Document:

exv4w7

Exhibit 4.7

THE SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE
SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS OR (B)
AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID
ACT OR APPLICABLE STATE SECURITIES LAWS OR (II) UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.
NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

ANY TRANSFEREE OF THIS WARRANT SHOULD CAREFULLY REVIEW THE TERMS OF THIS WARRANT, INCLUDING SECTION
2(e) HEREOF. THE SECURITIES REPRESENTED BY THIS WARRANT MAY BE LESS THAN THE NUMBER SET FORTH ON
THE FACE HEREOF PURSUANT TO SECTION 2(e) HEREOF.

TRM Corporation

Amended and Restated

Warrant To Purchase Common Stock

			
	Warrant No.: 0003
	 	Number of Shares: 1,047,577

This Amended and Restated Warrant, dated as of April 18, 2008, amends and restates in its entirety
the warrant exercisable for 1,047,577 Warrant Shares issued on November 20, 2006 by TRM Corporation
in favor of GSO Special Situations Fund Ltd. This Warrant is being amended and restated in
connection with the Securities Purchase Agreement of even date herewith among TRM Corporation, the
purchasers party thereto and Lampe, Conway & Co., LLC, as administrative agent.

TRM Corporation, an Oregon corporation (the “Company”), hereby certifies that, for Ten United
States Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, GSO Special Situations Fund Ltd., the registered holder hereof or
its permitted assigns, is entitled, subject to the terms set forth below, to purchase from the
Company upon surrender of this Warrant (if required by Section 2(e)), at any time or times on or
after the Warrant Date, but not after 11:59 P.M. New York Time on the Expiration Date (as defined
herein) One Million Forty Seven Thousand Five Hundred Seventy Seven (1,047,577) fully paid
nonassessable shares of Common Stock (as defined in Section 1(b)) of the Company (the “Warrant
Shares”) at the Warrant Exercise Price (as defined in Section 1(b) below); provided, however, that
in no event shall the holder be entitled or required to exercise

 

 

this Warrant for a number of Warrant Shares in excess of that number of Warrant Shares that, upon
giving effect to such exercise, would cause the aggregate number of shares of Common Stock
beneficially owned by the holder and its affiliates to exceed 9.99% of the outstanding shares of
the Common Stock following such exercise. For purposes of the foregoing proviso, the aggregate
number of shares of Common Stock beneficially owned by the holder and its affiliates shall include
the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which
the determination of such proviso is being made, but shall exclude shares of Common Stock that
would be issuable upon (i) exercise of the remaining, unexercised Second Lien Warrants (as defined
in Section 1(a)) beneficially owned by the holder and its affiliates and (ii) exercise, conversion
or exchange of the unexercised, unconverted or unexchanged portion of any other securities of the
Company beneficially owned by the holder and its affiliates subject to a limitation on conversion,
exercise or exchange analogous to the limitation contained herein. Except as set forth in the
preceding sentence, for purposes of this paragraph, beneficial ownership shall be calculated in
accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended. For purposes of
this Warrant, in determining the number of outstanding shares of Common Stock a holder may rely on
the number of outstanding shares of Common Stock as reflected in (1) the Company’s most recent Form
10-Q or Form 10-K, as the case may be, (2) a more recent public announcement by the Company or (3)
any other notice by the Company or its transfer agent setting forth the number of shares of Common
Stock outstanding. Upon the written request of any holder, the Company shall promptly, but in no
event later than one (1) Business Day following the receipt of such request, confirm in writing to
any such holder the number of shares of Common Stock then outstanding. In any case, the number of
outstanding shares of Common Stock shall be determined after giving effect to the conversion,
exercise or exchange of securities of the Company, including the Second Lien Warrants by such
holder and its affiliates, since the date as of which such number of outstanding shares of Common
Stock was reported. For purposes of determining the maximum number of shares of Common Stock that
the Company may issue to the holder of this Warrant upon exercise of this Warrant, such holder’s
delivery of an Exercise Notice (as defined in Section 2(a)) with respect to such exercise shall
constitute a representation (on which the Company may rely without investigation) by the holder of
this Warrant that upon the issuance of the shares of Common Stock to be issued to such holder, the
shares of Common Stock beneficially owned by such holder and its affiliates shall not exceed 9.99%
of the total outstanding shares of Common Stock of the Company immediately after giving effect to
such exercise as determined in accordance with this paragraph.

     Section 1.

          (a) Amended Second Lien Loan Agreement. This Warrant is one of the warrants issued
pursuant to Section 2.06 of that certain Amended and Restated Second Lien Loan Agreement, dated as
of November 20, 2006, among the Company and the Persons (as defined below) referred to therein (as
such agreement may be amended from time to time as provided in such agreement, the “Amended Second
Lien Loan Agreement”) or of any warrants issued in exchange or substitution therefor or replacement
thereof (all such warrants being collectively referred to as the “Second Lien Warrants”). Each
capitalized term used, and not otherwise defined herein, shall have the meaning ascribed thereto in
the Amended Second Lien Loan Agreement.

 

 

          (b) Definitions. The following words and terms as used in this Warrant shall have the
following meanings:

               (i) “Approved Stock Plan” means any employee benefit plan that has been approved by the Board
of Directors and shareholders of the Company, pursuant to which the Company’s securities may be
issued to any consultant, employee, officer or director for services provided to the Company.

               (ii) “Business Day” means any day other than Saturday, Sunday or other day on which commercial
banks in the City of New York are authorized or required by law to remain closed.

               (iii) “Common Stock” means (i) the Company’s common stock, no par value per share, and
(ii) any capital stock into which such Common Stock shall have been changed or any capital stock
resulting from a reclassification of such Common Stock.

               (iv) “Convertible Security” means any stock or securities (other than Options) directly or
indirectly convertible into or exchangeable or exercisable for Common Stock.

               (v) “Expiration Date” means the date that is seven (7) years after the Warrant Date (as
defined in Section 13) or, if such date does not fall on a Business Day, then the next Business
Day.

               (vi) “Options” means any rights, warrants or options to subscribe for or purchase Common Stock
or Convertible Securities.

               (vii) “Person” means an individual, a limited liability company, a partnership, a joint
venture, a corporation, a trust, an unincorporated organization or a government or any department
or agency thereof or any other legal entity.

               (viii) “Principal Market” means, with respect to the Common Stock or any other security, the
NASDAQ National Market, or, if the Common Stock or such other security is not traded on the NASDAQ
National Market, then the principal securities exchange or trading market for the Common Stock or
such other security.

               (ix) “Registration Rights Agreement” means that agreement dated November 20, 2006, by and
among the Company and the Persons referred to therein, as such agreement may be amended from time
to time as provided in such agreement.

               (x) “Securities Act” means the Securities Act of 1933, as amended.

               (xi) “Trading Day” means any day on which the Common Stock is traded on the Principal Market;
provided that “Trading Day” shall not include any day on which the Common Stock is scheduled to
trade, or actually trades, on such exchange or market for less than 4.5 hours.

 

 

               (xii) “Warrant” means this Amended and Restated Warrant and all Warrants issued in exchange,
transfer or replacement thereof pursuant to the terms of this Warrant.

               (xiii) “Warrant Allocation Percentage” means the percentage obtained by dividing (i) the
number of Warrant Shares issuable to the initial holder of this Warrant as of the Warrant Date, by
(ii) the aggregate number of Warrant Shares issuable pursuant to the Warrants.

               (xiv) “Warrant Exercise Price” shall be equal to, with respect to any Warrant Share, $0.40,
subject to adjustment as hereinafter provided.

               (xv) “Weighted Average Price” means, for any security as of any date, the dollar
volume-weighted average price for such security on its Principal Market during the period beginning
at 9:30 a.m., New York City Time (or such other time as the Principal Market publicly announces is
the official open of trading), and ending at 4:00 p.m., New York City Time (or such other time as
the Principal Market publicly announces is the official close of trading), as reported by Bloomberg
Financial Markets (or any successor thereto, “Bloomberg”) through its “Volume at Price” functions,
or, if the foregoing does not apply, the dollar volume-weighted average price of such security in
the over-the-counter market on the electronic bulletin board for such security during the period
beginning at 9:30 a.m., New York City Time (or such other time as such over-the-counter market
publicly announces is the official open of trading), and ending at 4:00 p.m., New York City Time
(or such other time as such over-the-counter market publicly announces is the official close of
trading), as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for
such security by Bloomberg for such hours, the average of the highest closing bid price and the
lowest closing ask price of any of the market makers for such security as reported in the “pink
sheets” by the National Quotation Bureau, Inc. If the Weighted Average Price cannot be calculated
for such security on such date on any of the foregoing bases, the Weighted Average Price of such
security on such date shall be the fair market value as mutually determined by the Company and the
holder of this Warrant. If the Company and the holder of this Warrant are unable to agree upon the
fair market value of the Common Stock, then such dispute shall be resolved pursuant to Section 2(a)
below. All such determinations to be appropriately adjusted for any stock dividend, stock split,
stock combination or other similar transaction during any period during which the Weighted Average
Price is being determined.

     Section 2. Exercise of Warrant.

          (a) Subject to the terms and conditions hereof, this Warrant may be exercised by the holder
hereof then registered on the books of the Company, in whole or in part, at any time on any
Business Day on or after the opening of business on the Warrant Date and prior to 11:59 P.M. New
York Time on the Expiration Date by (i) delivery of a written notice, in the form of the
subscription form attached as Exhibit A hereto (the “Exercise Notice”), of such holder’s
election to exercise this Warrant, which notice shall specify the number of Warrant Shares to be
purchased, (ii) (A) payment to the Company of an amount equal to the Warrant Exercise Price
multiplied by the number of Warrant Shares as to which this Warrant is being exercised (the
“Aggregate Exercise Price”) by wire transfer of immediately available funds (or by check if the
Company has not provided the holder of this Warrant with wire transfer instructions for such
payment) or (B) by notifying the Company that this Warrant is being

 

 

exercised pursuant to a Cashless Exercise (as defined in Section 2(d)), and (iii) if required
by Section 2(e) or unless the Holder has previously delivered this Warrant to the Company and it or
a new replacement Warrant has not yet been delivered to the Holder, the surrender to a common
carrier for overnight delivery to the Company as soon as practicable following such date, this
Warrant (or an indemnification undertaking with respect to this Warrant in the case of its loss,
theft or destruction); provided, that if such Warrant Shares are to be issued in any name other
than that of the registered holder of this Warrant, such issuance shall be deemed a transfer and
the provisions of Section 7 shall be applicable. In the event of any exercise of the rights
represented by this Warrant in compliance with this Section 2(a), the Company shall on the second
(2nd) Business Day (the “Warrant Share Delivery Date”) following the date of its receipt
of the later of the Exercise Notice, the Aggregate Exercise Price (or notice of Cashless Exercise)
and if required by Section 2(e) (or unless the holder of this Warrant has previously delivered this
Warrant to the Company and it or a new replacement Warrant has not yet been delivered to the
holder), this Warrant (or an indemnification undertaking with respect to this Warrant in the case
of its loss, theft or destruction) (the “Exercise Delivery Documents”), issue and deliver to the
address specified in the Exercise Notice, a certificate, registered in the name of the holder or
its designee, for the number of shares of Common Stock to which the holder shall be entitled. Upon
the later of the date of delivery of (x) the Exercise Notice and (y) the Aggregate Exercise Price
referred to in clause (ii)(A) above or notification to the Company of a Cashless Exercise referred
to in Section 2(d), the holder of this Warrant shall be deemed for all purposes to have become the
holder of record of the Warrant Shares with respect to which this Warrant has been exercised (the
date thereof being referred to as the “Deemed Issuance Date”), irrespective of the date of delivery
of this Warrant as required by clause (iii) above or the certificates evidencing such Warrant
Shares. In the case of a dispute as to the determination of the Warrant Exercise Price, the
Weighted Average Price of a security or the arithmetic calculation of the number of Warrant Shares,
the Company shall promptly issue to the holder the number of shares of Common Stock that is not
disputed and shall submit the disputed determinations or arithmetic calculations to the holder via
facsimile within two (2) Business Days of receipt of the holder’s Exercise Notice. If the holder
and the Company are unable to agree upon the determination of the Warrant Exercise Price, the
Weighted Average Price or arithmetic calculation of the number of Warrant Shares within one (1)
Business Day of such disputed determination or arithmetic calculation being submitted to the
holder, then the Company shall promptly submit via facsimile (i) the disputed determination of the
Warrant Exercise Price or the Weighted Average Price to an independent, reputable investment
banking firm agreed to by the Company and the holder of this Warrant or (ii) the disputed
arithmetic calculation of the number of Warrant Shares to its independent, outside public
accountant. The Company shall direct the investment banking firm or the accountant, as the case
may be, to perform the determinations or calculations and notify the Company and the holder of the
results no later than two (2) Business Days after the date it receives the disputed determinations
or calculations. Such investment banking firm’s or accountant’s determination or calculation, as
the case may be, shall be deemed conclusive absent demonstrable error.

          (b) If this Warrant is submitted for exercise, as may be required by Section 2(e), and unless
the rights represented by this Warrant shall have expired or shall have been fully exercised, the
Company shall, as soon as practicable and in no event later than four (4) Business Days after
receipt of this Warrant (the “Warrant Delivery Date”) and at its own expense, issue a new Warrant
identical in all respects to this Warrant except it shall represent

 

 

rights to purchase the number of Warrant Shares purchasable immediately prior to such exercise
under this Warrant, less the number of Warrant Shares with respect to which such Warrant is
exercised (together with, in the case of a cashless exercise, the number of Warrant Shares
surrendered in lieu of payment of the Exercise Price).

          (c) No fractional shares of Common Stock are to be issued upon the exercise of this Warrant,
but rather the number of shares of Common Stock issued upon exercise of this Warrant shall be
rounded up or down to the nearest whole number (with 0.5 rounded up).

          (d) Notwithstanding anything contained herein to the contrary, the holder of this Warrant may,
at its election exercised in its sole discretion, exercise this Warrant in whole or in part and, in
lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise
in payment of the Aggregate Exercise Price, elect instead to receive upon such exercise the “Net
Number” of shares of Common Stock determined according to the following formula (a “Cashless
Exercise”):

	 	 	 	 	 	 	 
	 

	 	Net Number =
	 	(A x B) - (A x C)
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	B	 	 

          For purposes of the foregoing formula:

	 	 	 	 	 	 
	 

	A= the total number of shares with respect to which
this Warrant is then being exercised;

	 
	 

	B= the Weighted Average Price of the Common Stock on
the trading day immediately preceding the date of
the delivery of the Exercise Notice; and

	 
	 

	C= the Warrant Exercise Price then in effect for the
applicable Warrant Shares at the time of such
exercise.

          (e) Book-Entry. Notwithstanding anything to the contrary set forth herein, upon
exercise of this Warrant in accordance with the terms hereof, the holder of this Warrant shall not
be required to physically surrender this Warrant to the Company unless it is being exercised for
all of the Warrant Shares represented by the Warrant. The holder and the Company shall maintain
records showing the number of Warrant Shares exercised and issued and the dates of such exercises
or shall use such other method, reasonably satisfactory to the holder and the Company, so as not to
require physical surrender of this Warrant upon each such exercise. In the event of any dispute or
discrepancy, such records of the Company establishing the number of Warrant Shares to which the
holder is entitled shall be controlling and determinative in the absence of demonstrable error.
Notwithstanding the foregoing, if this Warrant is exercised as aforesaid, the holder may not
transfer this Warrant unless the holder first physically surrenders this Warrant to the Company,
whereupon the Company will forthwith issue and deliver upon the order of the holder a new Warrant
of like tenor, registered as the holder may request, representing in the aggregate the remaining
number of Warrant Shares represented by

 

 

this Warrant. The holder and any assignee, by acceptance of this Warrant, acknowledge and
agree that, by reason of the provisions of this paragraph, following exercise of any portion of
this Warrant, the number of Warrant Shares represented by this Warrant may be less than the number
stated on the face hereof. Each Warrant shall bear the following legend:

ANY TRANSFEREE OF THIS WARRANT SHOULD CAREFULLY REVIEW THE TERMS OF
THIS WARRANT, INCLUDING SECTION 2(e) HEREOF. THE SECURITIES
REPRESENTED BY THIS WARRANT MAY BE LESS THAN THE NUMBER SET FORTH ON
THE FACE HEREOF PURSUANT TO SECTION 2(e) HEREOF.

     Section 3. Covenants as to Common Stock. The Company hereby covenants and agrees as
follows:

          (a) This Warrant is, and any Warrants issued in substitution for or replacement of this
Warrant will upon issuance be, duly authorized and validly issued.

          (b) All Warrant Shares that may be issued upon the exercise of the rights represented by this
Warrant will, upon issuance, be validly issued, fully paid and nonassessable and free from all
taxes, liens and charges with respect to the issue thereof.

          (c) During the period within which the rights represented by this Warrant may be exercised,
the Company will at all times have authorized and reserved at least 110% of the number of shares of
Common Stock needed to provide for the exercise of the rights then represented by this Warrant.

          (d) The Company shall promptly secure the listing of the shares of Common Stock issuable upon
exercise of this Warrant on the Principal Market (subject to official notice of issuance upon
exercise of this Warrant) and each other market or exchange on which the Common Stock is traded or
listed and shall maintain, so long as any other shares of Common Stock shall be so traded or
listed, such listing of all shares of Common Stock from time to time issuable upon the exercise of
this Warrant; and the Company shall so list on the Principal Market and each other market or
exchange on which the Common Stock is traded or listed and shall maintain such listing of, any
other shares of capital stock of the Company issuable upon the exercise of this Warrant if and so
long as any shares of the same class shall be listed on the Principal Market and each other market
or exchange on which the Common Stock is traded or listed.

          (e) The Company will not, by amendment of its Articles of Incorporation or through any
reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of
securities, or any other voluntary action, avoid or seek to avoid the observance or performance of
any of the terms to be observed or performed by it hereunder, but will at all times in good faith
assist in the carrying out of all the provisions of this Warrant and in the taking of all such
action as may reasonably be requested by the holder of this Warrant in order to protect the
exercise privilege of the holder of this Warrant against impairment,

 

 

consistent with the tenor and purpose of this Warrant. Without limiting the generality of the
foregoing, the Company (i) will not increase the par value of any shares of Common Stock receivable
upon the exercise of this Warrant, and (ii) will take all such actions as may be necessary or
appropriate in order that the Company may validly and legally issue fully paid and nonassessable
shares of Common Stock upon the exercise of this Warrant.

          (f) This Warrant will be binding upon any entity succeeding to the Company by merger,
consolidation or acquisition of all or substantially all of the Company’s assets.

     Section 4. Taxes. The Company shall pay any and all taxes (excluding income taxes,
franchise taxes or other taxes levied on gross earnings, profits or the like of the holder of this
Warrant) that may be payable with respect to the issuance and delivery of Warrant Shares upon
exercise of this Warrant.

     Section 5. Warrant Holder Not Deemed a Shareholder. No holder, as such, of this
Warrant shall be entitled to vote or receive dividends or be deemed the holder of shares of the
Company for any purpose (other than to the extent that the holder is deemed to be a beneficial
holder of shares under applicable securities laws after taking into account the limitation set
forth in the first paragraph of this Warrant), nor shall anything contained in this Warrant be
construed to confer upon the holder hereof, as such, any of the rights of a shareholder of the
Company or any right to vote, give or withhold consent to any corporate action (whether any
reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or
otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise,
prior to the Deemed Issuance Date of the Warrant Shares that such holder is then entitled to
receive upon the due exercise of this Warrant. In addition, nothing contained in this Warrant
shall be construed as imposing any obligations or liabilities on such holder to purchase any
securities (upon exercise of this Warrant or otherwise) or as a shareholder of the Company, whether
such liabilities are asserted by the Company or by creditors of the Company. Notwithstanding this
Section 5, the Company will provide the holder of this Warrant with copies of the same notices and
other information given to the shareholders of the Company generally, contemporaneously with the
giving thereof to the shareholders.

     Section 6. Representations of Holder. The holder of this Warrant, by the acceptance
hereof, represents that it is acquiring this Warrant, and upon exercise hereof (other than pursuant
to a Cashless Exercise) will acquire the Warrant Shares, for its own account and not with a view
towards, or for resale in connection with, the public sale or distribution of this Warrant or the
Warrant Shares, except pursuant to sales registered or exempted under the Securities Act; provided,
however, that by making the representations herein, the holder does not agree to hold this Warrant
or any of the Warrant Shares for any minimum or other specific term and reserves the right to
dispose of this Warrant and the Warrant Shares at any time in accordance with or pursuant to a
registration statement or an exemption under the Securities Act. The holder of this Warrant
further represents, by acceptance hereof, that, as of this date, such holder is an “accredited
investor” as such term is defined in Rule 501(a)(3) of Regulation D promulgated by the Securities
and Exchange Commission under the Securities Act (an “Accredited Investor”) and has had the
opportunity to ask questions and receive answers concerning the Company, the Second Lien Warrants
and the offering thereof from the Company. Each delivery of an Exercise

 

 

Notice, other than in connection with a Cashless Exercise, shall constitute confirmation at
such time by the holder of the representations concerning the Warrant Shares set forth in the first
two sentences of this Section 6, unless contemporaneous with the delivery of such Exercise Notice,
the holder notifies the Company in writing that it is not making such representations (a
“Representation Notice”). If the holder delivers a Representation Notice in connection with an
exercise, it shall be a condition to such holder’s exercise of this Warrant and the Company’s
obligations set forth in Section 2 in connection with such exercise, that the Company receive such
other representations as the Company considers reasonably necessary to assure the Company that the
issuance of its securities upon exercise of this Warrant shall not violate any United States or
state securities laws, and the time periods for the Company’s compliance with its obligations set
forth in Section 2 shall be tolled until such holder provides the Company with such other
representations.

     Section 7. Ownership and Transfer.

          (a) The Company shall maintain at its principal executive offices or at the offices of its
transfer agent (or such other office or agency of the Company as it may designate by notice to the
holder hereof), a register for this Warrant, in which the Company shall record the name and address
of the person in whose name this Warrant has been issued, as well as the name and address of each
transferee. The Company may treat the person in whose name any Warrant is registered on the
register as the owner and holder thereof for all purposes, notwithstanding any notice to the
contrary, but in all events recognizing any transfers made in accordance with the terms of this
Warrant.

          (b) This Warrant and the rights granted hereunder shall be assignable by the holder hereof
without the consent of the Company.

          (c) The Company is obligated to register the Warrant Shares for resale under the Securities
Act pursuant to the Registration Rights Agreement, and the initial holder of this Warrant (and
assignees thereof) is entitled to the registration rights in respect of the Warrant Shares as set
forth in the Registration Rights Agreement.

     Section 8. Adjustment of Warrant Exercise Price. The Warrant Exercise Price shall be
adjusted from time to time as follows:

          (a) Adjustment of Warrant Exercise Price upon Issuance of Common Stock. If and
whenever on or after the Warrant Date, the Company issues or sells, or is deemed to have issued or
sold, any shares of Common Stock (including the issuance or sale of shares of Common Stock owned or
held by or for the account of the Company, but excluding Exempted Issuances (as defined below)),
for a consideration per share less than a price equal to the Warrant Exercise Price in effect
immediately prior to such issuance or sale (the “Applicable Price”), then immediately after such
issue or sale the Warrant Exercise Price then in effect shall be reduced to an amount equal to such
consideration per share. For purposes of this Warrant, “Exempted Issuances” shall mean: (I) shares
of Common Stock issued or deemed to be issued by the Company pursuant to an Approved Stock Plan,
provided that the number of such shares issued or deemed to be issued does not exceed an aggregate
of 20% of the shares of Common Stock

 

 

outstanding as of the Warrant Date; or (II) shares of Common Stock issued or deemed to be issued by
the Company upon exercise of the Second Lien Warrants.

          (b) Effect on Warrant Exercise Price of Certain Events. For purposes of determining
the adjusted Warrant Exercise Price under Section 8(a) above, the following shall be applicable to
issuances other than Exempted Issuances:

               (i) Issuance of Options. If the Company in any manner grants or sells any Options and
the lowest price per share for which one share of Common Stock is issuable upon the exercise of any
such Option or upon conversion, exchange or exercise of any Convertible Securities issuable upon
exercise of any such Option is less than the Applicable Price, then such share of Common Stock
shall be deemed to be outstanding and to have been issued and sold by the Company at the time of
the granting or sale of such Option for such price per share. For purposes of this Section
8(b)(i), the “lowest price per share for which one share of Common Stock is issuable upon exercise
of any such Option or upon conversion, exchange or exercise of any Convertible Security issuable
upon exercise of any such Option” shall be equal to the sum of the lowest amounts of consideration
(if any) received or receivable by the Company with respect to any one share of Common Stock upon
the granting or sale of such Option, upon exercise of such Option and upon conversion, exchange or
exercise of any Convertible Security issuable upon exercise of such Option. No further adjustment
of the Warrant Exercise Price shall be made upon the actual issuance of such Common Stock or of
such Convertible Security upon the exercise of such Option or upon the actual issuance of such
Common Stock upon conversion, exchange or exercise of such Convertible Security.

               (ii) Issuance of Convertible Securities. If the Company in any manner issues or sells
any Convertible Securities and the lowest price per share for which one share of Common Stock is
issuable upon the conversion, exchange or exercise thereof is less than the Applicable Price, then
such share of Common Stock shall be deemed to be outstanding and to have been issued and sold by
the Company at the time of the issuance or sale of such Convertible Securities for such price per
share. For the purposes of this Section 8(b)(ii), the “lowest price per share for which one share
of Common Stock is issuable upon such conversion, exchange or exercise” shall be equal to the sum
of the lowest amounts of consideration (if any) received or receivable by the Company with respect
to one share of Common Stock upon the issuance or sale of any such Convertible Security and upon
conversion, exchange or exercise of such Convertible Security. No further adjustment of the
Warrant Exercise Price shall be made upon the actual issuance of such Common Stock upon conversion,
exchange or exercise of such Convertible Security, and if any such issue or sale of such
Convertible Security is made upon exercise of any Option for which adjustment of the Warrant
Exercise Price had been or are to be made pursuant to other provisions of this Section 8(b), no
further adjustment of the Warrant Exercise Price shall be made by reason of such issue or sale.

               (iii) Change in Option Price or Rate of Conversion. If the purchase, exchange or
exercise price provided for in any Options, the additional consideration, if any, payable upon the
issue, conversion, exchange or exercise of any Convertible Securities, or the rate at which any
Options or Convertible Securities are convertible into or exchangeable or exercisable for Common
Stock changes at any time, the Warrant Exercise Price in effect at the time of such change shall be
adjusted to the Warrant Exercise Price that would have been in

 

 

effect at such time had such Options or Convertible Securities provided for such changed
purchase, exchange or exercise price, additional consideration or changed conversion rate, as the
case may be, at the time initially granted, issued or sold. For purposes of this
Section 8(b)(iii), if the terms of any Option or Convertible Security that was outstanding as of
the date of issuance of this Warrant are changed in the manner described in the immediately
preceding sentence, then such Option or Convertible Security and the Common Stock deemed issuable
upon exercise, conversion or exchange thereof shall be deemed to have been issued as of the date of
such change. No adjustment shall be made if such adjustment would result in an increase of the
Warrant Exercise Price then in effect.

          (c) Effect on Warrant Exercise Price of Certain Events. For purposes of determining
the adjusted Warrant Exercise Price under Sections 8(a) and 8(b), the following shall be
applicable:

               (i) Calculation of Consideration Received. In case any Options are issued in
connection with the issue or sale of other securities of the Company, together comprising one
integrated transaction or series of related transactions, (A) the Options will be deemed to have
been issued for a consideration equal to the greater of $0.01 and the specific aggregate
consideration, if any, allocated to such Options (in either case, the “Option Consideration”) and,
for purposes of applying the provisions of this Section 8, the Option Consideration shall be
allocated pro rata among all the shares of Common Stock issuable upon exercise of such Options to
determine the consideration per each such share of Common Stock and (B) the other securities will
be deemed to have been issued for an aggregate consideration equal to the aggregate consideration
received by the Company for the Options and other securities (determined as provided below with
respect to each share of Common Stock represented thereby), less the sum of (1) the Black-Scholes
Value (as defined below) of such Options and (2) the Option Consideration. If any Common Stock,
Options or Convertible Securities are issued or sold or deemed to have been issued or sold for
cash, the consideration received therefor will be deemed to be the net amount received by the
Company therefor. If any Common Stock, Options or Convertible Securities are issued or sold for a
consideration other than cash, the amount of such consideration received by the Company will be the
fair value of such consideration, except where such consideration consists of marketable
securities, in which case the amount of consideration received by the Company will be the Weighted
Average Price of such securities on the date of receipt of such securities. If any Common Stock,
Options or Convertible Securities are issued to the owners of the non-surviving entity in
connection with any merger in which the Company is the surviving entity, the amount of
consideration therefor will be deemed to be the fair value of such portion of the net assets and
business of the non-surviving entity as is attributable to such Common Stock, Options or
Convertible Securities, as the case may be. The fair value of any consideration other than cash or
securities will be determined jointly by the Company and the holder of this Warrant. If such
parties are unable to reach agreement within ten (10) days after the occurrence of an event
requiring valuation (the “Valuation Event”), the fair value of such consideration will be
determined within five (5) Business Days after the tenth (10th) day following the Valuation Event
by an independent, reputable appraiser jointly selected by the Company and the holder of this
Warrant. The determination of such appraiser shall be final and binding upon all parties absent
demonstrable error, and the fees and expenses of such appraiser shall be borne by the Company.

 

 

               (ii) Record Date. If the Company takes a record of the holders of Common Stock for
the purpose of entitling them (1) to receive a dividend or other distribution payable in Common
Stock, Options or in Convertible Securities or (2) to subscribe for or purchase Common Stock,
Options or Convertible Securities, then such record date will be deemed to be the date of the issue
or sale of the shares of Common Stock deemed to have been issued or sold upon the declaration of
such dividend or the making of such other distribution or the date of the granting of such right of
subscription or purchase, as the case may be.

               (iii) Black-Scholes Value. The “Black-Scholes Value” of any Options shall mean the
sum of the amounts resulting from applying the Black-Scholes pricing model to each such Option,
which calculation is made with the following inputs: (i) the “option striking price” being equal to
the lowest exercise price possible under the terms of such Option on the date of the issuance of
such Option (the “Valuation Date”), (ii) the “interest rate” being equal to the interest rate on
one-year United States Treasury Bills issued most recently prior to the Valuation Date, (iii) the
“time until option expiration” being the time from the Valuation Date until the expiration date of
such Option, (iv) the “current stock price” being equal to the Weighted Average Price of the Common
Stock on the Valuation Date, (v) the “volatility” being the 100-day historical volatility of the
Common Stock as of the Valuation Date (as reported by the Bloomberg “HVT” screen), and (vi) the
“dividend rate” being equal to zero. Within three (3) Business Days after the Company Valuation
Date, each of the Company and the holder of this Warrant shall deliver to the other a written
calculation of its determination of the Black-Scholes value of the Options. If the holder and the
Company are unable to agree upon the calculation of the Black-Scholes Value of the Options within
five (5) Business Days of the Valuation Date, then the Company shall submit via facsimile the
disputed calculation to an investment banking firm or accounting firm (jointly selected by the
Company and the holder of this Warrant) within seven (7) Business Days of the Valuation Date. The
Company shall direct such investment banking firm or accounting firm to perform the calculations
and notify the Company and the holder of the results no later than ten (10) Business Days after the
Valuation Date. Such investment banking firm’s or accounting firm’s calculation of the
Black-Scholes Value of the Options shall be deemed conclusive absent demonstrable error. The
Company shall bear the fees and expenses of such investment banking firm or accounting firm for
providing such calculation.

          (d) Adjustment of Warrant Exercise Price upon Subdivision or Combination of Common
Stock. If the Company at any time after the date of issuance of this Warrant subdivides (by
any stock split, stock dividend, recapitalization or otherwise) its outstanding shares of Common
Stock into a greater number of shares, the Warrant Exercise Price in effect immediately prior to
such subdivision will be proportionately reduced and the number of shares of Common Stock
obtainable upon exercise of this Warrant will be proportionately increased. If the Company at any
time after the date of issuance of this Warrant combines (by combination, reverse stock split or
otherwise) its outstanding shares of Common Stock into a smaller number of shares, the Warrant
Exercise Price in effect immediately prior to such combination will be proportionately increased
and the number of shares of Common Stock obtainable upon exercise of this Warrant will be
proportionately decreased. Any adjustment under this Section 8(d) shall become effective at the
close of business on the date the subdivision or combination becomes effective

 

 

          (e) Distribution of Assets. If the Company shall declare or make any dividend or
other distribution of its assets (or rights to acquire its assets) to holders of Common Stock, by
way of return of capital or otherwise (including any distribution of cash, stock or other
securities, property or options by way of a dividend, spin off, reclassification, corporate
rearrangement or other similar transaction) (a “Distribution”), at any time after the issuance of
this Warrant, then, in each such case, the Warrant Exercise Price in effect immediately prior to
the close of business on the record date fixed for the determination of holders of Common Stock
entitled to receive the Distribution shall be reduced, effective as of the close of business on
such record date, to a price determined by multiplying such Warrant Exercise Price by a fraction of
which (A) the numerator shall be the Weighted Average Price of the Common Stock on the trading day
immediately preceding such record date minus the value of the Distribution (as determined in good
faith by the Company’s Board of Directors) applicable to one share of Common Stock, and (B) the
denominator shall be the Weighted Average Price of the Common Stock on the trading day immediately
preceding such record date.

          (f) Certain Events. If any event occurs of the type contemplated by the provisions of
this Section 8 but not expressly provided for by such provisions (including the granting of stock
appreciation rights, phantom stock rights or other rights with equity features), then the Company’s
Board of Directors will make an appropriate adjustment in the Warrant Exercise Price and the number
of shares of Common Stock obtainable upon exercise of this Warrant so as to protect the rights of
the holders of the Second Lien Warrants; provided that no such adjustment will increase the Warrant
Exercise Price or decrease the number of shares of Common Stock obtainable as otherwise determined
pursuant to this Section 8.

          (g) Notices.

               (i) Within four (4) Business Days of any adjustment of the Warrant Exercise Price, the Company
will give written notice thereof to the holder of this Warrant, setting forth in reasonable detail,
and certifying, the calculation of such adjustment.

               (ii) The Company will give written notice to the holder of this Warrant at least ten (10) days
prior to the date on which the Company closes its books or takes a record (A) with respect to any
dividend or distribution upon the Common Stock, (B) with respect to any pro rata subscription offer
to holders of Common Stock or (C) for determining rights to vote with respect to any Organic Change
(as defined in Section 9(b)), dissolution or liquidation, provided that such information shall be
made known to the public prior to or in conjunction with such notice being provided to such holder.

               (iii) The Company will also give written notice to the holder of this Warrant at least ten
(10) days prior to the date on which any Organic Change, dissolution or liquidation will take
place, provided that such information shall be made known to the public prior to or in conjunction
with such notice being provided to such holder.

     Section 9. Purchase Rights; Reorganization, Reclassification, Consolidation, Merger or
Sale.

 

 

          (a) Purchase Rights. In addition to any adjustments pursuant to Section 8 above, if at
any time the Company grants, issues or sells any Options, Convertible Securities or rights to
purchase stock, warrants, securities or other property pro rata to the record holders of any class
of its capital stock (the “Purchase Rights”), then the holder of this Warrant will be entitled to
acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights that such
holder could have acquired if such holder had held the number of shares of Common Stock acquirable
upon complete exercise of this Warrant immediately before the date on which a record is taken for
the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of
which the record holders of Common Stock are to be determined for the grant, issue or sale of such
Purchase Rights.

          (b) Any recapitalization, reorganization, reclassification, consolidation, merger, sale of all
or substantially all of the Company’s assets to another Person or other transaction that is
effected in such a way that holders of Common Stock are entitled to receive (either directly or
upon subsequent liquidation) stock, securities or assets with respect to or in exchange for Common
Stock is referred to herein as an “Organic Change.” Prior to the consummation of any (i) sale of
all or substantially all of the Company’s assets to an acquiring Person or (ii) other Organic
Change following which the Company is not a surviving entity, the Company will secure from the
Person purchasing such assets or the successor resulting from such Organic Change (in each case,
the “Acquiring Entity”) a written agreement (in form and substance satisfactory to the holders of
Second Lien Warrants representing at least two-thirds (2/3) of the shares of Common Stock
obtainable upon exercise of the Second Lien Warrants then outstanding) to deliver to each holder of
Second Lien Warrants in exchange for each such Second Lien Warrant, a security of the Acquiring
Entity evidenced by a written instrument substantially similar in form and substance to this
Warrant and satisfactory to the holders of such Second Lien Warrant (including, an adjusted warrant
exercise price equal to the value for the Common Stock reflected by the terms of such
consolidation, merger or sale, and exercisable for a corresponding number of shares of Common Stock
acquirable and receivable upon exercise of such Second Lien Warrant (without regard to any
limitations on exercises), if the value so reflected is less than the Warrant Exercise Price in
effect immediately prior to such consolidation, merger or sale). Prior to the consummation of any
other Organic Change, the Company shall make appropriate provision (in form and substance
satisfactory to the holders of such Second Lien Warrants representing at least two-thirds (2/3) of
the shares of Common Stock obtainable upon exercise of the Second Lien Warrants then outstanding)
to ensure that each of the holders of the Second Lien Warrants will thereafter have the right to
acquire and receive in lieu of or in addition to (as the case may be) the shares of Common Stock
immediately theretofore acquirable and receivable upon the exercise of such holder’s Second Lien
Warrants (without regard to any limitations on exercises), such shares of stock, securities or
assets that would have been issued or payable in such Organic Change with respect to or in exchange
for the number of shares of Common Stock that would have been acquirable and receivable upon the
exercise of such holder’s Warrant as of the date of such Organic Change (without taking into
account any limitations or restrictions on the exerciseability of this Warrant).

     Section 10. Lost, Stolen, Mutilated or Destroyed Warrant. If this Warrant is lost,
stolen, mutilated or destroyed, the Company shall promptly, on receipt of an indemnification
undertaking by the holder (or in the case of a mutilated Warrant, the Warrant), issue a new Warrant
of like denomination and tenor as this Warrant so lost, stolen, mutilated or destroyed.

 

 

     Section 11. Notice. Any notices, consents, waivers or other communications required
or permitted to be given under the terms of this Warrant must be in writing and will be deemed to
have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by
facsimile (provided confirmation of transmission is mechanically or electronically generated and
kept on file by the sending party); or (iii) one (1) Business 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:

TRM Corporation

1101 Kings Hwy, N., Suite G100

Cherry Hill, NJ 08034

Telephone:       (856) 414-9100

Facsimile:       (856) 414-9075

Attention:       President & CEO

With copy to:

Ledgewood, P.C.

1900 Market Street, Suite 750

Philadelphia, PA 19103

Telephone:       (215) 731-9450

Facsimile:       (215) 735-2513

Attention:       J. Baur Whittlesey

If to a holder of this Warrant, to it at the address and facsimile number set forth on the
Schedule of Buyers to the Amended Second Lien Loan Agreement, with copies to such holder’s
representatives as set forth on such Schedule of Buyers, or, in the case of the holder or
any other Person named above, at such other address and/or facsimile number and/or to the attention
of such other person as the recipient party has specified by written notice to the other party at
least five (5) days prior to the effectiveness of such change. Written confirmation of receipt (A)
given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or
electronically generated by the sender’s facsimile machine containing the time, date, recipient
facsimile number and an image of the first page of such transmission or (C) provided by a
nationally recognized overnight delivery service shall be rebuttable evidence of personal service,
receipt by facsimile or deposit with a nationally recognized overnight delivery service in
accordance with clause (i), (ii) or (iii) above, respectively.

     Section 12. Limitation on Number of Warrant Shares. The Company shall not be
obligated to issue any Warrant Shares upon exercise of the Second Lien Warrants if the issuance of
such shares of Common Stock would exceed that number of Warrant Shares which the Company may issue
upon exercise of the Second Lien Warrants (the “Exchange Cap”) without breaching the Company’s
obligations under the rules or regulations of the Principal Market, except that such limitation
shall not apply in the event that the Company obtains a written opinion from outside counsel to the
Company that approval of the Company’s shareholders is not required under the applicable rules of
the Principal Market, which opinion shall be reasonably

 

 

satisfactory to the holders representing at least two-thirds (2/3) of the Warrant Shares then
issuable upon exercise of outstanding Second Lien Warrants. Until Shareholder Approval (as defined
in the Amended Second Lien Loan Agreement) or such written opinion is obtained, no holder of Second
Lien Warrants shall be issued, upon exercise of the Second Lien Warrants, Warrant Shares in an
amount greater than such holder’s Warrant Allocation Percentage (as defined in the Amended Second
Lien Loan Agreement). In the event that any holder of Second Lien Warrants shall sell or otherwise
transfer any of such Second Lien Warrants, the transferee shall be allocated a pro rata portion of
such holder’s Cap Allocation Amount In the event that, after the Closing Date (as defined in the
Amended Second Lien Loan Agreement), any holder of the Second Lien Warrants shall exercise all of
such holder’s Second Lien Warrants into a number of shares of Common Stock which, in the aggregate,
is less than such holder’s Allocation Percentage, then the difference between such holder’s Warrant
Allocation Percentage and the number of Warrant Shares actually issued to such holder shall be
allocated to the respective Warrant Allocation Percentage of the remaining holders of Second Lien
Warrants on a pro rata basis in proportion to the Warrant Shares issuable upon exercise of the
Second Lien Warrants then held by each such holder.

     Section 13. Date. The date of this Warrant is November 20, 2006 (the “Warrant Date”).
This Warrant, in all events, shall be wholly void and of no effect after 11:59 P.M., New York
Time, on the Expiration Date, except that notwithstanding any other provisions hereof, the
provisions of Section 7 shall continue in full force and effect after such date as to any Warrant
Shares or other securities issued upon the exercise of this Warrant.

     Section 14. Amendment and Waiver. Except as otherwise provided herein, the provisions
of the Second Lien Warrants may be amended and the Company may take any action herein prohibited,
or omit to perform any act herein required to be performed by it, only if the Company has obtained
the written consent of the holders of Second Lien Warrants representing at least two-thirds (2/3)
of the shares of Common Stock obtainable upon exercise of the Second Lien Warrants then
outstanding; provided that no such action may increase the Warrant Exercise Price of any Second
Lien Warrant or decrease the number of shares or change the class of stock obtainable upon exercise
of any Second Lien Warrant without the written consent of the holder of such Second Lien Warrant.

     Section 15. Descriptive Headings; Governing Law. The descriptive headings of the
several sections and paragraphs of this Warrant are inserted for convenience only and do not
constitute a part of this Warrant. All questions concerning the construction, validity,
enforcement and interpretation of this Warrant shall be governed by the internal laws of the State
of New York, without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of New York or any other jurisdiction) that would cause the application of
the laws of any jurisdiction other than the State of New York.

     Section 16. Rules of Construction. Unless the context otherwise requires, (a) all
references to Sections, Schedules or Exhibits are to Sections, Schedules or Exhibits contained in
or attached to this Warrant, (b) each accounting term not otherwise defined in this Warrant has the
meaning assigned to it in accordance with GAAP, (c) words in the singular or plural include the
singular and plural and pronouns stated in either the masculine, the feminine or neuter gender

 

 

shall include the masculine, feminine and neuter and (d) the use of the word “including” in
this Warrant shall be by way of example rather than limitation.

* * * * * *

     IN WITNESS WHEREOF, the Company has caused this Amended and Restated Warrant to be executed as
of the date first written above.

	 	 	 	 	 	 	 
	 	 	TRM CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Richard Stern	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Richard Stern	 	 
	 

	 	Title:
	 	President and Chief Executive Officer	 	 

 

 

EXHIBIT A TO WARRANT

EXERCISE NOTICE

TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS WARRANT

TRM CORPORATION

     The undersigned holder hereby exercises the right to purchase                                          of the shares
of Common Stock (“Warrant Shares”) of TRM Corporation, an Oregon corporation (the “Company”),
evidenced by the attached Warrant (the “Warrant”). Capitalized terms used herein and not otherwise
defined shall have the respective meanings set forth in the Warrant.

     1. Form of Warrant Exercise Price. The holder intends that payment of the Warrant Exercise
Price shall be made as:

	 	 	 
	                    

	 	a “Cash Exercise” with respect to                                          
Warrant Shares; and/or
	 
	 	 
	                    

	 	a “Cashless Exercise” with respect to                      Warrant.

     2. Payment of Warrant Exercise Price. In the event that the holder has elected a Cash
Exercise with respect to some or all of the Warrant Shares to be issued pursuant hereto, the holder
shall pay the Aggregate Exercise Price in the sum of $                                          to the Company in
accordance with the terms of the Warrant.

     3. Delivery of Warrant Shares. The Company shall deliver                     Warrant Shares in
accordance with the terms of the Warrant in the following name and to the following address:

	 	 	 
	Issue to:
	 	 
	 

	 	 

	 	 	 	 	 
	 

	 	Facsimile Number:	 	 
	 

	 	 	 	 

	 	 	 	 	 
	 

	 	Account Number (if electronic book entry transfer):	 	 
	 

	 	 	 	 

Date:         
                   
             ,                    

     Name of Registered Holder

	 	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:
	 	 	 	 

 

 

ACKNOWLEDGMENT

     The Company hereby acknowledges this Exercise Notice and hereby directs [TRANSFER AGENT] to
issue the above indicated number of shares of Common Stock in accordance with the Transfer Agent
Instructions dated                                         , 200                     from the Company and acknowledged and agreed to by
[TRANSFER AGENT].

	 	 	 	 	 	 	 
	 	 	TRM CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

 

EXHIBIT B TO WARRANT

FORM OF WARRANT POWER

     FOR VALUE RECEIVED, the undersigned does hereby assign and transfer to                                         , Federal
Identification No.
                    , a warrant to purchase                      shares of the capital stock of
TRM Corporation, an Oregon corporation, represented by warrant certificate no.                     , standing in
the name of the undersigned on the books of said corporation. The undersigned does hereby
irrevocably constitute and appoint                                         , attorney to transfer the warrants of said
corporation, with full power of substitution in the premises.

Dated:                                         , 200                    

	 	 	 	 	 	 
	 	 	 	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 
	 

	 	 	 	 	 
	 

	 	Title:exv4w8

Exhibit 4.8

THE SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE
SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS OR (B)
AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID
ACT OR APPLICABLE STATE SECURITIES LAWS OR (II) UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.
NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

ANY TRANSFEREE OF THIS WARRANT SHOULD CAREFULLY REVIEW THE TERMS OF THIS WARRANT, INCLUDING SECTION
2(e) HEREOF. THE SECURITIES REPRESENTED BY THIS WARRANT MAY BE LESS THAN THE NUMBER SET FORTH ON
THE FACE HEREOF PURSUANT TO SECTION 2(e) HEREOF.

TRM Corporation

Amended and Restated

Warrant To Purchase Common Stock

			
	Warrant No.: 0004
	 	Number of Shares: 1,069,082

This Amended and Restated Warrant, dated as of April 18, 2008, amends and restates in its entirety
the warrant exercisable for 1,069,082 Warrant Shares issued on November 20, 2006 by TRM Corporation
in favor of GSO Domestic Capital Funding Partners LP This Warrant is being amended and restated in
connection with the Securities Purchase Agreement of even date herewith among TRM Corporation, the
purchasers party thereto and Lampe, Conway & Co., LLC, as administrative agent.

TRM Corporation, an Oregon corporation (the “Company”), hereby certifies that, for Ten United
States Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, GSO Domestic Capital Funding Partners LP, the registered holder
hereof or its permitted assigns, is entitled, subject to the terms set forth below, to purchase
from the Company upon surrender of this Warrant (if required by Section 2(e)), at
any time or times on or after the Warrant Date, but not after 11:59 P.M. New York Time on the
Expiration Date (as defined herein) One Million Sixty Nine Thousand Eighty Two (1,069,082) fully
paid nonassessable shares of Common Stock (as defined in Section 1(b)) of the Company (the “Warrant
Shares”) at the Warrant Exercise Price (as defined in Section 1(b) below); provided, however, that
in no event shall the holder be entitled or required to exercise this

1

 

Warrant for a number of Warrant Shares in excess of that number of Warrant Shares that, upon giving effect to such
exercise, would cause the aggregate number of shares of Common Stock beneficially owned by the
holder and its affiliates to exceed 9.99% of the outstanding shares of the Common Stock following
such exercise. For purposes of the foregoing proviso, the aggregate number of shares of Common
Stock beneficially owned by the holder and its affiliates shall include the number of shares of
Common Stock issuable upon exercise of this Warrant with respect to which the determination of such
proviso is being made, but shall exclude shares of Common Stock that would be issuable upon (i)
exercise of the remaining, unexercised Second Lien Warrants (as defined in Section 1(a))
beneficially owned by the holder and its affiliates and (ii) exercise, conversion or exchange of
the unexercised, unconverted or unexchanged portion of any other securities of the Company
beneficially owned by the holder and its affiliates subject to a limitation on conversion, exercise
or exchange analogous to the limitation contained herein. Except as set forth in the preceding
sentence, for purposes of this paragraph, beneficial ownership shall be calculated in accordance
with Section 13(d) of the Securities Exchange Act of 1934, as amended. For purposes of this
Warrant, in determining the number of outstanding shares of Common Stock a holder may rely on the
number of outstanding shares of Common Stock as reflected in (1) the Company’s most recent Form
10-Q or Form 10-K, as the case may be, (2) a more recent public announcement by the Company or (3)
any other notice by the Company or its transfer agent setting forth the number of shares of Common
Stock outstanding. Upon the written request of any holder, the Company shall promptly, but in no
event later than one (1) Business Day following the receipt of such request, confirm in writing to
any such holder the number of shares of Common Stock then outstanding. In any case, the number of
outstanding shares of Common Stock shall be determined after giving effect to the conversion,
exercise or exchange of securities of the Company, including the Second Lien Warrants by such
holder and its affiliates, since the date as of which such number of outstanding shares of Common
Stock was reported. For purposes of determining the maximum number of shares of Common Stock that
the Company may issue to the holder of this Warrant upon exercise of this Warrant, such holder’s
delivery of an Exercise Notice (as defined in Section 2(a)) with respect to such exercise shall
constitute a representation (on which the Company may rely without investigation) by the holder of
this Warrant that upon the issuance of the shares of Common Stock to be issued to such holder, the
shares of Common Stock beneficially owned by such holder and its affiliates shall not exceed 9.99%
of the total outstanding shares of Common Stock of the Company immediately after giving effect to
such exercise as determined in accordance with this paragraph.

     Section 1.

          (a) Amended Second Lien Loan Agreement. This Warrant is one of the warrants issued
pursuant to Section 2.06 of that certain Amended and Restated Second Lien Loan Agreement, dated as
of November 20, 2006, among the Company and the Persons (as defined below) referred to therein (as
such agreement may be amended from time to time as provided in such agreement, the “Amended Second
Lien Loan Agreement”) or of any warrants
issued in exchange or substitution therefor or replacement thereof (all such warrants being
collectively referred to as the “Second Lien Warrants”). Each capitalized term used, and not
otherwise defined herein, shall have the meaning ascribed thereto in the Amended Second Lien Loan
Agreement.

 

 

          (b) Definitions. The following words and terms as used in this Warrant shall have the
following meanings:

               (i) “Approved Stock Plan” means any employee benefit plan that has been approved by the Board
of Directors and shareholders of the Company, pursuant to which the Company’s securities may be
issued to any consultant, employee, officer or director for services provided to the Company.

               (ii) “Business Day” means any day other than Saturday, Sunday or other day on which commercial
banks in the City of New York are authorized or required by law to remain closed.

               (iii) “Common Stock” means (i) the Company’s common stock, no par value per share, and (ii)
any capital stock into which such Common Stock shall have been changed or any capital stock
resulting from a reclassification of such Common Stock.

               (iv) “Convertible Security” means any stock or securities (other than Options) directly or
indirectly convertible into or exchangeable or exercisable for Common Stock.

               (v) “Expiration Date” means the date that is seven (7) years after the Warrant Date (as
defined in Section 13) or, if such date does not fall on a Business Day, then the next Business
Day.

               (vi) “Options” means any rights, warrants or options to subscribe for or purchase Common Stock
or Convertible Securities.

               (vii) “Person” means an individual, a limited liability company, a partnership, a joint
venture, a corporation, a trust, an unincorporated organization or a government or any department
or agency thereof or any other legal entity.

               (viii) “Principal Market” means, with respect to the Common Stock or any other security, the
NASDAQ National Market, or, if the Common Stock or such other security is not traded on the NASDAQ
National Market, then the principal securities exchange or trading market for the Common Stock or
such other security.

               (ix) “Registration Rights Agreement” means that agreement dated November 20, 2006, by and
among the Company and the Persons referred to therein, as such agreement may be amended from time
to time as provided in such agreement.

               (x) “Securities Act” means the Securities Act of 1933, as amended.

               (xi) “Trading Day” means any day on which the Common Stock is traded on the Principal Market;
provided that “Trading Day” shall not include any day on which the Common Stock is scheduled to
trade, or actually trades, on such exchange or market for less than 4.5 hours.

 

 

               (xii) “Warrant” means this Amended and Restated Warrant and all Warrants issued in exchange,
transfer or replacement thereof pursuant to the terms of this Warrant.

               (xiii) “Warrant Allocation Percentage” means the percentage obtained by dividing (i) the
number of Warrant Shares issuable to the initial holder of this Warrant as of the Warrant Date, by
(ii) the aggregate number of Warrant Shares issuable pursuant to the Warrants.

               (xiv) “Warrant Exercise Price” shall be equal to, with respect to any Warrant Share, $0.40,
subject to adjustment as hereinafter provided.

               (xv) “Weighted Average Price” means, for any security as of any date, the dollar
volume-weighted average price for such security on its Principal Market during the period beginning
at 9:30 a.m., New York City Time (or such other time as the Principal Market publicly announces is
the official open of trading), and ending at 4:00 p.m., New York City Time (or such other time as
the Principal Market publicly announces is the official close of trading), as reported by Bloomberg
Financial Markets (or any successor thereto, “Bloomberg”) through its “Volume at Price” functions,
or, if the foregoing does not apply, the dollar volume-weighted average price of such security in
the over-the-counter market on the electronic bulletin board for such security during the period
beginning at 9:30 a.m., New York City Time (or such other time as such over-the-counter market
publicly announces is the official open of trading), and ending at 4:00 p.m., New York City Time
(or such other time as such over-the-counter market publicly announces is the official close of
trading), as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for
such security by Bloomberg for such hours, the average of the highest closing bid price and the
lowest closing ask price of any of the market makers for such security as reported in the “pink
sheets” by the National Quotation Bureau, Inc. If the Weighted Average Price cannot be calculated
for such security on such date on any of the foregoing bases, the Weighted Average Price of such
security on such date shall be the fair market value as mutually determined by the Company and the
holder of this Warrant. If the Company and the holder of this Warrant are unable to agree upon the
fair market value of the Common Stock, then such dispute shall be resolved pursuant to Section 2(a)
below. All such determinations to be appropriately adjusted for any stock dividend, stock split,
stock combination or other similar transaction during any period during which the Weighted Average
Price is being determined.

     Section 2. Exercise of Warrant.

          (a) Subject to the terms and conditions hereof, this Warrant may be exercised by the holder
hereof then registered on the books of the Company, in whole or in part, at any time on any
Business Day on or after the opening of business on the Warrant Date and prior to 11:59 P.M. New
York Time on the Expiration Date by (i) delivery of a written notice, in the form of the
subscription form attached as Exhibit A hereto (the “Exercise Notice”), of such holder’s
election to exercise this Warrant, which notice shall specify the number of Warrant
Shares to be purchased, (ii) (A) payment to the Company of an amount equal to the Warrant
Exercise Price multiplied by the number of Warrant Shares as to which this Warrant is being
exercised (the “Aggregate Exercise Price”) by wire transfer of immediately available funds (or by
check if the Company has not provided the holder of this Warrant with wire transfer instructions
for such payment) or (B) by notifying the Company that this Warrant is being

 

 

exercised pursuant to a Cashless Exercise (as defined in Section 2(d)), and (iii) if required by Section 2(e) or unless
the Holder has previously delivered this Warrant to the Company and it or a new replacement Warrant
has not yet been delivered to the Holder, the surrender to a common carrier for overnight delivery
to the Company as soon as practicable following such date, this Warrant (or an indemnification
undertaking with respect to this Warrant in the case of its loss, theft or destruction); provided,
that if such Warrant Shares are to be issued in any name other than that of the registered holder
of this Warrant, such issuance shall be deemed a transfer and the provisions of Section 7 shall be
applicable. In the event of any exercise of the rights represented by this Warrant in compliance
with this Section 2(a), the Company shall on the second (2nd) Business Day (the “Warrant
Share Delivery Date”) following the date of its receipt of the later of the Exercise Notice, the
Aggregate Exercise Price (or notice of Cashless Exercise) and if required by Section 2(e) (or
unless the holder of this Warrant has previously delivered this Warrant to the Company and it or a
new replacement Warrant has not yet been delivered to the holder), this Warrant (or an
indemnification undertaking with respect to this Warrant in the case of its loss, theft or
destruction) (the “Exercise Delivery Documents”), issue and deliver to the address specified in the
Exercise Notice, a certificate, registered in the name of the holder or its designee, for the
number of shares of Common Stock to which the holder shall be entitled. Upon the later of the date
of delivery of (x) the Exercise Notice and (y) the Aggregate Exercise Price referred to in clause
(ii)(A) above or notification to the Company of a Cashless Exercise referred to in Section 2(d),
the holder of this Warrant shall be deemed for all purposes to have become the holder of record of
the Warrant Shares with respect to which this Warrant has been exercised (the date thereof being
referred to as the “Deemed Issuance Date”), irrespective of the date of delivery of this Warrant as
required by clause (iii) above or the certificates evidencing such Warrant Shares. In the case of
a dispute as to the determination of the Warrant Exercise Price, the Weighted Average Price of a
security or the arithmetic calculation of the number of Warrant Shares, the Company shall promptly
issue to the holder the number of shares of Common Stock that is not disputed and shall submit the
disputed determinations or arithmetic calculations to the holder via facsimile within two (2)
Business Days of receipt of the holder’s Exercise Notice. If the holder and the Company are unable
to agree upon the determination of the Warrant Exercise Price, the Weighted Average Price or
arithmetic calculation of the number of Warrant Shares within one (1) Business Day of such disputed
determination or arithmetic calculation being submitted to the holder, then the Company shall
promptly submit via facsimile (i) the disputed determination of the Warrant Exercise Price or the
Weighted Average Price to an independent, reputable investment banking firm agreed to by the
Company and the holder of this Warrant or (ii) the disputed arithmetic calculation of the number of
Warrant Shares to its independent, outside public accountant. The Company shall direct the
investment banking firm or the accountant, as the case may be, to perform the determinations or
calculations and notify the Company and the holder of the results no later than two (2) Business
Days after the date it receives the disputed determinations or calculations. Such investment
banking firm’s or accountant’s determination or calculation, as the case may be, shall be deemed
conclusive
 absent demonstrable error.

          (b) If this Warrant is submitted for exercise, as may be required by Section 2(e), and unless
the rights represented by this Warrant shall have expired or shall have been fully exercised, the
Company shall, as soon as practicable and in no event later than four (4) Business Days after
receipt of this Warrant (the “Warrant Delivery Date”) and at its own expense, issue a new Warrant
identical in all respects to this Warrant except it shall represent

 

 

rights to purchase the number of Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the
number of Warrant Shares with respect to which such Warrant is exercised (together with, in the
case of a cashless exercise, the number of Warrant Shares surrendered in lieu of payment of the
Exercise Price).

          (c) No fractional shares of Common Stock are to be issued upon the exercise of this Warrant,
but rather the number of shares of Common Stock issued upon exercise of this Warrant shall be
rounded up or down to the nearest whole number (with 0.5 rounded up).

          (d) Notwithstanding anything contained herein to the contrary, the holder of this Warrant may,
at its election exercised in its sole discretion, exercise this Warrant in whole or in part and, in
lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise
in payment of the Aggregate Exercise Price, elect instead to receive upon such exercise the “Net
Number” of shares of Common Stock determined according to the following formula (a “Cashless
Exercise”):

	 	 	 	 	 	 	 
	 

	 	Net Number =
	 	(A x B) - (A x C)
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	B	 	 

          For purposes of the foregoing formula:

A= the total number of shares with respect to which
this Warrant is then being exercised;

B= the Weighted Average Price of the Common Stock on
the trading day immediately preceding the date of
the delivery of the Exercise Notice; and

C= the Warrant Exercise Price then in effect for the
applicable Warrant Shares at the time of such
exercise.

          (e) Book-Entry. Notwithstanding anything to the contrary set forth herein, upon
exercise of this Warrant in accordance with the terms hereof, the holder of this Warrant shall not
be required to physically surrender this Warrant to the Company unless it is being exercised for
all of the Warrant Shares represented by the Warrant. The holder and the Company shall maintain
records showing the number of Warrant Shares exercised and issued and the dates of such exercises
or shall use such other method, reasonably satisfactory to the holder and the Company, so as not to
require physical surrender of this Warrant upon each such exercise. In the event of any dispute or
discrepancy, such records of the Company establishing the number of Warrant Shares to which the
holder is entitled shall be controlling and
determinative in the absence of demonstrable error. Notwithstanding the foregoing, if this
Warrant is exercised as aforesaid, the holder may not transfer this Warrant unless the holder first
physically surrenders this Warrant to the Company, whereupon the Company will forthwith issue and
deliver upon the order of the holder a new Warrant of like tenor, registered as the holder may
request, representing in the aggregate the remaining number of Warrant Shares represented by

 

 

this Warrant. The holder and any assignee, by acceptance of this Warrant, acknowledge and agree that,
by reason of the provisions of this paragraph, following exercise of any portion of this Warrant,
the number of Warrant Shares represented by this Warrant may be less than the number stated on the
face hereof. Each Warrant shall bear the following legend:

ANY TRANSFEREE OF THIS WARRANT SHOULD CAREFULLY REVIEW THE TERMS OF
THIS WARRANT, INCLUDING SECTION 2(e) HEREOF. THE SECURITIES
REPRESENTED BY THIS WARRANT MAY BE LESS THAN THE NUMBER SET FORTH ON
THE FACE HEREOF PURSUANT TO SECTION 2(e) HEREOF.

     Section 3. Covenants as to Common Stock. The Company hereby covenants and agrees as
follows:

          (a) This Warrant is, and any Warrants issued in substitution for or replacement of this
Warrant will upon issuance be, duly authorized and validly issued.

          (b) All Warrant Shares that may be issued upon the exercise of the rights represented by this
Warrant will, upon issuance, be validly issued, fully paid and nonassessable and free from all
taxes, liens and charges with respect to the issue thereof.

          (c) During the period within which the rights represented by this Warrant may be exercised,
the Company will at all times have authorized and reserved at least 110% of the number of shares of
Common Stock needed to provide for the exercise of the rights then represented by this Warrant.

          (d) The Company shall promptly secure the listing of the shares of Common Stock issuable upon
exercise of this Warrant on the Principal Market (subject to official notice of issuance upon
exercise of this Warrant) and each other market or exchange on which the Common Stock is traded or
listed and shall maintain, so long as any other shares of Common Stock shall be so traded or
listed, such listing of all shares of Common Stock from time to time issuable upon the exercise of
this Warrant; and the Company shall so list on the Principal Market and each other market or
exchange on which the Common Stock is traded or listed and shall maintain such listing of, any
other shares of capital stock of the Company issuable upon the exercise of this Warrant if and so
long as any shares of the same class shall be listed on the Principal Market and each other market
or exchange on which the Common Stock is traded or listed.

          (e) The Company will not, by amendment of its Articles of Incorporation or through any
reorganization, transfer of assets, consolidation, merger,
dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to
avoid the observance or performance of any of the terms to be observed or performed by it
hereunder, but will at all times in good faith assist in the carrying out of all the provisions of
this Warrant and in the taking of all such action as may reasonably be requested by the holder of
this Warrant in order to protect the exercise privilege of the holder of this Warrant against
impairment,

 

 

consistent with the tenor and purpose of this Warrant. Without limiting the generality
of the foregoing, the Company (i) will not increase the par value of any shares of Common Stock
receivable upon the exercise of this Warrant, and (ii) will take all such actions as may be
necessary or appropriate in order that the Company may validly and legally issue fully paid and
nonassessable shares of Common Stock upon the exercise of this Warrant.

          (f) This Warrant will be binding upon any entity succeeding to the Company by merger,
consolidation or acquisition of all or substantially all of the Company’s assets.

     Section 4. Taxes. The Company shall pay any and all taxes (excluding income taxes,
franchise taxes or other taxes levied on gross earnings, profits or the like of the holder of this
Warrant) that may be payable with respect to the issuance and delivery of Warrant Shares upon
exercise of this Warrant.

     Section 5. Warrant Holder Not Deemed a Shareholder. No holder, as such, of this
Warrant shall be entitled to vote or receive dividends or be deemed the holder of shares of the
Company for any purpose (other than to the extent that the holder is deemed to be a beneficial
holder of shares under applicable securities laws after taking into account the limitation set
forth in the first paragraph of this Warrant), nor shall anything contained in this Warrant be
construed to confer upon the holder hereof, as such, any of the rights of a shareholder of the
Company or any right to vote, give or withhold consent to any corporate action (whether any
reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or
otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise,
prior to the Deemed Issuance Date of the Warrant Shares that such holder is then entitled to
receive upon the due exercise of this Warrant. In addition, nothing contained in this Warrant
shall be construed as imposing any obligations or liabilities on such holder to purchase any
securities (upon exercise of this Warrant or otherwise) or as a shareholder of the Company, whether
such liabilities are asserted by the Company or by creditors of the Company. Notwithstanding this
Section 5, the Company will provide the holder of this Warrant with copies of the same notices and
other information given to the shareholders of the Company generally, contemporaneously with the
giving thereof to the shareholders.

     Section 6. Representations of Holder. The holder of this Warrant, by the acceptance
hereof, represents that it is acquiring this Warrant, and upon exercise hereof (other than pursuant
to a Cashless Exercise) will acquire the Warrant Shares, for its own account and not with a view
towards, or for resale in connection with, the public sale or distribution of this Warrant or the
Warrant Shares, except pursuant to sales registered or exempted under the Securities Act; provided,
however, that by making the representations herein, the holder does not agree to hold this Warrant
or any of the Warrant Shares for any minimum or other specific term and reserves the right to
dispose of this Warrant and the Warrant Shares at any time in accordance with or pursuant to a
registration statement or an exemption under the Securities Act. The holder of this
Warrant further represents, by acceptance hereof, that, as of this date, such holder is an
“accredited investor” as such term is defined in Rule 501(a)(3) of Regulation D promulgated by the
Securities and Exchange Commission under the Securities Act (an “Accredited Investor”) and has had
the opportunity to ask questions and receive answers concerning the Company, the Second Lien
Warrants and the offering thereof from the Company. Each delivery of an Exercise

 

 

Notice, other than in connection with a Cashless Exercise, shall constitute confirmation at such time by the
holder of the representations concerning the Warrant Shares set forth in the first two sentences of
this Section 6, unless contemporaneous with the delivery of such Exercise Notice, the holder
notifies the Company in writing that it is not making such representations (a “Representation
Notice”). If the holder delivers a Representation Notice in connection with an exercise, it shall
be a condition to such holder’s exercise of this Warrant and the Company’s obligations set forth in
Section 2 in connection with such exercise, that the Company receive such other representations as
the Company considers reasonably necessary to assure the Company that the issuance of its
securities upon exercise of this Warrant shall not violate any United States or state securities
laws, and the time periods for the Company’s compliance with its obligations set forth in Section 2
shall be tolled until such holder provides the Company with such other representations.

     Section 7. Ownership and Transfer.

          (a) The Company shall maintain at its principal executive offices or at the offices of its
transfer agent (or such other office or agency of the Company as it may designate by notice to the
holder hereof), a register for this Warrant, in which the Company shall record the name and address
of the person in whose name this Warrant has been issued, as well as the name and address of each
transferee. The Company may treat the person in whose name any Warrant is registered on the
register as the owner and holder thereof for all purposes, notwithstanding any notice to the
contrary, but in all events recognizing any transfers made in accordance with the terms of this
Warrant.

          (b) This Warrant and the rights granted hereunder shall be assignable by the holder hereof
without the consent of the Company.

          (c) The Company is obligated to register the Warrant Shares for resale under the Securities
Act pursuant to the Registration Rights Agreement, and the initial holder of this Warrant (and
assignees thereof) is entitled to the registration rights in respect of the Warrant Shares as set
forth in the Registration Rights Agreement.

     Section 8. Adjustment of Warrant Exercise Price. The Warrant Exercise Price shall be
adjusted from time to time as follows:

          (a) Adjustment of Warrant Exercise Price upon Issuance of Common Stock. If and
whenever on or after the Warrant Date, the Company issues or sells, or is deemed to have issued or
sold, any shares of Common Stock (including the issuance or sale of shares of Common Stock owned or
held by or for the account of the Company, but excluding Exempted Issuances (as defined below)),
for a consideration per share less than a price equal to the Warrant Exercise Price in effect
immediately prior to such issuance or sale (the “Applicable Price”), then immediately after such
issue or sale the Warrant Exercise Price then in effect shall be reduced to
an amount equal to such consideration per share. For purposes of this Warrant, “Exempted
Issuances” shall mean: (I) shares of Common Stock  issued or deemed to be issued by the Company
pursuant to an Approved Stock Plan, provided that the number of such shares issued or deemed to be
issued does not exceed an aggregate of 20% of the shares of Common Stock

 

 

          outstanding as of the
Warrant Date; or (II) shares of Common Stock issued or deemed to be issued by the Company upon
exercise of the Second Lien Warrants.

          (b) Effect on Warrant Exercise Price of Certain Events. For purposes of determining
the adjusted Warrant Exercise Price under Section 8(a) above, the following shall be applicable to
issuances other than Exempted Issuances:

               (i) Issuance of Options. If the Company in any manner grants or sells any Options and
the lowest price per share for which one share of Common Stock is issuable upon the exercise of any
such Option or upon conversion, exchange or exercise of any Convertible Securities issuable upon
exercise of any such Option is less than the Applicable Price, then such share of Common Stock
shall be deemed to be outstanding and to have been issued and sold by the Company at the time of
the granting or sale of such Option for such price per share. For purposes of this Section
8(b)(i), the “lowest price per share for which one share of Common Stock is issuable upon exercise
of any such Option or upon conversion, exchange or exercise of any Convertible Security issuable
upon exercise of any such Option” shall be equal to the sum of the lowest amounts of consideration
(if any) received or receivable by the Company with respect to any one share of Common Stock upon
the granting or sale of such Option, upon exercise of such Option and upon conversion, exchange or
exercise of any Convertible Security issuable upon exercise of such Option. No further adjustment
of the Warrant Exercise Price shall be made upon the actual issuance of such Common Stock or of
such Convertible Security upon the exercise of such Option or upon the actual issuance of such
Common Stock upon conversion, exchange or exercise of such Convertible Security.

               (ii) Issuance of Convertible Securities. If the Company in any manner issues or sells
any Convertible Securities and the lowest price per share for which one share of Common Stock is
issuable upon the conversion, exchange or exercise thereof is less than the Applicable Price, then
such share of Common Stock shall be deemed to be outstanding and to have been issued and sold by
the Company at the time of the issuance or sale of such Convertible Securities for such price per
share. For the purposes of this Section 8(b)(ii), the “lowest price per share for which one share
of Common Stock is issuable upon such conversion, exchange or exercise” shall be equal to the sum
of the lowest amounts of consideration (if any) received or receivable by the Company with respect
to one share of Common Stock upon the issuance or sale of any such Convertible Security and upon
conversion, exchange or exercise of such Convertible Security. No further adjustment of the
Warrant Exercise Price shall be made upon the actual issuance of such Common Stock upon conversion,
exchange or exercise of such Convertible Security, and if any such issue or sale of such
Convertible Security is made upon exercise of any Option for which adjustment of the Warrant
Exercise Price had been or are to be made pursuant to other provisions of this Section 8(b), no
further adjustment of the Warrant Exercise Price shall be made by reason of such issue or sale.

               (iii) Change in Option Price or Rate of Conversion. If the purchase, exchange or
exercise price provided for in any Options, the additional consideration, if any,
payable upon the issue, conversion, exchange or exercise of any Convertible Securities, or the
rate at which any Options or Convertible Securities are convertible into or exchangeable or
exercisable for Common Stock changes at any time, the Warrant Exercise Price in effect at the time
of such change shall be adjusted to the Warrant Exercise Price that would have been in

 

 

effect at such time had such Options or Convertible Securities provided for such changed purchase, exchange
or exercise price, additional consideration or changed conversion rate, as the case may be, at the
time initially granted, issued or sold. For purposes of this Section 8(b)(iii), if the terms of
any Option or Convertible Security that was outstanding as of the date of issuance of this Warrant
are changed in the manner described in the immediately preceding sentence, then such Option or
Convertible Security and the Common Stock deemed issuable upon exercise, conversion or exchange
thereof shall be deemed to have been issued as of the date of such change. No adjustment shall be
made if such adjustment would result in an increase of the Warrant Exercise Price then in effect.

          (c) Effect on Warrant Exercise Price of Certain Events. For purposes of determining
the adjusted Warrant Exercise Price under Sections 8(a) and 8(b), the following shall be
applicable:

               (i) Calculation of Consideration Received. In case any Options are issued in
connection with the issue or sale of other securities of the Company, together comprising one
integrated transaction or series of related transactions, (A) the Options will be deemed to have
been issued for a consideration equal to the greater of $0.01 and the specific aggregate
consideration, if any, allocated to such Options (in either case, the “Option Consideration”) and,
for purposes of applying the provisions of this Section 8, the Option Consideration shall be
allocated pro rata among all the shares of Common Stock issuable upon exercise of such Options to
determine the consideration per each such share of Common Stock and (B) the other securities will
be deemed to have been issued for an aggregate consideration equal to the aggregate consideration
received by the Company for the Options and other securities (determined as provided below with
respect to each share of Common Stock represented thereby), less the sum of (1) the Black-Scholes
Value (as defined below) of such Options and (2) the Option Consideration. If any Common Stock,
Options or Convertible Securities are issued or sold or deemed to have been issued or sold for
cash, the consideration received therefor will be deemed to be the net amount received by the
Company therefor. If any Common Stock, Options or Convertible Securities are issued or sold for a
consideration other than cash, the amount of such consideration received by the Company will be the
fair value of such consideration, except where such consideration consists of marketable
securities, in which case the amount of consideration received by the Company will be the Weighted
Average Price of such securities on the date of receipt of such securities. If any Common Stock,
Options or Convertible Securities are issued to the owners of the non-surviving entity in
connection with any merger in which the Company is the surviving entity, the amount of
consideration therefor will be deemed to be the fair value of such portion of the net assets and
business of the non-surviving entity as is attributable to such Common Stock, Options or
Convertible Securities, as the case may be. The fair value of any consideration other than cash or
securities will be determined jointly by the Company and the holder of this Warrant. If such
parties are unable to reach agreement within ten (10) days after the occurrence of an event
requiring valuation (the “Valuation Event”), the fair value of such consideration will be
determined within five (5) Business Days after the tenth (10th) day following the Valuation Event
by an independent, reputable appraiser jointly selected by the Company and the holder of this Warrant. The
determination of such appraiser shall be final and binding upon all parties absent demonstrable
error, and the fees and expenses of such appraiser shall be borne by the Company.

 

 

               (ii) Record Date. If the Company takes a record of the holders of Common Stock for
the purpose of entitling them (1) to receive a dividend or other distribution payable in Common
Stock, Options or in Convertible Securities or (2) to subscribe for or purchase Common Stock,
Options or Convertible Securities, then such record date will be deemed to be the date of the issue
or sale of the shares of Common Stock deemed to have been issued or sold upon the declaration of
such dividend or the making of such other distribution or the date of the granting of such right of
subscription or purchase, as the case may be.

               (iii) Black-Scholes Value. The “Black-Scholes Value” of any Options shall mean the
sum of the amounts resulting from applying the Black-Scholes pricing model to each such Option,
which calculation is made with the following inputs: (i) the “option striking price” being equal to
the lowest exercise price possible under the terms of such Option on the date of the issuance of
such Option (the “Valuation Date”), (ii) the “interest rate” being equal to the interest rate on
one-year United States Treasury Bills issued most recently prior to the Valuation Date, (iii) the
“time until option expiration” being the time from the Valuation Date until the expiration date of
such Option, (iv) the “current stock price” being equal to the Weighted Average Price of the Common
Stock on the Valuation Date, (v) the “volatility” being the 100-day historical volatility of the
Common Stock as of the Valuation Date (as reported by the Bloomberg “HVT” screen), and (vi) the
“dividend rate” being equal to zero. Within three (3) Business Days after the Company Valuation
Date, each of the Company and the holder of this Warrant shall deliver to the other a written
calculation of its determination of the Black-Scholes value of the Options. If the holder and the
Company are unable to agree upon the calculation of the Black-Scholes Value of the Options within
five (5) Business Days of the Valuation Date, then the Company shall submit via facsimile the
disputed calculation to an investment banking firm or accounting firm (jointly selected by the
Company and the holder of this Warrant) within seven (7) Business Days of the Valuation Date. The
Company shall direct such investment banking firm or accounting firm to perform the calculations
and notify the Company and the holder of the results no later than ten (10) Business Days after the
Valuation Date. Such investment banking firm’s or accounting firm’s calculation of the
Black-Scholes Value of the Options shall be deemed conclusive absent demonstrable error. The
Company shall bear the fees and expenses of such investment banking firm or accounting firm for
providing such calculation.

          (d) Adjustment of Warrant Exercise Price upon Subdivision or Combination of Common
Stock. If the Company at any time after the date of issuance of this Warrant subdivides (by
any stock split, stock dividend, recapitalization or otherwise) its outstanding shares of Common
Stock into a greater number of shares, the Warrant Exercise Price in effect immediately prior to
such subdivision will be proportionately reduced and the number of shares of Common Stock
obtainable upon exercise of this Warrant will be proportionately increased. If the Company at any
time after the date of issuance of this Warrant combines (by combination, reverse stock split or
otherwise) its outstanding shares of Common Stock into a smaller number of shares, the Warrant
Exercise Price in effect immediately prior to such combination will be proportionately increased
and the number of shares of Common Stock obtainable upon exercise of this Warrant will be
proportionately decreased. Any adjustment under this Section 8(d) shall
become effective at the close of business on the date the subdivision or combination becomes
effective

 

 

          (e) Distribution of Assets. If the Company shall declare or make any dividend or
other distribution of its assets (or rights to acquire its assets) to holders of Common Stock, by
way of return of capital or otherwise (including any distribution of cash, stock or other
securities, property or options by way of a dividend, spin off, reclassification, corporate
rearrangement or other similar transaction) (a “Distribution”), at any time after the issuance of
this Warrant, then, in each such case, the Warrant Exercise Price in effect immediately prior to
the close of business on the record date fixed for the determination of holders of Common Stock
entitled to receive the Distribution shall be reduced, effective as of the close of business on
such record date, to a price determined by multiplying such Warrant Exercise Price by a fraction of
which (A) the numerator shall be the Weighted Average Price of the Common Stock on the trading day
immediately preceding such record date minus the value of the Distribution (as determined in good
faith by the Company’s Board of Directors) applicable to one share of Common Stock, and (B) the
denominator shall be the Weighted Average Price of the Common Stock on the trading day immediately
preceding such record date.

          (f) Certain Events. If any event occurs of the type contemplated by the provisions of
this Section 8 but not expressly provided for by such provisions (including the granting of stock
appreciation rights, phantom stock rights or other rights with equity features), then the Company’s
Board of Directors will make an appropriate adjustment in the Warrant Exercise Price and the number
of shares of Common Stock obtainable upon exercise of this Warrant so as to protect the rights of
the holders of the Second Lien Warrants; provided that no such adjustment will increase the Warrant
Exercise Price or decrease the number of shares of Common Stock obtainable as otherwise determined
pursuant to this Section 8.

          (g) Notices.

               (i) Within four (4) Business Days of any adjustment of the Warrant Exercise Price, the Company
will give written notice thereof to the holder of this Warrant, setting forth in reasonable detail,
and certifying, the calculation of such adjustment.

               (ii) The Company will give written notice to the holder of this Warrant at least ten (10) days
prior to the date on which the Company closes its books or takes a record (A) with respect to any
dividend or distribution upon the Common Stock, (B) with respect to any pro rata subscription offer
to holders of Common Stock or (C) for determining rights to vote with respect to any Organic Change
(as defined in Section 9(b)), dissolution or liquidation, provided that such information shall be
made known to the public prior to or in conjunction with such notice being provided to such holder.

               (iii) The Company will also give written notice to the holder of this Warrant at least ten
(10) days prior to the date on which any Organic Change, dissolution or liquidation will take
place, provided that such information shall be made known to the public prior to or in conjunction
with such notice being provided to such holder.

     Section 9. Purchase Rights; Reorganization, Reclassification, Consolidation, Merger or
Sale.

 

 

          (a) Purchase Rights. In addition to any adjustments pursuant to Section 8 above, if at
any time the Company grants, issues or sells any Options, Convertible Securities or rights to
purchase stock, warrants, securities or other property pro rata to the record holders of any class
of its capital stock (the “Purchase Rights”), then the holder of this Warrant will be entitled to
acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights that such
holder could have acquired if such holder had held the number of shares of Common Stock acquirable
upon complete exercise of this Warrant immediately before the date on which a record is taken for
the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of
which the record holders of Common Stock are to be determined for the grant, issue or sale of such
Purchase Rights.

               (b) Any recapitalization, reorganization, reclassification, consolidation, merger, sale of all
or substantially all of the Company’s assets to another Person or other transaction that is
effected in such a way that holders of Common Stock are entitled to receive (either directly or
upon subsequent liquidation) stock, securities or assets with respect to or in exchange for Common
Stock is referred to herein as an “Organic Change.” Prior to the consummation of any (i) sale of
all or substantially all of the Company’s assets to an acquiring Person or (ii) other Organic
Change following which the Company is not a surviving entity, the Company will secure from the
Person purchasing such assets or the successor resulting from such Organic Change (in each case,
the “Acquiring Entity”) a written agreement (in form and substance satisfactory to the holders of
Second Lien Warrants representing at least two-thirds (2/3) of the shares of Common Stock
obtainable upon exercise of the Second Lien Warrants then outstanding) to deliver to each holder of
Second Lien Warrants in exchange for each such Second Lien Warrant, a security of the Acquiring
Entity evidenced by a written instrument substantially similar in form and substance to this
Warrant and satisfactory to the holders of such Second Lien Warrant (including, an adjusted warrant
exercise price equal to the value for the Common Stock reflected by the terms of such
consolidation, merger or sale, and exercisable for a corresponding number of shares of Common Stock
acquirable and receivable upon exercise of such Second Lien Warrant (without regard to any
limitations on exercises), if the value so reflected is less than the Warrant Exercise Price in
effect immediately prior to such consolidation, merger or sale). Prior to the consummation of any
other Organic Change, the Company shall make appropriate provision (in form and substance
satisfactory to the holders of such Second Lien Warrants representing at least two-thirds (2/3) of
the shares of Common Stock obtainable upon exercise of the Second Lien Warrants then outstanding)
to ensure that each of the holders of the Second Lien Warrants will thereafter have the right to
acquire and receive in lieu of or in addition to (as the case may be) the shares of Common Stock
immediately theretofore acquirable and receivable upon the exercise of such holder’s Second Lien
Warrants (without regard to any limitations on exercises), such shares of stock, securities or
assets that would have been issued or payable in such Organic Change with respect to or in exchange
for the number of shares of Common Stock that would have been acquirable and receivable upon the
exercise of such holder’s Warrant as of the date of such Organic Change (without taking into
account any limitations or restrictions on the exerciseability of this Warrant).

     Section 10. Lost, Stolen, Mutilated or Destroyed Warrant. If this Warrant is lost,
stolen, mutilated or destroyed, the Company shall promptly, on receipt of an indemnification
undertaking by the holder (or in the case of a mutilated Warrant, the Warrant), issue a new Warrant
of like denomination and tenor as this Warrant so lost, stolen, mutilated or destroyed.

 

 

     Section 11. Notice. Any notices, consents, waivers or other communications required
or permitted to be given under the terms of this Warrant must be in writing and will be deemed to
have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by
facsimile (provided confirmation of transmission is mechanically or electronically generated and
kept on file by the sending party); or (iii) one (1) Business 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:

TRM Corporation

1101 Kings Hwy, N., Suite G100

Cherry Hill, NJ 08034

Telephone: (856) 414-9100

Facsimile: (856) 414-9075

Attention: President & CEO

With copy to:

Ledgewood, P.C.

1900 Market Street, Suite 750

Philadelphia, PA 19103

Telephone: (215) 731-9450

Facsimile: (215) 735-2513

Attention: J. Baur Whittlesey

If to a holder of this Warrant, to it at the address and facsimile number set forth on the
Schedule of Buyers to the Amended Second Lien Loan Agreement, with copies to such holder’s
representatives as set forth on such Schedule of Buyers, or, in the case of the holder or
any other Person named above, at such other address and/or facsimile number and/or to the attention
of such other person as the recipient party has specified by written notice to the other party at
least five (5) days prior to the effectiveness of such change. Written confirmation of receipt (A)
given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or
electronically generated by the sender’s facsimile machine containing the time, date, recipient
facsimile number and an image of the first page of such transmission or (C) provided by a
nationally recognized overnight delivery service shall be rebuttable evidence of personal service,
receipt by facsimile or deposit with a nationally recognized overnight delivery service in
accordance with clause (i), (ii) or (iii) above, respectively.

     Section 12. Limitation on Number of Warrant Shares. The Company shall not be
obligated to issue any Warrant Shares upon exercise of the Second Lien Warrants if the issuance of
such shares of Common Stock would exceed that number of Warrant Shares which the
Company may issue upon exercise of the Second Lien Warrants (the “Exchange Cap”) without
breaching the Company’s obligations under the rules or regulations of the Principal Market, except
that such limitation shall not apply in the event that the Company obtains a written opinion from
outside counsel to the Company that approval of the Company’s shareholders is not required under
the applicable rules of the Principal Market, which opinion shall be reasonably

 

 

satisfactory to the holders representing at least two-thirds (2/3) of the Warrant Shares then issuable upon exercise of
outstanding Second Lien Warrants. Until Shareholder Approval (as defined in the Amended Second
Lien Loan Agreement) or such written opinion is obtained, no holder of Second Lien Warrants shall
be issued, upon exercise of the Second Lien Warrants, Warrant Shares in an amount greater than such
holder’s Warrant Allocation Percentage (as defined in the Amended Second Lien Loan Agreement). In
the event that any holder of Second Lien Warrants shall sell or otherwise transfer any of such
Second Lien Warrants, the transferee shall be allocated a pro rata portion of such holder’s Cap
Allocation Amount In the event that, after the Closing Date (as defined in the Amended Second Lien
Loan Agreement), any holder of the Second Lien Warrants shall exercise all of such holder’s Second
Lien Warrants into a number of shares of Common Stock which, in the aggregate, is less than such
holder’s Allocation Percentage, then the difference between such holder’s Warrant Allocation
Percentage and the number of Warrant Shares actually issued to such holder shall be allocated to
the respective Warrant Allocation Percentage of the remaining holders of Second Lien Warrants on a
pro rata basis in proportion to the Warrant Shares issuable upon exercise of the Second Lien
Warrants then held by each such holder.

     Section 13. Date. The date of this Warrant is November 20, 2006 (the “Warrant Date”).
This Warrant, in all events, shall be wholly void and of no effect after 11:59 P.M., New York
Time, on the Expiration Date, except that notwithstanding any other provisions hereof, the
provisions of Section 7 shall continue in full force and effect after such date as to any Warrant
Shares or other securities issued upon the exercise of this Warrant.

     Section 14. Amendment and Waiver. Except as otherwise provided herein, the provisions
of the Second Lien Warrants may be amended and the Company may take any action herein prohibited,
or omit to perform any act herein required to be performed by it, only if the Company has obtained
the written consent of the holders of Second Lien Warrants representing at least two-thirds (2/3)
of the shares of Common Stock obtainable upon exercise of the Second Lien Warrants then
outstanding; provided that no such action may increase the Warrant Exercise Price of any Second
Lien Warrant or decrease the number of shares or change the class of stock obtainable upon exercise
of any Second Lien Warrant without the written consent of the holder of such Second Lien Warrant.

     Section 15. Descriptive Headings; Governing Law. The descriptive headings of the
several sections and paragraphs of this Warrant are inserted for convenience only and do not
constitute a part of this Warrant. All questions concerning the construction, validity,
enforcement and interpretation of this Warrant shall be governed by the internal laws of the State
of New York, without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of New York or any other jurisdiction) that would cause the application of
the laws of any jurisdiction other than the State of New York.

     Section 16. Rules of Construction. Unless the context otherwise requires, (a) all
references to Sections, Schedules or Exhibits are to Sections, Schedules or Exhibits contained in
or attached to this Warrant, (b) each accounting term not otherwise defined in this Warrant has the
meaning assigned to it in accordance with GAAP, (c) words in the singular or plural include the
singular and plural and pronouns stated in either the masculine, the feminine or neuter gender

 

 

shall include the masculine, feminine and neuter and (d) the use of the word “including” in this
Warrant shall be by way of example rather than limitation.

* * * * * *

     IN WITNESS WHEREOF, the Company has caused this Amended and Restated Warrant to be executed as
of the date first written above.

	 	 	 	 	 
	 	TRM CORPORATION

 	 
	 	By:  	/s/ Richard Stern
 	 
	 	 	Name:  	Richard Stern 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 

 

 

EXHIBIT A TO WARRANT

EXERCISE NOTICE

TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS WARRANT

TRM CORPORATION

     The undersigned holder hereby exercises the right to purchase ___of the shares
of Common Stock (“Warrant Shares”) of TRM Corporation, an Oregon corporation (the “Company”),
evidenced by the attached Warrant (the “Warrant”). Capitalized terms used herein and not otherwise
defined shall have the respective meanings set forth in the Warrant.

     1. Form of Warrant Exercise Price. The holder intends that payment of the Warrant Exercise
Price shall be made as:

	 	 	 
	                    

	 	a “Cash Exercise” with respect to                                          
Warrant Shares; and/or
	 
	 	 
	                    

	 	a “Cashless Exercise” with respect to                      Warrant.

     2. Payment of Warrant Exercise Price. In the event that the holder has elected a Cash
Exercise with respect to some or all of the Warrant Shares to be issued pursuant hereto, the holder
shall pay the Aggregate Exercise Price in the sum of $                     to the Company in
accordance with the terms of the Warrant.

     3. Delivery of Warrant Shares. The Company shall deliver                      Warrant Shares in
accordance with the terms of the Warrant in the following name and to the following address:

	 	 	 	 	 	 	 
	Issue to:
	 	 	 	 	 	 
	 	 	 

	 	 	 	 	 	 	 
	 	 	Facsimile Number: 	 	 	 
	 	 	 	 	 

	 	 	 	 	 	 	 
	 	 	Account Number (if electronic book entry transfer):	 	 
	 

	 	 	 	 	 	 

Date:                                            ,                     

     Name of Registered Holder

By:                                         

Name:

Title:

 

 

ACKNOWLEDGMENT

     The Company hereby acknowledges this Exercise Notice and hereby directs [TRANSFER AGENT] to
issue the above indicated number of shares of Common Stock in accordance with the Transfer Agent
Instructions dated                     , 200___from the Company and acknowledged and agreed to by
[TRANSFER AGENT].

	 	 	 	 	 
	 	 	TRM CORPORATION
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

 

 

EXHIBIT B TO WARRANT

FORM OF WARRANT POWER

     FOR VALUE RECEIVED, the undersigned does hereby assign and transfer to                     , Federal
Identification No.                     , a warrant to purchase                                 shares of the capital stock of
TRM Corporation, an Oregon corporation, represented by warrant certificate no.                     , standing in
the name of the undersigned on the books of said corporation. The undersigned does hereby
irrevocably constitute and appoint                     , attorney to transfer the warrants of said
corporation, with full power of substitution in the premises.

Dated:                     , 200_

	 	 	 	 	 	 
	 	 	 	 
	 
	 	 	 	 	 
	 

	 	Name:	 	 	 
	 

	 	 	 	 	 
	 

	 	Title:

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