<SEC-DOCUMENT>0001140361-19-003473.txt : 20190219
<SEC-HEADER>0001140361-19-003473.hdr.sgml : 20190219
<ACCEPTANCE-DATETIME>20190219171728
ACCESSION NUMBER:		0001140361-19-003473
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20190215
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20190219
DATE AS OF CHANGE:		20190219

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			USA TECHNOLOGIES INC
		CENTRAL INDEX KEY:			0000896429
		STANDARD INDUSTRIAL CLASSIFICATION:	CALCULATING & ACCOUNTING MACHINES (NO ELECTRONIC COMPUTERS) [3578]
		IRS NUMBER:				232679963
		STATE OF INCORPORATION:			PA
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-33365
		FILM NUMBER:		19616056

	BUSINESS ADDRESS:	
		STREET 1:		100 DEERFIELD LANE
		STREET 2:		SUITE 300
		CITY:			MALVERN
		STATE:			PA
		ZIP:			19355
		BUSINESS PHONE:		6109890340

	MAIL ADDRESS:	
		STREET 1:		100 DEERFIELD LANE
		STREET 2:		SUITE 300
		CITY:			MALVERN
		STATE:			PA
		ZIP:			19355

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	USA ENTERTAINMENT CENTER INC
		DATE OF NAME CHANGE:	19931029
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form8k.htm
<DESCRIPTION>8-K
<TEXT>
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          14pt;">SECURITIES AND EXCHANGE COMMISSION</font></div>
      <div style="text-align: center; font-size: 12pt;"><font style="font-family: &quot;Times New Roman&quot;;">Washington, D.C. 20549</font></div>
      <div><br>
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      <div style="text-align: center; font-size: 18pt;"><font style="font-family: &quot;Times New Roman&quot;; font-weight: bold;">FORM 8-K</font></div>
      <div><br>
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      <div style="text-align: center;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Current Report Pursuant to Section 13 or 15(d) of</font></div>
      <div style="text-align: center;"><font style="font-size: 10pt; font-family: 'Times New Roman';">The Securities Exchange Act of 1934</font></div>
      <div><br>
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      <div style="text-align: center;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Date of report (Date of earliest event reported): February 15, 2019</font></div>
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      <div style="text-align: center; font-size: 24pt;"><font style="font-family: &quot;Times New Roman&quot;;"><font style="font-family: &quot;Times New Roman&quot;; font-weight: bold;">USA TECHNOLOGIES, INC</font>.</font></div>
      <div style="text-align: center;"><font style="font-size: 10pt; font-family: 'Times New Roman';">(Exact name of registrant as specified in its charter)</font></div>
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              <div style="text-align: center;"><font style="font-size: 10pt; font-family: 'Times New Roman';">001-33365</font></div>
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              <div style="text-align: center;"><font style="font-size: 10pt; font-family: 'Times New Roman';">(State or other jurisdiction of incorporation or organization)</font></div>
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              <div style="text-align: center;"><font style="font-size: 10pt; font-family: 'Times New Roman';">(Commission File Number)</font></div>
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              <div style="text-align: center;"><font style="font-size: 10pt; font-family: 'Times New Roman';">(I.R.S. Employer Identification No.)</font></div>
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      <div style="text-align: center;"><font style="font-size: 10pt; font-family: 'Times New Roman';">100 Deerfield Lane, Suite 300</font></div>
      <div style="text-align: center;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Malvern, Pennsylvania 19355</font></div>
      <div style="text-align: center;"><font style="font-size: 10pt; font-family: 'Times New Roman';">(Address of principal executive offices and zip code)</font></div>
      <div><br>
      </div>
      <div style="text-align: center;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Registrant&#8217;s telephone number, including area code: 610-989-0340</font></div>
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      <div style="text-align: center;"><font style="font-size: 10pt; font-family: 'Times New Roman';">n/a</font></div>
      <div style="text-align: center;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Former name or former address, if changed since last report</font></div>
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      <div><br>
      </div>
      <div style="text-align: justify;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
          following provisions:</font></div>
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                <div style="text-align: left; text-indent: -18pt; margin-left: 18pt;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></div>
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                <div style="text-align: left; text-indent: -18pt; margin-left: 18pt;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></div>
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                <div style="text-align: left; text-indent: -18pt; margin-left: 18pt;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></div>
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                <div style="text-align: left; text-indent: -18pt; margin-left: 18pt;"><font style="font-size: 10pt; font-family: 'Times New Roman';"><font style="font-size: 10pt; font-family: 'Segoe UI Symbol', sans-serif;">&#9744;</font></font></div>
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                <div style="text-align: left; text-indent: -18pt; margin-left: 18pt;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></div>
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      <div><br>
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      <div style="text-align: justify;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (&#167;230.405 of this
          chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (&#167;240.12b-2 of this chapter).</font></div>
      <div><br>
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      <div style="text-align: right;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Emerging growth company&#160; <font style="font-size: 10pt; font-family: 'Segoe UI Symbol', sans-serif;">&#9744;</font></font></div>
    </div>
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      <div><br>
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      <div style="text-align: justify;"><font style="font-size: 10pt; font-family: 'Times New Roman';">If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new
          or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.&#160; <font style="font-size: 10pt; font-family: 'Segoe UI Symbol', sans-serif;">&#9744;</font></font></div>
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          <div><font style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">Item 1.01.&#160; </font><font style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">Entry into a Material Definitive Agreement.</font></div>
        </div>
      </div>
    </div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: 'Times New Roman';">On February 15, 2019, USA Technologies, Inc. (the &#8220;Company&#8221;) entered into a new consent letter (the &#8220;New Consent Agreement&#8221;) relating to the Company&#8217;s
        existing Credit Agreement dated November 9, 2017 (&#8220;Credit Agreement&#8221;) by and among the Company, as the borrower, its subsidiaries, as guarantors, and JPMorgan Chase Bank, N.A., as the lender and administrative agent for the lender (the &#8220;Lender&#8221;).
        The New Consent Agreement, among other things, extends until March 31, 2019 the time period for delivery to the Lender of the Company&#8217;s audited financial statements for the fiscal year ended June 30, 2018 and the unaudited financial statements for
        the fiscal quarters ended September 30, 2018 and December 31, 2018, and the related compliance certificates required pursuant to the Credit Agreement.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: 'Times New Roman';">The New Consent Agreement provides, among other things, that (i) the Company deliver to the Lender unaudited financial statements for the month of January
        2019 no later than March 1, 2019, (ii) the Company deliver to the Lender on a weekly basis a 13-week rolling cash flow report, and (iii) the Company shall not request, and the Lender shall not be required to honor, any request for additional
        advances under the revolving line of credit loan under the Credit Agreement, provided that the Lender may do so in its sole and absolute discretion. As of the date hereof, the principal amount outstanding under the existing revolving line of credit
        loan under the Credit Agreement is $10,000,000.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: 'Times New Roman';">In connection with the New Consent Agreement, the Company prepaid the existing term loan under the Credit Agreement in the principal amount of $15,000,000,
        resulting in a new outstanding principal balance of $7,083,333. The New Consent Agreement also provides that the Company deliver to the Lender a nonrefundable extension fee of $30,000.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: 'Times New Roman';">The third consent letter previously entered into by the Company and the Lender on December 31, 2018, had, among other things, extended until February 15,
        2019 the time period for delivery to the Lender of the Company&#8217;s audited financial statements for the fiscal year ended June 30, 2018 and the unaudited financial statements for the fiscal quarter ended September 30, 2018, and the related compliance
        certificates.</font></div>
    <div><br>
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    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: 'Times New Roman';">The foregoing description of the New Consent Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of
        the New Consent Agreement, a copy of which is filed as Exhibit 10.1 hereto and incorporated herein by reference.</font></div>
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            <div><font style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">Item 9.01.&#160; </font><font style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">Financial Statements and Exhibits</font></div>
          </div>
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                <td style="width: 72pt; vertical-align: top; align: right;"><a href="ex10_1.htm"><font style="font-size: 10pt; font-family: 'Times New
                      Roman';">Exhibit 10.1</font></a></td>
                <td style="width: auto; vertical-align: top; text-align: left;">
                  <div><font style="font-size: 10pt; font-family: 'Times New Roman';">Consent Agreement by and among the Company, its subsidiaries, and JPMorgan Chase Bank, N.A., dated February 15, 2019</font></div>
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      <div style="text-align: center;"><font style="font-size: 10pt; font-family: 'Times New Roman';">SIGNATURES</font></div>
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      <div style="text-align: justify;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Pursuant to the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly
          authorized.</font></div>
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            <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">USA TECHNOLOGIES, INC.</font></div>
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          <td style="width: 3%; vertical-align: top;">&#160;</td>
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            <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Dated: February 19, 2019</font></div>
          </td>
          <td style="width: 3%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">By:</font></div>
          </td>
          <td style="width: 47%; vertical-align: top;">
            <div style="text-align: left;"><u><font style="font-size: 10pt; font-family: 'Times New Roman';"><font style="font-size: 10pt; font-family: 'Times New Roman';">/s/ Stephen P. Herbert</font></font></u></div>
          </td>
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          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 3%; vertical-align: top;">&#160;</td>
          <td style="width: 47%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Stephen P. Herbert,</font></div>
          </td>
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          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 3%; vertical-align: top;">&#160;</td>
          <td style="width: 47%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Chief Executive Officer</font></div>
          </td>
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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>ex10_1.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
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    <!-- Licensed to: Summit, a Broadridge Company
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      <hr noshade="noshade" align="center" style="height: 4px; color: #000000; background-color: #000000; text-align: center; margin-left: auto; margin-right: auto; border: none;"><font style="font-weight: bold;">Exhibit 10.1</font><br>
    </div>
    <div><br>
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    <div style="text-align: center; font-family: 'Times New Roman'; font-size: 10pt;">February 15, 2019</div>
    <div><br>
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    <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">USA Technologies, Inc.</font></div>
    <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">100 Deerfield Lane</font></div>
    <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Suite 300</font></div>
    <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Malvern, PA&#160; 19355</font></div>
    <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Attention: Glen Goold</font></div>
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              <td style="width: 27pt;">&#160;</td>
              <td style="width: 36pt; vertical-align: top; align: right;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Re:</font></td>
              <td style="width: auto; vertical-align: top; text-align: left;">
                <div><font style="font-size: 10pt; font-family: 'Times New Roman';"><font style="font-size: 10pt; font-family: 'Times New Roman';"><u>CONSENT TO EXTENSION</u></font></font></div>
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    <div style="text-align: justify;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Dear Sir or Madam:</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: 'Times New Roman';">We refer to that certain Credit Agreement, dated as of November 9, 2017 (as amended, restated, supplemented, or otherwise modified from
        time to time, the &#8220;<font style="font-size: 10pt; font-family: 'Times New Roman';"><u>Credit Agreement</u></font>&#8221;), among USA Technologies, Inc., a Pennsylvania corporation (the &#8220;<font style="font-size: 10pt; font-family: 'Times New Roman';"><u>Borrower</u></font>&#8221;),

        the other Loan Parties party thereto (together with the Borrower, the &#8220;<font style="font-size: 10pt; font-family: 'Times New Roman';"><u>Loan Parties</u></font>&#8221;), the lenders party thereto from time to time (the &#8220;<font style="font-size: 10pt;
          font-family: 'Times New Roman';"><u>Lenders</u></font>&#8221;), and JPMorgan Chase Bank, N.A., as administrative agent (the &#8220;<font style="font-size: 10pt; font-family: 'Times New Roman';"><u>Administrative Agent</u></font>&#8221;) for the Lenders.&#160;
        Capitalized terms used herein and not otherwise defined shall have the meanings given to such terms in the Credit Agreement.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: 'Times New Roman';">The Loan Parties have requested that the Administrative Agent consent to an extension of (a) the delivery of the Borrower&#8217;s audited
        financial statements for the fiscal year ended June 30, 2018, the unaudited financial statements for the fiscal quarters ended September 30, 2018, and December 31, 2018, and the related compliance certificates required to be delivered pursuant to
        Section 5.01(a), (b) and (c), as applicable, of the Credit Agreement to March 31, 2019 (the &#8220;<font style="font-size: 10pt; font-family: 'Times New Roman';"><u>Financial Reporting Extension</u></font>&#8221;) and (b) the date by which the Borrower must
        comply with the financial covenants set forth in Section 6.12 of the Credit Agreement with respect to the fiscal quarter ending on December 31, 2018, to March 31, 2019 (the &#8220;<font style="font-size: 10pt; font-family: 'Times New Roman';"><u>Financial

            Covenant Extension</u></font>&#8221;; and together with the Financial Reporting Extension, the &#8220;<font style="font-size: 10pt; font-family: 'Times New Roman';"><u>Specified Extensions</u></font>&#8221;).</font></div>
    <div><br>
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    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: 'Times New Roman';">At your request and subject to the terms and conditions of this letter agreement, the Administrative Agent and the Lenders consent to
        the Specified Extensions.&#160; As a condition to such consent, the Loan Parties hereby agree that the Applicable Rate shall continue to be set at Category 1 until at least the date that the unaudited financial statements and related compliance
        certificate required to be delivered pursuant to Sections 5.01(b) and (c) with respect to the fiscal quarters ending September 30, 2018, and December 31, 2018, are delivered to the Administrative Agent.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: 'Times New Roman';">In consideration of the Specified Extension, the Loan Parties agree that (a) the Borrower shall not request, and the Secured Parties
        shall not be required to honor, any request for additional Revolving Loans, Letters of Credit, or other credit accommodations, provided that the Secured Parties may do so in their sole and absolute discretion, (b) with respect to the fiscal month
        ending January 31, 2019, that on or before March 1, 2019, they shall deliver an unaudited consolidated balance sheet and related statements of operations, stockholders&#8217; equity and cash flows as of the end of and for such fiscal month and the then
        elapsed portion of current fiscal year, setting forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal year, all certified by a
        Financial Officer as presenting fairly in all material respects the financial condition and results of operations of the Borrower and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject to
        normal yearend audit adjustments and the absence of footnotes, (c) on or before Friday of each week, the Borrower shall deliver to the Administrative Agent a 13-week rolling cash flow report, and (d) from and after the date hereof, no Loan Party
        will, nor will it permit any Subsidiary to, (i) declare or make, or agree to declare or make, directly or indirectly, any Restricted Payment, or incur any obligation (contingent or otherwise) to do so, other than Restricted Payments made to other
        Loan Parties, (ii) sell, transfer, lease or otherwise dispose of any asset, including any Equity Interest owned by it, pursuant to Section 6.05(h) of the Credit Agreement, nor will the Borrower permit any Subsidiary to issue any additional Equity
        Interest in such Subsidiary (other than to the Borrower or another Subsidiary in compliance with Section 6.03 or Section 6.04 of the Credit Agreement), (iii) merge into or consolidate with it, or liquidate or dissolve, or (iv) consummate an
        Acquisition or enter into an agreement with respect to an Acquisition.&#160; The failure to comply with the foregoing sentence will constitute an immediate Event of Default under the Credit Agreement.</font></div>
    <div><br>
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    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Each of the Loan Parties hereby (a) agrees that, after giving effect to the terms hereof, no Default or Event of Default exists as of
        the date hereof, (b) reaffirms all of its obligations and covenants under the Credit Agreement and the other Loan Documents to which it is a party, (c) restates and renews each and every representation and warranty heretofore made by it in the
        Credit Agreement and the other Loan Documents as fully as if made on the date hereof (except with respect to representations and warranties made as of an expressed date, in which case such representations and warranties shall be true and correct as
        of such date) and (d) agrees that none of its respective obligations and covenants shall be reduced or limited by the execution and delivery of this letter agreement.</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Each Loan Party and their respective Affiliates, successors, assigns, and legal representatives (collectively, the &#8220;Releasors&#8221;),
        acknowledge and agree that through the date hereof, each Secured Party has acted in good faith and has conducted itself in a commercially reasonable manner in its relationships with the Releasors in connection with this agreement and in connection
        with the Secured Obligations, the Credit Agreement, and the other Loan Documents, and the obligations and liabilities of the Releasors existing thereunder or arising in connection therewith, and the Releasors hereby waive and release any claims to
        the contrary.&#160; The Releasors hereby release, acquit, and forever discharge each Secured Party and its Affiliates (including, without limitation, its parent and its subsidiaries) and their respective officers, directors, employees, agents,
        attorneys, advisors, successors and assigns, both present and former (collectively, the &#8220;<font style="font-size: 10pt; font-family: 'Times New Roman';"><u>Secured Party Affiliates</u></font>&#8221;) from any and all manner of losses, costs, defenses,
        damages, liabilities, deficiencies, actions, causes of action, suits, debts, controversies, damages, judgments, executions, claims, demands, and expenses whatsoever, asserted or unasserted, known or unknown, foreseen or unforeseen, in contract,
        tort, law or equity (generically, &#8220;<font style="font-size: 10pt; font-family: 'Times New Roman';"><u>Claims</u></font>&#8221;), that any Releasor has or may have against any Secured Party and/or any Secured Party Affiliate by reason of any action,
        failure to act, event, statement, accusation, assertion, matter, or thing whatsoever arising from or based on facts occurring prior to the effectiveness of this Agreement that arises out of or is connected to the Loan Documents or the Secured
        Obligations.&#160; Each of the Releasors hereby unconditionally and irrevocably agrees that it will not sue any Secured Party or any Secured Party Affiliate on the basis of any Claim released, remised, and discharged by such Releasor pursuant to this
        paragraph.&#160; If any Releasor or any of their respective successors, assigns, or other legal representatives violates the foregoing covenant, each Releasor, for itself and its successors, assigns, and legal representatives, agrees to pay, in addition
        to such other damages as any Secured Party or any Secured Party Affiliate may sustain as a result of such violation, all reasonable and documented attorneys&#8217; fees and costs incurred by any Secured Party or any Secured Party Affiliate as a result of
        such violation.</font></div>
    <div><br>
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    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: 'Times New Roman';">This letter agreement shall not become effective until (a) each of the Loan Parties and the Administrative Agent have executed and
        delivered this letter agreement to the Administrative Agent, (b) the Loan Parties shall have prepaid the Term A Loan in an aggregate principal amount of at least $15,000,000 (such prepayment to be applied in inverse order of maturity of the Term A
        Loan), (c) the Loan Parties shall have paid to the Administrative Agent, for the benefit of the Lenders, a non-refundable extension fee of $30,000 in immediately available funds, and (d) the Loan Parties shall have paid (or made arrangements
        acceptable to the Administrative Agent to pay) all outstanding legal fees of counsel to the Administrative Agent.&#160; Except for the consents set forth above, the text of the Credit Agreement and all other Loan Documents shall remain unchanged and in
        full force and effect.&#160; This letter agreement shall not constitute an amendment to any other provision of the Credit Agreement or any other Loan Document. The Specified Extension is a one-time consent and shall not be construed as an agreement to
        consent to any future event. No consent by the Administrative Agent or the Lenders under the Credit Agreement or any other Loan Document is granted or intended except as expressly set forth herein.&#160; Except as set forth herein, the consents agreed
        to herein shall not constitute a modification of the Credit Agreement or any of the other Loan Documents, or a course of dealing with the Administrative Agent and the Lenders at variance with the Credit Agreement or any of the other Loan Documents,
        such as to require further notice by the Administrative Agent or the Lenders to require strict compliance with the terms of the Credit Agreement and the other Loan Documents in the future.&#160; This letter agreement shall be a &#8220;Loan Document&#8221; for all
        purposes under the Credit Agreement. This letter agreement shall be governed by, and construed in accordance with, the laws of the State of New York.&#160; This letter agreement may be executed in any number of counterparts, each of which shall be
        deemed to be an original, but all such separate counterparts shall together constitute but one and the same instrument.&#160; Delivery by one or more parties hereto of an executed counterpart of this letter agreement via facsimile, telecopy, or other
        electronic method of transmission pursuant to which the signature of such party can be seen (including, without limitation, Adobe Corporation&#8217;s Portable Document Format) shall have the same force and effect as the delivery of an original executed
        counterpart of this letter agreement.&#160; Any party delivering an executed counterpart of this letter agreement by facsimile or other electronic method of transmission shall also deliver an original executed counterpart to the Administrative Agent,
        but the failure to do so shall not affect the validity, enforceability, or binding effect of this letter agreement.</font></div>
    <div><br>
    </div>
    <div style="text-align: center;"><font style="font-size: 10pt; font-family: 'Times New Roman';">[<font style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic;">remainder of page intentionally left blank; signature pages follow</font>]</font></div>
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            <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';"><font style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">BORROWER</font>:</font></div>
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            <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">USA TECHNOLOGIES, INC.</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
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            <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">By: <u><font style="font-size: 10pt; font-family: 'Times New Roman';">/s/ Stephen P. Herbert</font></u></font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 50%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Name: Stephen P. Herbert</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 50%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Title: Chief Executive Officer</font></div>
          </td>
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    </table>
    <div><br>
    </div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
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    <div style="text-align: left; text-indent: -216pt; margin-left: 216pt;"><font style="font-size: 10pt; font-family: 'Times New Roman';"><font style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">ADMINISTRATIVE AGENT AND SOLE
          LENDER</font>:</font></div>
    <div><br>
    </div>
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        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
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            <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';"><font style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">JPMORGAN CHASE BANK, N.A</font>.</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 50%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">By: <u><font style="font-size: 10pt; font-family: 'Times New Roman';">/s/ Geraldine A. King</font></u></font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 50%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Name: Geraldine A. King</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 50%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Title: Executive Director,</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="vertical-align: top; white-space: nowrap; width: 50%;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Special Credits Risk</font></div>
          </td>
        </tr>

    </table>
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    <div style="text-align: center;"><font style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">CONSENT, REAFFIRMATION, AND AGREEMENT OF GUARANTORS</font></div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Each of the undersigned (a) acknowledges receipt of the foregoing consent (the &#8220;<font style="font-size: 10pt; font-family: 'Times New
          Roman';"><u>Agreement</u></font>&#8221;); (b) consents to the execution and delivery of the Agreement; and (c) reaffirms all of its obligations and covenants under the Credit Agreement (as defined in the Agreement) and all of its other obligations
        under the Loan Documents to which it is a party, and, agrees that none of its obligations and covenants shall be reduced or limited by the execution and delivery of the Agreement or any of the other instruments, agreements or other documents
        executed and delivered pursuant thereto.</font></div>
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    </div>
    <div style="text-align: justify; text-indent: 36pt;"><font style="font-size: 10pt; font-family: 'Times New Roman';">This Consent, Reaffirmation, and Agreement of Guarantors (this &#8220;<font style="font-size: 10pt; font-family: 'Times New Roman';"><u>Consent</u></font>&#8221;)

        may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which counterparts, taken together, shall constitute
        but one and the same instrument.&#160; This Consent may be executed by each party on separate copies, which copies, when combined so as to include the signatures of all parties, shall constitute a single counterpart of the Consent.</font></div>
    <div><br>
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    <div style="text-align: left; margin-left: 36pt;"><font style="font-size: 10pt; font-family: 'Times New Roman';">As of February 15, 2019</font></div>
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          <td style="width: 50%; vertical-align: top;">&#160;</td>
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            <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">STITCH NETWORKS CORPORATION</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 50%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">By: <u><font style="font-size: 10pt; font-family: 'Times New Roman';">/s/ Stephen P. Herbert</font></u></font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 50%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Name: Stephen P. Herbert</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 50%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Title: Chief Executive Officer</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
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            <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">USAT CAPITAL CORP, LLC</font></div>
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        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 50%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">By: <u><font style="font-size: 10pt; font-family: 'Times New Roman';">/s/ Stephen P. Herbert</font></u></font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 50%; vertical-align: top;">
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Name: Stephen P. Herbert</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 50%; vertical-align: top;">
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          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
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          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
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