Document:

exv10w12

 

Exhibit 10.12

COMMON STOCK PURCHASE AGREEMENT

     THIS
COMMON STOCK PURCHASE AGREEMENT (this “Agreement”), dated as of October 26, 2005,
is entered into by and between U.S. HELICOPTER CORPORATION, a Delaware corporation (the
“Company”), and the Buyer listed on Schedule I attached hereto (“Buyer”).

WITNESSETH:

     WHEREAS, the Company and the Buyer are executing and delivering this Agreement in reliance
upon an exemption from securities registration pursuant to Section 4(2) of the Securities Act of
1933, as amended (the “Securities Act”) and/or Rule 506 of Regulation D (“Regulation
D”) as promulgated by the U.S. Securities and Exchange Commission (the “SEC” or the
“Commission”) under the Securities Act; and

     WHEREAS, the parties desire that, upon the terms and subject to the conditions contained
herein, the Company shall issue and sell to the Buyer, as provided herein, and the Buyer shall
purchase the number of shares of the Company’s common stock, par value $0.001 (the “Common
Stock”) set forth on Schedule I for a total purchase price of $1.00 per share (the
“Purchase Price”) (the “Subscription Amount”).

     NOW, THEREFORE, in consideration of the mutual covenants and other agreements contained in
this Agreement the Company and the Buyer hereby agree as follows:

     1. PURCHASE AND SALE OF COMMON STOCK.

          (a) Purchase of Shares. Subject to the satisfaction (or waiver) of the terms and
conditions of this Agreement, the Buyer agrees to purchase at Closing (as defined herein below) and
the Company agrees to sell and issue to the Buyer at Closing, Common Stock in the amount
corresponding with the Subscription Amount set forth opposite the Buyer’s name on Schedule I hereto
(the “Shares”). Upon execution hereof by the Buyer, the Buyer shall wire transfer the Subscription
Amount set forth opposite his name on Schedule I in same-day funds to the trust account of the
Company’s legal counsel as provided on Exhibit A attached hereto.

          (b) Closing Date. The Closing of the purchase and sale of the Shares shall take place
at 10:00 a.m. Eastern Daylight Time on or before the tenth (10th) business day following
the date hereof, unless all conditions precedent to the Closing have been satisfied by the Parties
prior to such date (the “Closing Date”). The Closing shall occur on the Closing Date at the
offices of Gallagher, Briody & Butler in Princeton, New Jersey (or such other place as is mutually
agreed to by the Company and the Buyer).

          (c) Form of Payment. Upon execution hereof by the Buyer, the aggregate proceeds of
the sale of the Shares to Buyer pursuant hereto shall be deposited via wire transfer to the trust
account of the Company’s legal counsel described on Exhibit A attached hereto. In the

 

 

event that the Closing does not occur as provided herein, the aggregate proceeds shall be
returned to the Buyer via wire transfer to an account designated by the Buyer.

     2. BUYER’S REPRESENTATIONS AND WARRANTIES.

     The Buyer represents and warrants, severally and not jointly, that:

          (a) Investment Purpose. The Buyer is acquiring the Shares, for its own account for
investment only and not with a view towards, or for resale in connection with, the public sale or
distribution thereof, except pursuant to sales registered or exempted under the Securities Act.

          (b) Accredited Investor Status. The Buyer is an “Accredited Investor” as that
term is defined in Rule 501(a) of Regulation D.

          (c) Reliance on Exemptions. The Buyer understands that the Shares are being offered
and sold to it in reliance on specific exemptions from the registration requirements of United
States federal and state securities laws and that the Company is relying in part upon the truth and
accuracy of the representations and warranties of the Buyer set forth herein in order to determine
the availability of such exemptions and the eligibility of the Buyer to acquire such securities.

          (d) Information. The Buyer and its advisors (and its counsel), if any, have been
furnished with all materials relating to the business, finances and operations of the Company and
information it has deemed material to making an informed investment decision regarding its purchase
of the Shares, which have been requested by the Buyer. The Buyer and its advisors, if any, have
been afforded the opportunity to ask questions of the Company and its management. Neither such
inquiries nor any other due diligence investigations conducted by the Buyer or its advisors, if
any, or its representatives shall modify, amend or affect the Buyer’s right to rely on the
Company’s representations and warranties contained in Section 3 below. The Buyer understands that
its investment in the Shares involves a high degree of risk and the Buyer has the financial
wherewithal to lose its entire investment and understands that it could lose its entire investment.
The Buyer has sought such accounting, legal and tax advice, as it has considered necessary to make
an informed investment decision with respect to its acquisition of the Shares.

          (e) No Governmental Review. The Buyer understands that no United States federal or
state agency or any other government or governmental agency has passed on or made any
recommendation or endorsement of the Shares, or the fairness or suitability of the investment in
the Shares, nor have such authorities passed upon or endorsed the merits of the offering of the
Shares. The Buyer understands and acknowledges that the Company has undertaken and will undertake
no efforts to comply with any laws of any jurisdiction outside the United States relating to the
issuance and sale of its securities except as may be provided herein.

          (f) Rule 144. The Buyer understands that the Shares must be held indefinitely unless
such Shares are registered under the Securities Act or an exemption from registration is available.
The Buyer acknowledges that such Buyer is familiar with Rule 144, promulgated pursuant to the
Securities Act (“Rule 144”), and that until the Shares are registered

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under the Securities Act in accordance with Section 7 below, Rule 144 permits resales of the
Shares only under certain circumstances. The Buyer understands that to the extent that Rule 144 is
not available, the Buyer will be unable to sell any Shares without either registration under the
Securities Act or the existence of another exemption from such registration requirement.

          (g) Legends. The Buyer understands that until the Shares are registered under the
Securities Act in accordance with Section 7 below, the certificates or other instruments
representing the Shares shall bear a restrictive legend in substantially the following form (and a
stop transfer order may be placed against transfer of such stock certificates):

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
APPLICABLE STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED
SOLELY FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TOWARD RESALE AND
MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
SECURITIES LAWS, OR AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE
FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE
STATE SECURITIES LAWS.

          The legend set forth above shall be removed from the Shares and the Company shall within two
(2) business days issue a certificate without such legend to the holder of the Shares upon which it
is stamped, if, unless otherwise required by state securities laws, (i) in connection with a sale
transaction, provided the Shares are registered under the Securities Act or (ii) in connection with
a sale transaction, after such holder provides the Company with an opinion of counsel, which
opinion shall be in form, substance and scope customary for opinions of counsel in comparable
transactions, to the effect that a public sale, assignment or transfer of the Shares may be made
without registration under the Securities Act. The legend set forth above shall be removed from
the Shares and the Company shall issue a certificate without such legend to the holder of the
Shares immediately upon the registration of the Shares under the Securities Act in accordance with
Section 7 below.

          (h) Authorization, Enforcement. The Buyer has full power and authority to enter into
this Agreement. This Agreement has been duly and validly authorized, executed and delivered on
behalf of the Buyer and is a valid and legally binding agreement of such Buyer enforceable in
accordance with its terms, except as such enforceability may be limited by general principles of
equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other
similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights
and remedies. All necessary corporate action has been taken with respect to the Buyer to authorize
and approve this Agreement, and Buyer is under no obligation to obtain any approval, consent, or
other action from any third party in order for Buyer to consummate the transaction contemplated
hereby.

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          (i) Receipt of Documents. The Buyer and/or its counsel has received and read in their
entirety: (i) this Agreement and each representation, warranty and covenant set forth herein; (ii)
all due diligence and other information provided by the Company to the Buyer or made available to
the Buyer at the SEC Website (defined below); (iii) the Company’s Prospectus filed with the SEC
pursuant to Rule 424(b)(3) on September 20, 2005; and (iv) written answers to all questions the
Buyer submitted to the Company regarding an investment in the Company; and the Buyer has relied on
the information contained therein and has not been furnished any other documents, literature,
memorandum or prospectus. Buyer acknowledges and agrees that the Company’s representations and
warranties are limited to exclusively those expressly stated in this Agreement and exclude any and
all statements made in any other business plan, prospectus, projections, memorandum or other
document or in any oral communication.

          (j) Due Formation of Corporate and Other Buyers. If the Buyer is a corporation,
trust, partnership or other entity that is not an individual person, it has been formed and validly
exists and has not been organized for the specific purpose of purchasing the Shares and is not
prohibited from doing so.

          (k) No Legal Advice From the Company. The Buyer acknowledges, that it had the
opportunity to review this Agreement and the transactions contemplated by this Agreement with his
or its own legal counsel and investment and tax advisors. The Buyer is relying solely on such
counsel and advisors and not on any statements or representations of the Company or any of its
representatives or agents for legal, tax or investment advice with respect to this investment, the
transactions contemplated by this Agreement or the securities laws of any jurisdiction.

     3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

     The Company represents and warrants to the Buyer that, except as set forth in the SEC
Documents (as defined herein):

          (a) Organization and Qualification. The Company is a corporation duly organized and
validly existing in good standing under the laws of the jurisdiction in which it is incorporated,
and has the requisite corporate power and authority to own its properties and to carry on its
business as presently conducted. The Company is duly qualified to do business and is in good
standing in every jurisdiction in which the nature of the business conducted by it makes such
qualification necessary, except to the extent that the failure to be so qualified or be in good
standing would not have a material adverse effect on the Company taken as a whole.

          (b) Authorization, Enforcement, Compliance with Other Instruments. (i) The Company
has the requisite corporate power and authority to enter into and perform this Agreement, and any
related agreements, and to issue the Shares in accordance with the terms hereof and thereof, (ii)
the execution and delivery of this Agreement and any related agreements by the Company and the
consummation by it of the transactions contemplated hereby and thereby, including, without
limitation, the issuance of the Shares have been duly authorized by the Company’s Board of
Directors and no further consent or authorization is required by the Company, its Board of
Directors or its stockholders, (iii) this Agreement and any related

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agreements have been duly executed and delivered by the Company, (iv) this Agreement and any
related agreements constitute the valid and legally binding obligations of the Company enforceable
against the Company in accordance with their terms, except as such enforceability may be limited by
general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation or similar laws relating to, or affecting generally, the enforcement of creditors’
rights and remedies.

          (c) Capitalization. The authorized capital stock of the Company consists of
95,000,000 shares of Common Stock, par value $0.001 per share and 5,000,000 shares of Preferred
Stock. As of the date hereof and as of the Closing Date, the Company has 24,545,723 shares of
Common Stock and 316,000 shares of Preferred Stock issued and outstanding, subject to any issuances
which may occur prior to the Closing Date as described in the Disclosure Schedule attached hereto.
All of such outstanding shares of Common Stock and Preferred Stock have been duly authorized and
are validly issued, fully paid and nonassessable. Except as disclosed in the SEC Documents (as
defined in Section 3(f)) or the Disclosure Schedule attached hereto as Exhibit B, no shares of
Common Stock are subject to preemptive rights or any other similar rights or any liens or
encumbrances suffered or permitted by the Company. Except as disclosed in the SEC Documents or the
Disclosure Schedule, as of the date of this Agreement, (i) there are no outstanding options,
warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating
to, or securities or rights convertible into, any shares of capital stock of the Company, or
contracts, commitments, understandings or arrangements by which the Company is or may become bound
to issue additional shares of capital stock of the Company or options, warrants, scrip, rights to
subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights
convertible into, any shares of capital stock of the Company, (ii) there are no outstanding debt
securities and (iii) there are no agreements or arrangements under which the Company is obligated
to register the sale of its securities under the Securities Act (other than as provided herein) and
(iv) there are no outstanding registration statements and there are no outstanding comment letters
from the SEC or any other regulatory agency. Except as set forth on the Disclosure Schedule, there
are no securities or instruments containing anti-dilution or similar provisions that will be
triggered by the issuance of the Shares as described in this Agreement. The Company has furnished
to the Buyer or made available through the SEC’s website at
http://www.sec.gov (the “SEC
Website”) true and correct copies of the Company’s Certificate of Incorporation, as amended and
as in effect on the date hereof and as of the Closing Date (the “Certificate of
Incorporation”), and the Company’s By-laws, as in effect on the date hereof and as of the
Closing Date (the “By-laws”), and the terms of all securities convertible into or
exercisable for Common Stock and the material rights of the holders thereof in respect thereto
other than stock options issued to employees and consultants.

          (d) Issuance of Securities. The Shares to be issued at the Closing have been duly
authorized by all necessary corporate action and the Shares, when paid for and issued in accordance
with the terms hereof, shall be validly issued and outstanding, fully paid and nonassessable. The
Shares will be issued in compliance with all applicable federal and state securities laws and in
accordance with — U.S. Department of Transportation “foreign ownership regulations.”

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          (e) No Conflicts. Except as disclosed in the SEC Documents, the execution, delivery
and performance of this Agreement by the Company and the consummation by the Company of the
transactions contemplated hereby will not (i) result in a violation of the Certificate of
Incorporation, any certificate of designations of any outstanding series of preferred stock of the
Company or the By-laws or (ii) conflict with or constitute a default (or an event which with notice
or lapse of time or both would become a default) under, or give to others any rights of
termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to
which the Company is a party, or result in a violation of any law, rule, regulation, order,
judgment or decree (including federal and state securities laws and regulations and the rules and
regulations of The National Association of Securities Dealers Inc.’s OTC Bulletin Board on which
the Common Stock is to be quoted) applicable to the Company or by which any property or asset of
the Company is bound or affected. Except as disclosed in the SEC Documents, the Company is not in
violation of any term of or in default under its Certificate of Incorporation or By-laws or their
organizational charter or by-laws, respectively, or any material contract, agreement, mortgage,
indebtedness, indenture, instrument, judgment, decree or order or any statute, rule or regulation
applicable to the Company. The business of the Company is not being conducted, and shall not be
conducted in material violation of any material law, ordinance, or regulation of any governmental
entity. Except as specifically contemplated by this Agreement and as required under the Securities
Act and any applicable state securities laws, the Company is not required to obtain any consent,
authorization or order of, or make any filing or registration with, any court or governmental
agency in order for it to execute, deliver or perform any of its obligations under or contemplated
by this Agreement in accordance with the terms hereof or thereof. Except as disclosed in the SEC
Documents, all consents, authorizations, orders, filings and registrations which the Company is
required to obtain pursuant to the preceding sentence have been obtained or effected on or prior to
the date hereof. The Company is unaware of any facts or circumstance, which might give rise to any
of the foregoing.

          (f) SEC Documents; Financial Statements. The Company has filed all reports,
schedules, forms, statements and other documents required to be filed by it with the SEC under of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and has filed a
registration statement on Form SB-2 on April 22, 2005, as amended on June 27, 2005, July 21, 2005,
August 17, 2005, August 31, 2005 and on September 2, 2005, as well as a 424(b)(3) prospectus on
September 20, 2005 (all of the foregoing filed prior to the date hereof or amended after the date
hereof and all exhibits included therein and financial statements and schedules thereto and
documents incorporated by reference therein, being hereinafter referred to as the “SEC
Documents”). The Company has delivered to the Buyer or their representatives, or made
available through the SEC Website, true and complete copies of the SEC Documents. As of their
respective dates, the financial statements of the Company disclosed in the SEC Documents (the
“Financial Statements”) complied as to form in all material respects with applicable
accounting requirements and the published rules and regulations of the SEC with respect thereto.
Such financial statements have been prepared in accordance with generally accepted accounting
principles, consistently applied, during the periods involved (except (i) as may be otherwise
indicated in such Financial Statements or the notes thereto, or (ii) in the case of unaudited
interim statements, to the extent they may exclude footnotes or may be condensed or summary
statements) and, fairly present in all material respects the financial position of the Company as
of the dates thereof and the results of its operations and cash flows for the periods

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then ended (subject, in the case of unaudited statements, to normal year-end audit
adjustments). No other information provided by or on behalf of the Company to the Buyer which is
not included in the SEC Documents, including, without limitation, information referred to in this
Agreement, contains any untrue statement of a material fact or omits to state any material fact
necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading.

          (g) Financial Statements. The Company has supplied the Buyer with, or made available
to the Buyer through the SEC Website the Company’s balance sheet as of December 31, 2004, and the
related statements of operations, stockholders’ equity (deficit), and cash flows for the year ended
December 31, 2004 and the period from inception (March 4, 2003) to December 31, 2003.

          (h) 10(b)-5. None of the representations and warranties in this Agreement, any
certificate to be furnished to the Buyer at Closing or the SEC Documents included (or will include
in the case of the Closing Certificate) any untrue statements of material fact, or omits (or will
omit in the case of the Closing Certificate) to state any material fact required to be stated
therein necessary to make the statements made, in light of the circumstances under which they were
made, not misleading.

          (i) Absence of Litigation. Except as disclosed in the SEC Documents, there is no
claim, action, suit, proceeding, arbitration, complaint, charge, inquiry or investigation before or
by any court, public board, government agency, self-regulatory organization or body pending or to
the Company’s knowledge threatened against or affecting the Company or the Common Stock, wherein an
unfavorable decision, ruling or finding would (i) have a material adverse effect on the
transactions contemplated hereby (ii) adversely affect the validity or enforceability of, or the
authority or ability of the Company to perform its obligations under, this Agreement or any of the
documents contemplated herein, or (iii) except as expressly disclosed in the SEC Documents, have a
material adverse effect on the business, operations, properties, financial condition or prospects
or results of operations of the Company taken as a whole.

          (j) Acknowledgments Regarding Buyer’s Purchase of the Shares. The Company
acknowledges and agrees that the Buyer is acting solely in the capacity of an arm’s length
purchaser with respect to this Agreement and the transactions contemplated hereby. The Company
further acknowledges that the Buyer is not acting as a financial advisor or fiduciary of the
Company (or in any similar capacity) with respect to this Agreement and the transactions
contemplated hereby and any advice given by the Buyer or any of their respective representatives or
agents in connection with this Agreement and the transactions contemplated hereby is merely
incidental to such Buyer’s purchase of the Shares.

          (k) No General Solicitation. Neither the Company, nor any of its affiliates, nor any
person acting on its or their behalf, has engaged in any form of general solicitation or general
advertising (within the meaning of Regulation D under the Securities Act) in connection with the
offer or sale of the Shares.

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          (l) No Integrated Offering. Neither the Company, nor any of its affiliates, nor any
person acting on its or their behalf has, directly or indirectly, made any offers or sales of any
security or solicited any offers to buy any security, under circumstances that would require
registration of the Shares under the Securities Act or cause this offering of the Shares to be
integrated with prior offerings by the Company for purposes of the Securities Act.

          (m) Employee Relations. The Company is not involved in any labor dispute nor, to the
knowledge of the Company, is any such dispute threatened. None of the Company’s employees is a
member of a union and the Company believes that its relations with their employees are good.

          (n) Intellectual Property Rights. The Company owns or possesses or is currently
seeking to develop adequate rights or licenses to use all trademarks, trade names, service marks,
service mark registrations, service names, patents, patent rights, copyrights, inventions,
licenses, approvals, governmental authorizations, trade secrets and rights necessary to conduct its
business as now conducted. The Company does not have any knowledge of any infringement by the
Company of trademark, trade name rights, patents, patent rights, copyrights, inventions, licenses,
service names, service marks, service mark registrations, trade secret or other similar rights of
others, and, to the knowledge of the Company there is no claim, action or proceeding being made or
brought against, or to the Company’s knowledge, being threatened against, the Company regarding
trademark, trade name, patents, patent rights, invention, copyright, license, service names,
service marks, service mark registrations, trade secret or other infringement; and the Company is
unaware of any facts or circumstances which might give rise to any of the foregoing.

          (o) Environmental Laws. The Company is, to the best of management’s knowledge, (i) in
material compliance with any and all applicable foreign, federal, state and local laws and
regulations relating to the protection of human health and safety, the environment or hazardous or
toxic substances or wastes, pollutants or contaminants (“Environmental Laws”), (ii) has
received all material permits, licenses or other approvals required of it under applicable
Environmental Laws to conduct its business and (iii) is in material compliance with all terms and
conditions of any such permit, license or approval.

          (p) Title. Any real property and facilities held under lease by the Company are held
by the Company under valid, subsisting and enforceable leases with such exceptions as are not
material and do not interfere with the use made and proposed to be made of such property and
buildings by the Company.

          (q) Insurance. The Company is insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts as management of the Company
believes to be reasonably prudent and customary in the business in which the Company is engaged.
The Company has neither been refused any insurance coverage sought or applied for nor has any
reason to believe that it will not be able to renew its existing insurance coverage as and when
such coverage expires or to obtain similar coverage from similar insurers as may be necessary to
continue its business at a cost that would not materially and adversely affect the condition,
financial or otherwise, or the earnings, business or operations of the Company, taken as a whole.

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          (r) Regulatory Permits. The Company possesses or is in the process of applying for
all material certificates, authorizations and permits issued or to be issued by the appropriate
federal, state or foreign regulatory authorities necessary to conduct its business, and the Company
has not received any notice of proceedings relating to the revocation, modification or denial of
any such certificate, authorization or permit.

          (s) Internal Accounting Controls. The Company maintains a system of internal
accounting controls sufficient to provide reasonable assurance that (i) transactions are executed
in accordance with management’s general or specific authorizations, (ii) transactions are recorded
as necessary to permit preparation of financial statements in conformity with generally accepted
accounting principles and to maintain asset accountability, and (iii) the recorded amounts for
assets is compared with the existing assets at reasonable intervals and appropriate action is taken
with respect to any differences.

          (t) No Material Adverse Breaches, etc. Except as set forth in the Disclosure
Schedule, the Company is not subject to any charter, corporate or other legal restriction, or any
judgment, decree, order, rule or regulation which in the judgment of the Company’s officers has or
is expected in the future to have a material adverse effect on the business, properties,
operations, financial condition, results of operations or prospects of the Company. Except as set
forth in the Disclosure Schedule, the Company is not in breach of any contract or agreement which
breach, in the judgment of the Company’s officers, has or is expected to have a material adverse
effect on the business, properties, operations, financial condition, results of operations or
prospects of the Company.

          (u) Tax Status. Except as set forth in the Disclosure Schedule, the Company has made
and filed all federal and state income and all other tax returns, reports and declarations required
by any jurisdiction to which it is subject and (unless and only to the extent that the Company has
set aside on its books provisions reasonably adequate for the payment of all unpaid and unreported
taxes) has paid all taxes and other governmental assessments and charges that are material in
amount, shown or determined to be due on such returns, reports and declarations, except those being
contested in good faith and has set aside on its books provision reasonably adequate for the
payment of all taxes for periods subsequent to the periods to which such returns, reports or
declarations apply. There are no unpaid taxes in any material amount claimed to be due by the
taxing authority of any jurisdiction, and the officers of the Company know of no basis for any such
claim.

          (v) Certain Transactions. Except as set forth in the SEC Documents, and except for
arm’s length transactions pursuant to which the Company makes payments in the ordinary course of
business upon terms no less favorable than the Company could obtain from third parties and other
than the grant of stock options disclosed in the Disclosure Schedule, none of the officers,
directors, or employees of the Company is presently a party to any transaction with the Company
(other than for services as employees, officers and directors), including any contract, agreement
or other arrangement providing for the furnishing of services to or by, providing for rental of
real or personal property to or from, or otherwise requiring payments to or from any officer,
director or such employee or, to the knowledge of the Company, any corporation, partnership, trust
or other entity in which any officer, director, or any such employee has a substantial interest or
is an officer, director, trustee or partner.

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          (w) Fees and Rights of First Refusal. The Company is not obligated to offer the
securities offered hereunder on a right of first refusal basis or otherwise to any third parties
including, but not limited to, current or former shareholders of the Company, underwriters,
brokers, agents or other third parties.

          (x) The Company acknowledges that the Buyer is relying on the representations and warranties
made by the Company hereunder and that such representations and warranties are a material
inducement to the Buyer purchasing the Shares. The Company further acknowledges that without such
representations and warranties of the Company made hereunder, the Buyer would not enter into this
Agreement.

     4. COVENANTS.

          (a) Best Efforts. Each party shall use its commercially reasonable best efforts
timely to satisfy each of the conditions to be satisfied by it as provided in Sections 5 and 6 of
this Agreement.

          (b) Form D. The Company shall notify the SEC in accordance with their rules and
regulations, of the transactions contemplated herein, including filing a Form D with respect to the
Shares as required under Regulation D, and shall take all other necessary action and proceedings as
may be required and permitted by applicable law, rule and regulation, for the legal and valid
issuance of the Shares to the Buyer or subsequent holders.

          (c) Reporting Status. Until the date as of which the Buyer may sell all of the Shares
without restriction pursuant to Rule 144(k) promulgated under the Securities Act (or successor
thereto) (the “Registration Period”), the Company shall file in a timely manner all reports
required to be filed with the SEC pursuant to the Exchange Act and the regulations of the SEC
thereunder, and the Company shall not terminate its status as an issuer required to file reports
under the Exchange Act even if the Exchange Act or the rules and regulations thereunder would
otherwise permit such termination.

          (d) Fees and Expenses. Except as may be set forth elsewhere in this Agreement, the
Company and the Buyer shall be solely responsible for the respective costs and expenses incurred by
such party in connection with the negotiation, investigation, preparation, execution and delivery
of this Agreement.

          (e) Use of Proceeds. The Company will use the proceeds from the sale of the Shares
for general corporate and working capital purposes.

          (f) Listings or Quotation. The Company shall, concurrently with the effectiveness of
the registration statement filed with the SEC pursuant to Section 7 below, use its best efforts to
secure the listing or quotation of its Common Stock (including, without limitation, the Shares)
upon a national securities exchange, automated quotation system or the Over-The-Counter Bulletin
Board (“OTCBB”) maintained by the National Association of Securities Dealers, Inc. The
Company shall maintain the listing or quotation of the Common Stock for so long as the Buyer is the
beneficial owner of any Shares. The Company shall use its best efforts to maintain the Common
Stock’s authorization for quotation on the OTCBB.

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          (g) Financial and Accounting. Prior to the effectiveness of the Company’s
registration statement on Form SB-2, the Company will have instituted and will be employing and
maintaining customary internal accounting controls and methods in its business operations
sufficient to provide reasonable assurance that (i) transactions are executed in accordance with
management’s general or specific authorization; (ii) transactions are recorded as necessary to
permit preparation or financial statements in conformity with generally accepted accounting
principles and to maintain asset accountability, and (iii) the recorded amounts for assets is
compared with the existing assets at reasonable intervals and appropriate action is taken with
respect to any differences.

     5. CONDITIONS TO THE COMPANY’S OBLIGATION TO SELL.

     The obligation of the Company hereunder to issue and sell the Shares to the Buyer at the
Closing is subject to the satisfaction, at or before the Closing Date, of each of the following
conditions, provided that these conditions are for the Company’s sole benefit and may be waived by
the Company at any time in its sole discretion:

          (a) The Buyer shall have executed this Agreement and delivered the same to the Company.

          (b) The Buyer shall have delivered to the Company the Purchase Price for Shares in the amount
set forth next to the Buyer as outlined on Schedule I attached hereto.

          (c) The representations and warranties of the Buyer shall be true and correct in all material
respects as of the date when made and as of the Closing Date as though made at that time (except
for representations and warranties that speak as of a specific date), and the Buyer shall have
performed, satisfied and complied in all material respects with the covenants, agreements and
conditions required by this Agreement to be performed, satisfied or complied with by the Buyer at
or prior to the Closing Date.

          (d) Shares will be issued in accordance with US Department of Transportation “foreign
ownership regulations.”

     6. CONDITIONS TO THE BUYER’S OBLIGATION TO PURCHASE.

     The obligation of the Buyer hereunder to purchase the Shares at the Closing is subject to the
satisfaction, at or before the Closing Date, of each of the following conditions:

          (a) The Company shall have executed this Agreement and delivered the same to the Buyer.

          (b) The representations and warranties of the Company shall be true and correct in all
material respects (except to the extent that any of such representations and warranties is already
qualified as to materiality in Section 3 above, in which case, such representations and warranties
shall be true and correct without further qualification) as of the date when made and as of the
Closing Date as though made at that time (except for representations and warranties that speak as
of a specific date) and the Company shall have performed, satisfied and complied in all material
respects with the covenants, agreements and

11

 

conditions required by this Agreement to be performed, satisfied or complied with by the
Company at or prior to the Closing Date. If requested by the Buyer, the Buyer shall have received
a certificate, executed by the President of the Company, dated as of the Closing Date, to the
foregoing effect and as to such other matters as may be reasonably requested by the Buyer
including, without limitation an update as of the Closing Date regarding the representation
contained in Section 3(c) above.

          (c) The Company shall have executed and delivered to the Buyer the Shares in the amount set
forth opposite the Buyer’s name on Schedule I attached hereto.

          (d) The Buyer shall have received from Gallagher, Briody & Butler, counsel to the Company, an
opinion, dated as of the Closing Date, in a form satisfactory to the Buyer.

          (e) The Secretary of the Company shall have delivered to the Buyer at the Closing a
certificate certifying (i) the By-Laws of the Company and (ii) resolutions of the Board of
Directors of the Company approving this Agreement, the Warrant and the transactions contemplated
hereby and thereby.

          (f) The Company shall have provided to the Buyer a certificate of good standing from the
Secretary of State of Delaware.

     7. REGISTRATION RIGHTS.

          (a) Subject to the terms and conditions of this Agreement, the Company shall prepare and file,
no later than forty five (45) days from the Closing Date (the “Scheduled Filing Deadline”),
with the SEC a registration statement on Form S-1 or SB-2 (or, if the Company is then eligible, on
Form S-3) under the 1933 Act (the “Initial Registration Statement”) for the registration
for the resale by the Buyer of the Shares (together, the “Registrable Securities”). The
Company shall cause the Registration Statement to remain effective until the earlier of (i) the
Registrable Securities have been sold, or (ii) the date the Registrable Securities become eligible
for sale without restriction under Rule 144(k) promulgated under the Securities Act of 1933.

          (b) Effectiveness of the Initial Registration Statement. The Company shall use its
best efforts (i) to have the Initial Registration Statement declared effective by the SEC no later
than one hundred eighty (180) days after the filing thereof (the “Scheduled Effective
Deadline”) and (ii) to insure that the Initial Registration Statement and any subsequent
Registration Statement remains in effect until all of the Registrable Securities have been sold,
subject to the terms and conditions of this Agreement, but not later than the point in time that
Section 144(k) becomes available for resale of the Registrable Securities.

          (c) If and whenever the Company is required by the provisions of this Section 7(a) to effect
the registration of the Shares under the Securities Act, the Company will:

               (i) Furnish to the Buyers participating in such registration such reasonable number of copies
of the registration statement, preliminary prospectus, final prospectus and such other documents as
the Buyers may reasonably request in order to facilitate the sale of such shares;

12

 

               (ii) Notify the Buyers participating in such registration, promptly after it shall receive
notice thereof, of the time when such registration statement has become effective or a supplement
to any prospectus forming a part of such registration statement has been filed;

               (iii) Notify such Buyers promptly of any request by the Commission for the amending or
supplementing of such registration statement or prospectus or for additional information;

               (iv) Prepare and promptly file with the Commission and promptly notify such Buyers of the
filing of such amendment or supplement to such registration statement or prospectus as may be
necessary to correct any statements or omissions if, at the time when a prospectus relating to such
securities is required to be delivered under the Securities Act, any event shall have occurred as
the result of which any such prospectus or any other prospectus as then in effect would include an
untrue statement of a material fact or omit to state any material fact necessary to make the
statements therein, in the light of the circumstances in which they were made, not misleading; and

               (v) Advise such Buyers, promptly after it shall receive notice or obtain knowledge thereof, of
the issuance of any stop order by the Commission suspending the effectiveness of such registration
statement or the initiation or threatening of any proceeding for that purpose and promptly use its
best efforts to prevent the issuance of any stop order or to obtain its withdrawal if such stop
order should be issued.

          (d) With respect to a registration required pursuant to this Section 7, all fees, costs and
expenses of and incidental to such registration, shall be borne by the Company, including all
registration, filing, printing expenses, fees and disbursements of counsel and accountants for the
Company, and all legal fees and disbursements and other expenses of complying with state securities
or blue sky laws of any jurisdictions in which the Shares to be offered are to be registered and
qualified. Fees and disbursements of counsel and accountants for the participating Buyers and any
other expenses incurred by the participating Buyers shall be borne by the Company; provided
that the fees and disbursements of counsel to the participating Buyers shall not exceed $5,000 in
connection with a registration required under this Section 7.

          (e) The Company will indemnify and hold harmless each Buyer whose Shares are included in a
registration statement pursuant to the provisions of Section 7 and any underwriter for such Buyer
from and against, and will reimburse such Buyer and each such underwriter with respect to, any and
all loss, damage, liability, cost and expense to which such Buyer or any such underwriter may
become subject under the Securities Act or otherwise, insofar as such losses, damages, liabilities,
costs or expenses are caused by any untrue statement or alleged untrue statement of any material
fact contained in such registration statement, any prospectus contained therein or any amendment or
supplement thereto, or arise out of or are based upon the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances in which they were made, not misleading; provided,
however, that the Company will not be liable in any such case to the extent that any such
loss, damage, liability, cost or expenses arises out of or is based upon an untrue statement or
alleged untrue statement or omission or alleged omission so made in

13

 

conformity with information furnished by such Buyer or such underwriter in writing for use in the
preparation thereof.

          (f) Each Buyer whose Shares are included in a registration pursuant to the provisions of this
Section 7 hereof will indemnify and hold harmless the Company, any successor entity of the Company,
its directors and officers, any controlling person and any underwriter from and against, and will
reimburse the Company, its directors and officers, any controlling person and any underwriter with
respect to, any and all loss, damage, liability, cost or expense to which the Company or any
controlling person and/or any underwriter may become subject under the Securities Act or otherwise,
insofar as such losses, damages, liabilities, costs or expenses are caused by any untrue statement
or alleged untrue statement of any material fact contained in such registration statement, any
prospectus contained therein or any amendment or supplement thereto, or arise out of or are based
upon the omission or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein, in light of the circumstances in which they
were made, not misleading, in each case to the extent that such untrue statement or alleged untrue
statement or omission or alleged omission was so made in reliance upon and in conformity with
written information furnished by or on behalf of such Buyer for use in the preparation thereof.
The maximum aggregate liability of each Buyer pursuant to its indemnification obligations under
this Section 7 shall not exceed the portion of the Purchase Price paid by such Buyer hereunder.

     Promptly after receipt by an indemnified party pursuant to the provisions of paragraph (e) or
(f) above of notice of the commencement of any action involving the subject matter of the foregoing
indemnity provisions such indemnified party will, if a claim thereof is to be made against the
indemnifying party pursuant to the provisions of said paragraph (e) or (f), promptly notify the
indemnifying party of the commencement thereof; but the omission to so notify the indemnifying
party will not relieve it from any liability which it may have to any indemnified party otherwise
than hereunder. In case such action is brought against any indemnified party and it notifies the
indemnifying party of the commencement thereof, the indemnifying party shall have the right to
assume the defense thereof, with counsel reasonably satisfactory to such indemnified party.

     8. BUYER’S RIGHT TO BOARD SEAT

     Within ten business days following the Closing Date, the Board of Directors of the Company
shall (a) increase the number of members of the Board of Directors by one additional member in
accordance with Section 1 of Article III of the Company’s By-Laws and (b) fill such vacancy on the
Board of Directors by appointing Buyer’s nominee, subject to the agreement of the Company, which
shall not be unreasonably withheld (the “Director Nominee”), as a member of the Board of
Directors of the Company in accordance with Section 2 of Article III of the Company’s By-Laws. The
Company shall provide the Director Nominee the same financial or other information as is generally
provided to the Company’s other directors and officers at the same time that such other directors
and officers receive such information. The Buyer and the Company acknowledge and agree that the
Buyer’s director nominee shall be required to pass a standard background check as is required by
applicable Federal, State and local government agencies and departments having jurisdiction over
the Company’s business and activities.

14

 

     9. GOVERNING LAW: MISCELLANEOUS.

          (a) Governing Law. THIS AGREEMENT SHALL BE ENFORCED, GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF LAWS. THE PARTIES
HERETO HEREBY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES FEDERAL COURTS LOCATED IN
NEW YORK, NEW YORK WITH RESPECT TO ANY DISPUTE ARISING UNDER THIS AGREEMENT, THE AGREEMENTS ENTERED
INTO IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. BOTH PARTIES
IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH SUIT OR
PROCEEDING. BOTH PARTIES FURTHER AGREE THAT SERVICE OF PROCESS UPON A PARTY MAILED BY FIRST CLASS
MAIL SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON THE PARTY IN ANY SUCH SUIT
OR PROCEEDING. NOTHING HEREIN SHALL AFFECT EITHER PARTY’S RIGHT TO SERVE PROCESS IN ANY OTHER
MANNER PERMITTED BY LAW. BOTH PARTIES AGREE THAT A FINAL NON-APPEALABLE JUDGMENT IN ANY SUCH SUIT
OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON SUCH
JUDGMENT OR IN ANY OTHER LAWFUL MANNER. THE PARTY WHICH DOES NOT PREVAIL IN ANY DISPUTE ARISING
UNDER THIS AGREEMENT SHALL BE RESPONSIBLE FOR ALL FEES AND EXPENSES, INCLUDING ATTORNEYS’ FEES,
INCURRED BY THE PREVAILING PARTY IN CONNECTION WITH SUCH DISPUTE.

          (b) Counterparts. This Agreement may be executed in two or more identical
counterparts, all of which shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each party and delivered to the other party. In
the event any signature page is delivered by facsimile transmission, the party using such means of
delivery shall cause four (4) additional original executed signature pages to be physically
delivered to the other party within five (5) days of the execution and delivery hereof.

          (c) Headings. The headings of this Agreement are for convenience of reference and
shall not form part of, or affect the interpretation of, this Agreement.

          (d) Severability. If any provision of this Agreement shall be invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the
validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity
or enforceability of any provision of this Agreement in any other jurisdiction.

          (e) Entire Agreement, Amendments. This Agreement supersedes all other prior oral or
written agreements between the Buyer, the Company, their affiliates and persons acting on their
behalf with respect to the matters discussed herein, and this Agreement and the instruments
referenced herein contain the entire understanding of the parties with respect to the matters
covered herein and therein and, except as specifically set forth herein or therein, neither

15

 

the Company nor the Buyer makes any representation, warranty, covenant or undertaking with
respect to such matters. No provision of this Agreement may be waived or amended other than by an
instrument in writing signed by the party to be charged with enforcement.

          (f) Notices. Any notices, consents, waivers, or other communications required or
permitted to be given under the terms of this Agreement must be in writing and will be deemed to
have been delivered (i) upon receipt, when delivered personally; (ii) upon confirmation of receipt,
when sent by facsimile; (iii) three (3) days after being sent by U.S. certified mail, return
receipt requested, or (iv) one (1) day after deposit with a nationally recognized overnight
delivery service, in each case properly addressed to the party to receive the same. The addresses
and facsimile numbers for such communications shall be:

	 	 	 
	If to the Company, to:

	 	U.S. Helicopter Corporation
	 

	 	6 East River Piers, Suite 216
	 

	 	Downtown Manhattan Heliport
	 

	 	New York, NY 10004
	 

	 	Attention: John G. Murphy
	 

	 	Telephone: 212-248-2002
	 

	 	Facsimile: 212-248-0940
	 
	 	 
	With a copy to:

	 	Gallagher, Briody & Butler
	 

	 	Princeton Forrestal Village
	 

	 	155 Village Blvd. — Suite 201
	 

	 	Princeton, NJ 08540
	 

	 	Attention: Thomas P. Gallagher, Esq.
	 

	 	Telephone: 609-452-6000
	 

	 	Facsimile: 609-452-0090

     If to the Buyer, to its address and facsimile number on Schedule I, with copies to the Buyer’s
counsel as set forth on Schedule I. Each party shall provide five (5) days’ prior written notice
to the other party of any change in address or facsimile number.

          (g) Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the parties and their respective successors and assigns. Neither the Company nor the
Buyer shall assign this Agreement or any rights or obligations hereunder without the prior written
consent of the other party hereto.

          (h) No Third Party Beneficiaries. This Agreement is intended for the benefit of the
parties hereto and their respective permitted successors and assigns, and is not for the benefit
of, nor may any provision hereof be enforced by, any other person.

          (i) Survival. The representations and warranties of the Company and the Buyer
contained in Sections 2 and 3, the agreements and covenants set forth in Sections 4 and 5 shall
survive the Closing for a period of two (2) years following the date on which the Shares are
converted in full. The Buyer shall be responsible only for its own representations, warranties,
agreements and covenants hereunder.

16

 

          (j) Further Assurances. Each party shall do and perform, or cause to be done and
performed, all such further acts and things, and shall execute and deliver all such other
agreements, certificates, instruments and documents, as the other party may reasonably request in
order to carry out the intent and accomplish the purposes of this Agreement and the consummation of
the transactions contemplated hereby.

* * *

17

 

     IN WITNESS WHEREOF, the Buyer and the Company have caused this Common Stock Purchase Agreement
to be duly executed as of the date first written above.

	 	 	 	 	 
	 	COMPANY:

U.S. HELICOPTER CORPORATION

 	 
	 	By:  	/s/ John G. Murphy
 	 
	 	 	John G. Murphy 	 
	 	 	Chief Executive Officer and President 	 

18

 

	 	 	 	 	 

SCHEDULE I

	 	 	 	 	 	 	 
	 	 	 	 	Address/Facsimile	 	Amount of
	Name of Buyer	 	Signature	 	Number of Buyer	 	Subscription
	Samama Global Corporation

	 	/s/ [illegible]
	 	 	 	3,000,000 shares
	 

	 	 	 	 	 	 

Legal Counsel of Buyer:

                                                            

                                                            

                                                            

19exv10w7xhy

 

	 	 	 	 	 

Exhibit 10.7(h)

EMPLOYMENT AGREEMENT

     THIS AGREEMENT, made this 11th day of November 2005, by and between TRM
Corporation, an Oregon corporation (hereinafter called “Company”), and Kenneth L. Tepper, an
individual residing in Pennsylvania (hereinafter called “Executive”).

WITNESSETH:

     Company wishes to continue to employ Executive and Executive wishes to continue to be in the
employ of Company on the terms and conditions contained in this Agreement.

     WHEREAS, due to
Company’s desire to continue to employ Executive as President and Chief
Executive Officer and to gain the protections and benefits contained in this Employment Agreement,
Company and Executive agree to the covenants and restrictions contained herein;

     WHEREAS, due to Executive’s
desire to continue to serve as President and Chief Executive
Officer and gain the protections and new and expanded benefits contained in this Employment Agreement
(“Agreement”), Executive agrees to the covenants and restrictions contained herein;

     NOW, THEREFORE, in consideration of the facts, mutual promises and covenants contained herein
and intending to be legally bound hereby, Company and Executive agree as follows:

     1. Definitions. As used herein, the following terms shall have the meanings set forth
below unless the context otherwise requires.

          “Affiliate” shall mean a person or entity who or which (i) with respect to any entity,
directly or indirectly through one or more intermediaries, controls, or is controlled by, or is
under common control with, such entity; or (ii) with respect to Executive, is a parent, spouse,
child or issue of Executive, including persons in an adopted or step relationship.

          “Annual Bonus” shall mean the bonus payment(s) available to Executive at the sole
discretion of the majority of the Board of Directors or the Compensation Committee, as set forth in
Section 5(b), as such amount may be adjusted from time to time.

          “Base Salary” shall mean the annual rate of compensation set forth in Section 5(a), as
such amount may be adjusted from time to time.

          “Board” shall mean the Board of Directors of Company.

          “Business” shall mean the business conducted by Company or any Subsidiary or corporate
parent thereof or entity sharing a common corporate parent with the Company on the date of
execution of this Agreement, including business activities in developmental stages, business
activities which may be developed by the Company, or by any Subsidiary or corporate

33

 

parent thereof or entity sharing a common corporate parent with the Company, during the period
of Executive’s employment by Company, and all other business activities which flow from a
reasonable expansion of any of the foregoing during Executive’s employment with the Company and
about which Executive had or has constructive or actual knowledge.

          “Cause” shall include any one or more of the following:

          (a) Executive breaches or neglects the material and substantial duties that Executive is
required to perform under the terms of this Agreement, including if Executive performs his duties
in an incompetent manner, after written notice of the breach or neglect and thirty (30) days to
cure such breach or neglect;

          (b) The reasonable belief of a majority of the Board of Directors that Executive has committed
a crime of moral turpitude or has entered a plea of nolo contendere (or similar plea) to a charge
of such an offense;

          (c) Executive uses alcohol in an inappropriate manner or any unlawful controlled substance
while performing his duties under this Agreement and such use materially interferes with the
material performance of Executive’s duties under this Agreement;

          (d) Executive commits any act of criminal fraud, material dishonesty or misappropriation
relating to or involving the Company;

          (e) Executive materially violates a rule(s), regulation(s), policy(ies) or plan(s) governing
Executive performance or express direction(s) of the Board;

          (f) Executive engages in the unauthorized disclosure of Confidential Information; or

          (g) Executive
acts in a manner that is materially contrary to the best interests of the Company
after he is given written notice of his actions, as well as 30 days to cure.

          “Change of Control” shall be deemed to have occurred upon the earliest to occur of the
following events:

          (a) the
direct or indirect sale, lease, transfer, conveyance or other disposition (other than
by way of merger or consolidation), in one or a series of related transactions, of all or
substantially all of the properties or assets (including in the Company’s subsidiaries) of the
Company and its subsidiaries taken as a whole, to any “person” (as that term is used in Section
13(d)(3) of the Exchange Act);

          (b) the adoption of a plan relating to the liquidation or dissolution of the Company;

          (c) the consummation of any transaction (including, without limitation, any merger or
consolidation) the result of which is that any “Person” (as that term is used in Section 13(d)(3)
of the Exchange Act), becomes the “Beneficial Owner” (as that term is used in Section

34

 

13(d)(3) of the Exchange Act), directly or indirectly, of more than 35% of the Voting Stock of
the Company;

          (d) the Company
consolidates or merges with or into another Person or any Person consolidates
or merges with or into the Company, in either case under this clause, in one transaction or a
series of related transactions in which immediately after the consummation thereof Persons
Beneficially Owning, directly or indirectly, Voting Stock representing in the aggregate a majority
of the total voting power of the Voting Stock of the Company immediately prior to such consummation
do not Beneficially Own, directly or indirectly, Voting Stock representing a majority of the total
voting power of the Voting Stock of the Company or the surviving or transferee Person; or

          (l) the first day on which a majority of the members of the Board of Directors of the Company
are not Continuing Directors.

          “Commencement Date” shall have the meaning specified in Section 4 hereof.

          “Confidential Information” shall have the meaning specified in Section 12(b) hereof.

          “Disability”
shall mean Executive’s inability, for a period of thirteen (13)
consecutive weeks, or a cumulative period of 120 business days (i.e., Mondays through Fridays,
exclusive of days on which Company is generally closed for a holiday) out of a consecutive period
of twelve (12) months, to perform the essential duties of Executive’s position, due to a disability
as that term is defined in the Americans With Disabilities Act.

          “Restricted Area” shall have the meaning specified in Section 12(a)(i) hereof.

          “Restricted Period A” shall have the meaning specified in Section 12(a) hereof.

          “Restricted Period B” shall have the meaning specified in Section 12(b) hereof.

          “Subsidiary” shall mean any company in which Company owns directly or indirectly 50%
or more of the Voting Stock or 50% or more of the equity; or any other venture in which it owns
either 50% or more of the voting rights or 50% or more of the equity.

          “Term of Employment” shall mean the period specified in Section 4 hereof as the same
may be terminated in accordance with this Agreement.

     2. Employment. Company
hereby employs Executive as President and Chief Executive Officer and
Executive hereby accepts employment by Company for the period and upon the terms and conditions
specified in this Agreement.

     3. Office and Duties.

          (a) Executive shall continue to serve as the President and Chief Executive Officer of Company.
In such capacity, Executive shall render such services as are necessary and desirable to protect
and advance the best interests of Company, acting, in all instances, under the

35

 

supervision of and in accordance with the policies set by the Board. As President and Chief
Executive Officer, Executive shall be responsible for managing the day-to-day operations of the
business and shall have the responsibility and authority, subject to policies set by and with the
approval of the Board, to employ and terminate Executives, sign agreements and otherwise to
implement the policies and directives of the Board, all subject to the provisions of any operating
budget or budgets as may be approved from time to time by the Board and subject to the By-Laws of
the Company. Executive shall perform any other duties reasonably required by the Board and
reasonably related to his responsibilities as President and Chief Executive Officer.

          (b) For as long as Executive shall remain an Executive of Company, Executive’s entire working
time, energy, skill and best efforts shall be devoted to the performance of Executive’s duties
hereunder in a manner which will faithfully and diligently further the business and interests of
Company. Executive may engage in charitable, civic, fraternal, trade and professional association
activities that do not interfere with Executive’s obligations to Company, but Executive shall not
work for any other for-profit business without so disclosing such activity to the Board, in which
event the Board may not unreasonably withhold its consent to such activity.

     4. Term. Executive
shall be employed by Company for a Term of Employment (the
“Initial Term”), commencing November 1, 2005 (the “Commencement Date”), and ending on
October 31, 2008,
unless sooner terminated as hereinafter provided. However, at the end
of the Initial Term on October 31, 2008, the Term of Employment and this Employment Agreement will be automatically extended for
consecutive one (1) year terms (“Additional Term”) unless not later than thirty (30) days prior to
October 31, 2008, or thirty (30) days prior to any successive anniversary of that date, either party
gives written notice that it does not wish to extend this Employment Agreement. During any
Additional Term, this Agreement and Executive’s employment can be terminated in accordance with
Sections 7 — 10 below.

     5. Compensation and Benefits.

          (a) For all of the service rendered by Executive to Company, Executive shall receive Base
Compensation at the gross annual rate of four hundred and seventy-five thousand USD ($475,000.00),
payable in installments in accordance with Company’s regular payroll practices in effect from time
to time. The Base Compensation shall be reviewed annually, on or around the anniversary date of
the Commencement Date of this Agreement to ascertain, in the sole discretion of the Board or the
Compensation Committee, the amount, if at all, the Executive’s Base Compensation should be
increased, but it shall not be decreased.

          (b) In addition to the foregoing compensation, Executive is eligible to receive an Annual
Bonus each fiscal year in an amount, as shall be determined by a majority of the Board of Directors
or the Compensation Committee, in their sole discretion. The Annual Bonus shall be payable in the
Company’s sole discretion, either in a single lump-sum payment, or in equal monthly installments
beginning no later than ninety (90) days after the end of the relevant fiscal year. To be eligible
for the Annual Bonus, Executive must be actively employed by the Company on the last day of the
relevant fiscal year.

          (c) If Executive’s employment is terminated by the Company at any time within three months
before, or twelve months after the occurrence of a Change in Control (except for cause), (i) all
Stock Options and Restricted Stock granted to Executive by Company, which

36

 

pursuant to the terms of the applicable plan vest upon a Change in Control, shall vest upon
the date of Executive’s employment termination, and shall be exercisable to Executive for ten (10)
years thereafter and (ii) Company shall pay Executive an amount equal to the average of Executive’s
highest three (3) years of Base Compensation multiplied by 2.99, so long as Executive executes and
does not revoke a Separation Agreement and General Release Agreement acceptable to Company which
will be substantially in the terms and form attached hereto as Exhibit “A”. Except as otherwise
specifically set forth in this Section 5(c), all Base Compensation, Annual Bonus, additional bonus,
and any other compensation and benefits provided herein shall cease at the time of such
termination, subject to the terms of any benefit or compensation plans then in force and applicable
to Executive, and Company shall have no liability or obligation hereunder by reason of such
termination.

          (d) In the event any amounts payable
under this Agreement (and/or under any other plan,
agreement or arrangement by which Executive is to receive payments in the nature of compensation from
the Company) would constitute “excess parachute payments,” as that term is defined for purposes of
Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”) and Treasury Regulations
promulgated pursuant thereto, Executive will receive additional cash payments such that, after payment of
all federal, state and local income taxes and federal excise taxes on the excess parachute payments
and on the additional cash payments made under this paragraph,
Executive will have a net amount equal to
the amount Executive would have received under the terms of this Agreement and/or under any other plan,
agreement or arrangement pursuant to which Executive entitled to receive payments in the nature of
compensation from the Company (but not including the excess parachute gross-up payments payable to
Executive pursuant to this paragraph) if no portion of such payments and/or benefits were treated as
excess parachute payments for purposes of Code Section 280G.

          (e) Executive agrees and acknowledges that his employment and the other protections and
benefits of this Agreement are full, adequate and sufficient consideration for the restrictions and
obligations set forth in Sections 11 and 12 of this Agreement.

     6. Fringe Benefits. As an inducement to Executive to continue employment hereunder,
and in consideration of Executive’s covenants under this Agreement, Executive shall be eligible to
the benefits set forth below (the “Fringe Benefits”) during the Term of Employment:

          (a) Executive shall be eligible to participate in any health, life, accident or disability
insurance, sick leave or other benefit plans or programs made available to other similarly situated
Executives of Company on terms at least equal to those available to other similarly situated
Executives of Company as long as the plans and programs are kept in force by Company and provided
that Executive meets the eligibility requirements and other terms, conditions and restrictions of
the respective plans and programs, with the understanding that the Company will keep in force
throughout the Term of this Agreement health, life, accident and disability insurance and sick
leave benefits equal to or greater than those in effect at the Commencement Date.

          (b) Executive shall be entitled to four (4) weeks paid vacation during each year, subject to
Company’s generally applicable policies relating to vacations, and excluding standard Company
holidays.

37

 

          (c) Executive shall be entitled to an automobile leased by the Company on his behalf or an
automobile allowance, consistent with Company policy and practice. Company shall pay the
automobile insurance for one vehicle used by Executive in connection with his employment by
Company.

     7. Disability. If Executive suffers a Disability as that term is defined in Section 1
herein, the Company may terminate Executive’s employment relationship with Company at any time
thereafter (after the expiration of time periods described in the definition of “Disability” in
Section 1) by giving Executive thirty (30) days written notice of termination. Thereafter, Company
shall have no obligation to Executive for Base Compensation, Annual Bonus, Fringe Benefits or any
other form of compensation or benefit to Executive, except as otherwise required by law or by
benefit plans provided at Company expense, other than (a) amounts of Base Compensation accrued
through the date of termination, (b) vested Stock and Stock Options, and (c) reimbursement of
appropriately documented expenses incurred by Executive before the termination of employment, to
the extent that Executive would have been entitled to such reimbursement but for the termination of
employment.

     8. Death. If Executive dies during the Term of Employment, the Term of Employment and
Executive’s employment with Company shall terminate as of the date of Executive’s death. Company
shall have no obligation to Executive or Executive’s estate for Base Compensation, Annual Bonus,
Fringe Benefits or any other form of compensation or benefit, except as otherwise required by law
or by benefit plans provided at Company expense, other than (a) amounts of Base Compensation that
have accrued through the date of Executive’s death, (b) vested Stock and Stock Options, and (c)
reimbursement of appropriately documented expenses incurred by Executive before the termination of
employment, to the extent that Executive would have been entitled to such reimbursement but for the
termination of employment.

     9. Termination for Cause. Company may terminate Executive’s employment relationship
with Company at any time for Cause as that term is defined in Section 1 herein, effective not less
than ten (10) days after written notice of such termination. Upon the effective date of
termination of Executive under this Section 9, Company shall have no obligation to Executive for
Base Compensation, Annual Bonus, Fringe Benefits, or any other form of compensation or benefits
other than (a) amounts of Base Compensation, and vested Stock and Stock Options accrued through the
effective date of termination, and (b) reimbursement of appropriately documented expenses incurred
by Executive before the written notice of termination of employment, to the extent that Executive
would have been entitled to such reimbursement but for the termination of employment. In such
event, Executive will be entitled to elect to continue participation in any health, life, accident
or disability insurance plans of the Company at Executive’s expense if plans allow for continuation
at no cost to the Company.

     10. Termination without Cause.

          (a) Company may terminate Executive’s employment relationship with Company at any time without
Cause upon ninety (90) days written notice. Notwithstanding termination of Executive under this
Section 10, Company shall pay Executive an amount equal to the average of Executive’s highest three
(3) years of Base Compensation plus Annual Bonus multiplied by 2.99, and Executive shall be entitled to receive all
vested Stock and Stock Options (all of which will fully vest upon such termination), so long as
Executive executes and does not revoke a Separation Agreement

38

 

and General Release Agreement acceptable to Company which will be substantially in the terms
and form attached hereto as Exhibit “A”.

          (b) Executive may terminate his employment with Company for any or no reason, upon ninety (90)
days written notice. If such notice is provided by Executive, Employer, in its sole discretion,
may waive the notice period or any portion thereof, with pay (Base Compensation only) to Executive
for the remaining notice period. Upon termination by Executive of his employment under the
provisions of this Subsection 10(b), the Company shall have no obligation to Executive for Base
Compensation, Annual Bonus, Fringe Benefits or any other form of compensation or benefits other
than (a) amounts of Base Compensation, vested Stock and Stock Options accrued through the
effective date of termination, and (b) reimbursement of appropriately documented expenses incurred
by Executive before the termination of employment, to the extent that Executive would have been
entitled to such reimbursement but for his termination of his employment.

          (c) Termination of Executive’s employment pursuant to Sections 7 through 10 shall release the
Company of all its liabilities and obligations under this Agreement, except as expressly provided
in Sections 7 through 10. Termination of Executive’s employment pursuant to this Section shall
not, however, release Executive from Executive’s obligations and restrictions as stated in Sections
11 and 12 of this Agreement.

          (d) Executive shall not be entitled to any payment or benefit under any Company severance plan
other than as reflected herein under Section 10, and supercedes
any or all other practice or policy, if any, in effect at or after
the time of Executive’s termination since this Agreement.

     11. Company Property. All advertising, sales, manufacturers’ and other materials or
articles or information, including without limitation data processing reports, computer programs,
software, customer information and records, business records, price lists or information, samples,
or any other materials or data of any kind physically furnished to Executive by Company or
developed by Executive on behalf of Company or at Company’s direction or for Company’s use or
otherwise in connection with Executive’s employment hereunder, are and shall remain the sole
property of Company, including in each case all copies thereof in any medium, including computer
tapes and other forms of information storage. If Company requests the return of such materials at
any time during or at or after the termination of Executive’s employment, Executive shall deliver
all copies of the same to Company immediately.

     12. Noncompetition, Trade Secrets, Etc. Executive hereby acknowledges that, during
and solely as a result of his employment by Company, Executive has had and will have access to
Confidential Information as that term is defined herein. In consideration of such special and
unique opportunities afforded by Company to Executive as a result of Executive’s employment and the
other benefits referred to within this Agreement, the Executive hereby agrees as follows:

          (a) From the date hereof until twenty-four (24) months following the termination of
Executive’s employment with Company, for any or no reason, whether initiated by Executive or
Company, (“Restricted Period A”);

39

 

               (i) Executive shall not, for his own benefit or the benefit of any third party, directly or
indirectly engage in (as a principal, shareholder, partner, director, officer, agent, Executive,
consultant or otherwise) or be financially interested in any business operating within the United
States or Canada (the “Restricted Area”), which provides consumer convenience services materially
the same as the services Company provides to third parties, or any other business activities which
are materially the same as and which are in direct competition with the Business, or with any
business activities carried on by Company or being planned by Company, at the time of the
termination of Executive’s employment, or any other business activities which are materially the
same as the Business for any of the Company’s past, present or prospective clients, customers or
accounts; provided however, nothing contained in this Section 12 shall prevent Executive from
holding for investment less than five percent (5%) of any class of equity securities of a company
whose securities are publicly traded on a national securities exchange or in a national market
system.

               (ii) Induce or attempt to influence any Executive, customer, independent contractor or
supplier of Company to terminate employment or any other relationship with Company. During the
Restricted Period, while Executive is still employed by the Company, Executive shall not, directly
or indirectly, disclose or otherwise communicate to any of the clients, customers or accounts of
Company, its Affiliates or any Subsidiary thereof that he has been terminated, is considering
terminating or has decided to terminate employment with Company.

          (b) From the date hereof until twenty-four (24) months following the termination of
Executive’s employment with the Company, for any or no reason, whether initiated by Executive or
Company (“Restricted Period B”), Executive shall not use for Executive’s personal benefit, or
disclose, communicate or divulge to, or use for the direct or indirect benefit of any person, firm,
association, or company other than Company, any “Confidential Information” which term shall mean
any information regarding the business methods, business policies, policies, procedures,
techniques, research or development projects or results, historical or projected financial
information, budgets, trade secrets, or other knowledge or processes of or developed by Company or
any names and addresses of customers or clients or any data on or relating to past, present or
prospective Company customers or clients or any other confidential information relating to or
dealing with the business operations or activities of Company, made known to Executive or learned
or acquired by Executive while in the employ of Company. Confidential Information shall not
include (1) information unrelated to the Company which was lawfully received by Executive free of
restriction from another source having the right to so furnish such Confidential Information; or
(2) information after it has become generally available to the public or to industry competitors
without breach of this Agreement by the Executive; or (3) information which at the time of
disclosure to the Executive was known to the Executive to be free of restriction as evidenced by
documentation from the Company which the Executive possesses, or (4) information which Company
agrees in writing is free of such restrictions. All memoranda, notes, lists, records, files,
documents and other papers and other like items (and all copies, extracts and summaries thereof)
made or compiled by Executive or made available to Executive concerning the business of Company
shall be Company’s property and shall be delivered to Company promptly upon the termination of
Executive’s employment with Company or at any other time on request. The foregoing provisions of
this Subsection 12(b) shall apply during and for a period of two (2) years after Executive is an
Executive of Company and shall be in addition to (and not a limitation of) any legally applicable
protections of Company’s interest in confidential information, trade secrets and the like. At the
termination of

40

 

Executive’s employment with Company, Executive shall return to Company all copies of
Confidential Information in any medium, including computer tapes and other forms of data storage.

          (c) Any and all writings, inventions, improvements, processes, procedures and/or techniques
which Executive may make, conceive, discover or develop, either solely or jointly with any other
person or persons, at any time when Executive is an Executive of Company, whether or not during
working hours and whether or not at the request or upon the suggestion of Company, which relate to
or are useful in connection with the Business or with any business now or hereafter carried on or
contemplated by Company, including developments or expansions of its present fields of operations,
shall be the sole and exclusive property of Company. Executive shall make full disclosure to
Company of all such writings, inventions, improvements, processes, procedures and techniques, and
shall do everything necessary or desirable to vest the absolute title thereto in Company.
Executive shall write and prepare all specifications and procedures regarding such inventions,
improvements, processes, procedures and techniques and otherwise aid and assist Company so that
Company can prepare and present applications for copyright or Letters Patent therefor and can
secure such copyright or Letters Patent wherever possible, as well as reissues, renewals, and
extensions thereof, and can obtain the record title to such copyright or patents so that Company
shall be the sole and absolute owner thereof in all countries in which it may desire to have
copyright or patent protection. Executive shall not be entitled to any additional or special
compensation or reimbursement regarding any and all such writings, inventions, improvements,
processes, procedures and techniques.

          (d) Executive acknowledges that the restrictions contained in the foregoing Subsections in
view of the nature of the business in which Company is engaged, are reasonable and necessary in
order to protect the legitimate interests of Company, that their enforcement will not impose a
hardship on Executive or significantly impair Executive’s ability to earn a livelihood, and that
any violation thereof would result in irreparable injuries to Company. Executive and Company
acknowledge that, in the event either party believes the other party has violated any of the terms
of this Agreement, the other party shall be entitled to seek from any court of competent
jurisdiction, without attempting arbitration, preliminary and permanent injunctive relief.

          (e) If the Restricted Periods or the Restricted Area specified above should be adjudged
unreasonable in any proceeding, then the period of time shall be reduced by such amount or the area
shall be reduced by the elimination of such portion or both such reductions shall be made so that
such restrictions may be enforced for such time and in such area as is adjudged to be reasonable.
If Executive violates any of the restrictions contained in the foregoing Subsections, the relevant
Restricted Period shall be extended by a period equal to the length of time from the commencement
of any such violation until such time as such violation shall be cured by Executive to the
satisfaction of Company. Executive hereby expressly consents to the jurisdiction of any court
within the Eastern District of Pennsylvania for the purpose of seeking a preliminary or permanent
injunction as described above in Section 12(d), and agrees to accept service of process by
certified mail return receipt requested relating to any such proceeding. Company may supply a copy
of Section 12 of this Agreement to any future or prospective employer of Executive or to any person
to whom Executive has supplied information if Company determines in good faith that there is a
reasonable likelihood that Executive has violated or will violate such Section.

41

 

     13. Prior Agreements. Executive represents to Company that there are no restrictions,
agreements or understandings, oral or written, to which Executive is a party or by which Executive
is bound that prevent or make unlawful Executive’s execution or performance of this Agreement.

     14. Miscellaneous.

          (a) Indulgences, Etc. Neither the failure nor any delay on the part of either party
to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver
thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude
any other or further exercise of the same or of any other right, remedy, power or privilege, nor
shall any waiver of any right, remedy, power or privilege with respect to any occurrence be
construed as a waiver of such right, remedy, power or privilege with respect to any other
occurrence. No waiver shall be effective unless it is in writing and is signed by the party
asserted to have granted such waiver.

          (b) Controlling Law. This Agreement and all questions relating to its validity,
interpretation, performance and enforcement (including, without limitation, provisions concerning
limitations of actions), shall be governed by and construed in accordance with the laws of the
Commonwealth of Pennsylvania, notwithstanding any conflict-of-laws doctrines of such jurisdiction
to the contrary, and without the aid of any canon, custom or rule of law requiring construction
against the draftsman.

          (c) Notices. All notices, requests, demands and other communications required or
permitted under this Agreement shall be in writing and shall be deemed to have been duly given,
made and received only when personally delivered, on the day specified for delivery when deposited
with a recognized national or regional courier service for delivery to the intended addressee or
two (2) days following the day when deposited in the United States mails, first class postage
prepaid, addressed as set forth below:

If to Executive:

Kenneth L. Tepper

President & CEO

TRM Corporation

5208 N.E. 122nd Avenue

Portland, OR 97203

If to Company:

Amy B. Krallman, Esq.

Senior Vice President

TRM Corporation

5208 N.E. 122d Avenue

Portland, OR 97230

with a copy, given in the manner prescribed above, to:

Jodi T. Plavner, Esq.

Wolf, Block, Schorr and Solis-Cohen, LLP

1650 Arch Street, 22nd Floor

Philadelphia, PA 19103

42

 

     In addition, notice by mail shall be by air mail if posted outside of the continental United
States. Any party may alter the address to which communications or copies are to be sent by giving
notice of such change of address in conformity with the provisions of this Section for the giving
of notice.

          (d) Binding Nature of Agreement. This Agreement shall be binding upon Company and
shall inure to the benefit of Company, its present and future Subsidiaries, Affiliates, successors
and assigns including any transferee of the business operation, as a going concern, in which
Executive is employed and shall be binding upon Executive, Executive’s heirs and personal
representatives. None of the rights or obligations of Executive hereunder may be assigned or
delegated, except that in the event of Executive’s death or Disability, any rights of Executive
hereunder shall be transferred to Executive’s estate or personal representative, as the case may
be. Company may assign its rights and obligations under this Agreement in whole or in part to any
one or more Affiliates or successors, but no such assignment shall relieve Company of its
obligations to Executive if any such assignee fails to perform such obligations.

          (e) Execution in Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original as against any party whose signature
appears thereon, and all of which shall together constitute one and the same instrument. This
Agreement shall become binding when one or more counterparts hereof, individually or taken
together, shall bear the signatures of all of the parties reflected hereon as the signatories.

          (f) Provisions Separable. The provisions of this Agreement are independent of and
separable from each other, and no provision shall be affected or rendered invalid or unenforceable
by virtue of the fact that for any reason any other or others of them may be invalid or
unenforceable in whole or in part.

          (g) Entire Agreement. This Agreement contains the entire understanding among the
parties hereto with respect to the employment of Executive by Company, and supersedes all prior and
contemporaneous agreements and understandings, inducements or conditions, express or implied, oral
or written, except as herein contained. The express terms hereof control and supersede any course
of performance and/or usage of the trade inconsistent with any of the terms hereof. This Agreement
may not be modified or amended other than by an agreement in writing. Notwithstanding the
foregoing, nothing herein shall limit the application of any generally applicable Company policy,
practice, plan or the terms of any manual or handbook applicable to Company’s Executives generally,
except to the extent the foregoing directly conflict with this Agreement, in which case the terms
of this Agreement shall prevail.

          (h) Section Headings. The Section headings in this Agreement are for convenience
only; they form no part of this Agreement and shall not affect its interpretation.

          (i) Number of Days. Except as otherwise provided herein, for example, in the context
of vacation days, in computing the number of days for purposes of this Agreement, all days shall be
counted, including Saturdays, Sundays and holidays; provided, however, that if the final day of any
time period falls on a Saturday, Sunday or holiday on which federal banks are or may elect to be
closed, then the final day shall be deemed to be the next day which is not a Saturday, Sunday or
such holiday.

43

 

          (j) Gender, Etc. Words used herein, regardless of the number and gender specifically
used, shall be deemed and construed to include any other number, singular or plural, and any other
gender, masculine, feminine or neuter, as the context indicates is appropriate.

          (k) Dispute Resolution. In the event of any disagreement of any nature whatsoever
between the parties to this Employment Agreement in any way relating to this Employment Agreement,
except for the ability of the parties to seek a preliminary or permanent injunction as described
above, which need not be discussed between the parties or arbitrated, the parties shall meet to
attempt to resolve such disagreement. In the event of their failure to do so within fifteen (15)
days or such longer period of time as shall be mutually agreed upon by the parties, either party
may serve notice in writing upon the other party requesting arbitration, which notice shall specify
in reasonable detail the nature of the dispute. Any arbitration under this Section shall be held
in Philadelphia, Pennsylvania or such other place as shall be mutually agreed to by the parties,
and conducted in accordance with the procedures set forth hereafter and, to the extent not
inconsistent with this Section, in accordance with the Employment Dispute Resolution Rules of the
American Arbitration Association in effect on the date of this Agreement. Company shall have the
right and remedy to ask the arbitrator to require Executive to account to Company for
all compensation, profits, monies, accruals, increments or other benefits derived or received by
Executive as the result of any transactions constituting a breach of Section 12, and Executive
shall account for and pay over such amounts to Company upon the arbitrator’s determination thereof.

               (i) Any arbitration under this Section shall be before an arbitrator who shall be experienced
in the area of employment law. The arbitrator shall be selected by the parties from lists provided
by the American Arbitration Association. The parties agree to exchange all relevant documents
prior to any hearing, and further agree that any dispute over such exchange may be submitted to the
arbitrator for decision, which decision shall be binding on the parties. The parties further agree
to exchange hearing exhibits and designations of witnesses to be called at the hearing at least ten
(10) calendar days before any hearing as a party may not offer at the hearing as part of its direct
case any witness, evidence or document not so disclosed, unless such witness(es), evidence or
document(s) became available and/or known to the party who wishes to introduce such witness(es),
evidence and/or document(s) within the ten (10) calendar days prior to the arbitration, and such
witness(es), evidence or document(s) is immediately provided to the arbitrator and the other party,
or unless the evidence is for rebuttal or impeachment purposes and its need was not anticipated or
foreseen before the hearing.

               (ii) Within 60 days of the production of all documents, evidence and witness list as outlined
in the preceding section, the arbitrator shall conduct the arbitration hearing. Each party will
have one day to present its case, unless, upon request the arbitrator determines that more or less
time is appropriate. Within 30 days of the arbitration hearing, the arbitrator shall render a
decision in writing to each party.

               (iii) Any arbitration award must (i) be rendered in accordance with applicable law as
described in this Employment Agreement and (ii) be set forth in a written decision which sets forth
the reasons (including, without limitation, the conclusions of fact and/or law) upon which such
award is rendered. Judgment upon an arbitration award may be rendered in any court of competent
jurisdiction or application may be made to any such state or federal court of competent
jurisdiction for judicial acceptance of an order to enforcement of an

44

 

arbitration award, as the case may be. Any arbitration award shall be final and binding on
the parties. Once an issue has been arbitrated pursuant hereto, the decision of the arbitrator
shall be res judicata with respect to such issue.

               (iv) The arbitrator shall have the power to issue subpoenas compelling testimony and/or the
production of documents from any person whether or not a party hereto, which subpoenas shall be
enforceable in all courts of competent jurisdiction in the Eastern District of Pennsylvania. In
addition, the arbitrator and attorney-of-record shall have the power to request through the
above-mentioned courts of competent jurisdiction the taking of depositions from any person, not a
party or a director, officer, executive, employee or agent of a party, who cannot be subpoenaed or
is unable to attend the arbitration, whose testimony the arbitrator deems both important and
relevant to the resolution of the issues presented for arbitration.

               (v) The cost of the arbitration and all attorney fees shall be borne by the parties in such
proportion as the arbitrator shall direct, with such arbitrator to give due consideration to the
fault of the parties.

               (vi) Notwithstanding
the foregoing, the parties need not arbitrate any request for
preliminary or permanent injunctive relief; such relief may be brought by either party in any state
or federal court in the Eastern District of Pennsylvania. Such litigation will toll the Restricted
Periods beginning on the alleged date of Executive’s violation until the date the dispute
is resolved.

          (l) Jurisdiction of Courts. Any legal suit, action, claim, proceeding or
investigation arising out of or relating to Sections 11 or 12 of this Agreement may be instituted
in any state or federal court in the Eastern District of Pennsylvania, and each of the parties
hereto waives any objection which party may now or hereafter have to such venue of any such suit,
action, claim, proceeding or investigation, and irrevocably submits to the jurisdiction of any such
court. Any and all service of process and any other notice in any such suit, action, claim,
proceeding or investigation shall be effective against any party if given by registered or
certified mail, return receipt requested, or by any other means of mail which requires a signed
receipt, postage prepaid, mailed to such party as herein provided. If for any reason such service
of process by mail is ineffective, then Company shall be deemed to have appointed Jodi T. Plavner,
Esquire, Wolf, Block, Schorr and Solis-Cohen LLP, 1650 Arch Street, 22nd Floor, Philadelphia,
Pennsylvania 19103, as the authorized agent of Company to accept and acknowledge, on behalf of
Company, service of any and all process which may be served in any such suit, action, claim,
proceeding or investigation. Nothing herein contained shall be deemed to affect the right of any
party to serve process in any manner permitted by law or to commence legal proceedings or otherwise
proceed against any other party in any jurisdiction other than Pennsylvania.

          (m) Survival. All provisions of this agreement which by their terms survive the
termination of Executive’s employment with Company, including without limitation the covenants of
Executive set forth in Sections 11 and 12 and the obligations of Company to make any
post-termination payments under this Agreement, shall survive termination of Executive’s employment
by Company and shall remain in full force and effect thereafter in accordance with their terms.

45

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Agreement in
Philadelphia, Pennsylvania as of the date first above written.

	 	 	 	 	 
	 	TRM Corporation

 	 
	 	By:  	/s/ Daniel G. Cohen
 	 
	 	 	Name:  	Daniel G. Cohen 	 
	 	 	Title:  	Chairman of the Board 	 
	 
	 	Executive

 	 
	 	/s/ Kenneth L. Tepper
 	 
	 	Kenneth L. Tepper 	 
	 	 	 

46

 

	 	 	 	 	 

ATTACHMENT “A”

SAMPLE RELEASE AGREEMENT

     1. In consideration for your General Release and the covenants and agreements expressed herein
and in the Employment Agreement, the Company, intending to be legally bound, agrees to pay you
                     (___) months of severance and the other severance payments, less taxes and other
deductions required by law, as stated in Section ___of the attached Employment Agreement.

     2. In consideration of the receipt of the Company’s payments set forth in Section ___of
the attached Employment Agreement, you, intending to be legally bound, agree to release and forever
discharge the Company and its related or affiliated companies and Subsidiaries, and each of their
past, present and future officers, directors, attorneys, employees, executives, owners and agents,
and their respective successors and assigns (collectively, the “Releasees”), jointly and
severally, from any and all actions, complaints, charges, causes of action, lawsuits or claims of
any kind (collectively, “Claims”), known or unknown, which you, your heirs, agents, successors or
assigns ever had, now have or hereafter may have against the Releasees arising heretofore out of
any matter, occurrence or event existing or occurring prior to the execution hereof, including,
without limitation: any claims relating to or arising out of your employment with and/or
termination of employment by the Company and/or any of its related and/or affiliated companies or
Subsidiaries; any claims for unpaid or withheld wages, severance, benefits, bonuses, commissions
and/or other compensation of any kind; any claims for attorneys’ fees, costs or expenses; any
claims of discrimination and/or harassment based on age, sex, race, religion, color, creed,
disability, handicap, citizenship, national origin, ancestry, sexual preference or orientation, or
any other factor prohibited by Federal, State or Local law (such as the Age Discrimination in
Employment Act, 29 U.S.C. § 621 et seq., Title VII of the Civil Rights Act of 1964, as amended, the
Americans with Disabilities Act, the Pennsylvania Human Relations Act) any claims for retaliation
and/or any whistleblower claims; and/or any other statutory or common law claims, now existing or
hereinafter recognized, including, but not limited to, breach of contract, libel, slander, fraud,
wrongful discharge, promissory estoppel, equitable estoppel and misrepresentation.

     3. The General Release does not apply to any claims to enforce this Release Agreement or to
any claims arising out of any matter, occurrence or event occurring after the execution of this
Release Agreement.

     4. You acknowledge and agree that the Company’s payment under Section 1 above is not required
by any policy or plan and constitutes adequate consideration to support this Release Agreement, as
well as your covenants and agreements within the Employment Agreement.

     5. You agree and represent that:

          (a) You have read carefully the terms of this Release Agreement;

          (b) You have had an opportunity to and have been encouraged to review this Release Agreement
with an attorney;

          (c) You understand the meaning and effect of the terms of this Release Agreement;

47

 

          (d) You were given as much time as you needed to determine whether you wished to enter into
this Release Agreement;

          (e) The entry into and execution of this Release Agreement is your own free and voluntary act
without compulsion of any kind;

          (f) No promise or inducement not expressed herein has been made to you; and

          (g) You have adequate information to make a knowing and voluntary waiver.

     6. After delivering a signed copy of this Release Agreement to the Company, attention of the
undersigned, you may revoke such acceptance by delivering a letter of revocation to the Company,
attention of the undersigned, within seven (7) days thereafter (the “Revocation Period”). This
Release Agreement shall become effective on the day following the expiration of the Revocation
Period if you have not exercised the revocation right as indicated in the preceding sentence. If
you exercise the revocation right, neither you nor the Company shall have any obligation hereunder.

*     *     *

     If you agree with the terms set forth above, please sign this Agreement indicating that you
understand, agree with and intend to be bound by such terms.

     We wish you the best in the future.

	 	 	 	 	 	 	 
	 	 	Sincerely,	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Dated:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 	 
	UNDERSTOOD AND AGREED,
	 	 
	INTENDING TO BE LEGALLY BOUND:
	 	 
	 
	 	 
	 

	 	 
	 

	 	 
	Date
	 	 

	 
	Witness
	 	 

48

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