<SEC-DOCUMENT>0001140361-19-017661.txt : 20191001
<SEC-HEADER>0001140361-19-017661.hdr.sgml : 20191001
<ACCEPTANCE-DATETIME>20191001164457
ACCESSION NUMBER:		0001140361-19-017661
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20190927
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20191001

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:		191129658

	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; color: rgb(0, 0, 0); font-size: 14pt;">SECURITIES AND EXCHANGE COMMISSION</div>
      <div style="text-align: center; color: rgb(0, 0, 0); font-size: 12pt;">Washington, D.C. 20549</div>
      <div><br>
      </div>
      <div style="text-align: center; color: rgb(0, 0, 0); font-size: 18pt; font-weight: bold;">FORM 8-K</div>
      <div><br>
      </div>
      <div style="text-align: center; color: rgb(0, 0, 0);">Current Report Pursuant to Section 13 or 15(d) of</div>
      <div style="text-align: center; color: rgb(0, 0, 0);">The Securities Exchange Act of 1934</div>
      <div><br>
      </div>
      <div style="text-align: center; color: rgb(0, 0, 0);">Date of report (Date of earliest event reported): September 27, 2019</div>
      <div><br>
      </div>
      <div style="text-align: center; color: rgb(0, 0, 0);"><font style="font-size: 24pt; font-weight: bold;">USA TECHNOLOGIES, INC</font><font style="font-size: 24pt;">.</font></div>
      <div style="text-align: center; color: rgb(0, 0, 0);">(Exact name of registrant as specified in its charter)</div>
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              <div style="text-align: center; color: rgb(0, 0, 0);">Pennsylvania</div>
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              <div style="text-align: center; color: rgb(0, 0, 0);">001-33365</div>
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              <div style="text-align: center; color: rgb(0, 0, 0);">232679963</div>
            </div>
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          <td style="width: 34%; vertical-align: top;" rowspan="1">&#160;</td>
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              <div style="text-align: center; color: rgb(0, 0, 0);">(State or other jurisdiction of incorporation or organization)</div>
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              <div style="text-align: center; color: rgb(0, 0, 0);">(Commission File Number)</div>
            </div>
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              <div style="text-align: center; color: rgb(0, 0, 0);">(I.R.S. Employer Identification No.)</div>
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      <div><br>
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    <div>
      <div style="text-align: center; color: rgb(0, 0, 0);">100 Deerfield Lane, Suite 300</div>
      <div style="text-align: center; color: rgb(0, 0, 0);">Malvern, Pennsylvania 19355</div>
      <div style="text-align: center; color: rgb(0, 0, 0);">(Address of principal executive offices and zip code)</div>
      <div><br>
      </div>
      <div style="text-align: center; color: rgb(0, 0, 0);">Registrant&#8217;s telephone number, including area code: 610-989-0340</div>
      <div><br>
      </div>
      <div style="text-align: center; color: rgb(0, 0, 0);">n/a</div>
      <div style="text-align: center; color: rgb(0, 0, 0);">Former name or former address, if changed since last report</div>
    </div>
    <div>
      <div><br>
      </div>
      <div style="text-align: justify; color: #000000;">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:</div>
    </div>
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      <div><br>
      </div>
    </div>
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      <div>
        <div>
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                <td style="width: auto; vertical-align: top;">
                  <div style="color: rgb(0, 0, 0);">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</div>
                </td>
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      <div><br>
      </div>
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          <table cellspacing="0" cellpadding="0" id="z657b684363be47f3a85a6b968e779a51" class="DSPFListTable" style="font-family: 'Times New Roman'; font-size: 10pt; width: 100%; text-align: left; color: #000000;">

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                <td style="width: 18pt; vertical-align: top; align: right; color: #000000; font-family: 'Segoe UI Symbol', sans-serif;">&#9744;</td>
                <td style="width: auto; vertical-align: top;">
                  <div style="color: rgb(0, 0, 0);">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</div>
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                <td style="width: 18pt; vertical-align: top; align: right; color: #000000; font-family: 'Segoe UI Symbol', sans-serif;">&#9744;</td>
                <td style="width: auto; vertical-align: top;">
                  <div style="color: rgb(0, 0, 0);">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</div>
                </td>
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      </div>
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      </div>
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                <td style="width: 18pt; vertical-align: top; align: right; color: #000000; font-family: 'Segoe UI Symbol', sans-serif;">&#9744;</td>
                <td style="width: auto; vertical-align: top;">
                  <div style="color: rgb(0, 0, 0);">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</div>
                </td>
              </tr>

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        </div>
      </div>
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      <div><br>
      </div>
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    <div>
      <div style="color: #000000;">Securities registered pursuant to Section 12(b) of the Act:</div>
      <div><br>
      </div>
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              <div style="text-align: center; margin-right: 0.75pt; color: rgb(35, 31, 32);">Title of each class</div>
            </div>
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            <div>
              <div style="text-align: center; color: #231F20;">Trading</div>
              <div style="text-align: center; color: #231F20;">Symbol(s)</div>
            </div>
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          <td style="width: 35.24%; vertical-align: bottom; border-width: 2px; border-style: solid; border-color: rgb(0, 0, 0);">
            <div>
              <div style="text-align: center; color: rgb(35, 31, 32);">Name of each exchange on which registered</div>
            </div>
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          <td style="width: 50.48%; vertical-align: top; border-width: 2px; border-style: solid; border-color: rgb(0, 0, 0);">
            <div>
              <div style="margin-right: 0.75pt; color: rgb(0, 0, 0);">Common Stock, no par value</div>
            </div>
          </td>
          <td style="width: 15%; vertical-align: top; border-width: 2px; border-style: solid; border-color: rgb(0, 0, 0);">
            <div>
              <div style="text-align: center; color: rgb(0, 0, 0);">USAT</div>
            </div>
          </td>
          <td style="width: 35.24%; vertical-align: top; border-width: 2px; border-style: solid; border-color: rgb(0, 0, 0);">
            <div>
              <div style="color: rgb(0, 0, 0);">The NASDAQ Stock Market LLC</div>
            </div>
          </td>
        </tr>
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          <td style="width: 50.48%; vertical-align: top; border-width: 2px; border-style: solid; border-color: rgb(0, 0, 0);">
            <div>
              <div style="margin-right: 0.75pt; color: rgb(0, 0, 0);">Series A Convertible Preferred Stock, no par value</div>
            </div>
          </td>
          <td style="width: 15%; vertical-align: top; border-width: 2px; border-style: solid; border-color: rgb(0, 0, 0);">
            <div>
              <div style="text-align: center; color: rgb(0, 0, 0);">USATP</div>
            </div>
          </td>
          <td style="width: 35.24%; vertical-align: top; border-width: 2px; border-style: solid; border-color: rgb(0, 0, 0);">
            <div>
              <div style="color: rgb(0, 0, 0);">The NASDAQ Stock Market LLC</div>
            </div>
          </td>
        </tr>

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    <div>
      <div><br>
      </div>
    </div>
    <div>
      <div style="text-align: justify; color: rgb(0, 0, 0);">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).</div>
      <div style="text-align: justify; color: rgb(0, 0, 0);"> <br>
      </div>
    </div>
    <div>
      <div style="text-align: right; color: rgb(0, 0, 0);">Emerging growth company <font style="font-family: 'Segoe UI Symbol',sans-serif;">&#9744;</font></div>
    </div>
    <div>
      <div><br>
      </div>
      <div style="text-align: justify; color: #000000;">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-family: 'Segoe UI Symbol',sans-serif;">&#9744;</font></div>
      <div style="text-align: justify; color: #000000;"><font style="font-family: 'Segoe UI Symbol',sans-serif;"> <br>
        </font></div>
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                <div style="text-align: justify; color: rgb(0, 0, 0); font-weight: bold;">Item 1.01</div>
              </td>
              <td style="align: left; vertical-align: top; width: auto;">
                <div style="text-align: justify; color: rgb(0, 0, 0); font-weight: bold;">Entry into a Material Definitive Agreement.</div>
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    <br>
    <div>
      <div style="text-align: justify; color: #000000;">On September 27, 2019, USA Technologies, Inc. (the &#8220;Company&#8221;) entered into a ninth 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: (i) extends until October 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, December 31, 2018, March 31, 2019, and June 30, 2019, and the related compliance certificates required pursuant to the Credit Agreement; and (ii) extends until October 31, 2019, the date by which the Company must comply with the
        financial covenants set forth in Section 6.12 of the Credit Agreement with respect to the fiscal quarters ended June 30, 2018, September 30, 2018, December 31, 2018, March 31, 2019, and June 30, 2019.</div>
      <div><br>
      </div>
      <div style="text-align: justify; color: #000000;">In connection with the New Consent Agreement, the Company repaid in full the remaining principal amount of the existing term loan under the Credit Agreement of approximately $1.5 million, and all
        accrued and unpaid interest thereon. 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. </div>
      <div><br>
      </div>
      <div style="text-align: justify; color: #000000;">The sixth consent letter previously entered into by the Company and the Lender on June 27, 2019, had, among other things, extended until September 30, 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, December 31, 2018, March 31, 2019, and June 30, 2019 and the related
        compliance certificates.</div>
      <div><br>
      </div>
      <div style="text-align: justify; color: #000000;">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.</div>
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                <div style="text-align: left;"><font style="font-weight: bold; color: rgb(0, 0, 0);">Item 9.01.</font></div>
              </td>
              <td style="align: left; vertical-align: top; width: auto;">
                <div style="text-align: left;"><font style="font-weight: bold; color: rgb(0, 0, 0);">Financial Statements and Exhibits</font></div>
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    <br>
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                <div><a href="ex10_1.htm">Exhibit 10.1</a></div>
              </td>
              <td style="align: left; vertical-align: top; width: auto;">
                <div>Consent Agreement by and among the Company, its subsidiaries, and JPMorgan Chase Bank, N.A., dated September 27, 2019</div>
              </td>
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      <div> </div>
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      <div style="text-align: center; color: rgb(0, 0, 0);">SIGNATURES</div>
    </div>
    <div>
      <div><br>
      </div>
      <div style="text-align: justify; color: rgb(0, 0, 0);">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.</div>
      <div><br>
      </div>
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            <div style="color: rgb(0, 0, 0);">Dated: October 1, 2019</div>
          </td>
          <td style="width: 3%; vertical-align: top;" rowspan="1" colspan="2">
            <div style="color: rgb(0, 0, 0);">USA TECHNOLOGIES, INC.</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;">&#160;</td>
          <td style="width: 3%; vertical-align: top;">
            <div style="color: rgb(0, 0, 0);">By:</div>
          </td>
          <td style="width: 47%; vertical-align: top;">
            <div style="color: rgb(0, 0, 0);"><u>/s/ Stephen P. Herbert</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="color: rgb(0, 0, 0);">Stephen P. Herbert,</div>
          </td>
        </tr>
        <tr>
          <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="color: rgb(0, 0, 0);">Chief Executive Officer</div>
          </td>
        </tr>

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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 style="font-weight: bold;">Exhibit 10.1</font><br>
  </div>
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    <div><br>
    </div>
    <div style="text-align: center;">September 27, 2019</div>
    <div><br>
    </div>
    <div>USA Technologies, Inc.</div>
    <div>100 Deerfield Lane</div>
    <div>Suite 300</div>
    <div>Malvern, PA&#160; 19355</div>
    <div>Attention: Glen Goold</div>
    <div><br>
    </div>
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            <td style="width: 36pt;">&#160;</td>
            <td style="vertical-align: top; width: 36pt;">
              <div style="text-align: left;">Re:</div>
            </td>
            <td style="align: left; vertical-align: top; width: auto;">
              <div style="text-align: left;"><u>CONSENT TO EXTENSION AND AMENDMENT</u></div>
            </td>
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    <div style="text-align: justify;">Dear Sir or Madam:</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">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;<u>Credit Agreement</u>&#8221;), among USA
      Technologies, Inc., a Pennsylvania corporation (the &#8220;<u>Borrower</u>&#8221;), the other Loan Parties party thereto (together with the Borrower, the &#8220;<u>Loan Parties</u>&#8221;), the lenders party thereto from time to time (the &#8220;<u>Lenders</u>&#8221;), and JPMorgan
      Chase Bank, N.A., as administrative agent (the &#8220;<u>Administrative Agent</u>&#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.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">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,&#160; December 31, 2018, March 31, 2019 and June 30, 2019, 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 October 31, 2019 (the &#8220;<u>Financial Reporting Extension</u>&#8221;; the foregoing reporting, the &#8220;<u>Specified Reporting Requirements</u>&#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 quarters ended June 30, 2018, September 30, 2018, December 31, 2018, March 31, 2019 and June 30, 2019, to October 31, 2019 (the &#8220;<u>Financial Covenant Extension</u>&#8221;;


      and together with the Financial Reporting Extension, the &#8220;<u>Specified Extension</u>&#8221;).&#160; For the avoidance of doubt, the failure of Borrower to comply with the financial covenants set forth in Section 6.12 of the Credit Agreement as of the last day
      of any fiscal quarter prior to October 31, 2019, shall not constitute an Event of Default under the Credit Agreement until, if in fact such financial covenants were breached for any such prior fiscal quarter, October 31, 2019.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">At your request and subject to the terms and conditions of this letter agreement, the Administrative Agent and the Lenders consent to the Specified Extension.</div>
    <div><br>
    </div>
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    <div style="text-align: justify; text-indent: 36pt;">In consideration of the Specified Extension, the Loan Parties agree that (a) the Revolving Commitment is hereby permanently reduced to $10,000,000, provided that, until written notice to the contrary
      is delivered by the Administrative Agent to the Borrowers and notwithstanding the satisfaction of the Specified Reporting Requirements after the date hereof, 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) within (30) days after the end of each fiscal month, 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 quarterly controls and adjustments (i.e., controls and adjustments
      that are not performed on a monthly basis), normal year-end audit adjustments, and the absence of footnotes, and indicating that the unaudited consolidated financial statements do not reflect: (i) any adjustments which may be required by the internal
      investigation or the non-investigatory adjustments identified during the audit process which are described in the Borrower&#8217;s public disclosures to the extent that such adjustments have not yet been finalized; and (ii) any adjustments related to the
      adoption of ASC 606 (including gross versus net of transaction reporting) until the analysis with respect to such adjustments has been completed, <u>provided</u> that the due date for the delivery to Lender of the foregoing unaudited consolidated
      financial statements for the fiscal months ended July 31, 2019 and August 31, 2019, and the related certifications, shall be extended from September 30, 2019 until October 31, 2019, (c) on or before Friday of each week, the Borrower shall deliver to
      the Administrative Agent a 13-week rolling cash flow report, (d) 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, December 31, 2018, March 31, 2019 and June 30, 2019, are delivered to the Administrative Agent, and (e) 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.</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">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); <u>provided</u>, <u>however</u>, that (i)
      Section 3.04(a) of the Credit Agreement shall be subject to the restatement of the fiscal year 2017 financial statements of the Borrower disclosed in the Borrower&#8217;s Form 8-K dated February 6, 2019, (ii) Section 3.06(a)(i) of the Credit Agreement
      shall be subject to the purported class actions filed against the Borrower disclosed in the Borrower&#8217;s Form 12b-25 dated February 11, 2019, and the purported class action filed against the Borrower in the Chester County, Pennsylvania, Court of Common
      Pleas (Docket No. 2019-04821-MJ) on May 17, 2019, and (iii) Section 3.09 of the Credit Agreement shall be subject to sales taxes due by the Loan Parties to various jurisdictions as disclosed in the Borrower&#8217;s Form 8-K dated September 20, 2019, 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.</div>
    <div><br>
    </div>
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    <div style="text-align: justify; text-indent: 36pt;">Each Loan Party and their respective Affiliates, successors, assigns, and legal representatives (collectively, the &#8220;<u>Releasors</u>&#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;<u>Secured Party Affiliates</u>&#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;<u>Claims</u>&#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.</div>
    <div>&#160;</div>
    <div style="text-align: justify; text-indent: 36pt;">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) on
      or before September 30, 2019, the Loan Parties shall have repaid the remaining principal amount of the Term A Loan (i.e., $1,458,333.00) and all accrued and unpaid interest thereon in full, (c) the Loan Parties shall have paid to the Administrative
      Agent, for the benefit of the Lenders, a non-refundable extension fee of $15,000 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.</div>
    <div>&#160;</div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
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    <div style="text-align: justify; text-indent: 36pt;">Except for the consents and amendments 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 and amendments 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.</div>
    <div>&#160;</div>
    <div style="text-align: center;">[<font style="font-style: italic;">remainder of page intentionally left blank; signature pages follow</font>]</div>
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            <div><font style="font-weight: bold;">BORROWER</font>:</div>
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            <div style="font-weight: bold;">USA TECHNOLOGIES, INC.</div>
          </td>
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        <tr>
          <td rowspan="1" style="width: 49.94%; vertical-align: top;">&#160;</td>
          <td rowspan="1" style="width: 3%; vertical-align: top;" colspan="1">&#160;</td>
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          <td style="width: 49.94%; vertical-align: top; padding-bottom: 2px;">&#160;</td>
          <td style="width: 3%; vertical-align: top; padding-bottom: 2px;" colspan="1">By:</td>
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            <div>/s/ Stephen P. Herbert</div>
          </td>
          <td style="width: 12%; vertical-align: top; padding-bottom: 2px;">&#160;</td>
        </tr>
        <tr>
          <td rowspan="1" style="width: 49.94%; vertical-align: top;">&#160;</td>
          <td rowspan="1" style="vertical-align: top;" colspan="3">
            <div>Name: Stephen P. Herbert</div>
          </td>
        </tr>
        <tr>
          <td rowspan="1" style="width: 49.94%; vertical-align: top;">&#160;</td>
          <td rowspan="1" style="vertical-align: top;" colspan="3">
            <div>Title: Chief Executive Officer</div>
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    <div><br>
    </div>
    <div>
      <div style="text-align: right;">[USAT - CONSENT LETTER]</div>
    </div>
    <div><br>
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    <div style="font-size: 12pt;"><font style="font-size: 10pt; font-weight: bold;">ADMINISTRATIVE AGENT AND SOLE LENDER</font><font style="font-size: 10pt;">:</font></div>
    <div> <br>
    </div>
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            <div style="font-size: 12pt;"><font style="font-size: 10pt; font-weight: bold;">JPMORGAN CHASE BANK, N.A</font><font style="font-size: 10pt;">.</font></div>
          </td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;">&#160;</td>
          <td colspan="2" style="vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top; padding-bottom: 2px;">&#160;</td>
          <td style="width: 35%; vertical-align: top; border-bottom: 2px solid rgb(0, 0, 0);">
            <div>By: /s/ Geraldine A. King</div>
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          <td style="width: 15%; vertical-align: top; padding-bottom: 2px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 50%; vertical-align: top;"><br>
          </td>
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            <div>
              <div>Name: Geraldine A. King</div>
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        <tr>
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            <div>Title: Executive Director, Special Credits Risk</div>
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    <div><br>
    </div>
    <div>
      <div style="text-align: right;">[USAT - CONSENT LETTER]</div>
      <div style="text-align: right;"> <br>
      </div>
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    <div style="text-align: center; font-weight: bold;">CONSENT, REAFFIRMATION, AND AGREEMENT OF GUARANTORS</div>
    <div><br>
    </div>
    <div style="text-align: justify; text-indent: 36pt;">Each of the undersigned (a) acknowledges receipt of the foregoing consent and amendment (the &#8220;<u>Agreement</u>&#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.</div>
    <div>&#160;</div>
    <div style="text-align: justify; text-indent: 36pt;">This Consent, Reaffirmation, and Agreement of Guarantors (this &#8220;<u>Consent</u>&#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.</div>
    <div>&#160;</div>
    <div style="margin-left: 36pt;">As of September 27, 2019</div>
    <div style="margin-left: 36pt;"> <br>
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          <td style="width: 49.94%; vertical-align: top;"><br>
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            <div style="font-weight: bold;">STITCH NETWORKS CORPORATION</div>
          </td>
        </tr>
        <tr>
          <td rowspan="1" style="width: 49.94%; vertical-align: top;">&#160;</td>
          <td colspan="3" rowspan="1" style="vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 49.94%; vertical-align: top; padding-bottom: 2px;">&#160;</td>
          <td style="width: 3%; vertical-align: top; padding-bottom: 2px;">
            <div>By:</div>
          </td>
          <td style="width: 35%; vertical-align: top; border-bottom: 2px solid rgb(0, 0, 0);"> /s/ Stephen P. Herbert</td>
          <td style="width: 12%; vertical-align: top; padding-bottom: 2px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 49.94%; vertical-align: top;">&#160;</td>
          <td colspan="3" style="vertical-align: top;">
            <div>Name: Stephen P. Herbert</div>
          </td>
        </tr>
        <tr>
          <td style="width: 49.94%; vertical-align: top;">&#160;</td>
          <td colspan="3" style="vertical-align: top;">
            <div>Title: Chief Executive Officer</div>
          </td>
        </tr>
        <tr>
          <td rowspan="1" style="width: 49.94%; vertical-align: top;">&#160;</td>
          <td colspan="3" rowspan="1" style="vertical-align: top;">&#160;</td>
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        <tr>
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            <div style="font-weight: bold;">USAT CAPITAL CORP, LLC</div>
          </td>
        </tr>
        <tr>
          <td rowspan="1" style="width: 49.94%; vertical-align: top;">&#160;</td>
          <td colspan="3" rowspan="1" style="vertical-align: top;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 49.94%; vertical-align: top; padding-bottom: 2px;">&#160;</td>
          <td style="width: 3%; vertical-align: top; padding-bottom: 2px;">
            <div>By: <br>
            </div>
          </td>
          <td style="width: 35%; vertical-align: top; border-bottom: 2px solid rgb(0, 0, 0);">/s/ Stephen P. Herbert</td>
          <td style="width: 12%; vertical-align: top; padding-bottom: 2px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 49.94%; vertical-align: top;">&#160;</td>
          <td colspan="3" style="vertical-align: top;">
            <div>Name: Stephen P. Herbert</div>
          </td>
        </tr>
        <tr>
          <td style="width: 49.94%; vertical-align: top;">&#160;</td>
          <td colspan="3" style="vertical-align: top;">
            <div>Title: Chief Executive Officer</div>
          </td>
        </tr>
        <tr>
          <td rowspan="1" style="width: 49.94%; vertical-align: top;">&#160;</td>
          <td colspan="3" rowspan="1" style="vertical-align: top;">&#160;</td>
        </tr>
        <tr>
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            <div style="font-weight: bold;">CANTALOUPE SYSTEMS, INC.</div>
          </td>
        </tr>
        <tr>
          <td rowspan="1" style="width: 49.94%; vertical-align: top;">&#160;</td>
          <td colspan="3" rowspan="1" style="vertical-align: top;">&#160;</td>
        </tr>
        <tr>
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          <td style="width: 3%; vertical-align: top; padding-bottom: 2px;">
            <div>By:</div>
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          <td style="width: 35%; vertical-align: top; border-bottom: 2px solid rgb(0, 0, 0);"> /s/ Stephen P. Herbert</td>
          <td style="width: 12%; vertical-align: top; padding-bottom: 2px;">&#160;</td>
        </tr>
        <tr>
          <td style="width: 49.94%; vertical-align: top;">&#160;</td>
          <td colspan="3" style="vertical-align: top;">
            <div>Name: Stephen P. Herbert</div>
          </td>
        </tr>
        <tr>
          <td style="width: 49.94%; vertical-align: top;">&#160;</td>
          <td colspan="3" style="vertical-align: top;">
            <div>Title: Chief Executive Officer</div>
          </td>
        </tr>

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    <div><br>
    </div>
    <div>
      <div style="text-align: right;">[USAT - CONSENT LETTER]</div>
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