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Exhibit 10.5    
  

 
 

SECOND AMENDMENT TO THIRD AMENDED AND RESTATED
  BUSINESS LOAN AGREEMENT    
  

        This Second Amendment to Third Amended and Restated Business Loan Agreement ("Amendment") is made as of April 1, 2001 by and between Bank of America, N.A.
("Bank") and TRM Corporation ("Borrower"). 

RECITALS  

        A.    Borrower
and Bank are parties to that Third Amended and Restated Business Loan Agreement dated as of July 21, 2000 (the "Agreement"). 

        B.    Borrower
and Bank executed First Amendment to Third Amended and Restated Business Loan Agreement dated as of July 21, 2000 as amended by such First Amendment is
referred to herein as the "Agreement." 

        C.    Borrower
has requested that Bank defer a portion of the agreed reduction in line of credit that otherwise would take place April 1, 2001. The portion of the
reduction requested to be deferred is $2,850,000 (the "Deferred Reduction"), and the date to which Borrower requests such deferral is August 1, 2001. 

        D.    Bank
has agreed to the deferral requested upon the condition that the amendments to the Agreement and the other terms set forth below are agreed to. Borrower has agreed
to such amendments and terms. 

        THEREFORE,
the parties agree as follows: 

AGREEMENT  

        1.    Definitions.    Capitalized terms used herein and not otherwise defined shall have the meaning given in the
Agreement. 

        2.    Release of Bank.    Borrower hereby releases Bank and it's officers, agents, successors and assigns from all
claims of every nature known or unknown arising out of or related to the Agreement or line of credit provided for therein which now exists, or but for the passage of time, could be asserted, as of the
date Borrower signs this Amendment. 

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        3.    Amendment to Section 1.1(a).    Section 1.1(a) of
the Agreement is amended to read as follows: 

        "(a)
During the availability period described below, the Bank will provide a line of credit to the Borrower. The amount of the line of credit (the "Commitment") is equal to the amount
indicated for each period specified below: 

	Period
 
	 	Amount

	From April 1, 2001 through April 30, 2001	 	$	28,225,000
	From May 1, 2001 through May 31, 2001	 	$	27,490,000
	From June 1, 2001 through June 30, 2001	 	$	26,815,000
	From July 1, 2001 through July 31, 2001	 	$	25,990,000
	From August 1, 2001 through August 31, 2001	 	$	22,540,000
	From September 1, 2001 through September 30, 2001	 	$	21,940,000
	From October 2, 2001 through October 31, 2001	 	$	21,240,000
	From November 1, 2001 through November 30, 2001	 	$	20,440,000
	From December 1, 2001 through December 31, 2001	 	$	19,640,000
	After January 4, 2002	 	$	-0-    "

        4.    Change in Applicable Margin.    Section 1.5 of the
Agreement is amended to read as follows: 

        "1.5    Applicable Margin.    The Applicable Margin shall be the 1.00% for advances or Portions bearing interest based
upon the Bank's Prime Rate and 3.50% for advances or Portions bearing interest based upon IBOR or LIBOR." 

        5.    Amendment to Section 8.6(f).    Section 8.6(f) of
the Agreement is amended to read as follows: 

        "8.6(f)
entering into a capital lease so long as the proceeds of such capital lease are used first to make principal payments to the Bank in the amount of the Deferred Reduction and then
to pay the unpaid purchase price for Konica copy machines. Any principal payment to Bank under this provision shall also be a reduction in the Commitment in addition to each reduction scheduled prior
to August 1, 2001 provided for in Section 1.1 (a). 

        6.    No Further Amendment.    Except as expressly modified by this Amendment, the Agreement shall remain unmodified
and in full force and effect, and the parties hereby ratify their respective obligations thereunder. Without limiting the foregoing, the Borrower expressly reaffirms and ratifies its obligations to
pay or reimburse Bank on request for all reasonable expenses, including legal fees, actually incurred by Bank in connection with the preparation of this Amendment, any other amendment documents and
the closing of the transactions contemplated hereby and thereby. 

        7.    Miscellaneous.    

        (a)    Entire Agreement.    This Amendment comprises the entire agreement of the parties with respect to the subject
matter hereof and supersedes all prior oral or written agreements, representations or commitments. 

        (b)    Counterparts.    This Amendment may be executed in any number of counterparts and by different parties hereto
in separate counterparts, each of which when so executed shall be deemed to be an original, and all of which taken together shall constitute one and the same Amendment. 

        (c)    Governing Law.    This Amendment and the other agreements provided for herein and the rights and obligations of
the parties hereto and thereto shall be construed and interpreted in accordance with the laws of the State of Oregon. 

        (d)    Certain Agreements Not Enforceable.    

        UNDER
OREGON LAW, MOST AGREEMENTS, PROMISES AND COMMITMENTS MADE BY THE LENDERS AFTER OCTOBER 3,1989, CONCERNING LOANS AND 

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OTHER CREDIT EXTENSIONS WHICIF ARE NOT FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES OR SECURED SOLELY BY THE BORROWER'S RESIDENCE MUST BE IN WRITING, EXPRESS CONSIDERATION, AND BE SIGNED BY THE LENDERS
TO BE ENFORCEABLE. 

        This
Agreement is executed as of the date stated at the top of the first page. 

	Bank of America, N.A

  	 	TRM Corporation

  
	

By:	
 	

/s/  JANET SLEEPER      
	
 	

By:	
 	

/s/  DANIEL L. SPALDING      

	Typed Name:	 	Janet Sleeper	 	Type Name:	 	Daniel L. Spalding
	Title:	 	Senior Vice President	 	Title:	 	Senior Vice President & CFO
	

Address where notices to the Bank are to be sent:	
 	

Address for Notices:
	

Janet Sleeper

Senior Vice President

Bank of America, N.A.

PO Box 34401

Seattle, WA 98124	
 	

5208 NE 122 Avenue

Portland, OR 97230-1074

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Exhibit 10.5

SECOND AMENDMENT TO THIRD AMENDED AND RESTATED BUSINESS LOAN AGREEMENTQuickLinks
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Exhibit 10.6    
  

 
 

THIRD AMENDMENT TO THIRD AMENDED AND RESTATED
  BUSINESS LOAN AGREEMENT    
  

        This Third Amendment to Third Amended and Restated Business Loan Agreement ("Amendment") is made as of August 9, 2001 by and between Bank of America, N.A.,
("Bank) and TRM Corporation ("Borrower"). 

RECITALS  

        A.    Borrower
and Bank are parties to that Third Amended and Restated Business Loan Agreement dated as of July 21, 2000 (the "Agreement"). 

        B.    Borrower
and Bank executed the First Amendment to Third Amended and Restated Business Loan Agreement as of February 14, 2001, and executed the Second Amendment to
Third Amended and Restated Business Loan Agreement as of April 1, 2001. The Third Amended and Restated Business Loan Agreement dated as of July 21, 2000 as so amended is referred to
herein as the "Agreement" 

        C.    Borrower
has requested that Bank defer a portion of the agreed reduction in line of credit that otherwise would have taken place August 1, 2001. The portion of the
reduction requested to be deferred is $2,850,000 (the "Deferred Reduction"), and the date to which Borrower requests such deferral is the Expiration Date, January 4, 2002. 

        D.    Bank
has agreed to the deferral requested upon the condition that the Agreement and the other terms set forth below are agreed to. Borrower has agreed to such amendments
and terms. 

        THEREFORE,
the parties agree as follows. 

AGREEMENT  

        1.    Definitions.    Capitalized terms used herein and not otherwise defined shall have the meaning given in the
Agreement. 

        2.    Release of Bank.    Borrower hereby releases Bank and it's officers, agents, successors and assigns from all
claims of every nature known or unknown arising out of or related to the Agreement or line of credit provided for therein which now exists, or but for the passage of time, could be asserted, as of the
date Borrower signs this Amendment. 

1

 

        3.    Amendment to Section l.l(a).    Section l.l
(a) of the Agreement is amended to read as follows: 

        "(a)
During the availability period described below, the Bank will provide a line of credit to the Borrower. The amount of the line of credit (the "Commitment") is equal to the amount
indicated for each period specified below. 

	Period
 
	 	Amount
	 
	From August 1, 2001 through August 31, 2001	 	$	25,390,000	 
	From September 1, 2001 through September 30, 2001	 	$	24,790,000	 
	From October 2, 2001 through October 31, 2001	 	$	24,090,000	 
	From November 1, 2001 through November 30, 2001	 	$	23,290,000	 
	From December 1, 2001 through December 31, 2001	 	$	22,490,000	 
	After January 4, 2002	 	$	-0-	"

        4.    Change in Applicable Margin.    Section 1.5 of the Agreement is amended to read as follows: 

        "1.5
Applicable Margin. The Applicable Margin shall be the 3.50% for advances or Portions bearing interest based upon the Bank's Prime Rate and 3. 50% for advances or Portions bearing
interest based upon IBOR or LIBOR; provided however, that neither IBOR Rates nor LIBOR Rates shall be available after this Amendment except with respect to advances or Portions for which IBOR Rates of
LIBOR Rates were selected by Borrower prior to this Amendment, and only for the interest periods applicable to such advances or Portions." 

        5.    Deletion of Section 2.    Section 2 of the
Agreement and all Subsections of Section 2 are deleted; provided however, that Section 2 and all Subsections of  Section 2 will continue to
be effective with respect to advances or Portions for which IBOR Rates or LIBOR Rates were selected by Borrower prior
to this Amendment but only for the interest periods applicable to such advances or Portions. 

        6.    No Further Amendment.    Except as expressly modified by this Amendment, the Agreement shall remain unmodified
and in full force and effect, and the parties hereby ratify their respective obligations thereunder. Without limiting the foregoing, the Borrower expressly reaffirms and ratifies its obligations to
pay or reimburse Bank on request for all reasonable expenses, including legal fees, actually incurred by Bank in connection with the preparation of this Amendment, any other amendment documents and
the closing of the transactions contemplated hereby and thereby. 

        7.    Miscellaneous.    

        (a)    Entire Agreement.    This Amendment comprises the entire agreement of the Parties with respect to the subject
matter hereof and supersedes all prior oral or written agreements, representations or commitments. 

        (b)    Counterparts.    This Amendment may be executed in any number of counterparts by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an original, and all of which taken together shall constitute one and the same Amendment. 

        (c)    Governing Law.    This Amendment and the other agreements provided for herein and the rights and obligations of
the parties hereto and thereto shall be construed and interpreted in accordance with the laws of the State of Oregon. 

        (d)    Certain Agreements Not Enforceable.    

UNDER OREGON LAW, MOST AGREEMENTS, PROMISES AND COMMITMENTS MADE BY THE LENDERS AFTER OCTOBER 3, 1989, CONCERNING LOANS AND OTHER CREDIT EXTENSIONS WHICH ARE NOT FOR PERSONAL,
FAMILY OR HOUSEHOLD PURPOSES OR SECURED SOLELY BY THE BORROWER'S RESIDENCE MUST BE  

2

 

 WRITING, EXPRESS CONSEDERATION, AND BE SIGNED BY THE LENDERS TO BE ENFORCEABLE. 

        This
Agreement is executed as of the date stated at the top of the first page. 

	

Bank of America, N.A.	
 	

TRM Corporation
	

By:	
 	

/s/  JANET SLEEPER      
 Typed Name:    Janet Sleeper

Title:    Senior Vice President	
 	

By:	
 	

/s/  DANIEL L. SPALDING      
 Typed Name:    Daniel L. Spalding

Title:    Senior Vice President & CFO
	

Address where notices to the Bank are to be Sent:	
 	

Address for Notices:
	

Janet Sleeper

Senior Vice President

Bank of America, N.A.

PO Box 34401

Seattle, WA 98124	
 	

5208 NE 122 Avenue

Portland, OR 97230-1074

3

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Exhibit 10.6

THIRD AMENDMENT TO THIRD AMENDED AND RESTATED BUSINESS LOAN AGREEMENT

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