<SEC-DOCUMENT>0001140361-19-006418.txt : 20190403
<SEC-HEADER>0001140361-19-006418.hdr.sgml : 20190403
<ACCEPTANCE-DATETIME>20190403162946
ACCESSION NUMBER:		0001140361-19-006418
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20190328
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20190403
DATE AS OF CHANGE:		20190403

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:		19729367

	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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        <div style="text-align: center; font-family: &quot;Times New Roman&quot;; font-size: 14pt;">SECURITIES AND EXCHANGE COMMISSION</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): March 28, 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: &quot;Times New Roman&quot;;">Pennsylvania</font></div>
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                <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">001-33365</font></div>
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                <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">232679963</font></div>
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            <td style="width: 33%; vertical-align: top; text-align: center;">&#160;</td>
            <td style="width: 34%; vertical-align: top; text-align: center;">&#160;</td>
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                <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(State or other jurisdiction of in-corporation or organization)</font></div>
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                <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(Commission File Number)</font></div>
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                <div style="text-align: center;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">(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>
        <div><br>
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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 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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                <td style="vertical-align: top; width: 27pt;">&#9744;</td>
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                  <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></div>
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                <td style="vertical-align: top; width: 27pt;">&#9744;</td>
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                  <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></div>
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                <td style="vertical-align: top; width: 27pt;">&#9744;</td>
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                  <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">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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                <td style="vertical-align: top; width: 27pt;">&#9744;</td>
                <td style="vertical-align: top; width: auto;">
                  <div style="text-align: left;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></div>
                </td>
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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 style="text-align: justify;"><font style="font-size: 10pt; font-family: 'Times New Roman';"> <br>
          </font></div>
      </div>
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        <div style="text-align: right;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Emerging growth company&#160; &#9744;</font></div>
      </div>
      <div>
        <div><br>
        </div>
        <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; &#9744;</font></div>
        <div style="text-align: justify;"><font style="font-size: 10pt; font-family: 'Times New Roman';"><font style="font-size: 10pt; font-family: 'Segoe UI Symbol', sans-serif;"> <br>
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                  <td style="width: 54pt; vertical-align: top;"><font style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">Item 5.02.</font></td>
                  <td style="width: auto; vertical-align: top; text-align: justify;">
                    <div><font style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">Departure of Directors or Principal Officers; Appointment of Principal Officers.</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';">(c)&#160; The Board of Directors of USA Technologies, Inc. (the &#8220;Company&#8221;), has appointed James Pollock, age 45, as the Chief Compliance Officer of the
            Company, effective April 15, 2019. The Chief Compliance Officer is a newly created function<font style="font-size: 10pt; font-family: 'Times New Roman';">&#160;</font>resulting from the remedial measures implemented by the Board of Directors as a
            result of the Audit Committee&#8217;s internal investigation. Mr. Pollock will report directly to the recently created Compliance Committee of the Board of Directors.</font></div>
        <div><br>
        </div>
        <div style="text-align: justify;"><font style="font-size: 10pt; font-family: 'Times New Roman';"><font style="font-size: 10pt; font-family: 'Times New Roman';">Mr. Pollock has been employed by PricewaterhouseCoopers LLP (&#8220;PwC&#8221;) as a Director within
              the Risk Assurance practice from July 2010. Prior to that, Mr. Pollock had served in various capacities at PwC since July 1998, providing risk-based internal audit and other advisory services, performing SOX engagements,</font>&#160;<font style="font-size: 10pt; font-family: 'Times New Roman';">and addressing strategic and operational risk areas for global clients representing a wide range of industries. Prior to joining PwC, Mr. Pollock was an associate manager within the
              Controller's division at AT&amp;T Inc. (NYSE:T) from June 1996, where he was responsible for cost center variance analysis and the general summation of financial results prior to consolidation. Mr. Pollock is a Certified Public Accountant and
              a member of the American Institute of Certified Public Accountants, the Pennsylvania Institute of Certified Public Accountants, and the Philadelphia chapter of the Institute of Internal Auditors.</font></font></div>
        <div><br>
        </div>
        <div style="text-align: justify;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Pursuant to the terms of the employment agreement entered into on March 28, 2019 between the Company and Mr. Pollock, Mr. Pollock will receive an
            annual base salary of $235,000 and participate in the short-term incentive bonus plan and long-term incentive stock plan established for the executive officers of the Company. If all of Mr. Pollock&#8217;s target goals are achieved under the
            short-term incentive plan, he would earn a cash bonus equal to 30% of his base salary, and if all the target goals are achieved under the long-term incentive stock plan, Mr. Pollock would be awarded equity having a value equal to 20% of his
            base salary. Mr. Pollock was also awarded a signing bonus of $30,000, to be paid on August 15, 2019, and incentive stock options to purchase up to 20,000 shares exercisable at the closing price of the shares on the date of grant and which would
            vest over a three-year period beginning with the first anniversary of the date of the grant. The Company has agreed to provide Mr. Pollock with at least six months&#8217; prior notice of the termination of his employment for any reason other than for
            cause.</font></div>
        <div><br>
        </div>
        <div style="text-align: justify;"><font style="font-size: 10pt; font-family: 'Times New Roman';">The foregoing summary of the employment agreement does not purport to be complete and is qualified in its entirety by reference to the employment
            agreement which is filed hereto as Exhibit 10.1 and is incorporated herein by reference.</font></div>
        <div><br>
        </div>
        <div style="text-align: justify;"><font style="font-size: 10pt; font-family: 'Times New Roman';">There is no arrangement or understanding with any other person pursuant to which Mr. Pollock was appointed as the Chief Compliance Officer, and there
            are no family relationships between Mr. Pollock and any director or executive officer of the Company. Additionally, there are no transactions involving Mr. Pollock that would be required to be reported under Item 404(a) of Regulation S-K.</font></div>
        <div><br>
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                  <td style="width: 54pt; vertical-align: top;"><font style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">Item 9.01.</font></td>
                  <td style="width: auto; vertical-align: top; text-align: justify;">
                    <div><font style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">Financial Statements and Exhibits</font></div>
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              <div>
                <div style="text-align: justify;"><a href="ex10_1.htm"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Exhibit
                      10.1</font></a></div>
              </div>
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            <td style="width: 90%; vertical-align: top;">
              <div>
                <div style="text-align: justify;"><font style="font-size: 10pt; font-family: &quot;Times New Roman&quot;;">Employment Agreement dated March 27, 2019, by and between the Company and James Pollock</font></div>
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        <div id="DSPFPageNumberArea" style="text-align: center;"><font id="DSPFPageNumber" style="font-family: 'Times New Roman'; font-size: 8pt; font-weight: normal; font-style: normal;">2</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><br>
        </div>
        <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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            <td style="width: 50%; vertical-align: top;">&#160;</td>
            <td style="vertical-align: top;" colspan="2">
              <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">USA TECHNOLOGIES, INC.</font></div>
            </td>
          </tr>
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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;">&#160;</td>
          </tr>
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            <td style="width: 50%; vertical-align: top;">
              <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Dated: April 3, 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>
          </tr>
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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>
          </tr>
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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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        <div style="text-align: center;"><font id="DSPFPageNumber" style="font-family: &quot;Times New Roman&quot;; font-size: 8pt; font-weight: normal; font-style: normal;">3</font> </div>
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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>ex10_1.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
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      <div style="text-align: right; font-family: 'Times New Roman'; font-size: 10pt; font-weight: bold;">Exhibit 10.1</div>
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      </div>
      <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">March 27, 2019</font></div>
      <div><br>
      </div>
      <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Mr. James Pollock</font></div>
      <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">1421 Frog Hollow Road</font></div>
      <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Rydal, PA&#160; 19046</font></div>
      <div><br>
      </div>
      <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Dear Jim:</font></div>
      <div><br>
      </div>
      <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">We are pleased to extend to you an offer of employment to join USA Technologies, Inc. (&#8220;USA&#8221;) as Chief Compliance Officer. In your role as Chief Compliance
          Officer you will report to the Compliance Committee of USA&#8217;s Board of Directors. Your first day of employment will be April 15, 2019.</font></div>
      <div><br>
      </div>
      <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">This offer is contingent upon approval of this letter by our Board of Directors which is expected to be no later than March 22, 2019.</font></div>
      <div><br>
      </div>
      <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">The following are the terms of your employment:</font></div>
      <div><br>
      </div>
      <div style="text-align: left;">
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                  <div><font style="font-size: 10pt; font-family: 'Times New Roman';">Your annual base salary will be $235,000.</font></div>
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        <div>
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                <td style="width: 18pt;"><br>
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                <td style="width: 18pt; vertical-align: top; align: right;"><font style="font-size: 10pt; font-family: Symbol, serif;">&#183;</font></td>
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                  <div><font style="font-size: 10pt; font-family: 'Times New Roman';">Signing bonus of incentive stock options to purchase up to 20,000 shares exercisable at the closing price of the shares on the date of grant. The options would vest over
                      a three-year period as follows, provided that you are employed by USA on the respective vesting dates:&#160; one-third on the first annual anniversary of the date of the grant; one-third on the second annual anniversary of the date of the
                      grant; and one-third on the third annual anniversary of the date of the grant.<font style="font-size: 10pt; font-family: 'Times New Roman';">&#160;</font>The options would be exercisable for a period of seven years from the grant date. The
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                <td style="width: 18pt;"><br>
                </td>
                <td style="width: 18pt; vertical-align: top; align: right;"><font style="font-size: 10pt; font-family: Symbol, serif;">&#183;</font></td>
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                  <div><font style="font-size: 10pt; font-family: 'Times New Roman';">An additional signing bonus consisting of a cash payment of $30,000 to be paid on August 15, 2019, provided you are employed by USA on such date. The payment shall be
                      subject to customary payroll and tax withholdings and deductions.</font></div>
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              </tr>

          </table>
        </div>
      </div>
      <div style="text-align: left;">
        <div>
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                <td style="width: 18pt;"><br>
                </td>
                <td style="width: 18pt; vertical-align: top; align: right;"><font style="font-size: 10pt; font-family: Symbol, serif;">&#183;</font></td>
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                  <div><font style="font-size: 10pt; font-family: 'Times New Roman';">You will participate in a Short-Term Incentive Plan. If the target goals would be achieved, you would earn a cash bonus equal to 30% of your base salary. For fiscal year
                      2019, your STI award would be pro-rated from your start date through the end of USA&#8217;s fiscal year ended June 30, 2019. Your target goals under the fiscal year 2019 plan would be formalized by the Compensation Committee promptly
                      following the date hereof, and would be based solely upon achievement of the compliance plan that you had previously prepared.</font></div>
                </td>
              </tr>

          </table>
          <div> <br>
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        <div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt;">Offer of Employment</div>
        <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">James Pollock</font></div>
        <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Page 2</font></div>
        <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';"><font id="DSPFPageNumber"> <br>
            </font></font></div>
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                <td style="width: 18pt;"><br>
                </td>
                <td style="width: 18pt; vertical-align: top; align: right;"><font style="font-size: 10pt; font-family: Symbol, serif;">&#183;</font></td>
                <td style="width: auto; vertical-align: top; text-align: left;">
                  <div><font style="font-size: 10pt; font-family: 'Times New Roman';">You will participate in a Long-Term Incentive Stock Plan. If each of the target goals would be achieved, you would earn an equity award with a value on the last day of
                      the applicable fiscal year equal to 20% of your base salary. For fiscal year 2019, your LTI award would be pro-rated from your start date through the end of USA&#8217;s fiscal year ended June 30, 2019.&#160; If each of the target goals would be
                      achieved for the fiscal year 2019 plan, you would earn (subject to proration) an award of incentive stock options to purchase up to 30,000 shares with an exercise price equal to the closing price of the shares on June 30, 2019. The
                      options&#160; would vest over a three-year period as follows, provided that you are employed by USA on the respective vesting dates:&#160; one-third at the time of issuance; one-third on June 30, 2020; and one-third on June 30, 2021. The
                      options would be exercisable for a period of seven years from the grant date. Your target goals under the plan would be the same as for the other executive officers and would be based upon the actual performance of USA. The options
                      would not be exercisable in any event unless or until USA would be eligible to utilize a Form S-8 registration statement under the Securities Act of 1933.</font></div>
                </td>
              </tr>

          </table>
        </div>
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      <div style="text-align: left;">
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                <td style="width: 18pt;"><br>
                </td>
                <td style="width: 18pt; vertical-align: top; align: right;"><font style="font-size: 10pt; font-family: Symbol, serif;">&#183;</font></td>
                <td style="width: auto; vertical-align: top; text-align: left;">
                  <div><font style="font-size: 10pt; font-family: 'Times New Roman';">The Compensation Committee&#160; of USA&#8217;s Board of Directors, in consultation with the Compliance Committee, shall annually review your compensation.</font></div>
                </td>
              </tr>

          </table>
        </div>
      </div>
      <div style="text-align: left;">
        <div>
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                <td style="width: 18pt;"><br>
                </td>
                <td style="width: 18pt; vertical-align: top; align: right;"><font style="font-size: 10pt; font-family: Symbol, serif;">&#183;</font></td>
                <td style="width: auto; vertical-align: top; text-align: left;">
                  <div><font style="font-size: 10pt; font-family: 'Times New Roman';">You would be covered by and entitled to all of the fringe benefits that are generally available to USA employees, including health insurance, dental insurance, group life
                      and disability insurance, and matching 401(k) plan. Please note that USA&#8217;s benefits program is subject to change and any such change would supersede this letter.</font></div>
                </td>
              </tr>

          </table>
        </div>
      </div>
      <div style="text-align: left;">
        <div>
          <table cellspacing="0" cellpadding="0" style="font-family: 'Times New Roman'; font-size: 10pt; width: 100%;" class="DSPFListTable" id="z8cdf318b2df54736943b84e7388c9fe5">

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                </td>
                <td style="width: 18pt; vertical-align: top; align: right;"><font style="font-size: 10pt; font-family: Symbol, serif;">&#183;</font></td>
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                  <div><font style="font-size: 10pt; font-family: 'Times New Roman';">You will be covered as an executive officer of USA under our Directors and Officers liability insurance policy.</font></div>
                </td>
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      <div style="text-align: left;">
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                <td style="width: 18pt;"><br>
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                <td style="width: 18pt; vertical-align: top; align: right;"><font style="font-size: 10pt; font-family: Symbol, serif;">&#183;</font></td>
                <td style="width: auto; vertical-align: top; text-align: left;">
                  <div><font style="font-size: 10pt; font-family: 'Times New Roman';">Employment with USAT is at-will, which means that either you or USA may end the relationship at any time for any or no reason. Notwithstanding the foregoing, and&#160; other
                      than a termination of your employment for cause (which shall not require any prior notice), USA will provide you with at least six (6) months prior notice of the termination of your employment for any or no reason. The term "cause"
                      shall mean any of the following have occurred or exist as determined by USA: (A) your fraud, gross malfeasance, or willful misconduct, with respect to USA's business; (B) any material breach by you of this letter or any policy of USA;
                      (C) any violation by you of any law, rule or regulation, which violation results or could reasonably be expected to result, in material harm to the business or reputation of USA; (D) conviction of or the entry of a guilty plea or plea
                      of no contest to any felony or to any other crime involving moral turpitude; or (E) any intentional misapplication by you of USA's funds, or any material act of dishonesty committed by you.</font></div>
                </td>
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          </table>
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        <div>
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                <td style="width: 18pt; vertical-align: top; align: right;"><font style="font-size: 10pt; font-family: Symbol, serif;">&#183;</font></td>
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                  <div><font style="font-size: 10pt; font-family: 'Times New Roman';">You will devote your full time, energy, skills and attention to the business of USA, and shall not be engaged or employed in any other business activity whatsoever,
                      whether or not such activity is pursued for gain, profit or other pecuniary advantage.</font></div>
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        <div>
          <div>
            <div style="text-align: left; font-family: 'Times New Roman'; font-size: 10pt;">Offer of Employment</div>
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">James Pollock</font></div>
            <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Page 3</font></div>
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          <div> <br>
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                <td style="width: 18pt; vertical-align: top; align: right;"><font style="font-size: 10pt; font-family: Symbol, serif;">&#183;</font></td>
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                  <div><font style="font-size: 10pt; font-family: 'Times New Roman';">Except in connection with your duties as Chief Compliance Officer, you shall not, directly or indirectly, at any time from and after the date hereof, and whether or not
                      your employment with USA has been terminated or has expired for any reason whatsoever, make any use of, exploit, disclose, or divulge to any other person, firm, or corporation, any confidential information, including but not limited
                      to, proprietary information, trade secret, business secret, financial information, financial projections, documents, process, procedures, know-how, data, marketing information, marketing method, marketing means, software information,
                      intellectual property, special arrangement, or any other confidential information concerning the business or policies of USA, or concerning USA' s customers, clients, accounts, or suppliers, that you learned as a result of, in
                      connection with, through your engagement with, or through your affiliation with USA, but not information that can be shown through documentary evidence to be in the public domain, or information that falls into the public domain,
                      unless such information falls into the public domain by your direct or indirect disclosure or other acts. You agree to use your best endeavors to prevent the unauthorized disclosure or publication of confidential information and not
                      to copy nor remove confidential information from USA&#8217;s premises, whether physically or electronically, without the express written permission of USA.</font></div>
                </td>
              </tr>

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                </td>
                <td style="width: 18pt; vertical-align: top; align: right;"><font style="font-size: 10pt; font-family: Symbol, serif;">&#183;</font></td>
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                  <div><font style="font-size: 10pt; font-family: 'Times New Roman';">You acknowledge that you will be subject to the following policies of USA: Employee Manual, Code of Business Conduct and Ethics, as amended; Blackout Period and
                      Notification Policy; and Stock Ownership Guidelines for Directors and Executive Officers as well as any other policies that may be adopted by USA from time to time. As Chief Compliance Officer, you would also be required to file
                      statements of beneficial ownership of USA securities pursuant to Section 16(a) of the Securities Exchange Act of 1934.</font></div>
                </td>
              </tr>

          </table>
        </div>
      </div>
      <div style="text-align: left;">
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              <tr>
                <td style="width: 18pt;"><br>
                </td>
                <td style="width: 18pt; vertical-align: top; align: right;"><font style="font-size: 10pt; font-family: Symbol, serif;">&#183;</font></td>
                <td style="width: auto; vertical-align: top; text-align: left;">
                  <div><font style="font-size: 10pt; font-family: 'Times New Roman';">You represent and warrant to USA that you are not as of the date of this letter a party to or subject to any employment, non-compete, or similar agreement that would
                      limit or prohibit, in whole of in part, the performance of your employment duties or responsibilities.</font></div>
                </td>
              </tr>

          </table>
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      <div><br>
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      <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">This letter constitutes our entire agreement and understanding regarding the matters addressed herein, and merges and supersedes all prior or
          contemporaneous discussions, agreements and understandings of every nature between us regarding these matters.</font></div>
      <div><br>
      </div>
      <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">This letter will be governed by, and enforced in accordance with, the laws of the Commonwealth of Pennsylvania, without regard to the application of the
          principles of conflicts of laws.</font></div>
      <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';"> <br>
        </font></div>
      <div style="text-align: left;"> <font style="font-size: 10pt; font-family: 'Times New Roman';">Your employment with USA will also be subject to a satisfactory background investigation to be conducted by USA.</font></div>
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        </font></div>
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      </div>
      <div>
        <div style="text-align: left;">Offer of Employment
          <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">James Pollock</font></div>
          <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Page 4</font></div>
        </div>
        <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';"> <br>
          </font></div>
        <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Jim, we are very much looking forward to your joining the USA team! Please indicate your written acceptance by signing this letter and returning it to me
            by email.</font></div>
        <div><br>
        </div>
        <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Sincerely,</font></div>
        <div><br>
        </div>
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            <tr>
              <td style="width: 49.99%; vertical-align: top;">
                <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">USA Technologies, Inc.</font></div>
              </td>
              <td style="width: 50.01%; vertical-align: top;">&#160;</td>
            </tr>

        </table>
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                <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">By:</font></div>
              </td>
              <td style="width: 97%; 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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            <tr>
              <td colspan="2" rowspan="1" style="width: 3%; vertical-align: top;">
                <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Stephen P. Herbert, Chief Executive Officer</font></div>
              </td>
            </tr>

        </table>
        <div><br>
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            <tr>
              <td style="width: 49.99%; vertical-align: top;">
                <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Accepted and Agreed to:</font></div>
              </td>
              <td style="width: 50.01%; vertical-align: top;">&#160;</td>
            </tr>
            <tr>
              <td style="width: 49.99%; vertical-align: top;">&#160;</td>
              <td style="width: 50.01%; vertical-align: top;">&#160;</td>
            </tr>
            <tr>
              <td style="width: 49.99%; 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/ James Pollock</font></font></u></div>
              </td>
              <td style="width: 50.01%; vertical-align: top;">&#160;</td>
            </tr>
            <tr>
              <td style="width: 49.99%; vertical-align: top;">
                <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">James Pollock</font></div>
              </td>
              <td style="width: 50.01%; vertical-align: top;">&#160;</td>
            </tr>
            <tr>
              <td style="width: 49.99%; vertical-align: top;">&#160;</td>
              <td style="width: 50.01%; vertical-align: top;">&#160;</td>
            </tr>
            <tr>
              <td style="width: 49.99%; vertical-align: top;">
                <div style="text-align: left;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Dated:&#160; <u><font style="font-size: 10pt; font-family: 'Times New Roman';">3/27/2019</font></u></font></div>
              </td>
              <td style="width: 50.01%; vertical-align: top;">&#160;</td>
            </tr>

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