Document:

exv10w2xcy

 

Exhibit 10.2(c)

TRM AWARD AGREEMENT

(Grant by Compensation Committee of the Board of Directors)

	 	 	 	 	 
	EFFECTIVE DATE:

	 	                                        	 	 
	 
	 	 	 	 
	BETWEEN:

	 	TRM Corporation an Oregon corporation
	 	the “Company”
	 
	 	 	 	 
	AND:

	 	                                        
	 	the “Grantee”

          To attract and retain able, experienced, and trained people and to provide additional
incentive to key employees, the Board of Directors of the Company (the “Board”) adopted and the
shareholders of the Company approved the Company’s Omnibus Stock Incentive Plan (the “Plan”). This
Award Agreement (the “Award Agreement”) documents the grant of Common Stock subject to the terms
and conditions set forth herein and in the Plan. Capitalized terms used herein shall, unless
otherwise required by the context, have the meaning ascribed to such terms in the Plan.

          By action of the Committee, and subject to the terms of the Plan, the Grantee is hereby
granted shares of the Company’s Common Stock, no par value, as indicated below (the “Stock”),
subject to the Plan and to the restrictions and risks of forfeiture as set forth in this Award
Agreement.

          NOW, THEREFORE, in consideration of the promises and the mutual covenants contained in this
Agreement, the parties agree as follows:

     1. Definitions. As used herein, the following terms shall have the meanings set forth
below:

          (a) “Date of Grant” means the Effective Date as indicated above.

          (b) “Forfeiture Date” means any date prior to the end of the Restriction Period on which
Grantee’s employment with the Company (or an affiliate of the Company) terminates for any reason
unless such termination of employment is treated hereunder as accelerating the end of the
Restriction Period.

          (c) “Restriction Period” with respect to any Stock subject to this Award Agreement, means the
period from the Date of Grant up to the Vesting Date applicable to such Stock.

          (d) “Vesting Date” means, with respect to any of the Stock subject to this Award Agreement,
the date specified as the applicable vesting date herein, or such earlier date as such Stock may
become vested under the terms of the Plan.

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     2. Grant. The Company grants to the Grantee upon the terms and conditions set forth
in this Award Agreement ___shares of the Company’s Common Stock. This Award is
given upon the following terms and conditions:

          (a) Subject to the terms and conditions set forth herein and in the Plan, Grantee shall not be
permitted to sell, transfer, pledge or assign any Restricted Stock during such shares’ Restricted
Period.

          (b) The Stock subject to this Award Agreement shall have Vesting Date(s) as specified below:

	 	 	 
	Vesting Date
	 	Percent Vested
	 
	 

          (c) Subject to the terms and conditions set forth herein and in the Plan, the restrictions on
the Stock subject to this Award Agreement imposed hereunder or pursuant to the Plan shall lapse on
each Vesting Date with respect to the portion of such Stock to which such Vesting Date is
applicable. The Stock subject to this Award Agreement shall, however, be fully vested upon a
Change in Control to the extent provide in the Plan (such event being treated as a Vesting Date for
these purposes). Notwithstanding the foregoing, the vesting of the Stock subject to this Award on
the occurrence of a Vesting Date shall only occur if the Grantee is, and has continuously been, an
employee of the Company or of an affiliate of the Company from the Date of Grant through such
Vesting Date.

          (d) In the event the Grantee ceases to serve as an employee of the Company or of an affiliate
of the Company prior to the occurrence of a Vesting Date, the Stock to which such Vesting Date was
applicable shall be forfeited by the Grantee and the Stock so forfeited shall be reacquired by the
Company without consideration.

          (e) Except for the restrictions specified herein and in the Plan, the Grantee shall have all
of the rights of a shareholder with respect to the Stock subject to this Award, including the right
to vote such Stock to the same extent that such shares could be voted if they were not subject to
the restrictions set forth in this Award Agreement.

          (f) Any dividends payable with respect to the Stock subject to this Award shall be distributed
to the Grantee at the same time and in the same manner as dividends are distributed to any other
holder of the Company’s Common Stock. Any dividends that are in the nature of extraordinary
dividends or that are in the form of a distribution of securities, shall be held in escrow and
shall be subject to the same restrictions and the same provisions for vesting and forfeiture as are
applicable under the terms of this Award Agreement and the Plan to the Stock with respect to which
such dividends were issued. [ALTERNATIVE PROVISION: Any

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cash dividends payable with respect to
the Stock subject to this Award shall be invested and reinvested in additional full or fractional shares of the Company’s Common Stock and shall be
deemed to be additional Stock subject to the same restrictions and the same provisions for vesting
and forfeiture as are applicable under the terms of this Award Agreement and the Plan to the Stock
with respect to which such dividends were issued. Any dividends that are in the nature of
extraordinary dividends or that are in the form of a distribution of securities, shall be held in
escrow and shall be subject to the same restrictions and the same provisions for vesting as are
applicable to the Stock to which such dividends relate.]

     3. Legends. Certificates representing the Stock subject to this Award Agreement shall
bear such legends as the Company shall deem appropriate to reflect any restrictions on transfer
imposed under the Award Agreement, pursuant to the terms of the Plan, or by reason of applicable
federal or state securities laws.

     4. Delivery of Shares. Upon a Vesting Date, the Company shall notify Grantee (or
Grantee’s personal representative, heir or legatee in the event of Grantee’s death) that the
restrictions on an installment of Stock have lapsed, and shall, without payment from Grantee for
such Restricted Stock, upon such Grantee’s request deliver a certificate for such Restricted Stock
without any legend or restrictions, except for such restrictions as may be imposed by the
Committee, in its sole judgment, by reason of applicable federal or state securities laws; provided
that no certificates for shares will be delivered to Grantee (or to his or her personal
representative, heir or legatee) until appropriate arrangements have been made with the Company for
the withholding of any taxes which may be due with respect to such Stock. The Company may
condition delivery of certificates for shares of Stock upon the prior receipt from Grantee of any
undertakings which it may determine are required to assure that the certificates are being issued
in compliance with federal and state securities laws. Notwithstanding the foregoing, the Committee
may require the Grantee to deliver to the Company a stock power endorsed in blank relating to the
shares of Common Stock subject to the Award in order to facilitate the reacquisition of the Stock
by the Company in the event of a forfeiture, or may hold the certificates representing the Stock
subject to this Award Agreement until the Restriction Period expires.

     5. Status of Stock. The Stock subject to this Award is intended to constitute
property subject to a substantial risk of forfeiture during the Restriction Period, and subject to
federal income tax in accordance with section 83 of the Code. Section 83 generally provides that
Grantee will recognize compensation income with respect to the Stock only to the extent in becomes
vested on the applicable Vesting Date or Dates in an amount equal to the then fair market value of
the Stock. Alternatively, Grantee may elect, pursuant to Section 83(b) of the Code, to recognize
compensation income for all or any part of the Stock subject to this Award as of the date the Award
is granted to the Grantee in an amount equal to the fair market value of the Stock subject to the
election. Such election must be made within 30 days of the date the Award is granted, and the
Grantee is required to notify the Company immediately if such an election is made. Grantee should
consult his or her tax advisors to determine whether a Section 83(b) election is appropriate.

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     6. Employment. Nothing in the Plan or in this Agreement shall confer upon the Grantee
any right to be continued as an employee of the Company or interfere in any way with the right of
the Company to remove the Grantee as an employee at any time for any cause.

     7. Binding Effect. This Agreement shall be binding upon and shall inure to the
benefit of any successor of the Company, but except as provided above, the Award granted shall not
be assigned or otherwise disposed of by the Grantee.

     8. The Plan. This Award is subject to the terms and conditions of the Plan. In the
event of a conflict between the Plan and this Agreement, the terms of the Plan shall control.

TRM Corporation

	 	 	 	 	 	 	 	 	 
	By
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Kenneth L. Tepper	 	 	 	 	 	 
	 

	 	President & CEO
	 	Address:	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	Social Security No.:	 	 
	 

	 	 	 	 	 	 	 	 

44exv10w7xfy

 

Exhibit 10.7(f)

Mr. Daniel E. O’Brien

9 Evans Lane

Cherry Hill, New Jersey 08003

August 12, 2005

     Re: Employment Agreement

Dear Dan,

This Employment Agreement (the “Agreement”) sets forth the terms of employment by and between TRM
Corporation (the “Company”) and Daniel E. O’Brien
(“you”, the “Executive”) as of August 12, 2005 (the
“Effective Date”).

1. Employment Agreement

	 	1.1	 	Employment 

	 	(a)	 	You will hold the position of Chief Financial Officer of the Company and
perform those duties as are generally associated with such position. You will report to
the President & Chief Executive Officer. You also agree to perform such acts and duties
as the President & Chief Executive Officer may reasonably direct, to comply with all
applicable policies and procedures of the Company, and to devote such time, energy and
skill to your assignment as the President & Chief Executive Officer considers
reasonably necessary for the performance of your duties. Your employment hereunder
with the Company shall constitute your exclusive and full time employment and you will
not engage in any other employment activities except where authorized by the President
& Chief Executive Officer. You and the Company understand and agree that circumstances
may arise in which you and the Company may mutually agree to change, in whole or in
part, the scope of your responsibilities and the title of your position.
Notwithstanding anything herein to the contrary, you shall not be precluded from (a)
engaging in charitable activities and community affairs or (b) managing your personal
investments and affairs, provided that such activities do not materially interfere with
the proper performance of your duties and responsibilities under this Agreement or
compete with the business of the Company.

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	 	(b)	 	Your employment with the Company will continue under this Agreement until
terminated by you or the Company as provided in paragraphs 1.5 or 2.1, below.
Notwithstanding the designation of a term for this Agreement, your employment with the
Company will be on an “at will” basis with both you and the Company retaining the right
to terminate the employment relationship at any time and for any reason, without
liability on the part of the Company or any affiliated or related corporation for the
termination, except as expressly provided in this Agreement. Your last day of
employment with the Company is referred to herein as your Separation Date.

	 	1.2	 	Salary. During the first term of this Agreement, you will be paid the
annualized equivalent of $135,000 as base salary, payable in installments on regular
Company paydays. The first term shall end on August 12, 2006. Thereafter, your base
salary shall be set annually by the Compensation Committee of the Board of Directors.
You will also receive use of a Company-leased automobile.

	 	1.3	 	Benefits. You will be given an opportunity to earn incentive
compensation in each calendar year during the term of this Agreement upon the
achievement of performance criteria to be established by the Compensation Committee of
the Board of Directors. You will also be eligible to participate in any benefit plans
or programs generally available to the Company’s management as the Board of Directors
shall from time-to-time approve, which shall include at least four weeks of paid time
off (PTO) per year.

	 	1.4	 	Term. The term of your employment under this Agreement shall commence
on the Effective Date and shall continue for one (1) year from the Effective Date (the
“Initial Term”). Following the Initial Term, this Agreement shall automatically renew
for successive one (1) year periods unless either the Company or you, as the case may
be, provides written notice to the other party at least thirty (30) days prior to the
termination of the initial Term or any renewal period, stating its or his desire to
terminate or modify this Agreement, or terminates the Agreement as provided herein
below.

2. Termination of Agreement

	 	2.1	 	Termination. This Agreement may be terminated as follows:

	 	(a)	 	This Agreement may be terminated by you for any reason upon 30 days’
written notice to the Company, including notice of your intent not to renew the
Agreement as set forth above in Section 1.5.

	 	(b)	 	This Agreement may be terminated by the Company for any reason at any
time with 30 days’ written notice to you, (including notice of its intent not to
renew the Agreement as set forth above in Section 1.5), subject only to the
obligation of the Company, if you are terminated for reasons other than those
specified in paragraph 2.2, to pay severance pay according to the following
formula:

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	 	(i)	 	Six months pay plus an additional one month’s pay for each year
of employment of you by the Company (based on your hire date), up to a maximum
of 12 months pay (the “Salary Continuation Period”), plus (ii) all incentive
compensation earned but unpaid on or prior to the Separation Date, plus (iii)
health insurance for the Salary Continuation Period at the same coverage level
as in effect immediately prior to the Separation Date.
	 
	 	 	 	Severance pay may be paid to you at your option in a lump sum or in regular
payroll period installments.

	 	(c)	 	This Agreement shall automatically terminate in the event of your death
or disability. For purposes of this Agreement, “disability” shall mean inability
to perform the essential functions of your position, with or without reasonable
accommodation, for a period of more than six (6) months in a twelve (12) month
period by reason of physical or mental illness or incapacity as determined by a
physician jointly chosen by the Company and Executive or his legal representative.

	 	(d)	 	Eligibility for severance pay is conditioned upon your execution of a
Release of Claims in a form provided by the Company at the time of termination.

	 	2.2	 	Ineligibility for Severance Pay. With respect to subparagraph 2.1(b),
you will not be eligible for severance pay under this Agreement if:

	 	(a)	 	you voluntarily resign or retire from your employment at any time and
for any reason except because of an involuntary reduction in your base salary;

	 	(b)	 	the Company terminates your employment for cause (as defined in
paragraph 2.3, below) or your employment terminates due to your death or
disability;

	 	(c)	 	you breach the terms of paragraph 3; or

	 	(d)	 	you fail or refuse to sign the Release of Claims form provided by the
Company at the time of termination.

	 	2.3	 	Definition of Cause. For purposes of this Agreement, “cause” for
termination shall be defined as (i) any misappropriation of funds or property of the
Company by you; (ii) the conviction of or plea of guilty or nolo contendere by you of a
felony or of any crime involving moral turpitude; (iii) your engagement in illegal,
immoral or similar conduct tending to place you or the Company, by association with
you, in disrepute; (iv) abuse of alcohol or drugs to an extent that renders you unable
or unfit to perform his duties hereunder; or (v) your gross dereliction of duty.

3. Confidentiality

	 	3.1	 	Preservation and Non-Use of Confidential Information. You acknowledge
that you have a fiduciary duty as an officer and employee of the Company not to

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	 	 	 	discuss Confidential Information obtained during your employment with the Company. For
purposes of this Agreement, “Confidential Information” means any and all confidential or
proprietary information concerning the Company or its affiliates, joint venturers or
other related entities (“The Company Group”), the disclosure of which could disadvantage
The Company Group. Confidential Information shall not include (i) any information which
is in the public domain, (ii) which becomes known in the industry through no wrongful
act on the part of you or (iii) which relates to general knowledge about the industry,
possessed by you by virtue of your prior experience in the Business. Confidential
Information includes trades secrets as defined under the Uniform Trades Secrets Act.
	 
	 	 	 	Except pursuant to your employment by the Company and as directed by the President &
Chief Executive Officer, you agree not to use Confidential Information, during the term
of this Agreement or after its termination for a period of five years, for any personal
or business purpose, either for your own benefit or that of any other person,
corporation, government or other entity.
	 
	 	 	 	You also agree that, except pursuant to your employment by the Company as directed by
the President & Chief Executive Officer, you will not disclose or disseminate any
Confidential Information, directly or indirectly, at any time during the term of this
Agreement or after its termination, to any person, agency, or court unless compelled to
do so pursuant to legal process ( e.g., a summons or subpoena) or otherwise
required by law and then only after providing the Company with prior notice and a copy
of the legal process.

	 	3.2	 	Covenant not to Compete. You also agree that while employed by the
Company, and for a period of six months after the termination of employment, you shall
not compete with the Company, either directly or indirectly, in the geographical areas
where the Company does business, and you shall not perform services for or own an
interest in any business that does so.

4. Return of Property

On or before your Separation Date, except as agreed to by the Company, you will return all
property belonging to The Company, including, but not limited to, all documents, business
machines, computers, computer hardware and software programs, computer data, telephones
(cellular, mobile or otherwise), pagers, keys, card keys, credit cards, company vehicle and
other Company-owned property.

5. Right To Consult with Attorney

You have the right to consult with an attorney or financial advisor at your own expense
regarding this Agreement.

6. Dispute Resolution

You agree that any dispute (1) concerning the interpretation or construction of this
Agreement, (2) arising from your employment with or termination of employment from

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the Company, (3) relating to any compensation or benefits you may claim, or (4) relating in
any way to any claim by you for reinstatement or reemployment by the Company after execution
of this Agreement shall be submitted to final and binding confidential arbitration. Except
as specifically provided herein, the arbitration shall be governed by the rules of the
American Arbitration Association or such other rules as agreed to by the parties. Each
party shall be responsible for its or his own costs and attorneys’ fees relating to
mediation and arbitration. Both parties agree that the procedures outlined in this
paragraph are the exclusive methods of dispute resolution.

7. Entire Agreement

This Agreement contains the entire agreement between you and the Company concerning the
subject matters discussed herein and supersedes any other discussions, agreements,
representations or warranties of any kind. Any modification of this Agreement shall be
effective only if in writing and signed by each party or its duly authorized representative.
This Agreement supersedes all prior employment agreements between you and the Company or
any corporation affiliated with or related to the Company. The terms of this Agreement are
contractual and not mere recitals. If for any reason any provision of this Agreement shall
be held invalid in whole or in part, such invalidity shall not affect the remainder of this
Agreement.

This Agreement shall be construed in accordance with the laws of the state of Oregon
(without regard to the conflicts of laws provisions thereof).

In order to reflect your voluntary acceptance and agreement with these terms, please sign and
return the enclosed copy of this letter.

	 	 	 	 	 
	 	Sincerely,

TRM CORPORATION

 	 
	 	By:  	/s/ Kenneth L. Tepper
 	 
	 	 	Kenneth L. Tepper 	 
	 	 	President & CEO 	 
	 

ACKNOWLEDGMENT AND AGREEMENT:

I have read this Agreement and voluntarily enter into this Agreement after careful consideration
and the opportunity to review it with financial or legal counsel of my choice.

	 	 	 	 	 
	 	 	 
	 	     /s/ Daniel E. O’Brien
 	 
	 	Daniel E. O’Brien 	 
	 	Executive 	 
	 

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