------------------------------------

   
Edward J. Bramson
Title: Vice-President
Telephone No:
Fax No:
XEPMA II INC.
By:
 
/s/ Craig L. McKibben

--------------------------------------------------------------------------------

   
Craig L. McKibben
Title: Vice-President
Telephone No:
Fax No:
XEPMA III INC.
By:
 
/s/ Craig L. McKibben

--------------------------------------------------------------------------------

   
Craig L. McKibben
Title: Vice-President
Telephone No:
Fax No:

7

--------------------------------------------------------------------------------

 
LIMITED HILLSIDE GROUP:
BROOKSIDE INTERNATIONAL INCORPORATED
By:
 
/s/ John N. Irwin III

--------------------------------------------------------------------------------

Name:
Title:
 
John N. Irwin III
Managing Director
HILLSIDE CAPITAL INCORPORATED
By:
 
/s/ John N. Irwin III

--------------------------------------------------------------------------------

Name:
Title:
 
John N. Irwin III
Managing Director

8