Document:

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                                                                     Exhibit 4.3

                               SECURITY AGREEMENT

         SECURITY AGREEMENT, dated as of March 27, 2002 (this "Agreement"), by
and among AMPEX CORPORATION, a Delaware corporation (the "Issuer"), AMPEX DATA
SYSTEMS CORPORATION, a Delaware corporation and a wholly-owned subsidiary of
Issuer (the "Grantor"), and HILLSIDE CAPITAL INCORPORATED, a Delaware
corporation (the "Secured Party").

                             PRELIMINARY STATMENTS.

         (1) Issuer, Grantor and Secured Party are parties to the HAS Agreement
(as defined below). Pursuant to the HAS Agreement, the Issuer has issued certain
Contribution Notes (as defined in the HAS Agreement) to the Secured Party, and
may in the future issue additional Contribution Notes to the Secured Party or
its designee, and Grantor has agreed to guarantee payment of all Contribution
Notes from time to time outstanding.

         (2) Section 4.1 of the HAS Agreement requires Issuer to grant to
Secured Party for the benefit of the Hillside Group (as defined in the HAS
Agreement) and any other Holders of Notes a deed of trust on the Mortgaged
Property to secure certain Obligations (as such terms are defined in the HAS
Agreement), including the Contribution Notes. Pursuant to a letter agreement
dated November 6, 2000, as amended on May 23, 2001 and October 18, 2001, Secured
Party waived its right to obtain the deed of trust on the Mortgaged Property
until May 31, 2002.

         (3) In consideration of Secured Party's agreement to irrevocably waive
its right to obtain the deed of trust on the Mortgaged Property, the Grantor has
offered to provide the Collateral described below, and Secured Party has agreed
to accept such Collateral in lieu of and in substitution for the deed of trust.
Accordingly, Grantor is entering into this Security Agreement to secure the due
and punctual performance of the Secured Obligations (as defined below).

                  Section 1.        Definitions.
                                    ------------
                  As used herein, the terms set forth below shall have the
respective meanings set forth below. Terms used and not otherwise defined herein
shall have the meanings given to them in the HAS Agreement or, if not so defined
herein or therein, in Article 9 of the Code (as defined below).

                  "Code" means the Uniform Commercial Code (or any successor
statute) of the State of New York or of any other state the laws of which are
required by Section 9-301, Section 9-304 and Section 9-306 of the Uniform
Commercial Code of the State of New York to be applied in connection with the
perfection of a security interest in favor of the Secured Party under this
Agreement or any related document.

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                  "Discount Notes" means the $9,378,151.92 aggregate principal
amount at maturity of Senior Discount Notes issued by Grantor pursuant to the
Note Purchase Agreement dated as of November 6, 2000, as in effect on the date
hereof and as amended from time to time hereafter, among the Issuer, Grantor,
the Purchasers named therein and DDJ Capital Management LLC.

                  "HAS Agreement" means the Hillside-Ampex/Sherborne Agreement
dated December 1, 1994, as in effect on the date hereof and as amended from time
to time hereafter among Issuer, Grantor, Secured Party and the other parties
named therein.

                  "RSSA" means the Amended and Restated Receivables Sale and
Servicing Agreement dated as of May 5, 1994, as in effect on the date hereof and
as amended from time to time hereafter, among Issuer, Grantor, MicroNet
Technology, Inc. and Ampex Finance Corporation, a Delaware corporation and a
wholly-owned subsidiary of Issuer ("Ampex Finance"), and any extensions,
renewals, refinancings or replacements thereof by Ampex Finance.

                  "Senior Notes" means the 12% Senior Notes due 2008 issued by
Issuer under the Indenture dated as of February 28, 2002, as in effect on the
date hereof and as amended from time to time hereafter, between Issuer and State
Street Bank and Trust Company, as trustee.

                  Section 2.        Grant of Security.
                                    -----------------

                  The Grantor hereby assigns, conveys, pledges, grants and
transfers to the Secured Party a lien on and a security interest in all of the
Grantor's right, title and interest in and to the following personal property
and assets of the Grantor, whether now owned or hereafter acquired, now or
hereafter existing, wherever located, in each case excluding the Excluded
Property (as defined below) (collectively, the "Collateral"):

                  (a) All goods, now owned or hereafter acquired by the Grantor
and wherever located, which are held for sale or lease or are to be furnished
under any contract of service or which are leased or so furnished or which are
raw materials, work in process, or materials used or consumed in the business of
the Grantor, and in each case which constitute "inventory" (as such term is
defined in the Code), and all accessions thereto and products thereof and
documents therefor (any and all such goods, accessions, products and documents
being hereinafter called the "Inventory"); and

                  (b) All cash and noncash proceeds and products of any and all
of the Inventory, including, without limitation: (i) whatever is now or
hereafter received by Grantor upon the sale, exchange, collection or other
disposition of any item of Inventory or Collateral, whether such proceeds
constitute Inventory, accounts, accounts receivable, general intangibles,
instruments, securities, credits, documents, letters of credit, chattel paper,
documents of title, warehouse receipts, leases, deposit accounts, money, control
rights, supporting obligations or goods, but not including the Excluded
Property; (ii) all

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cash and noncash proceeds and products of the Excluded Property upon a sale
thereof to Ampex Finance under the RSSA; and (iii) to the extent not otherwise
included, all payments under insurance (whether or not the Secured Party is the
loss payee thereof), or any indemnity, warranty or guaranty, payable by reason
of loss or damage to or otherwise with respect to any Collateral.

                  (c) The following personal property and assets of Grantor
shall be excluded from the Collateral (hereinafter, the "Excluded Property"):
(i) all accounts receivable and other related assets of Grantor that are sold to
Ampex Finance under the RSSA, except that the Excluded Property shall not
include (and the Collateral shall include) all products and proceeds of such
accounts receivable and related assets received or receivable by Grantor under
the RSSA; (ii) any contract, license, permit or franchise that prohibits the
creation by Grantor of a security interest in such contract, license, permit or
franchise, except that the Excluded Property shall not include (and the
Collateral may include) all products and proceeds thereof received or receivable
by Grantor thereunder to the extent not so prohibited and, in each case, to the
extent any such prohibition is legally enforceable; and (iii) any of Grantor's
royalties, property or assets of the type securing, as of the date hereof, any
of Grantor's obligations under the Discount Notes or the Senior Notes, and any
proceeds of such property or assets.

                  Section 3.        Security for Obligations.
                                    ------------------------

                     The security interest granted by the Grantor hereunder
secures the prompt and complete payment and performance when due (whether at
stated maturity, upon acceleration or otherwise) of all obligations of Issuer
owing or to be owing to Secured Party now or hereafter existing, whether matured
or unmatured, contingent or liquidated, under each Contribution Note issued or
to be issued pursuant to the HAS Agreement, including any extensions,
modifications, substitutions, amendments and renewals thereof, whether for
principal, interest, premium, fees, expenses, indemnification or otherwise. All
such obligations of Issuer secured hereby are referred to herein as the "Secured
Obligations."

                  Section 4.        Grantor Remains Liable.
                                    ----------------------

                  (a) Anything herein to the contrary notwithstanding: (i) the
Grantor shall remain liable under the contracts and agreements included in the
Collateral to the extent set forth therein to perform all of its duties and
obligations thereunder to the same extent as if this Agreement had not been
executed, (ii) the exercise by the Secured Party of any of its rights hereunder
shall not release the Grantor from any of its duties or obligations in
connection with the general intangibles and under the contracts and agreements
included in the Collateral, (iii) the Secured Party shall not have any
obligation or liability under the contracts and agreements included in the
Collateral by reason of this Agreement, nor shall it be obligated to perform any
of the obligations or duties of the Grantor thereunder or to take any action to
collect or enforce any claim for payment assigned hereunder, and (iv) the
Secured Party shall not assume any liability or obligation whatsoever with
respect to any partnership interest of any partnership included

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in the Collateral, nor shall it become a substituted partner of any such
partnership solely by virtue of this Agreement.

                  (b) The Secured Party shall have the right to make physical
verifications of the Inventory in any manner and through any medium that it
considers advisable, and the Grantor agrees to furnish all such assistance and
information as the Secured Party may reasonably require in connection therewith.

                  Section 5.        Representations and Warranties.
                                    ------------------------------

                  The Grantor hereby represents and warrants to Secured Party as
follows:

                  (a) it is a corporation duly organized, validly existing and
in good standing under the laws of the State of Delaware, is duly qualified as a
foreign corporation and is in good standing in each jurisdiction as to which the
location of its assets or the nature of its business makes qualification
necessary or in which the failure to so qualify would have a material adverse
effect on its condition or operations, financial or otherwise, and has all
corporate power and authority to conduct its business and to own or hold under
lease its assets and properties, and to execute, deliver and perform all of its
obligations under this Agreement;

                  (b) the execution, delivery and performance by it of this
Agreement have been duly authorized by all necessary corporate action, do not
contravene its charter, by-laws, or any applicable laws, rules, regulations,
orders, writs, judgments, injunctions, decrees, determinations or awards, and do
not and will not result in a breach of, or constitute a default under, or
require any consent (other than consents which have been duly obtained and are
in effect and other consents with respect to which Grantor's failure to obtain
such consents will not result in a material adverse effect on Grantor or its
business) under, any indenture or other agreement or instrument to which it is a
party or by which it or its properties may be bound or affected;

                  (c) no authorization or approval by, and no notice to or
filing with, any governmental authority or regulatory body is required to be
obtained or made either (i) for the grant by it of the security interest in the
Collateral granted hereby or for the execution, delivery or performance of this
Agreement, or (ii) except for the filing of a financing statement in the State
of Delaware, for the perfection of the security interests of or the exercise by
the Secured Party of his rights and remedies hereunder;

                  (d) this Agreement constitutes the legal, valid and binding
obligation of the Grantor enforceable against it in accordance with its terms,
except as such enforceability shall be subject to bankruptcy, reorganization,
insolvency, moratorium and other similar laws affection creditors' rights
generally and to general principles of equity;

                  (e) there is no pending or threatened action or proceeding
affecting it before any court, governmental agency or arbitrator which may
materially adversely

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affect its ability to perform its obligations hereunder or which purports to
affect the legality, validity or enforceability of this Agreement or such other
loan document;

                  (f) Part I of Schedule 5(f) sets forth each location at which
                                -------------
Inventory owned by Grantor is located. The chief executive office of the Grantor
and the office where it keeps its records concerning the Collateral are located
at the addresses set forth on Part II of Schedule 5(f) hereto. The federal tax
                                         -------------
identification number of the Grantor is set forth in Part III of Schedule 5(f);
                                                                 -------------

                  (g) it is the legal and beneficial owner of the Collateral
purported to be granted by it hereunder free and clear of any lien, except for
the following (collectively, the "Permitted Liens"): (i) the security interest
created by this Agreement; (ii) liens subordinated to any prior liens in favor
of Secured Party and permitted pursuant to Section 4.2(a) of the HAS Agreement;
(iii) liens for taxes, assessments or similar charges not yet delinquent or
which are being contested in good faith; (iv) liens to secure payment of
workmen's compensation or other insurance or types of social security; (v)
statutory liens, such as those in favor of mechanics, material men,
warehousemen, carriers or similar liens incurred in good faith in the ordinary
course of business for sums which are not yet delinquent or are being contested
in good faith by negotiation or by appropriate proceedings which suspend the
collection thereof; (vi) good faith deposits in connection with tenders,
contracts (other than contracts for the payment of money) or leases; (vii)
deposits to secure public or statutory obligations, or in lieu of surety or
appeal bonds, (viii) any interest or title of a lessor or lessee under any lease
of property (including any lien granted by such lessor or lessee); and (ix)
liens in favor of customers and revenue authorities arising as a matter of law
to secure payment of customs duties in connection with the importation of goods.
No effective financing statement or other instrument similar in effect covering
all or any part of such Collateral is on file in any recording office, except
such as may have been filed in favor of the Secured Party relating to this
Agreement or such as may have been filed in connection with the Permitted Liens.
The trade names, if any, of the Grantor are set forth on Part IV of
Schedule 5(f);
-------------
                  (h)      except as indicated in Schedule 5(f) hereto, it has
                                                  -------------
exclusive  possession and control of the Inventory owned by it; and

                  (i) this Agreement, together with the filing of financing
statements with respect hereto, creates, subject to the Permitted Liens, a valid
and perfected first priority lien on and security interest in the Collateral
owned by it with respect to which a lien and security interest may be perfected
by filing pursuant to the Code, securing the payment of the Secured Obligations.

                  Section 6.        Further Assurances.
                                    ------------------

                  (a) The Grantor agrees that from time to time, at its own
expense, it will promptly execute and deliver all further instruments and
documents, and take all further action, that may be necessary or desirable, or
that the Secured Party may request, in order to perfect and protect any security
interest granted or purported to be granted

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hereby or to enable the Secured Party to exercise and enforce its rights and
remedies hereunder with respect to any Collateral. Without limiting the
generality of the foregoing, the Grantor will: (i) at the request of the Secured
Party, mark conspicuously each of its records pertaining to the Collateral with
a legend, in form and substance satisfactory to the Secured Party, indicating
that such document or Collateral is subject to the security interest granted
hereby; and (ii) execute and file such financing or continuation statements, or
amendments thereto, and such other instruments or notices, as may be necessary
or desirable, or as the Secured Party may request, in order to perfect and
preserve the security interests granted or purported to be granted hereby;
provided that neither the failure of the Secured Party to make such request nor
the failure of the Grantor to comply with such request will impair or affect the
validity of the grant effected by this Agreement.

                  (b) The Grantor hereby authorizes the Secured Party to file
one or more financing or continuation statements, and amendments thereto,
relative to all or any part of the Collateral without the signature of the
Grantor where permitted by law. A carbon, photographic or other reproduction of
this Agreement or any financing statement covering the Collateral or any part
thereof shall be sufficient as a financing statement where permitted by law.

                  (c) The Grantor will furnish to the Secured Party from time to
time statements and schedules further identifying and describing the Collateral,
and such other reports in connection with the Collateral as the Secured Party
may reasonably request, all in reasonable detail.

                  Section 7.        Covenants.
                                    ---------

                  Until the Secured Obligations are paid in full, Grantor shall:

                  (a)      not change the state of its  incorporation  or its
corporate  name without  providing  Secured Party with at least 30 days' prior
written notice;

                  (b)      advise the Secured  Party of the removal of any
Inventory  from the states and counties  listed in Schedule 5(f) hereof to a
state or county not so listed therein; and         -------------

                  (c) do nothing to impair the rights of Secured Party in the
Collateral, and shall cause the Collateral at all times to be subject to the
security interest granted to Secured Party pursuant to this Agreement and,
notwithstanding the foregoing, Grantor may, prior to an Event of Default, in the
ordinary course of its business, possess, hold and sell Inventory and other
Collateral and use and apply any and all proceeds thereof as working capital in
connection with the operation of its business.

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                  Section 8.        Prohibition on Other Liens.
                                    --------------------------

                  The Grantor shall not create or suffer to exist any lien or
security interest upon or with respect to any of the Collateral, except for the
security interest created by this Agreement and except for Permitted Liens.

                  Section 9.        Secured Party Appointed Attorney-in-Fact.
                                    ----------------------------------------

                  The Grantor hereby irrevocably appoints Secured Party as its
attorney-in-fact, with full authority in the place and stead of the Grantor and
in the name of the Grantor or otherwise, at any time following the occurrence
and during the continuance of an Event of Default, to take any action and to
execute any instrument which the Secured Party may deem necessary or advisable
to accomplish the purposes of this Agreement, including, without limitation:

                  (a)      to obtain and adjust insurance required to be paid to
 the Secured Party,

                  (b) to ask, demand, collect, sue for, recover, compromise,
receive and give acquittance and receipts for moneys due and to become due under
or in respect of any of the Collateral,

                  (c) to receive, indorse, and collect any drafts or other
instruments, documents and chattel paper, in connection with clause (i) or (ii)
above, and

                  (d) to file any claims or take any action or institute any
proceedings which the Secured Party may deem necessary or desirable for the
collection of any of the Collateral or otherwise to enforce the rights of the
Secured Party with respect to any of the Collateral.

                  Section 10.       Secured Party May Perform.
                                    -------------------------

                  If Issuer or Grantor fail to perform any agreement contained
herein, the Secured Party may itself perform, or cause performance of such
agreement, and the expenses of the Secured Party incurred in connection
therewith shall be payable by Issuer or Grantor under Section 13(b) hereof.

                  Section 11.       The Secured Party's Duties.
                                    --------------------------

                  The powers conferred on the Secured Party hereunder are to
protect its interest in the Collateral and shall not impose any duty upon it to
exercise any such powers. Except for the safe custody of any Collateral in its
possession, the accounting for moneys actually received by it hereunder and as
otherwise provided by law, the Secured Party shall have no duty as to any
Collateral or as to the taking of any necessary steps to preserve rights against
prior parties or any other rights pertaining to any Collateral.

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                  Section 12.       Remedies.
                                    --------

                  If an Event of Default shall have occurred and be continuing:

                  (a) The Secured Party may exercise in respect of the
Collateral, in addition to other rights and remedies provided for herein or
otherwise available to it, all the rights and remedies of a secured party on
default under the Code (whether or not the Code applies to the affected
Collateral) and also may (i) require the Grantor to, and the Grantor hereby
agrees that it will at its expense and upon request of the Secured Party
forthwith, assemble all or part of the Collateral owned by it as directed by the
Secured Party and make it available to the Secured Party at a place to be
designated by the Secured Party which is reasonably convenient to each party and
(ii) without notice except as specified below, sell the Collateral or any part
thereof in one or more parcels at public or private sale, at any of the Secured
Party's offices or elsewhere, for cash, on credit or for future delivery, and
upon such other terms as the Secured Party may deem commercially reasonable. The
Grantor agrees that, to the extent notice of sale shall be required by law, at
least ten days' notice to the Grantor of the time and place of any public sale
or the time after which any private sale is to be made shall constitute
reasonable notification. The Secured Party shall not be obligated to make any
sale of Collateral regardless of notice of sale having been given. The Secured
Party may adjourn any public or private sale from time to time by announcement
at the time and place fixed therefor, and such sale may, without further notice,
be made at the time and place to which it was so adjourned.

                  (b)      The Secured Party may exercise any and all rights and
 remedies of the Grantor in respect of the Collateral.

                  (c) All payments received by the Grantor in respect of the
Collateral (excluding the Excluded Property) shall be received in trust for the
benefit of the Secured Party, shall be segregated from other funds of the
Grantor and shall be forthwith paid over to the Grantor in the same form as so
received (with any necessary indorsement).

                  (d) All cash proceeds received by the Secured Party in respect
of any sale of, collection from, or other realization upon all or any part of
the Collateral of the Grantor (excluding the Excluded Property) may, in the
discretion of the Secured Party, be held by the Secured Party as collateral for,
and/or then or at any time thereafter applied in whole or in part by the Secured
Party against, all or any part of the Secured Obligations. Any surplus of such
cash or cash proceeds held by the Secured Party and remaining after payment in
full of all such Secured Obligations shall be paid over to the Grantor or to
whomsoever shall be lawfully entitled to receive such surplus.

                  Section 13.       Indemnity and Expense.
                                    ---------------------

                  (a) Each of Issuer and Grantor agree to indemnify Secured
Party, and Secured Party agrees to indemnify each of Issuer and Grantor, from
and against any and

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all claims, losses and liabilities growing out of or resulting from this
Agreement (including, without limitation, enforcement of this Agreement), except
claims, losses or liabilities resulting from such indemnified person's gross
negligence or willful misconduct. The obligations of Issuer, Grantor and Secured
Party under this Section 13(a) shall survive the termination of this Agreement.

                  (b) The Grantor will upon demand pay to the Secured Party the
amount of any and all expenses, including the reasonable fees and disbursements
of its counsel and of any experts and agents, which the Secured Party may incur
in connection with (i) the administration of this Agreement, (ii) the custody,
preservation, use or operation of, or the sale of, collection from, or other
realization upon, any of the Collateral, (iii) the exercise or enforcement of
any of the rights of the Secured Party hereunder or (iv) the failure by Issuer
or Grantor to perform or observe any of the provisions hereof to be performed or
observed by Issuer or Grantor, as applicable.

                  Section 14.       Continuing Security Interest; Transfer of
                                    -----------------------------------------
                                    Rights and Obligations.
                                    -----------------------

                     This Agreement shall create a continuing security interest
in the Collateral and shall remain in full force and effect until the
indefeasible payment in full of the Secured Obligations. The Secured Party may
assign or otherwise transfer all or any portion of its rights and obligations
hereunder to any other person, and such other person shall thereupon become
vested with all the benefits in respect thereof granted to the Secured Party
herein.

                  Section 15.       Security Interest Absolute.
                                    --------------------------

                    All rights of the Secured Party and security interests
hereunder, and all obligations of Issuer and Grantor hereunder, shall be
absolute and unconditional irrespective of:

                  (a)      any lack of validity or enforceability of any
Contribution  Note, the HAS Agreement,  or any other agreement or instrument
relating thereto;

                  (b) any change in the time, manner or place of payment of, or
in any other term of, all or any of the Secured Obligations, or any other
amendment or waiver of or any consent to any departure from the HAS Agreement,
any Contribution Note or any other loan document;

                  (c) any taking and holding of Collateral or additional
guarantees for all or any of the Secured Obligations, or any amendment,
alteration, exchange, substitution, transfer, enforcement, waiver,
subordination, termination or release of any Collateral or such guarantees, or
non-perfection of any security interest in any Collateral, or any consent to
departure from any guaranty, for all or any of the Secured Obligations;

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                  (d) any manner of application of Collateral to all or any of
the Secured Obligations, or the manner of sale of any Collateral; any consent by
the Secured Party or any other person to the existence of the Issuer or the
Grantor and any corresponding change, restructure or termination of the
corporate structure or restructure of the Secured Obligations, or any other
restructure or refinancing of the Secured Obligations or any portion thereof;

                  (f) any modification, compounding, compromise, settlement,
release by the Secured Party or any other person (or by operation of law or
otherwise), collection or other liquidation of the Secured Obligations or the
liability of the Grantor, Issuer or any guarantor thereunder, or of the
Collateral, in whole or in part, and any refusal of payment by any Secured Party
or any other person, in whole or in part, from any obligor or guarantor in
connection with any of the Secured Obligations, whether or not with notice to,
or further assent by, or any reservation of rights against, the Grantor; or

                  (g)      any other  circumstance  which might  otherwise
constitute a defense  available  to, or a discharge of, the Grantor.

                  This Agreement shall continue to be effective or be
reinstated, as the case may be, if at any time any payment of any of the Secured
Obligations is rescinded or must otherwise be returned by the Secured Party or
any other person upon the insolvency, bankruptcy or reorganization of Issuer,
Grantor, or otherwise, all as though such payment had not been made.

                  Section 16.       Waivers.
                                    -------

                  (a)      Issuer and Grantor hereby waive:

                           (i)      promptness,  diligence and notice of
acceptance with respect to any of the Secured  Obligations and this Agreement;

                           (ii)     any requirement  that the Secured Party or
any other person  protect,  secure or insure any lien or any property subject
thereto or exhaust any right or take any action against  Issuer,  Grantor or
any other person or any Collateral; and

                           (iii)    any  defense  arising by reason of any claim
or defense  based upon an  election of remedies by the Secured Party which in
any manner impairs, reduces, releases or otherwise adversely affects Secured
Party's subrogation or reimbursement rights or other rights to proceed against
Issuer, Grantor or any Collateral.

                  (b) Secured Party hereby irrevocably waives its right under
the HAS Agreement to obtain the deed of trust in the Mortgaged Property.

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                  Section 17.       Notices.
                                    -------

                  All notices, requests, demands and other communications to a
party provided for or permitted hereunder shall, unless otherwise stated herein,
be in writing and shall be sent to a party by certified mail, postage prepaid
and return receipt requested; by telex, telegram or facsimile; by nationally
recognized overnight courier service; or by hand delivery, in each case to such
party at its address set forth below, or at such other address as such party may
designate by written notice to the other in accordance with this provision, and
shall be deemed to have been given or made; if by certified mail, return receipt
requested, five (5) days after mailing; if by telex, telegram or facsimile,
immediate upon sending and upon confirmation of receipt; if by nationally
recognized overnight courier service with instructions to deliver the next
business day, one (1) business day after sending; and if by hand, immediately
upon personal delivery.

                  Section 18.       Amendments; Waivers.
                                    -------------------

                  No amendment or waiver of any provision of this Agreement, nor
consent to any departure by any party herefrom, shall in any event be effective
unless the same shall be in writing and signed by such party, and then such
waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given.

                  Section 19.       Successors and Assigns.
                                    ----------------------

                  This Agreement, and the terms, covenants and conditions
hereof, shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns.

                  Section 20.       Severability.
                                    ------------

                  In case any provision of this Agreement shall be invalid,
illegal or unenforceable in any jurisdiction, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.

                  Section 21.       Waiver of Right to Trial by Jury.
                                    --------------------------------

                  ISSUER, GRANTOR AND SECURED PARTY HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVE ANY AND ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT,
CLAIM, DEMAND OR CAUSE OF ACTION BY THE OTHER PARTIES HERETO ARISING UNDER, IN
CONNECTION WITH OR OTHERWISE RELATING TO THIS AGREEMENT OR ANY OTHER AGREEMENT,
INSTRUMENT OR DOCUMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH, WHETHER NOW
EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR
OTHERWISE. ISSUER, GRANTOR AND SECURED PARTY HEREBY AGREE AND CONSENT THAT ANY
PARTY MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS AGREEMENT WITH ANY
COURT AS WRITTEN

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EVIDENCE OF THIS CONSENT BY ISSUER, GRANTOR AND SECURED PARTY TO THE WAIVER OF
THEIR RESPECTIVE RIGHTS TO TRIAL BY JURY.

                  Section 22.       Consent to Jurisdiction.
                                    -----------------------

                  (a) Each of Issuer, Grantor and Secured Party hereby
irrevocably submits to the jurisdiction of any New York State or Federal court
sitting in the Borough of Manhattan, The City of New York, in any action or
proceeding arising out of or relating to this Agreement, and hereby irrevocably
agrees that all claims in respect of such action or proceeding may be heard and
determined in such New York State or Federal court. Each of Issuer, Grantor and
Secured Party hereby irrevocably waives, to the fullest extent it may
effectively do so, the defense of an inconvenient forum to the maintenance of
such action or proceeding. Each of Issuer, Grantor and Secured Party also
irrevocably consents to the service of copies of the summons and complaint and
any other process which may be served in any such action or proceeding by the
mailing or delivery of a copy of such process to such party at its address for
notice specified herein by certified mail, return receipt requested.

                  (b) Nothing contained in this Section shall affect the right
of Issuer, Grantor or Secured Party to serve legal process in any other manner
permitted by law or to bring any action or proceeding against the other party or
its property in the courts of any other jurisdictions.

                  Section 23.       Governing Law.
                                    -------------

                  The validity, interpretation and enforcement of this Agreement
shall be governed by the internal laws of the State of New York (without giving
effect to principles of conflicts of law).

                  Section 24.       Counterparts.
                                    ------------

                  This Agreement may be executed in any number of counterparts,
all of which together shall constitute one and the same instrument. Any of the
parties hereto may execute this Agreement by signing any such counterpart.

                                       12

<PAGE>

                                 Signature Page

                  IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed as of the day and year first written above.

                                            ISSUER:

                                            AMPEX CORPORATION

                                            By  /s/ Craig L. McKibben
                                                -----------------------
                                                Name:  Craig L. McKibben
                                                Title:     Vice President

                                            Address:
                                            --------
                                            135 E. 57th Street
                                            New York, NY  10022

                                            GRANTOR:

                                            AMPEX DATA SYSTEMS CORPORATION

                                            By  /s/ Craig L. McKibben
                                                -----------------------
                                                Name:  Craig L. McKibben
                                                Title:     Vice President

                                            Address:
                                            --------
                                            1228 Douglas Avenue
                                            Redwood City, CA  94063

                                            SECURED PARTY:

                                            HILLSIDE CAPITAL INCORPORATED

                                            By  /s/ Raymond F. Weldon
                                                ---------------------
                                                Name:  Raymond F. Weldon
                                                Title:     Senior Vice President

                                            Address:
                                            --------
                                            405 Park Avenue
                                            New York, NY 10022

                                       13

<PAGE>

                                  Schedule 5(f)
                                  -------------
Part I:     Location of Inventory.

         1228 Douglas Avenue, Redwood City, CA
         600 Wooten, Colorado Springs, CO
         Loan and consignment inventory at various customer locations
         Miscellaneous inventory with service technicians at various locations

Part II:   Location of Chief Executive Office and Collateral Records.

         Chief Executive Office:    1228 Douglas Avenue, Redwood City, CA
         Collateral Records:        1228 Douglas Avenue, Redwood City, CA
                                    600 Wooten, Colorado Springs, CO (1995 &
                                    older)

Part III:   Federal Tax ID Number.

         94-3112575

Part IV:   Trade Names.

         Ampex Data Systems Corporation

SECURITY AGREEMENT(V8)

                                       14Prepared by R.R. Donnelley Financial -- Amended and Restated 2000 Employee Stock Plan

Table of Contents

 Exhibit 10.1 
  
  
 
 
 LOGICVISION, INC. 
  
 2000 EMPLOYEE STOCK PURCHASE PLAN 
  
 Amended and Restated as of January 17, 2002 

 
 

Table of Contents

  
 
Table of Contents 
  
 
	  	  	 Page
 

	 SECTION 1.    
PURPOSE OF THE PLAN

 	  	 1
 
	 SECTION 2.    
DEFINITIONS

 	  	 1
 
	 (A)    
“Board”
 	  	 1
 
	 (B)    
“Code”
 	  	 1
 
	 (C)    
“Committee” 
 	  	 1
 
	 (D)    
“Company”
 	  	 1
 
	 (E)    
“Corporate Reorganization”
 	  	 1
 
	 (F)    
“Eligible Employee”
 	  	 1
 
	 (G)    
“Exchange Act”
 	  	 1
 
	 (H)    
“Fair Market Value”
 	  	 1
 
	 (I)    
“IPO”
 	  	 2
 
	 (J)    
“Offering Period” 
 	  	 2
 
	 (K)    
“Participant” 
 	  	 2
 
	 (L)    
“Participating Company”
 	  	 2
 
	 (M)    
“Plan” 
 	  	 2
 
	 (N)    
“Plan Account” 
 	  	 2
 
	 (O)    
“Purchase Price”
 	  	 2
 
	 (P)    
“Stock”
 	  	 2
 
	 (Q)    
“Subsidiary” 
 	  	 2
 
	 (R)    
“W-2 Payroll”
 	  	 2
 
	 SECTION 3.    
ADMINISTRATION OF THE PLAN
 
 	  	 3
 
	 (A)    
Committee Composition
 	  	 3
 
	 (B)    
Committee Responsibilities 
 	  	 3
 
	 SECTION 4.    
ENROLLMENT AND PARTICIPATION

 	  	 3
 
	 (A)    
Offering Periods
 	  	 3
 
	 (B)    
Enrollment 
 	  	 3
 
	 (C)    
Duration of Participation
 	  	 3
 
	 SECTION 5.    
EMPLOYEE CONTRIBUTIONS

 	  	 3
 
	 (A)    
Contribution Method
 	  	 3
 
	 (B)    
Amount of Payroll Deductions
 	  	 4
 
	 (C)    
Suspension, Change and Resumption of Payroll Deductions
 	  	 4
 
	 (D)    
Suspension by Company
 	  	 4
 
	 SECTION 6.    
WITHDRAWAL FROM THE PLAN

 	  	 4
 
	 (A)    
Withdrawal
 	  	 4
 
	 (B)    
Re-Enrollment After Withdrawal
 	  	 4
 
	 SECTION 7.    
CHANGE IN EMPLOYMENT STATUS
 
 	  	 4
 
	 (A)    
Termination of Employment
 	  	 4
 
	 (B)    
Leave of Absence 
 	  	 4
 
	 (C)    
Death
 	  	 5
 
	 SECTION 8.    
PLAN ACCOUNTS AND PURCHASE OF SHARES
 
 	  	 5
 
	 (A)    
Plan Accounts
 	  	 5
 
	 (B)    
Purchase Price
 	  	 5
 
	 (C)    
Number of Shares Purchased 
 	  	 5
 

 
 

 i 

Table of Contents

 
	  	  	 Page
 

	 (D)    
Available Shares Insufficient 
 	  	 5
 
	 (E)    
Issuance of Stock 
 	  	 5
 
	 (F)    
Unused Cash Balances 
 	  	 6
 
	 SECTION 9.    
LIMITATIONS ON STOCK OWNERSHIP
 	  	 6
 
	 (A)    
Five Percent Limit
 	  	 6
 
	 (B)    
Dollar Limit 
 	  	 6
 
	 SECTION 10.    
RIGHTS NOT TRANSFERABLE
 	  	 6
 
	 SECTION 11.    
NO RIGHTS AS AN EMPLOYEE
 	  	 7
 
	 SECTION 12.    
NO RIGHTS AS A STOCKHOLDER 
 	  	 7
 
	 SECTION 13.    
SECURITIES LAW REQUIREMENTS 
 	  	 7
 
	 SECTION 14.    
STOCK OFFERED UNDER THE PLAN
 	  	 7
 
	 (A)    
Authorized Shares
 	  	 7
 
	 (B)    
Antidilution Adjustments
 	  	 7
 
	 (C)    
Reorganizations 
 	  	 7
 
	 SECTION 15.    
AMENDMENT OR DISCONTINUANCE 
 	  	 8
 
	 SECTION 16.    
EXECUTION 
 	  	 8
 

 
 

 ii 

Table of Contents

  
 LOGICVISION, INC. 
  
 2000 EMPLOYEE STOCK PURCHASE PLAN 
  
 SECTION 1.    
PURPOSE OF THE PLAN. 
  
 The Plan was adopted by the Board on September 25, 2000 and was subsequently
approved by the Company’s stockholders. The Plan is hereby amended and restated effective January 17, 2002. The purpose of the Plan is to provide Eligible Employees with an opportunity to increase their proprietary interest in the success of
the Company by purchasing Stock from the Company on favorable terms and to pay for such purchases through payroll deductions. The Plan is intended to qualify under section 423 of the Code. 
  

SECTION 2.    
DEFINITIONS. 
  
 (a)    
“Board” means the Board of Directors of the Company, as constituted from time to time. 
  
 (b)    
“Code” means the Internal Revenue Code of 1986, as amended. 
  
 (c)    
“Committee” means a committee of the Board, as described in Section 3. 
  
 (d)    
“Company” means LogicVision, Inc., a Delaware corporation. 
  
 (e)    
“Corporate Reorganization” means: 
  
 (i)    The
consummation of a merger or consolidation of the Company with or into another entity, or any other corporate reorganization; or 
  
 (ii)    The sale, transfer or other disposition of all or substantially all of the Company’s assets or the complete liquidation or dissolution of the Company. 
  
 (f)    
“Eligible Employee” means any employee of a Participating Company whose customary employment is for more than five months per calendar year and for more than 20 hours per week and who is on the W-2 Payroll
of a Participating Company. “Eligible Employee” shall not include (i) an individual whose participation in the Plan is prohibited by the law of any country which has jurisdiction over him or her; or (ii) an individual who is subject to a
collective bargaining agreement that does not provide for participation in the Plan. If during any period, a Participating Company has not treated an individual as a common-law employee and, for that reason, has not withheld employment taxes with
respect to that individual, then that individual shall not be an Eligible Employee for that period, even if the individual is determined, retroactively, to have been a common-law employee for income and employment tax purposes during all or any
portion of that period. 
  
 (g)    
“Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 (h)    
“Fair Market Value” means the market price of Stock, determined by the Committee as follows: 
 

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 (i)    If Stock was traded on The Nasdaq National Market
on the date in question, then the Fair Market Value shall be equal to the last-transaction price quoted for such date by The Nasdaq National Market; or 
  
 (ii)    If Stock was traded on a stock exchange on the date in question, then the Fair Market Value shall be equal to the closing price reported by
the applicable composite transactions report for such date; or 
  
 (iii)    If none of the
foregoing provisions is applicable, then the Fair Market Value shall be determined by the Committee in good faith on such basis as it deems appropriate. 
  
 Whenever possible, the determination of Fair Market Value by the Committee shall be based on the prices reported in the Wall Street Journal or as reported directly to the Company by Nasdaq or a stock exchange.
Such determination shall be conclusive and binding on all persons. 
  
 (i)    
“IPO” means the initial offering of Stock to the public pursuant to a registration statement filed by the Company with the Securities and Exchange Commission on October 31, 2001. 
  
 (j)    
“Offering Period” means a six-month period with respect to which the right to purchase Stock may be granted under the Plan, as determined pursuant to Section 4(a). 
  
 (k)    
“Participant” means an Eligible Employee who elects to participate in the Plan, as provided in Section 4(b). 
  
 (l)    
“Participating Company” means (i) the Company and (ii) each present or future Subsidiary designated by the Committee as a Participating Company. 
  
 (m)    
“Plan” means this LogicVision, Inc. 2000 Employee Stock Purchase Plan, as it may be amended from time to time. 
  
 (n)    
“Plan Account” means the account established for each Participant pursuant to Section 8(a). 
  
 (o)    
“Purchase Price” means the price at which Participants may purchase Stock under the Plan, as determined pursuant to Section 8(b). 
  
 (p)    
“Stock” means the Common Stock of the Company. 
  
 (q)    
“Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in the unbroken
chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 
  
 (r)    
“W-2 Payroll” means whatever mechanism or procedure that a Participating Company uses to pay any individual which results in the issuance of Form W-2 to the individual. “W-2 Payroll” does not
include any mechanism or procedure which results in the issuance of any form other than a Form W-2 to an individual, including, but not limited to, any Form 1099 which 
 

 2 

Table of Contents

 
may be issued to an independent contractor, an agency employee or a consultant. Whether a mechanism or procedure qualifies as a “W-2 Payroll” shall be determined in the absolute
discretion of the Participating Company, and the Participating Company’s determination shall be conclusive and binding on all persons. 
  
 SECTION
3.    
ADMINISTRATION OF THE PLAN 
  
 (a)    
Committee Composition. The Plan shall be administered by the Committee. The Committee shall consist exclusively of one or more directors of the Company, who shall be appointed by the Board. 
  
 (b)    
Committee Responsibilities. The Committee shall interpret the Plan and make all other policy decisions relating to the operation of the Plan. The Committee may adopt such rules, guidelines and forms as it deems
appropriate to implement the Plan. The Committee’s determinations under the Plan shall be final and binding on all persons. 
  
 SECTION
4.    
ENROLLMENT AND PARTICIPATION.  
  
 (a)    
Offering Periods. While the Plan is in effect, two Offering Periods shall commence in each calendar year. The Offering Periods shall consist of the six-month periods commencing on each February 1 and August 1,
except that the first Offering Period shall commence on the date of the IPO and end on July 31, 2002. 
  
 (b)    
Enrollment. Any individual who, on the day preceding the first day of an Offering Period (other than the initial Offering Period), qualifies as an Eligible Employee may elect to become a Participant in the Plan for
such Offering Period by following the procedures established by the Company. All Eligible Employees shall be automatically enrolled in the initial Offering Period under the Plan. 
  
 (c)    
Duration of Participation. Once enrolled in the Plan, a Participant shall continue to participate in the Plan until he or she ceases to be an Eligible Employee, withdraws from the Plan under Section 6(a) or reaches
the end of the Offering Period in which his or her employee contributions were discontinued under Section 5(c), 5(d) or 9(b). A Participant who discontinued employee contributions under Section 5(c), 5(d) or 9(b) or withdrew from the Plan under
Section 6(a) may again become a Participant, if he or she then is an Eligible Employee, by following the procedures established by the Company. A Participant whose employee contributions were discontinued automatically under Section 5(d) or 9(b)
shall automatically resume participation at the beginning of the earliest Offering Period ending in the next calendar year, if he or she then is an Eligible Employee. 
  
 SECTION 5.    
EMPLOYEE CONTRIBUTIONS 
  
 (a)    
Contribution Method. A Participant may purchase shares of Stock under the Plan solely by means of payroll deductions; provided, however, that in the initial Offering Period, Participants may also purchase shares of
Stock by making a lump-sum cash payment at the end of the Offering Period. Payroll deductions, as designated by the Participant pursuant to Subsection (b) below, shall occur on each payday during participation in the Plan. 
 

 3 

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 (b)    
Amount of Payroll Deductions. An Eligible Employee shall designate the amount of payroll deductions to be withheld for the purchase of Stock by following the procedures established by the Company. During the initial
Offering Period, no payroll deduction will be made unless a Participant timely files the proper form with the Company after a registration statement covering the Stock is filed and effective under Securities Act of 1933, as amended. 

 
 (c)    
Suspension, Change and Resumption of Payroll Deductions. A Participant may elect to suspend or change the rate of payroll deductions and, having elected to suspend payroll deductions, may elect to resume them. Any
such election shall be made by following the procedures prescribed by the Company, which election shall be put into effect at the time prescribed by the Company’s procedures. No Participant shall make more than two elections (or such other
limit on elections established by the Committee) under this Subsection (c) during any Offering Period. 
  
 (d)    
Suspension by Company. Notwithstanding anything to the contrary in this Plan, the Company shall have the discretionary authority to suspend a Participant’s payroll deductions at any time in order to facilitate
compliance with the Internal Revenue Code or any dollar or share limit under the Plan. 
  
 SECTION 6.    
WITHDRAWAL FROM THE PLAN. 
  
 (a)    
Withdrawal. A Participant may elect to withdraw from the Plan by completing the procedures established by the Company at any time before the last day of an Offering Period; provided, however, that in the initial
Offering Period, Participants may be deemed to withdraw from the Plan by declining or failing to remit timely payment to the Company for the shares of Stock. As soon as reasonably practicable thereafter, payroll deductions shall cease and the entire
amount credited to the Participant’s Plan Account shall be refunded to him or her in cash, without interest. No partial withdrawals shall be permitted. 
  
 (b)    
Re-Enrollment After Withdrawal. A former Participant who has withdrawn from the Plan shall not be a Participant until he or she re-enrolls in the Plan under Section 4(c). Re-enrollment may be effective only at the
commencement of an Offering Period. 
  
 SECTION 7.    
CHANGE IN EMPLOYMENT STATUS. 
  
 (a)    
Termination of Employment. Termination of employment as an Eligible Employee for any reason, including death, shall be treated as an automatic withdrawal from the Plan under Section 6(a). (A transfer from one
Participating Company to another shall not be treated as a termination of employment.) 
  
 (b)    
Leave of Absence. For purposes of the Plan, employment shall not be deemed to terminate when the Participant goes on a military leave, a sick leave or another bona fide leave of absence, if the leave was approved by
the Company in writing. Employment, however, shall be deemed to terminate 90 days after the Participant goes on a leave, unless a contract or statute guarantees his or her right to return to work. Employment shall be deemed to terminate in any event
when the approved leave ends, unless the Participant immediately returns to work. 
 

 4 

Table of Contents

  
 (c)    
Death. In the event of the Participant’s death, the amount credited to his or her Plan Account shall be paid to a beneficiary designated by him or her for this purpose on the prescribed form or, if none, to the
Participant’s estate. Such form shall be valid only if it was filed with the Company at the prescribed location before the Participant’s death. 
  
 SECTION 8.    
PLAN ACCOUNTS AND PURCHASE OF SHARES.  
  
 (a)    
Plan Accounts. The Company shall maintain a Plan Account on its books in the name of each Participant. Whenever an amount is deducted from the Participant’s Compensation under the Plan, such amount shall be
credited to the Participant’s Plan Account. Amounts credited to Plan Accounts shall not be trust funds and may be commingled with the Company’s general assets and applied to general corporate purposes. No interest shall be credited to Plan
Accounts. 
  
 (b)    
Purchase Price. The Purchase Price for each share of Stock purchased on the last trading day of the month in which the Offering Period expired shall be the lower of: 
  
 (i)    85% of the Fair Market Value of such share on the last trading day of such Offering Period; or

  
 (ii)    85% of the Fair Market Value of such share on the last trading day before the
commencement of the applicable Offering Period or, in the case of the first Offering Period under the Plan, 85% of the price at which one share of Stock is offered to the public in the IPO. 
  
 (c)    
Number of Shares Purchased. As of the last trading day of each month in which the Offering Period expired, each Participant shall be deemed to have elected to purchase the number of shares of Stock calculated in
accordance with this Subsection (c), unless the Participant has previously elected to withdraw from the Plan in accordance with Section 6(a). The amount then in the Participant’s Plan Account shall be divided by the Purchase Price, and the
number of shares that results shall be purchased from the Company with the funds in the Participant’s Plan Account. The foregoing notwithstanding, no Participant shall purchase more than 1,000 shares of Stock with respect to any Offering Period
nor more than the amounts of Stock set forth in Sections 9(b) and 14(a). The Committee may determine with respect to all Participants that any fractional share, as calculated under this Subsection (c), shall be (i) rounded down to the next lower
whole share or (ii) credited as a fractional share. 
  
 (d)    
Available Shares Insufficient. In the event that the aggregate number of shares that all Participants elect to purchase during an Offering Period exceeds the maximum number of shares remaining available for issuance
under Section 14(a), then the number of shares to which each Participant is entitled shall be determined by multiplying the number of shares available for issuance by a fraction, the numerator of which is the number of shares that such Participant
has elected to purchase and the denominator of which is the number of shares that all Participants have elected to purchase. 
  
 (e)    
Issuance of Stock. Certificates representing the shares of Stock purchased by a Participant under the Plan shall be issued to him or her as soon as reasonably practicable after the close of the applicable Offering
Period, except that the Committee may determine that such shares shall be held for each Participant’s benefit by a broker designated by the Committee 
 

 5 

Table of Contents

 
(unless the Participant has elected that certificates be issued to him or her). Shares may be registered in the name of the Participant or jointly in the name of the Participant and his or her
spouse as joint tenants with right of survivorship or as community property. 
  
 (f)    
Unused Cash Balances. An amount remaining in the Participant’s Plan Account that represents the Purchase Price for any fractional share shall be carried over in the Participant’s Plan Account to the next
Offering Period. Any amount remaining in the Participant’s Plan Account that represents the Purchase Price for whole shares that could not be purchased by reason of Subsection (c) above, Section 9(b) or Section 14(a) shall be refunded to the
Participant in cash, without interest. 
  
 SECTION 9.    
LIMITATIONS ON STOCK OWNERSHIP. 
  
 (a)    
Five Percent Limit. Any other provision of the Plan notwithstanding, no Participant shall be granted a right to purchase Stock under the Plan if such Participant, immediately after his or her election to purchase
such Stock, would own stock possessing more than 5% of the total combined voting power or value of all classes of stock of the Company or any parent or Subsidiary of the Company. For purposes of this Subsection (a), the following rules shall apply:

  
 (i)    Ownership of stock shall be determined after applying the attribution rules of
section 424(d) of the Code; 
  
 (ii)    Each Participant shall be deemed to own any stock
that he or she has a right or option to purchase under this Plan or any other; and 
  
 (iii)    Each Participant shall be deemed to have the right to purchase 1,000 shares of Stock under this Plan with respect to each Offering Period. 
  
 (b)    
Dollar Limit. Any other provision of the Plan notwithstanding, no Participant shall purchase Stock with a Fair Market Value in excess of $25,000 per calendar year (under this Plan and all other employee stock
purchase plans of the Company or any parent or Subsidiary of the Company). For purposes of this Subsection (b), the Fair Market Value of Stock shall be determined in each case as of the beginning of the Offering Period in which such Stock is
purchased. Employee stock purchase plans not described in section 423 of the Code shall be disregarded. If a Participant is precluded by this Subsection (b) from purchasing additional Stock under the Plan, then his or her employee contributions
shall automatically be discontinued and shall resume at the beginning of the earliest Offering Period ending in the next calendar year (if he or she then is an Eligible Employee). 
  
 SECTION 10.    
RIGHTS NOT TRANSFERABLE. 
  
 The rights of any Participant under the Plan, or any Participant’s
interest in any Stock or moneys to which he or she may be entitled under the Plan, shall not be transferable by voluntary or involuntary assignment or by operation of law, or in any manner other than by beneficiary designation or the laws of descent
and distribution. If a Participant in any manner attempts to transfer, assign or otherwise encumber his or her rights or interest under the Plan, other than by 
 

 6 

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beneficiary designation or the laws of descent and distribution, then such act shall be treated as an election by the Participant to withdraw from the Plan under Section 6(a). 

 
 SECTION 11.    
NO RIGHTS AS AN EMPLOYEE. 
  
 Nothing in the Plan or in any right granted under the Plan shall
confer upon the Participant any right to continue in the employ of a Participating Company for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Participating Companies or of the Participant, which
rights are hereby expressly reserved by each, to terminate his or her employment at any time and for any reason, with or without cause. 
  
 SECTION
12.    
NO RIGHTS AS A STOCKHOLDER. 
  
 A Participant shall have no rights as a stockholder with respect to
any shares of Stock that he or she may have a right to purchase under the Plan until such shares have been purchased on the last day of the applicable Offering Period. 
  
 SECTION 13.    
SECURITIES LAW REQUIREMENTS.  
  
 Shares of Stock shall not be issued under the Plan unless the
issuance and delivery of such shares comply with (or are exempt from) all applicable requirements of law, including (without limitation) the Securities Act of 1933, as amended, the rules and regulations promulgated thereunder, state securities laws
and regulations, and the regulations of any stock exchange or other securities market on which the Company’s securities may then be traded. 
  
 SECTION 14.    
STOCK OFFERED UNDER THE PLAN.  
  
 (a)    
Authorized Shares. The maximum aggregate number of shares of Stock available for purchase under the Plan is 250,000, plus an annual increase to be added on the first day of the Company’s fiscal year beginning
in 2002 equal to such amount as may be determined by the Board or, if less, the lesser of (i) 125,000 shares; or (ii) one percent (1%) of the outstanding shares on such date. The aggregate number of Shares available for purchase under the Plan shall
at all times be subject to adjustment pursuant to Section 14(b). 
  
 (b)    
Antidilution Adjustments. The aggregate number of shares of Stock offered under the Plan, the 1,000 share limitation described in Section 8(c) and the price of shares that any Participant has elected to purchase
shall be adjusted proportionately by the Committee for any increase or decrease in the number of outstanding shares of Stock resulting from a subdivision or consolidation of shares or the payment of a stock dividend, any other increase or decrease
in such shares effected without receipt or payment of consideration by the Company, the distribution of the shares of a Subsidiary to the Company’s stockholders or a similar event. 
  
 (c)    
Reorganizations. Any other provision of the Plan notwithstanding, immediately prior to the effective time of a Corporate Reorganization, the Offering Period then in progress shall terminate and shares shall be
purchased pursuant to Section 8, unless the Plan is assumed by the surviving corporation or its parent corporation pursuant to the plan of merger or consolidation. The Plan shall in no event be construed to restrict in any way the Company’s
right to undertake a dissolution, liquidation, merger, consolidation or other reorganization. 
 

 7 

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 SECTION 15.    
AMENDMENT OR DISCONTINUANCE.  
  
 The Board shall have the right to amend, suspend or terminate the
Plan at any time and without notice. Except as provided in Section 14, any increase in the aggregate number of shares of Stock to be issued under the Plan shall be subject to approval by a vote of the stockholders of the Company. In addition, any
other amendment of the Plan shall be subject to approval by a vote of the stockholders of the Company to the extent required by an applicable law or regulation. 
  
 SECTION 16.    
EXECUTION.  
  
 To record the amendment and restatement of the Plan as set forth herein effective as
of January 17, 2002, the Company has caused its authorized officer to execute the same. 
  
 
	  	 	 LOGICVISION, INC.
 
	 
	  	 	 /s/    JOHN H. BARNET  
 
John H. Barnet
 
	  	 	 Vice President of Finance and
 
	  	 	 Chief Financial Officer
 

 
 

 8

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