Document:

exv10w12wxay

Exhibit 10.12(a)

TRM Corporation

1101 Kings Highway North

Suite G100

Cherry Hill, NJ 08034

USA

For the Attention of: Richard Stern

BY FAX AND BY AIRMAIL

18 April 2008

Dear Sirs

	 	 	 
	Re:

	 	Amended and Restated Settlement Agreement — Sale and Purchase Agreement dated 24 January 2007
between (1) TRM Corporation (“TRM Corp”) and (2) Notemachine Limited (“Notemachine”) relating
to the sale and purchase of the entire issued share capital of TRM (ATM) Limited (“TRM
Limited”) (the “Sale Agreement”) and Tax Deed dated 24 January 2007 between TRM Corp and
Notemachine (the “Tax Deed”)

     This Amended and Restated Settlement Agreement (this “Agreement”) amends and restates in its
entirety the Settlement Agreement, dated as of November 20, 2007, between TRM Corp and Notemachine,
effective upon TRM Corp entering into the Securities Purchase Agreement with the purchasers party
thereto (the “Purchasers”) and Lampe, Conway & Co., LLC, as Administrative Agent and Collateral
Agent (in such capacities, the “Administrative Agent”), pursuant to which the Purchasers will
purchase notes in an aggregate principal amount of $11,000,000 from TRM Corp (the “Lampe II
Facility”).

	1.	 	Notemachine acquired the entire issued share capital of TRM Limited on 24 January 2007.

	2.	 	By letter dated 22 February 2007 Notemachine notified TRM of matters giving rise to or
potentially giving rise to Warranty Claims under the Agreement by Notemachine against TRM (the
“22 February Letter”).

	3.	 	By letter dated 20 March 2007 Notemachine notified TRM of further matters giving rise or
potentially giving rise to warranty claims under the Agreement or claims under the Tax Deed by
Notemachine against TRM (the “20 March Letter”).

	4.	 	The draft Completion Accounts were prepared in accordance with clause 4.1 of the Agreement.
TRM Corp notified Notemachine on 26 April 2007 that it did not accept the draft Completion
Accounts. Notemachine considers that an adjustment of £4,211,216 in

 

 

	 	 	its favour should be made in the Completion Accounts (the “Completion Accounts Claim”).
	 
	5.	 	Notemachine and TRM Corp (together the “Parties”) have now agreed, without admission of
liability, and as set out herein the terms of a full and final settlement of:

	 	(a)	 	the Completion Accounts as defined in the Agreement and all and any associated
rights, liabilities and obligations; and
	 
	 	(b)	 	all claims and potential claims of whatever kind (including in respect of
interest and costs), present or future, whether or not presently known or contemplated,
and even if the availability of the claims arises from or is affected by any change in
the law or other change of circumstance of any sort, which either Party has or may have
against the other Party in each case in relation to or arising out of or in connection
with, whether directly or indirectly the matters raised in the 22 February Letter, the
20 March Letter and/or the Completion Accounts Claim (together the “Settled Claims”).

	6.	 	Defined terms in this Agreement shall have the same meaning as in the Sale Agreement.

Settlement Terms

	7.	 	In consideration of the mutual covenants contained herein, the Parties agree that in full and
final settlement of the Settled Claims:

	 	(a)	 	TRM Corp shall pay to Notemachine the sum of £3,250,000. In order to satisfy
this liability TRM Corp will make the following payments via electronic transfer to the
account detailed at clause 17 (the “Account”):

	 	(i)	 	Notemachine acknowledges that, up to the date of this
Agreement, TRM Corp has paid £1,334,048.13 to Notemachine in respect of the
Settled Claims.
	 
	 	(ii)	 	TRM Corp shall pay £506,098.49 plus interest on that sum of
£3,535.76 to Notemachine upon consummation of the Lampe II Facility, leaving a
balance of £1,409,853.38 outstanding.
	 
	 	(iii)	 	TRM Corp shall, unless full early repayment is made, continue
to make monthly payments of £71,211.84 on the first of each month until the
outstanding balance has been repaid, including accrued interest at a compound
interest rate of 15% per annum as shown in the attached Schedule 1.
	 
	 	(iv)	 	In the event that TRM Corp at any time has accumulated surplus
cash of $6,500,000 over and above the normal working capital requirements of
the

 

 

	 	 	 	business, TRM Corp shall, within 30 days, pay Notemachine the lesser of (A)
$1,000,000 or (B) the remaining balance hereunder.

	 	(b)	 	Notemachine hereby acknowledges, agrees and consents to TRM Corp’s use of the
proceeds of the Lampe II Facility to:

	 	(i)	 	repay the outstanding indebtedness under the Securities
Purchase Agreement dated as of February 8, 2008 among TRM Corp, the lenders
party thereto, and Lampe, Conway & Co., Inc.,
	 
	 	(ii)	 	repay the outstanding indebtedness under the Amended and
Restated Second Lien Loan Agreement dated as of November 20, 2006, as amended,
among the TRM Corp, TRM ATM, TRM Copy Centers, the guarantors identified
therein, Wells Fargo Foothill, Inc. and the other lenders identified therein
(the “GSO Credit Facility”),
	 
	 	(iii)	 	pay the amount set forth in clause 7(a)(ii) above,
	 
	 	(iv)	 	pay $4,250,000 as partial consideration for all of the
outstanding capital stock of LJR Consulting Corp., and
	 
	 	(v)	 	pay eFunds Corporation $2,500,000.

	 	(c)	 	In the event that TRM Corp secures a sufficient refinancing (including the
receipt of funds either from securing third party debt or an equity subscription into
the business, but excluding (x) the Lampe II Facility, (y) any working capital facility
in the original principal amount of up to $2,000,000 as permitted by the Lampe II
Facility and (z) any vault cash facility) at any point prior to repayment of all
amounts due to Notemachine hereunder, the entire principal sum still outstanding
pursuant to clause 7(a) (as shown in the final column of Schedule 1) shall become
immediately payable to Notemachine and TRM Corp hereby confirms that it shall use the
proceeds of any such refinancing to first repay all prior or superior liens (including
the amounts owed under the Lampe II Facility) and then pay the outstanding principal
sum to Notemachine before any other use is made of such proceeds. Any refinancing will
only be sufficient for these purposes if it is such that it enables TRM Corp to repay
all such prior or superior liens and the entire principal sum then outstanding pursuant
to clause 7(a). In the event that TRM Corp secures a refinancing (as described above)
which is sufficient to repay all prior or superior liens and some but not all of the
outstanding principal sum due to Notemachine under this Agreement, it will use the sums
obtained from the refinancing remaining once all prior or superior liens have been paid
to immediately pay Notemachine such proportion of the principal sum due pursuant to
clause 7(a) as can be paid with the remaining refinancing monies, and such sum as is
then outstanding shall be payable at the same monthly rate set out in clause 7(a)(iii).
TRM Corp confirms:

 

 

	 	(i)	 	that it will inform any prospective source of finance of this
obligation;
	 
	 	(ii)	 	that it will notify Notemachine of any successful refinancing
immediately upon execution of the documentation setting out the terms of the
refinancing; and
	 
	 	(iii)	 	that it will not without the prior written consent of
Notemachine (such consent to be granted or withheld at the sole discretion of
Notemachine) create, agree or allow to be created any charge or lien over any
or all of its assets, save that Notemachine agrees that TRM Corp shall be
entitled to create a charge over its assets (y) in favour of the Purchasers and
the Administrative Agent in connection with the Lampe II Facility or (z) for
the purposes of a refinancing, and Notemachine shall not object to the creation
of such a charge.

	 	(d)	 	TRM Corp confirms that it has granted a charge over its assets in favour of the
Purchasers and the Administrative Agent under the Lampe II Facility (the “Lampe
Charge”). TRM Corp agrees that it will inform Notemachine in the event that the Lampe
Charge is discharged.
	 
	 	(e)	 	TRM Corp will upon the effectiveness of this Agreement grant a second charge
(for the avoidance of doubt, ranking only behind the Lampe Charge) in favour of
Notemachine over the assets of TRM Corp in the form of the draft attached at Appendix A
to this Agreement.
	 
	 	(f)	 	Notemachine agrees to discharge any charge granted to it by TRM Corp without
delay upon receipt of all payments due under clause 7 and upon receipt of its
reasonable costs of applying to discharge the charge.

	8.	 	Notemachine hereby agrees that until the Lampe II Facility has been indefeasibly paid in full
in cash, and notwithstanding anything to the contrary set forth in this Agreement or any other
agreement related hereto, all rights of payment or enforcement in favor of Notemachine under
this Agreement and all other obligations of TRM Corp to Notemachine under this Agreement,
shall in all respects be, and effective immediately hereby are, subject, subordinate, and
junior, in right of payment and enforcement, to the prior indefeasible payment of the Lampe II
Facility in full in cash; provided, however, that so long as no Event of Default (as defined
in the Secured Securities Purchase Agreement) has occurred and is continuing, Notemachine will
receive payments from TRM Corp in accordance with clause 7 of this Agreement, save that in the
event that an Event of Default continues for more that 90 days consecutively, TRM Corp shall
recommence payments to Notemachine in accordance with clause 7 and Events of Default shall not
prevent TRM Corp from making payments for more than an aggregate of 180 days during the life
of this Agreement.. Notemachine hereby further agree that the collateral securing the
indebtedness of TRM Corp in favour of Notemachine shall in no event cover any collateral other
than the properties and assets of TRM Corp that comprise

 

 

the Collateral (as defined in the Lampe II Facility). To the extent that TRM Corp grants
any security interest to Notemachine with respect to any collateral that is not Collateral,
TRM Corp shall immediately make a similar grant of collateral to secure the Lampe II
Facility and Notemachine shall be deemed an additional collateral agent under the Lampe II
Facility and shall hold such additional collateral for the benefit of the purchasers under
the Lampe II Facility and Notemachine, all subject to the terms of the foregoing provisions
of this clause.

In the event of any payment or distribution of assets of any kind or character, whether in
cash, property, or securities, upon the dissolution, winding up, or total or partial
liquidation or reorganization, readjustment, arrangement, or similar proceeding relating to
TRM Corp or its subsidiaries, or any of their property, whether voluntary or involuntary, or
in bankruptcy, insolvency, receivership, arrangement, or similar proceedings or upon an
assignment for the benefit of creditors, or upon any other marshaling or composition of the
assets and liabilities of TRM Corp or its subsidiaries, or otherwise (such events,
collectively, the “Insolvency Events”): (i) all amounts owing on account of the Lampe II
Facility shall first be indefeasibly paid in full in cash before any payment or distribution
on account of Notemachine may be received by or on behalf of Notemachine (and its
affiliates); and (ii) to the extent permitted by applicable law, any payment or other
distribution on account of Notemachine to which it would be entitled but for the provisions
hereof, shall be paid or delivered by the trustee in bankruptcy, receiver, assignee for the
benefit of creditors, or other liquidating agent making such payment or distribution
directly to the Administrative Agent under the Lampe II Facility, for application to the
payment of the Lampe II Facility in accordance with subclause (i), after giving effect to
any concurrent payment or distribution or provision therefor to the Administrative Agent
under the Lampe II Facility, in respect of such Lampe II Facility; provided, however, that
so long as no default or event of default has occurred and is continuing under the Lampe II
Facility, Notemachine may receive payments from TRM Corp in accordance with clause 7 of this
Agreement.

Notwithstanding anything in this Agreement or any other agreement related hereto to the
contrary, until the Lampe II Facility is indefeasibly repaid in full in cash, if the
Administrative Agent shall have provided written notice to Notemachine and TRM Corp that an
Event of Default has occurred or is continuing under the Lampe II Facility and, (except as
provided below) until the Administrative Agent shall have provided written notice to
Notemachine and TRM Corp that such Event of Default shall have been cured or waived (which
notice the Administrative Agent agrees it shall promptly provide), TRM Corp shall not make,
and the Notemachine agrees not to accept or receive, directly or indirectly, any payment
(whether of principal or interest) or other distribution on account of Notemachine, and
Notemachine further agrees that the failure to pay when otherwise due any amount that would
be payable to Notemachine but for this Agreement, shall not, in and of itself, constitute a
default of TRM Corp’s under this Agreement; provided, however, in no event shall TRM Corp be
prohibited under the terms of the Agreement from making, nor shall Notemachine be prohibited
under the terms of the

 

 

	 	 	Agreement from accepting or receiving, directly or indirectly, any payment (whether or
principal or interest) or other distribution on account of Notemachine for more that 90 days
consecutively or 180 days during the term of this Agreement.
	 
	9.	 	TRM Corp and Notemachine agree that if any instalment payable pursuant to clause 7 above is
not received in cleared funds into the Account by the relevant due date, or if the charge in
favour of Notemachine is not granted as contemplated, this will not affect the full and final
nature of the Settlement recorded herein and Notemachine will only be entitled to enforce this
Agreement to immediately recover the entire outstanding balance of the Settlement Amount by
whatever legal process it considers appropriate.

	10.	 	The Parties agree that payment pursuant to clause 7 is to be made by electronic transfer to
the Account on or before the relevant date.

	11.	 	Each Party irrevocably and unconditionally releases and waives entirely as against the other
Party all and any claims, complaints or causes of action it has or may have in relation to the
Settled Claims irrespective of whether such claim, complaint or cause of action is actual,
known or unknown, suspected, intimated or otherwise.

	12.	 	The Parties agree that in the event the occurrence of an Insolvency Event prior to April
2010, the sum of £3,250,000 (or such other sum payable pursuant to clause 7 as remains
outstanding to Notemachine) shall constitute a liquidated debt of £3,250,000 (or such other
sum payable pursuant to clause 7 as remains outstanding to Notemachine) payable by TRM Corp to
Notemachine, so far as permitted by the laws of the state of Oregon.

	13.	 	For the avoidance of doubt Notemachine will meet any tax liability of Notemachine incurred by
it in respect of the payments provided for herein.

	14.	 	This Agreement supersedes any previous written or oral agreement between the Parties in
relation to the matters dealt with in this letter and contains the whole agreement between the
Parties relating to the subject matter of this Agreement at the date hereof.

	15.	 	If any provision of this Agreement shall be found by any court or administrative body of
competent jurisdiction to be invalid or unenforceable, such invalidity or unenforceability
shall not effect the other provisions of this Agreement which shall remain in full force and
effect.

	16.	 	The terms of this Agreement and the existence and substance of this dispute are confidential
to the Parties and may not be disclosed to any third party without the other party’s consent
save for under compulsion of law or in accordance with a regulatory requirement or where any
such disclosure is made in confidence to that party’s legal or other professional agent.

	17.	 	This Agreement shall be governed by and construed in accordance with the law of England and
Wales and the Parties hereby submit to the exclusive jurisdiction of the

 

 

	 	 	Courts of England and Wales in relation to any dispute arising out of the terms of this
letter.
	 
	18.	 	Notemachine bank account details:

	 	 	 	 
	 	Account name:

	 	Note Machine LTD, Barclays Plc, 1 Churchill Place, London E14 5HP
	 	 
	 	 
	 	IBAN:

	 	XXXXXXXXXXXXXXXXXXXXXX
	 	 
	 	 
	 	SWIFTBIC:

	 	XXXXXXXX
	 	 
	 	 
	 	Account No:

	 	XXXXXXXX
	 	 
	 	 
	 	Sort Code:

	 	XX-XX-XX

	19.	 	Please confirm that you agree to the terms of this Agreement by signing it on behalf of TRM
Corp and returning it to Notemachine.

Yours faithfully

/s/ Peter D. McNamara

Notemachine Limited

	 	 	 
	/s/ Richard Stern
 

For and on behalf of TRM Corporation

	 	 

 

 

Schedules (1)

Schedule 1 Schedule of TRM Corp repayments from Feb 08 onwards

Appendix A

 

			
	(1)	 	Pursuant to Regulation S-K Item 601(b)(2), the
Company agrees to furnish supplementally a copy of any omitted schedule to the
Securities and Exchange Commission upon request.exv10w12wxby

Exhibit 10.12(b)

THIS INSTRUMENT AND THE RIGHTS AND OBLIGATIONS EVIDENCED HEREBY ARE SUBORDINATE (THE
“SUBORDINATION”) IN THE MANNER AND TO THE EXTENT SET FORTH IN THE SETTLEMENT AGREEMENT (AS DEFINED
BELOW).

          GUARANTEE AND COLLATERAL AGREEMENT dated as of April 18, 2008 (this “Agreement”), among TRM
CORPORATION., an Oregon corporation (the “Issuer”), the Subsidiaries of the Issuer from time to
time party hereto and NOTEMACHINE LIMITED ( “Notemachine”).

PRELIMINARY STATEMENT

          Reference is made to the Amended and Restated Settlement Agreement dated as of April 18, 2008
(as amended, supplemented, amended and restated or otherwise modified from time to time, the
“Settlement Agreement”) between the Issuer and Notemachine. The obligations of Notemachine under
the Settlement Agreement are conditioned upon, among other things, the execution and delivery of
this Agreement by the Issuer and each Guarantor. Each Guarantor is an affiliate of the Issuer,
will derive substantial benefits from the Settlement Agreement and is willing to execute and
deliver this Agreement. Accordingly, the parties hereto agree as follows:

ARTICLE I

Definitions

          SECTION 1.01. Defined Terms. As used in this Agreement, the following terms have the meanings
specified below:

          “Accounts Receivable” shall mean all Accounts and all right, title and interest in any
returned goods, together with all rights, titles, securities and guarantees with respect thereto,
including any rights to stoppage in transit, replevin, reclamation and resales, and all related
security interests, liens and pledges, whether voluntary or involuntary, in each case whether now
existing or owned or hereafter arising or acquired.

          “Collateral” shall have the meaning assigned to such term in Section 4.01.

          “Copyright License” shall mean any written agreement, now or hereafter in effect, granting any
right to any third person under any copyright now or hereafter owned by any Grantor or that such
Grantor otherwise has the right to license, or granting any right to any Grantor under any
copyright now or hereafter owned by any third person, and all rights of such Grantor under any such
agreement.

          “Copyrights” shall mean all of the following now owned or hereafter acquired by any Grantor:
(a) all copyright rights in any work subject to the copyright

 

 

laws of the United States or any other country, whether as author, assignee, transferee or
otherwise, and (b) all registrations and applications for registration of any such copyright in the
United States or any other country, including registrations, recordings, supplemental registrations
and pending applications for registration in the United States Copyright Office (or any successor
office or any similar office in any other country), including those listed on Schedule III.

          “Equity Interests” shall mean shares of capital stock, partnership interests in a limited
liability company, beneficial interests in a trust or other equity ownership interests in a person,
and any warrants, options or other rights entitling the holder thereof to purchase or acquire any
such Equity Interest.

          “Federal Securities Laws” shall have the meaning assigned to such term in Section 5.04.

          “General Intangibles” shall mean all choses in action and causes of action and all other
intangible personal property of any Grantor of every kind and nature (other than Accounts) now
owned or hereafter acquired by any Grantor, including all rights and interests in partnerships,
limited partnerships, limited liability companies and other unincorporated entities, corporate or
other business records, indemnification claims, contract rights (including rights under leases,
whether entered into as lessor or lessee, Hedging Agreements and other agreements), Intellectual
Property, goodwill, registrations, franchises, tax refund claims and any letter of credit,
guarantee, claim, security interest or other security held by or granted to any Grantor to secure
payment by an Account Debtor of any of the Accounts.

          “Grantors” shall mean the Issuer and the Guarantors.

          “Guarantor” shall mean (a) the Subsidiaries identified on Schedule I hereto as Guarantors and
(b) each other Subsidiary that becomes a party to this Agreement as a Guarantor after the Closing
Date.

          “Intellectual Property” shall mean all intellectual and similar property of any Grantor of
every kind and nature now owned or hereafter acquired by any Grantor, including inventions,
designs, Patents, Copyrights, Licenses, Trademarks, trade secrets, confidential or proprietary
technical and business information, know-how, show-how or other data or information, software and
databases and all embodiments or fixations thereof and related documentation, registrations and
franchises, and all additions, improvements and accessions to, and books and records describing or
used in connection with, any of the foregoing.

          “License” shall mean any Patent License, Trademark License, Copyright License or other license
or sublicense agreement relating to Intellectual Property to which any Grantor is a party,
including those listed on Schedule III.

          “New York UCC” shall mean the Uniform Commercial Code as from time to time in effect in the
State of New York.

 

 

          “Obligations” shall mean Issuer’s obligations under the Settlement Agreement.

          “Patents” shall mean all of the following now owned or hereafter acquired by any Grantor:
(a) all letters patent of the United States or the equivalent thereof in any other country, all
registrations and recordings thereof, and all applications for letters patent of the United States
or the equivalent thereof in any other country, including registrations, recordings and pending
applications in the United States Patent and Trademark Office (or any successor or any similar
offices in any other country), including those listed on Schedule III, and (b) all reissues,
continuations, divisions, continuations-in-part, renewals or extensions thereof, and the inventions
disclosed or claimed therein, including the right to make, use and/or sell the inventions disclosed
or claimed therein.

          “Pledged Notes” shall mean all promissory notes listed on Schedule II, all promissory notes in
respect of intercompany debt at any time issued to any Guarantor and all other promissory notes
issued to or held by any Guarantor (other than promissory notes issued in connection with
extensions of trade credit by any Guarantor in the ordinary course of business.)

          “Pledged Securities” shall mean (a) the Equity Interests described or referred to in Schedule
II (as the same may be supplemented from time to time); (b)(i) the certificates or instruments, if
any, representing such Equity Interests, (ii) all dividends (cash, Equity Interests or otherwise),
cash, instruments, rights to subscribe, purchase or sell and all other rights and property from
time to time received, receivable or otherwise distributed in respect of or in exchange for any or
all of such securities, (iii) all replacements, additions to and substitutions for any of the
property referred to in this definition, including, without limitation, claims against third
parties, (iv) any other Collateral constituting securities, (v) the proceeds, interest and other
income of or on any of the property referred to in this definition, (vi) all security entitlements
in respect of any of the foregoing, if any and (vii) all books and records relating to any of the
property referred to in this definition and (c) the Pledged Notes.

          “Security Interest” shall have the meaning assigned to such term in Section 3.01.

          “Trademarks” shall mean all of the following now owned or hereafter acquired by any Grantor:
(a) all trademarks, service marks, trade names, corporate names, company names, business names,
fictitious business names, trade styles, trade dress, logos, other source or business identifiers,
designs and general intangibles of like nature, now existing or hereafter adopted or acquired, all
registrations and recordings thereof, and all registration and recording applications filed in
connection therewith, including registrations and registration applications in the United States
Patent and Trademark Office (or any successor office) or any similar offices in any State of the
United States or any other country or any political subdivision thereof, and all extensions or
renewals thereof, including those listed on Schedule III, (b) all goodwill associated

 

 

therewith or symbolized thereby and (c) all other assets, rights and interests that uniquely
reflect or embody such goodwill.

          “Transaction Documents” shall mean this Agreement, the Settlement Agreement and the
Subordination.

ARTICLE II

Guarantee

          SECTION 2.01. Guarantee. Subject to the prior guarantees to the Lenders pursuant to the
Securities Purchase Agreement and the rights of the Lenders pursuant to the Subordination, each
Guarantor unconditionally guarantees, jointly with the other Guarantors and severally, as a primary
obligor and not merely as a surety, the due and punctual payment and performance of the
Obligations. Each Guarantor further agrees that the Obligations may be extended or renewed, in
whole or in part, without notice to or further assent from it, and that it will remain bound upon
its guarantee notwithstanding any extension or renewal of any Obligation. Each Guarantor waives
presentment to, demand of payment from and protest to the Issuer of any Obligation, and also waives
notice of acceptance of its guarantee and notice of protest for nonpayment.

          SECTION 2.02. Guarantee of Payment. Each Guarantor further agrees that its guarantee
hereunder constitutes a guarantee of payment when due and not of collection, and waives any right
to require that any resort be had by Notemachine to any security held for the payment of the
Obligations.

          SECTION 2.03. No Limitations, Etc. (a) Except for termination of a Guarantor’s obligations
hereunder as expressly provided in Section 7.16, the obligations of each Guarantor hereunder shall
not be subject to any reduction, limitation, impairment or termination for any reason, including
any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any
defense or setoff, counterclaim, recoupment or termination whatsoever by reason of the invalidity,
illegality or unenforceability of the Obligations or otherwise. Without limiting the generality of
the foregoing, the obligations of each Guarantor hereunder shall not be discharged or impaired or
otherwise affected by (i) the failure of Notemachine to assert any claim or demand or to enforce
any right or remedy under the provisions of any Transaction Document or otherwise, (ii) any
rescission, waiver, amendment or modification of, or any release from any of the terms or
provisions of, any Transaction Document or any other agreement, including with respect to any other
Guarantor under this Agreement, (iii) the release of, or any impairment of or failure to perfect
any Lien on or security interest in, any security held by Notemachine for the Obligations, (iv) any
default, failure or delay, willful or otherwise, in the performance of the Obligations or (v) any
other act or omission that may or might in any manner or to any extent vary the risk of any
Guarantor or otherwise operate as a discharge of any Guarantor as a matter of law or equity (other
than the indefeasible payment in full in cash of all the Obligations). Each Guarantor expressly
authorizes Notemachine to take and hold security for the payment and

 

 

performance of the Obligations, to exchange, waive or release any or all such security (with
or without consideration), to enforce or apply such security and direct the order and manner of any
sale thereof in its sole discretion or to release or substitute any one or more other guarantors or
obligors upon or in respect of the Obligations, all without affecting the obligations of any
Guarantor hereunder.

          (b) To the fullest extent permitted by applicable law, each Guarantor waives any defense based
on or arising out of any defense of the Issuer or any other Guarantor or the unenforceability of
the Obligations or any part thereof from any cause, or the cessation from any cause of the
liability of the Issuer or any other Guarantor, other than the indefeasible payment in full in cash
of all the Obligations. Notemachine may, at its election, foreclose on any security held by it by
one or more judicial or nonjudicial sales, accept an assignment of any such security in lieu of
foreclosure, compromise or adjust any part of the Obligations, make any other accommodation with
the Issuer or any other Guarantor or exercise any other right or remedy available to it against the
Issuer or any other Guarantor, without affecting or impairing in any way the liability of any
Guarantor hereunder except to the extent the Obligations have been fully and indefeasibly paid in
full in cash. To the fullest extent permitted by applicable law, each Guarantor waives any defense
arising out of any such election even though such election operates, pursuant to applicable law, to
impair or to extinguish any right of reimbursement or subrogation or other right or remedy of such
Guarantor against the Issuer or any other Guarantor, as the case may be, or any security.

          SECTION 2.04. Reinstatement. Each Guarantor agrees that its guarantee hereunder shall
continue to be effective or be reinstated, as the case may be, if at any time payment, or any part
thereof, of any Obligation is rescinded or must otherwise be restored by Notemachine upon the
bankruptcy or reorganization of the Issuer, any other Guarantor or otherwise.

ARTICLE III

Security Interests in Personal Property

          SECTION 3.01. Security Interest. Subject to the prior collateral assignment and pledge of the
Collateral to the Lenders pursuant to the Securities Purchase Agreement and the rights of the
Lenders pursuant to the Subordination, (a)  as security for the payment or performance, as the case
may be, in full of the Obligations, each Grantor hereby assigns and pledges to Notemachine, its
successors and assigns, and hereby grants to Notemachine, its successors and assigns, a security
interest (the “Security Interest”), in all right, title or interest in or to any and all of the
following assets and properties now owned or at any time hereafter acquired by such Grantor or in
which such Grantor now has or at any time in the future may acquire any right, title or interest
(collectively, the “Collateral”):

     (i) all Pledged Securities;

 

 

     (ii) all Accounts;

     (iii) all Chattel Paper;

     (iv) all cash and Deposit Accounts;

     (v) all Documents;

     (vi) all Equipment;

     (vii) all Fixtures;

     (viii) all General Intangibles;

     (ix) all Instruments;

     (x) all Inventory;

     (xi) all Investment Property;

     (xii) all Letter-of-Credit Rights;

     (xiii) all Commercial Tort Claims;

     (xiv) all books and records pertaining to the Collateral; and

     (xv) to the extent not otherwise included, all Proceeds and products of any
and all of the foregoing and all collateral security and guarantees given by any
person with respect to any of the foregoing;

provided, however, that the Collateral shall not include, and in no event shall the
security interest granted under this Section 4.01 attach to (A) any lease, license,
contract, property rights or agreement to which any Grantor is a party (or to any of its rights or
interests thereunder) if the grant of such security interest would constitute or result in either
(x) the abandonment, invalidation or unenforceability of any right, title or interest of any
Grantor therein or (y) in a breach or termination pursuant to the terms of, or a default under, any
such lease, license, contract, property rights or agreement (other than, in each case, to the
extent that any such term would be rendered ineffective pursuant to Sections 9-406,
9-407, 9-408 or 9-409 of the UCC, any provision of the Bankruptcy Code or
otherwise), (B) any Grantor’s directors and officers liability insurance policies, or (C) any
application for registration of a trademark filed with the United States Patent and Trademark
Office on an intent-to-use basis until such time (if any) as a statement of use or amendment to
allege use is filed, at which time such trademark shall automatically become part of the Collateral
and subject to the security interest pledged.

          (b) Subject to the Subordination, each Grantor hereby irrevocably authorizes Notemachine at
any time and from time to time to file in any relevant jurisdiction any initial financing
statements (including fixture filings) with respect to the

 

 

Collateral or any part thereof and amendments thereto that (i) indicate the Collateral as “all
assets” of such Grantor or words of similar effect, and (ii) contain the information required by
Article 9 of the Uniform Commercial Code of each applicable jurisdiction for the filing of any
financing statement or amendment, including (A) whether such Grantor is an organization, the type
of organization and any organizational identification number issued to such Grantor and (B) in the
case of a financing statement filed as a fixture filing, a sufficient description of the real
property to which such Collateral relates. Each Grantor agrees to provide such information to
Notemachine promptly upon request.

          (c) After the termination of the Securities Purchase Agreement and Subordination, the Borrower
shall deliver to deliver any Collateral consisting of Pledged Securities to Notemachine, together
with stock powers executed in blank, and such Collateral shall be held by Notemachine until the
full payment of all amounts due to Lender under the Settlement Agreement or the termination or
expiration of this Agreement.

          (d) The Security Interest is granted as security only and shall not subject Notemachine to, or
in any way alter or modify, any obligation or liability of any Grantor with respect to or arising
out of the Collateral.

          SECTION 3.02. Representations and Warranties. The Grantors jointly and severally represent
and warrant to Notemachine that:

          (a) Subject to the Subordination, each Grantor has good and valid rights in and title
to the Collateral with respect to which it has purported to grant a Security Interest
hereunder and has full power and authority to grant to Notemachine the Security Interest in
such Collateral pursuant hereto and to execute, deliver and perform its obligations in
accordance with the terms of this Agreement, without the consent or approval of any other
person other than any consent or approval that has been obtained.

          (b) Listed on Schedule I is each Grantor’s (i) legal name and address, (ii) identity or
type of organization or corporate structure, (iii) Federal Taxpayer Identification Number
and organizational identification number, and (iv) jurisdiction of organization.

          (c) The Security Interest constitutes (i) a legal and valid second lien security
interest in all Collateral securing the payment and performance of the Obligations and (ii)
a perfected second lien security interest in all Collateral in which a security interest may
be perfected by filing, recording or registering a financing statement or analogous document
in the United States (or any political subdivision thereof) pursuant to the Uniform
Commercial Code or other applicable law in such jurisdictions. The Security Interest is and
shall be prior to any other Lien on any of the Collateral, other than Liens expressly
permitted under the Securities Purchase Agreement that have priority as a matter of law.

 

 

          SECTION 3.03. Covenants. (a) Each Grantor agrees promptly to notify Notemachine in writing of
any change in (i) its legal name and/or address, (ii) its identity or type of organization or
corporate structure, (iii) its Federal Taxpayer Identification Number or organizational
identification number or (iv) its jurisdiction of organization. Each Grantor agrees promptly to
provide Notemachine with certified copies of organizational documents reflecting any of the changes
described in the first sentence of this paragraph. Each Grantor agrees not to effect or permit any
change referred to in the preceding sentence unless all filings have been made (or concurrently
will be made) under the Uniform Commercial Code or otherwise that are required in order for
Notemachine to continue at all times following such change to have a valid, legal and perfected
second priority security interest in all the Collateral. Each Grantor agrees promptly to notify
Notemachine if any material portion of the Collateral owned or held by such Grantor is damaged or
destroyed.

          (b) Subject to the rights of the Lenders under the Securities Purchase Agreement and the
Subordination, each Grantor shall, at its own expense, use commercially reasonable efforts to
defend title to the Collateral against all persons and to defend the Security Interest of
Notemachine in the Collateral and the priority thereof against any Lien not expressly permitted
pursuant hereto or the Settlement Agreement.

          (c) Subject to the Subordination, each Grantor agrees, at its own expense, promptly to
execute, acknowledge, deliver and cause to be duly filed all such further instruments and documents
and take all such actions as Notemachine may from time to time reasonably request to better assure,
obtain, preserve, protect and perfect the Security Interest and the rights and remedies created
hereby, including the payment of any fees and Taxes required in connection with the execution and
delivery of this Agreement, the granting of the Security Interest and the filing of any financing
or continuation statements (including fixture filings) or other documents in connection herewith or
therewith.

          (d) Each Grantor shall remain liable to observe and perform all the conditions and obligations
to be observed and performed by it under each contract, agreement or instrument relating to the
Collateral, all in accordance with the terms and conditions thereof, and each Grantor jointly and
severally agrees to indemnify and hold harmless Notemachine from and against any and all liability
for such performance.

ARTICLE IV

Events of Defaults and Remedies

          SECTION 4.01. Events of Default. Each of the following will be an “Event of Default” under
this Agreement:

          (a) The Issuer shall fail to pay, when due, any amounts due under the Settlement Agreement;

 

 

          (b) Any representation or warranty contained in this Agreement, the Settlement Agreement or
in any documents, certificate or instrument provided in connection with the Settlement Agreement
shall prove to be untrue in any material respect;

          (c) Any Grantor shall fail to perform any obligation under this Agreement, the Settlement
Agreement or any related agreement between any Grantor and Notemachine;

          (d) if any obligation of any Grantor in respect of any indebtedness for borrowed money, in
an aggregate principal amount exceeding $250,000, shall be declared to be or shall become due and
payable prior to its stated maturity or such obligation shall not be paid as and when the same
becomes due and payable; or there shall occur any event or condition which constitutes an event of
default under any mortgage, indenture, instrument, agreement or evidence of indebtedness for
borrowed money relating to any obligation of any Borrower in respect of any such indebtedness the
effect of which is to permit the holder or the holders of such mortgage, indenture, instrument,
agreement or evidence of such indebtedness, or a trustee, agent or other representative on behalf
of such holder or holders, to cause such indebtedness evidenced thereby to become due prior to its
stated maturity;

          (e) If any Grantor shall cease to be solvent, make an assignment for the benefit of its
creditors, call a meeting of its creditors to obtain any general financial accommodation, suspend
business or if any case under any provision of the United States Bankruptcy Code or similar statute
including provisions for reorganizations, shall be commenced by or against such entity or if a
receiver, trustee or equivalent officer shall be appointed for all or any of the properties of such
person;

          (f) if any federal or state tax lien is filed of record against any Grantor and is not
bonded or discharged within ten (10) days of filing; and

          (g) If a judgment or judgments in the aggregate amount of Two Hundred Fifty Thousand and
00/100 Dollars ($250,000.00) shall be entered against any Grantor in any action or proceeding and
shall not be stayed, vacated, bonded, paid or discharged within thirty (30) days of entry, except a
judgment where the claim is fully covered by insurance and the insurance company has accepted
liability therefore in writing.

          SECTION 4.02. Remedies Upon Default. Upon the occurrence and during the continuance of an Event of
Default and subject to the Subordination, all Obligations shall immediately become due and owing
and each Grantor agrees to deliver each item of Collateral to Notemachine on demand, and it is
agreed that Notemachine shall have the right to take any of or all the following actions at the
same or different times, with or without legal process and with or without prior notice or demand
for performance, to take possession of the Collateral and without liability for trespass to enter
any premises where the Collateral may be located for the purpose of taking possession of or
removing the Collateral and, generally, to exercise any and all rights afforded to a secured party
under the Uniform Commercial Code or other applicable law. Without limiting the generality of the
foregoing, each Grantor agrees that Notemachine shall have

 

 

the right, subject to the mandatory requirements of applicable law, to sell or otherwise dispose of
all or any part of the Collateral at a public (with the exception of the Pledged Securities that
are Equity Interests) or private sale or at any broker’s board or on any securities exchange, for
cash, upon credit or for future delivery as Notemachine shall deem appropriate. Notemachine shall
be authorized at any such sale (if it deems it advisable to do so) to restrict the prospective
bidders or Notemachines to persons who will represent and agree that they are purchasing the
Collateral for their own account for investment and not with a view to the distribution or sale
thereof, and upon consummation of any such sale Notemachine shall have the right to assign,
transfer and deliver to Notemachine or Notemachines thereof the Collateral so sold. Each such
Notemachine at any such sale shall hold the property sold absolutely, free from any claim or right
on the part of any Grantor, and each Grantor hereby waives (to the extent permitted by law) all
rights of redemption, stay and appraisal which such Grantor now has or may at any time in the
future have under any rule of law or statute now existing or hereafter enacted.

          Notemachine shall give each applicable Grantor 10 days’ written notice (which each Grantor
agrees is reasonable notice within the meaning of Section 9-611 of the New York UCC or its
equivalent in other jurisdictions) of Notemachine’s intention to make any sale of Collateral. Such
notice, in the case of a public sale, shall state the time and place for such sale and, in the case
of a sale at a broker’s board or on a securities exchange, shall state the board or exchange at
which such sale is to be made and the day on which the Collateral, or portion thereof, will first
be offered for sale at such board or exchange. Any such public sale shall be held at such time or
times within ordinary business hours and at such place or places as Notemachine may fix and state
in the notice (if any) of such sale. At any such sale, the Collateral, or portion thereof, to be
sold may be sold in one lot as an entirety or in separate parcels, as Notemachine may (in its sole
and absolute discretion) determine. Notemachine shall not be obligated to make any sale of any
Collateral if it shall determine not to do so, regardless of the fact that notice of sale of such
Collateral shall have been given. Notemachine may, without notice or publication, adjourn any
public or private sale or cause the same to be adjourned from time to time by announcement at the
time and place fixed for sale, and such sale may, without further notice, be made at the time and
place to which the same was so adjourned. In case any sale of all or any part of the Collateral is
made on credit or for future delivery, the Collateral so sold may be retained by Notemachine until
the sale price is paid by Notemachine or Notemachines thereof, but Notemachine shall not incur any
liability in case any such Notemachine or Notemachines shall fail to take up and pay for the
Collateral so sold and, in case of any such failure, such Collateral may be sold again upon like
notice. At any public (or, to the extent permitted by law, private) sale made pursuant to this
Agreement, any Secured Party may bid for or purchase, free (to the extent permitted by applicable
law) from any right of redemption, stay, valuation or appraisal on the part of any Grantor (all
said rights being also hereby waived and released to the extent permitted by applicable law), the
Collateral or any part thereof offered for sale and may make payment on account thereof by using
any claim then due and payable to such Secured Party from any Grantor as a credit against the
purchase price, and such Secured Party may, upon compliance with the terms of sale, hold, retain
and dispose of

 

 

such property without further accountability to any Grantor therefor. For purposes hereof, a
written agreement to purchase the Collateral or any portion thereof shall be treated as a sale
thereof; Notemachine shall be free to carry out such sale pursuant to such agreement and no Grantor
shall be entitled to the return of the Collateral or any portion thereof subject thereto,
notwithstanding the fact that after Notemachine shall have entered into such an agreement all
Events of Default shall have been remedied and the Obligations paid in full. As an alternative to
exercising the power of sale herein conferred upon it, Notemachine may proceed by a suit or suits
at law or in equity to foreclose this Agreement and to sell the Collateral or any portion thereof
pursuant to a judgment or decree of a court or courts having competent jurisdiction or pursuant to
a proceeding by a court-appointed receiver. Any sale pursuant to the provisions of this
Section 5.01 shall be deemed to conform to the commercially reasonable standards as provided in
Section 9-610(b) of the New York UCC or its equivalent in other jurisdictions.

          SECTION 4.03. Application of Proceeds. Notemachine shall apply the proceeds of any
collection, sale, foreclosure or other realization upon any Collateral, including any Collateral
consisting of cash, as follows:

     FIRST, to the payment of all costs and expenses incurred by Notemachine in connection
with such collection, sale, foreclosure or realization or otherwise in connection with this
Agreement, any other Transaction Document or any of the Obligations, including all court
costs and the fees and expenses of its agents and legal counsel, the repayment of all
advances made by Notemachine hereunder on behalf of any Grantor and any other costs or
expenses incurred in connection with the exercise of any right or remedy hereunder;

     SECOND, to the payment in full of all other Obligations;

     THIRD, to the Grantors, their successors or assigns, or as a court of competent
jurisdiction may otherwise direct.

          SECTION 4.04. Grant of License to Use Intellectual Property. For the purpose of enabling
Notemachine to exercise rights and remedies under this Agreement at such time as Notemachine shall
be lawfully entitled to exercise such rights and remedies, each Grantor hereby grants to
Notemachine an irrevocable, nonexclusive license (exercisable without payment of royalty or other
compensation to the Grantors), to use, license or sublicense any of the Collateral consisting of
Intellectual Property now owned or hereafter acquired by such Grantor, and wherever the same may be
located, and including in such license access to all media in which any of the licensed items may
be recorded or stored and to all computer software and programs used for the compilation or
printout thereof, subject, in the case of Trademarks, to the observance of standards of quality and
inspection in connection with the use of such Trademarks as are sufficient to maintain the validity
and enforceability of such Trademarks. The use of such license by Notemachine may be exercised, at
the option of Notemachine, only upon the occurrence and during the continuation of an Event of
Default; provided, however, that any license, sublicense or other transaction entered into by
Notemachine in accordance herewith shall

 

 

be binding upon each Grantor notwithstanding any subsequent cure of an Event of Default.

          SECTION 4.05. Securities Act, Etc. In view of the position of the Grantors in relation to the
Pledged Collateral, or because of other current or future circumstances, a question may arise under
the U.S. Securities Act of 1933, as now or hereafter in effect, or any similar statute hereafter
enacted analogous in purpose or effect (such Act and any such similar statute as from time to time
in effect being called the “Federal Securities Laws”) with respect to any disposition of the
Pledged Collateral permitted hereunder. Each Grantor understands that compliance with the Federal
Securities Laws might very strictly limit the course of conduct of Notemachine if Notemachine were
to attempt to dispose of all or any part of the Pledged Collateral, and might also limit the extent
to which or the manner in which any subsequent transferee of any Pledged Collateral could dispose
of the same. Similarly, there may be other legal restrictions or limitations affecting Notemachine
in any attempt to dispose of all or part of the Pledged Collateral under applicable “blue sky” or
other state securities laws or similar laws analogous in purpose or effect. Each Grantor
recognizes that in light of such restrictions and limitations Notemachine may, with respect to any
sale of the Pledged Collateral, limit Notemachines to those who will agree, among other things, to
acquire such Pledged Collateral for their own account, for investment, and not with a view to the
distribution or resale thereof. Each Grantor acknowledges and agrees that in light of such
restrictions and limitations, Notemachine, in its sole and absolute discretion (a) may proceed to
make such a sale whether or not a registration statement for the purpose of registering such
Pledged Collateral or part thereof shall have been filed under the Federal Securities Laws and
(b) may approach and negotiate with a limited number of potential Notemachines (including a single
potential Notemachine) to effect such sale. Each Grantor acknowledges and agrees that any such
sale might result in prices and other terms less favorable to the seller than if such sale were a
public sale without such restrictions. In the event of any such sale, Notemachine shall incur no
responsibility or liability for selling all or any part of the Pledged Collateral at a price that
Notemachine, in its sole and absolute discretion, may in good faith deem reasonable under the
circumstances, notwithstanding the possibility that a substantially higher price might have been
realized if the sale were deferred until after registration as aforesaid or if more than a limited
number of Notemachines (or a single Notemachine) were approached. The provisions of this Section
will apply notwithstanding the existence of a public or private market upon which the quotations or
sales prices may exceed substantially the price at which Notemachine sells.

ARTICLE V

Miscellaneous

          SECTION 5.01. Notices. All communications and notices hereunder shall (except as otherwise
expressly permitted herein) be in writing and given as follows:

If to Notemachine:

 

 

Notemachine Ltd

Elvicta Business Park

Crickhowell, Powys, NP8 1DF

United Kingdom

If to Issuer or any Guarantor:

TRM Corporation

1101 Kings Highway North, Suite G100

Cherry Hill, NJ 08034

Attn: Richard Stern

Fax: 856-414-9075

          SECTION 5.02. Limitation by Law. All rights, remedies and powers provided in this Agreement
may be exercised only to the extent that the exercise thereof does not violate any applicable
provision of law, and all the provisions of this Agreement are intended to be subject to all
mandatory provisions of law that may be controlling and to be limited to the extent necessary so
that they shall not render this Agreement invalid, unenforceable, in whole or in part, or not
entitled to be recorded, registered or filed under the provisions of any applicable law.

          SECTION 5.03. Binding Effect; Several Agreement. This Agreement shall become effective as to
any Guarantor when a counterpart hereof executed on behalf of such Guarantor shall have been
delivered to Notemachine and a counterpart hereof shall have been executed on behalf of
Notemachine, and thereafter shall be binding upon such Guarantor and Notemachine and their
respective permitted successors and assigns, and shall inure to the benefit of such Guarantor,
Notemachine and their respective successors and assigns, except that no Guarantor shall have the
right to assign or transfer its rights or obligations hereunder or any interest herein or in the
Collateral (and any such assignment or transfer shall be void) except as expressly contemplated or
permitted by this Agreement or the Settlement Agreement. This Agreement shall be construed as a
separate agreement with respect to each Guarantor and may be amended, modified, supplemented,
waived or released with respect to any Guarantor without the approval of any other Guarantor and
without affecting the obligations of any other Guarantor hereunder. In the event of a conflict or
inconsistency between the terms of this Agreement and the Settlement Agreement or Subordination,
the Subordination shall govern.

          SECTION 5.04. Successors and Assigns. Whenever in this Agreement any of the parties hereto is
referred to, such reference shall be deemed to include the permitted successors and assigns of such
party; and all covenants, promises and agreements by or on behalf of any Grantor or Notemachine
that are contained in this Agreement shall bind and inure to the benefit of their respective
successors and assigns.

          SECTION 5.05. Notemachine’s Fees and Expenses; Indemnification. (a) Each Grantor jointly and
severally agrees to indemnify Notemachine

 

 

against, and hold Notemachine harmless from, any and all losses, claims, damages, liabilities,
and related out of pocket expenses, including the reasonable fees, charges and disbursements of any
counsel for Notemachine, incurred by or asserted against Notemachine arising out of, in any way
connected with, or as a result of, the execution, delivery or performance of this Agreement or any
agreement or instrument contemplated hereby or any claim, litigation, investigation or proceeding
relating to any of the foregoing or to the Collateral; provided, however, that such indemnity shall
not be available to the extent that such losses, claims, damages, liabilities or related expenses
are determined by a court of competent jurisdiction by final and nonappealable judgment to have
resulted from the gross negligence or willful misconduct of Notemachine. To the extent permitted
by applicable law, no Grantor shall assert, and each Grantor hereby waives any claim against
Notemachine, on any theory of liability, for special, indirect, consequential or punitive damages
(as opposed to direct or actual damages) arising out of, in connection with, or as a result of,
this Agreement or the Settlement Agreement.

          (b) Any such amounts payable as provided hereunder shall be additional Obligations secured
hereby. The provisions of this Section shall remain operative and in full force and effect
regardless of the termination of this Agreement, the consummation of the transactions contemplated
hereby, the repayment of any of the Obligations, the invalidity or unenforceability of any term or
provision of this Agreement or any other Transaction Document, or any investigation made by or on
behalf of Notemachine. All amounts due under this Section shall be payable on written demand
therefor and shall bear interest, on and from the date of demand, at the rate specified in the
Settlement Agreement.

          SECTION 5.06. Notemachine Appointed Attorney-in-Fact. Each Grantor hereby appoints
Notemachine as the attorney-in-fact of such Grantor for the purpose of carrying out the provisions
of this Agreement and taking any action and executing any instrument that Notemachine may deem
necessary or advisable to accomplish the purposes hereof following the occurrence and during the
continuance of an Event of Default, which appointment is irrevocable and coupled with an interest.
Without limiting the generality of the foregoing, Notemachine shall have the right, upon the
occurrence and during the continuance of an Event of Default, with full power of substitution
either in Notemachine’s name or in the name of such Grantor (a) to receive, endorse, assign and/or
deliver any and all notes, acceptances, checks, drafts, money orders or other evidences of payment
relating to the Collateral or any part thereof, (b) to demand, collect, receive payment of, give
receipt for and give discharges and releases of all or any of the Collateral, (c) to sign the name
of any Grantor on any invoice or bill of lading relating to any of the Collateral, (d) to send
verifications of Accounts Receivable to any Account Debtor, (e) to commence and prosecute any and
all suits, actions or proceedings at law or in equity in any court of competent jurisdiction to
collect or otherwise realize on all or any of the Collateral or to enforce any rights in respect of
any Collateral, (f) to settle, compromise, compound, adjust or defend any actions, suits or
proceedings relating to all or any of the Collateral, (g) to notify, or to require any Grantor to
notify, Account Debtors to make payment directly to Notemachine, and (h) to use, sell, assign,
transfer, pledge, make any agreement with respect to or otherwise deal with all or any of the
Collateral, and to do all other acts and things necessary to carry out the purposes of this
Agreement in accordance with its terms, as fully and completely as

 

 

though Notemachine were the absolute owner of the Collateral for all purposes; provided,
however, that nothing herein contained shall be construed as requiring or obligating Notemachine to
make any commitment or to make any inquiry as to the nature or sufficiency of any payment received
by Notemachine, or to present or file any claim or notice, or to take any action with respect to
the Collateral or any part thereof or the moneys due or to become due in respect thereof or any
property covered thereby. Notemachine and the other Secured Parties shall be accountable only for
amounts actually received as a result of the exercise of the powers granted to them herein, and
neither they nor their officers, directors, employees or agents shall be responsible to any Grantor
for any act or failure to act hereunder, except for their own gross negligence, willful misconduct
or bad faith.

          SECTION 5.07. Applicable Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

          SECTION 5.08. Waivers; Amendment. (a) No failure or delay by Notemachine in exercising any
right or power hereunder or under any other Transaction Document shall operate as a waiver hereof
or thereof, nor shall any single or partial exercise of any such right or power, or any abandonment
or discontinuance of steps to enforce such a right or power, preclude any other or further exercise
thereof or the exercise of any other right or power. The rights and remedies of Notemachine
hereunder and under the other Transaction Documents are cumulative and are not exclusive of any
rights or remedies that it would otherwise have.

          (b) Neither this Agreement nor any provision hereof may be waived, amended or modified except
pursuant to an agreement or agreements in writing entered into by Notemachine and the Guarantor or
Loan Parties with respect to which such waiver, amendment or modification is to apply, subject to
any consent required in accordance with the Subordination.

          SECTION 5.09. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF
ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR
ANY OF THE OTHER TRANSACTION DOCUMENTS. EACH PARTY HERETO HEREBY (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS
AGREEMENT AND THE OTHER TRANSACTION DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

 

          SECTION 5.10. Severability. In the event any one or more of the provisions contained in this
Agreement or in any other Transaction Document should be held invalid, illegal or unenforceable in
any respect, the validity, legality and enforceability of the remaining provisions contained herein
and therein shall not in any way be affected or impaired thereby (it being understood that the
invalidity of a particular provision in a particular jurisdiction shall not in and of itself affect
the validity of such provision in any other jurisdiction). The parties shall endeavor in good-faith
negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the
economic effect of which comes as close as possible to that of the invalid, illegal or
unenforceable provisions.

          SECTION 5.11. Counterparts. This Agreement may be executed in counterparts (and by different
parties hereto on different counterparts), each of which shall constitute an original but all of
which when taken together shall constitute a single contract. Delivery of an executed signature
page to this Agreement by facsimile transmission shall be as effective as delivery of a manually
signed counterpart of this Agreement.

          SECTION 5.12. Headings. Article and Section headings and the Table of Contents used herein
are for convenience of reference only, are not part of this Agreement and are not to affect the
construction of, or to be taken into consideration in interpreting, this Agreement.

          SECTION 5.13. Jurisdiction; Consent to Service of Process. (a) Each of the Grantors hereby
irrevocably and unconditionally submits, for itself and its property, to the non-exclusive
jurisdiction of any New York State court or Federal court of the United States of America, sitting
in New York City, and any appellate court from any thereof, in any action or proceeding arising out
of or relating to this Agreement or any other Transaction Document, or for recognition or
enforcement of any judgment, and each of the Loan Parties hereby irrevocably and unconditionally
agrees that all claims in respect of any such action or proceeding may be heard and determined in
such New York State court or, to the extent permitted by law, in such Federal court. Each of the
Loan Parties agrees that a final judgment in any such action or proceeding shall be conclusive and
may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by
law. Nothing in this Agreement or any other Transaction Document shall affect any right that
Notemachine, the Administrative Agent or any Notemachine may otherwise have to bring any action or
proceeding relating to this Agreement or any other Transaction Document against any Grantor or its
properties in the courts of any jurisdiction.

          (b) Each of the Loan Parties hereby irrevocably and unconditionally waives, to the fullest
extent it may legally and effectively do so, any objection which it may now or hereafter have to
the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement
or any other Transaction Document in any court referred to in paragraph (a) of this Section. Each
of the Loan Parties hereby irrevocably waives, to the fullest extent permitted by law, the defense
of an inconvenient forum to the maintenance of such action or proceeding in any such court.

 

 

          (c) Each of the Loan Parties hereby irrevocably consents to service of process in the manner
provided for notices in Section 5.01. Nothing in this Agreement or any other Transaction Document
will affect the right of Notemachine to serve process in any other manner permitted by law.

          SECTION 5.14. Termination or Release. (a) This Agreement, the guarantees made herein, the
Security Interest, the pledge of the Pledged Collateral and all other security interests granted
hereby shall terminate when all the Obligations have been indefeasibly paid in full.

          (b) In connection with any termination or release pursuant to paragraph (a), above,
Notemachine shall promptly execute and deliver to any Grantor, at such Grantor’s expense, all
Uniform Commercial Code termination statements and similar documents that such Grantor shall
reasonably request to evidence such termination or release.

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

	 	 	 	 	 
	 	TRM CORPORATION

 	 
	 	by:  	/s/ Richard Stern
 	 
	 	 	Name:  	Richard Stern 	 
	 	 	Title:  	President & Chief Executive Officer 	 
	 
	 	TRM ATM CORPORATION

 	 
	 	by:  	/s/ Richard Stern
 	 
	 	 	Name:  	Richard Stern 	 
	 	 	Title:  	President & Chief Executive Officer 	 
	 
	 	TRM COPY CENTERS (USA) CORP.

 	 
	 	by:  	/s/ Richard Stern
 	 
	 	 	Name:  	Richard Stern 	 
	 	 	Title:  	President & Chief Executive Officer 	 
	 
	 	TRM ATM ACQUISITION CORP.

 	 
	 	by:  	/s/ Richard Stern
 	 
	 	 	Name:  	Richard Stern 	 
	 	 	Title:  	President & Chief Executive Officer 	 
	 
	 	ACCESS CASH INTERNATIONAL LLC

 	 
	 	by:  	/s/ Richard Stern
 	 
	 	 	Name:  	Richard Stern 	 
	 	 	Title:  	President & Chief Executive Officer 	 
	 
	 	LJR CONSULTING CORP. D/B/A

ACCESS TO MONEY

 	 
	 	by:  	/s/ Richard Stern
 	 
	 	 	Name:  	Richard Stern 	 
	 	 	Title:  	President & Chief Executive Officer 	 
	 
	 	NOTEMACHINE LIMITED

 	 
	 	by:  	/s/Peter D. McNamara
 	 
	 	 	Name:  	Peter D. McNamara 	 
	 	 	Title:  	Executive Chairman 	 

 

 

	 	 	 	 	 

SCHEDULES (1)

Schedule I            Subsidiary Guarantors

Schedule II            Equity Interests and Pledged Debt Securities

Schedule III            U.S. Copyrights Owned by Subsidiary Guarantors

Licenses /Sublicenses of TRM Corporation, TRM ATM Corporation, TRM Copy Centers (USA) Corporation,
TRM ATM Acquisition Corporation, Access Cash International L.L.C. and LJR Consulting Corp

Patents owned by TRM Corporation, TRM ATM Corporation, TRM Copy Centers (USA) Corporation, TRM ATM
Acquisition Corporation, Access Cash International L.L.C. and LJR Consulting Corp.

 

	(1) 	 	Pursuant to Regulation S-K Item 601(b)(2), the
Company agrees to furnish supplementally a copy of any omitted schedule to the
Securities and Exchange Commission upon request.

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