<SEC-DOCUMENT>0000914121-20-001346.txt : 20200406
<SEC-HEADER>0000914121-20-001346.hdr.sgml : 20200406
<ACCEPTANCE-DATETIME>20200406171636
ACCESSION NUMBER:		0000914121-20-001346
CONFORMED SUBMISSION TYPE:	DFAN14A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20200406
DATE AS OF CHANGE:		20200406
EFFECTIVENESS DATE:		20200406

SUBJECT COMPANY:	

	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:		DFAN14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-33365
		FILM NUMBER:		20777740

	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

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Hudson Executive Capital LP
		CENTRAL INDEX KEY:			0001652522
		IRS NUMBER:				472878186
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DFAN14A

	BUSINESS ADDRESS:	
		STREET 1:		570 LEXINGTON AVENUE, 35TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022
		BUSINESS PHONE:		(212) 521-8495

	MAIL ADDRESS:	
		STREET 1:		570 LEXINGTON AVENUE, 35TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022
</SEC-HEADER>
<DOCUMENT>
<TYPE>DFAN14A
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<DESCRIPTION>FORM DFAN14A
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    <div style="text-align: center; margin-top: 4pt; color: #000000; font-size: 14pt; font-weight: bold;">UNITED STATES</div>
    <div style="text-align: center; color: #000000; font-size: 14pt; font-weight: bold;">SECURITIES AND EXCHANGE COMMISSION</div>
    <div style="text-align: center; color: #000000; font-weight: bold;">WASHINGTON, D.C. 20549</div>
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      <div><br>
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    <div style="text-align: center; margin-top: 12pt; color: #000000; font-size: 18pt; font-weight: bold;">SCHEDULE 14A</div>
    <div style="text-align: center; margin-top: 6pt; color: #000000; font-weight: bold;">(Rule 14a-101)</div>
    <div style="text-align: center; color: #000000; font-size: 18pt; font-weight: bold;">SCHEDULE 14A INFORMATION</div>
    <div style="border-bottom: 1pt solid;">
      <div><br>
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    <div style="text-align: center; margin-top: 12pt; color: #000000; font-weight: bold;">Proxy Statement Pursuant to Section 14(a) of<br>
      the Securities Exchange Act of 1934</div>
    <div style="margin-top: 12pt;">Filed by the Registrant <font style="font-family: 'Segoe UI Symbol', sans-serif; color: #000000;">&#9744;</font> Filed by a Party other than the Registrant <font style="font-family: 'Segoe UI Symbol', sans-serif; color: #000000;">&#9746;</font></div>
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          <td style="width: 96.39%; vertical-align: top;">
            <div>Preliminary Proxy Statement</div>
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    <div style="color: #000000;">&#160;</div>
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            <div>Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))</div>
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            <div>Definitive Proxy Statement</div>
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          <td style="width: 96.36%; vertical-align: top;">
            <div>Definitive Additional Materials</div>
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    <div style="color: #000000;">&#160;</div>
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            <div>Soliciting material Pursuant to <font style="color: #000000;">&#167;</font>240.14a-12</div>
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    <div style="text-align: center; margin-top: 12pt; color: #000000; font-size: 18pt; font-weight: bold;">USA Technologies, Inc.</div>
    <div style="text-align: center; color: #000000; font-weight: bold;">(Name of Registrant as Specified In Its Charter)</div>
    <div style="margin: 6pt 0px 0px; font-weight: bold; text-align: center;">Hudson Executive Capital LP</div>
    <div style="text-align: center; font-weight: bold;">HEC Management GP LLC</div>
    <div style="text-align: center; font-weight: bold;">HEC Master Fund LP</div>
    <div style="text-align: center; font-weight: bold;">HEC SPV IV LP</div>
    <div style="text-align: center; font-weight: bold;">Lisa P. Baird</div>
    <div style="text-align: center; font-weight: bold;">Douglas G. Bergeron</div>
    <div style="text-align: center; font-weight: bold;">Douglas L. Braunstein</div>
    <div style="text-align: center; font-weight: bold;">Jacob Lamm</div>
    <div style="text-align: center; font-weight: bold;">Michael K. Passilla</div>
    <div style="text-align: center; font-weight: bold;">Ellen Richey</div>
    <div style="text-align: center; font-weight: bold;">Anne M. Smalling</div>
    <div style="text-align: center; font-weight: bold;">Shannon S. Warren</div>
    <div style="text-align: center; margin-top: 6pt; font-weight: bold;">(<font style="color: #000000;">Name of Person(s) Filing Proxy Statement, if other than the Registrant)</font></div>
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              <div style="color: #000000; font-family: 'Segoe UI Symbol', sans-serif;">&#9744;</div>
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              <div>&#160;</div>
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              <div>Fee computed on table below per Exchange Act Rule 14a-6(i)(4) and 0-11.</div>
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            <td style="width: 3%; vertical-align: middle;">&#160;</td>
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            <td style="width: 1.7%; vertical-align: bottom;">
              <div>&#160;</div>
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            <td style="width: 90.07%; vertical-align: top;">
              <div style="margin: 0px 0px 3pt;">Title of each class of securities to which transaction applies:</div>
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                <div>&#160;</div>
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            <td style="width: 3%; vertical-align: bottom;">&#160;</td>
            <td style="width: 1.7%; vertical-align: bottom;">
              <div>&#160;</div>
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            <td style="width: 3.53%; vertical-align: top;">
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            <td style="width: 1.7%; vertical-align: bottom;">
              <div>&#160;</div>
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            <td style="width: 90.07%; vertical-align: top;">
              <div style="margin: 0px 0px 3pt;">Aggregate number of securities to which transaction applies:</div>
              <div style="border-bottom: 0.75pt solid;">
                <div>&#160;</div>
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            <td style="width: 3%; vertical-align: bottom;">&#160;</td>
            <td style="width: 1.7%; vertical-align: bottom;">
              <div>&#160;</div>
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            <td style="width: 1.7%; vertical-align: bottom;">
              <div>&#160;</div>
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            <td style="width: 90.07%; vertical-align: top;">
              <div style="margin: 0px 0px 3pt;">Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):</div>
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            <td style="width: 3%; vertical-align: bottom;">&#160;</td>
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            <td style="width: 1.7%; vertical-align: bottom;">
              <div>&#160;</div>
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            <td style="width: 90.07%; vertical-align: top;">
              <div style="margin: 0px 0px 3pt;">Proposed maximum aggregate value of transaction:</div>
              <div style="border-bottom: 0.75pt solid;">
                <div>&#160;</div>
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            <td style="width: 3%; vertical-align: bottom;">&#160;</td>
            <td style="width: 1.7%; vertical-align: bottom;">
              <div>&#160;</div>
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            <td style="width: 3.53%; vertical-align: top;">
              <div>(5)</div>
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            <td style="width: 1.7%; vertical-align: bottom;">
              <div>&#160;</div>
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            <td style="width: 90.07%; vertical-align: top;">
              <div style="margin: 0px 0px 3pt;">Total fee paid:</div>
              <div style="border-bottom: 0.75pt solid;">
                <div>&#160;</div>
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            <td style="width: 3%; vertical-align: middle;">&#160;</td>
            <td colspan="4" style="width: 97%; vertical-align: middle;">&#160;</td>
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            <td style="width: 3%; vertical-align: top;">
              <div style="color: #000000; font-family: 'Segoe UI Symbol', sans-serif;">&#9744;</div>
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            <td style="width: 1.7%; vertical-align: bottom;">
              <div>&#160;</div>
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            <td colspan="3" style="width: 95.3%; vertical-align: top;">
              <div>Fee paid previously with preliminary materials.</div>
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          <tr>
            <td style="width: 3%; vertical-align: middle;">&#160;</td>
            <td colspan="4" style="width: 97%; vertical-align: middle;">&#160;</td>
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            <td style="width: 3%; vertical-align: top;">
              <div style="color: #000000; font-family: 'Segoe UI Symbol', sans-serif;">&#9744;</div>
            </td>
            <td style="width: 1.7%; vertical-align: bottom;">
              <div>&#160;</div>
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              <div>Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form
                or Schedule and the date of its filing.</div>
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            <td style="width: 3%; vertical-align: middle;">&#160;</td>
            <td colspan="2" style="width: 5.23%; vertical-align: middle;">&#160;</td>
            <td colspan="2" style="width: 91.77%; vertical-align: middle;">&#160;</td>
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          <tr>
            <td style="width: 3%; vertical-align: bottom;">&#160;</td>
            <td style="width: 1.7%; vertical-align: bottom;">
              <div>&#160;</div>
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            <td style="width: 3.53%; vertical-align: top;">
              <div>1)</div>
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            <td style="width: 1.7%; vertical-align: bottom;">
              <div>&#160;</div>
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            <td style="width: 90.07%; vertical-align: top;">
              <div style="margin: 0px 0px 3pt;">Amount Previously Paid:</div>
              <div style="border-bottom: 0.75pt solid;">
                <div>&#160;</div>
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          <tr>
            <td style="width: 3%; vertical-align: bottom;">&#160;</td>
            <td style="width: 1.7%; vertical-align: bottom;">
              <div>&#160;</div>
            </td>
            <td style="width: 3.53%; vertical-align: top;">
              <div>2)</div>
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            <td style="width: 1.7%; vertical-align: bottom;">
              <div>&#160;</div>
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            <td style="width: 90.07%; vertical-align: top;">
              <div style="margin: 0px 0px 3pt;">Form, Schedule or Registration Statement No.:</div>
              <div style="border-bottom: 0.75pt solid;">
                <div>&#160;</div>
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          <tr>
            <td style="width: 3%; vertical-align: bottom;">&#160;</td>
            <td style="width: 1.7%; vertical-align: bottom;">
              <div>&#160;</div>
            </td>
            <td style="width: 3.53%; vertical-align: top;">
              <div>3)</div>
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            <td style="width: 1.7%; vertical-align: bottom;">
              <div>&#160;</div>
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            <td style="width: 90.07%; vertical-align: top;">
              <div style="margin: 0px 0px 3pt;">Filing Party:</div>
              <div style="border-bottom: 0.75pt solid;">
                <div>&#160;</div>
              </div>
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          <tr>
            <td style="width: 3%; vertical-align: bottom;">&#160;</td>
            <td style="width: 1.7%; vertical-align: bottom;">
              <div>&#160;</div>
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            <td style="width: 3.53%; vertical-align: top;">
              <div>4)</div>
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            <td style="width: 1.7%; vertical-align: bottom;">
              <div>&#160;</div>
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            <td style="width: 90.07%; vertical-align: top;">
              <div style="margin: 0px 0px 3pt;">Date Filed:</div>
              <div style="border-bottom: 0.75pt solid;">
                <div>&#160;</div>
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      <div style="margin-bottom: 2pt; color: #000000;">&#160; <br>
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      <div style="border-bottom: 0.75pt solid;">
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        <div>This filing contains a press release issued by Hudson Executive Capital LP, dated April 6, 2020.</div>
        <div><br>
        </div>
        <div style="text-align: center; margin-top: 6pt; color: #000000; font-weight: bold;">*&#160; *&#160; *&#160; *&#160; *</div>
        <div style="margin-top: 6pt;"><br>
        </div>
        <div style="text-align: center; font-weight: bold;">HUDSON EXECUTIVE FILES INVESTOR PRESENTATION DETAILING URGENT NEED FOR CHANGE AT USA TECHNOLOGIES</div>
        <div><br>
        </div>
        <div style="text-align: center; font-style: italic; font-weight: bold;">Presentation Underscores USAT&#8217;s Consistent Underperformance, Ineffective Leadership, Ill-Advised Capital Allocation Priorities, Poor Oversight and Disastrous Corporate
          Governance</div>
        <div><br>
        </div>
        <div style="text-align: center; font-style: italic; font-weight: bold;">Meaningful Structural Change Led by Independent Directors Required to Create Significant Value for Shareholders</div>
        <div><br>
        </div>
        <div style="text-align: center; font-style: italic; font-weight: bold;">Hudson Executive Nominees Will Bring Diverse, Industry Expertise to Board and Governance Best Practices to Maximize Shareholder Value</div>
        <div><br>
        </div>
        <div style="text-align: center; font-style: italic; font-weight: bold;">Urges USAT Shareholders to Vote the <u>GOLD</u> Proxy Card &#8220;<u>FOR ALL&#8221;</u> of Hudson Executive&#8217;s</div>
        <div style="text-align: center; font-style: italic; font-weight: bold;">Highly-Qualified, Independent Director Nominees</div>
        <div><br>
        </div>
        <div style="margin-bottom: 6pt;"><font style="font-weight: bold;">NEW YORK &#8211; April 6, 2020 &#8211;</font> Hudson Executive Capital LP (&#8220;Hudson Executive&#8221;), a New York-based investment firm and the largest shareholder of USA Technologies, Inc. (&#8220;USAT&#8221; or
          the &#8220;Company&#8221;) (OTC:USAT) with beneficial ownership of approximately 16.2% of USAT&#8217;s common stock, today filed an in-depth investor presentation with the Securities and Exchange Commission highlighting the case for long-overdue change at the
          Company and urging shareholders to protect their investment by voting the <font style="font-weight: bold;"><u>GOLD</u></font>&#160; proxy card <font style="font-weight: bold;"><u>&#8220;FOR ALL&#8221;</u></font> of its highly-qualified director candidates in
          connection with the USAT Annual Meeting of Shareholders to be held on April 30, 2020.</div>
        <div style="margin-bottom: 6pt;">Key points of the presentation include:</div>
        <div>
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                  <div style="margin-left: 18pt;"><font style="font-family: Times New Roman">&#9679;</font></div>
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                  <div>USAT has suffered significant value destruction under incumbent Board and management&#8217;s leadership, underperforming peer companies during the past two years, including a stock price that has declined 38% since October 17, 2019, when
                    Don Layden was named Interim CEO.</div>
                  <div> <br>
                  </div>
                </td>
              </tr>

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                  <div style="margin-left: 18pt;"><font style="font-family: Times New Roman">&#9679;</font></div>
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                  <div>USAT&#8217;s Board of Directors (the &#8220;Board&#8221;) has failed in its oversight of the control agenda for the company, leading to the suspension of audited financials, multiple restatements and the Company&#8217;s de-listing from Nasdaq.&#160; Significant
                    resources have been wasted because of this lack of oversight and significant value has been destroyed.</div>
                  <div> <br>
                  </div>
                </td>
              </tr>

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        <div>
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                  <div>USAT&#8217;s incumbent directors are responsible for entering into a disastrous and ill-advised financing agreement with a distressed credit investor on onerous terms.</div>
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                  <div>USAT directors have failed in their basic duty of oversight of management.&#160; They failed to hold management accountable, conduct proper succession planning activities or engage in search processes designed to attract and retain
                    appropriate executive talent.&#160; Most recently, they named the interim CEO to a permanent position without conducting a search and provided that CEO with an excessive severance agreement less than two months before the long-delayed
                    shareholder vote.</div>
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                  <div>USAT&#8217;s complete disregard for shareholders as illustrated by the many shareholder-unfriendly actions taken by the Board. These include failing to call a shareholder meeting for two years, doing so only after a court ordered the
                    action, nominating a majority of current directors who oversaw the failures of the last year, adopting an unnecessary poison pill, aggressively amending bylaws to make it harder for shareholders to nominate directors and placing
                    numerous and costly impediments around this proxy contest.</div>
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                  <div>The incumbent directors have failed to engage in constructive conversations about the future of USAT with Hudson Executive. The current Board has taken the position that a majority of existing directors must remain on the Board as a
                    precondition to dialogue despite these directors being responsible for significant lapses in corporate governance and oversight.&#160; This has resulted in a long, costly and unnecessary proxy contest for the Company and its shareholders.</div>
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        <div>Douglas L. Braunstein, Founder and Managing Partner of Hudson Executive, said, &#8220;The Board&#8217;s improper actions, inability to recruit and retain qualified management, and failure to maintain proper controls for years have cost the Company and
          shareholders dearly.&#160; It is clear that this Board does not take corporate governance or its fiduciary duties seriously. The time has come to do away with the status quo and change must begin at the top. Hudson Executive believes that only with a
          new </div>
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        <div>highly qualified and experienced Board, a commitment to governance best practices, strong internal controls and financial discipline, a revitalized management team, and increased shareholder communication, can USAT return to success and
          provide shareholders the opportunity to realize the value of their investment.&#8221;</div>
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        <div>Hudson Executive urges shareholders to protect their investment and vote the <font style="font-weight: bold;"><u>GOLD</u></font> proxy card <font style="font-weight: bold;">&#8220;</font><font style="font-weight: bold;"><u>FOR ALL</u></font><font style="font-weight: bold;">&#8221; </font>its eight highly-qualified, independent director nominees who bring diverse, relevant backgrounds to a Board in need of fresh perspectives and independent oversight.&#160; If elected, Hudson Executive&#8217;s nominees
          will take a new approach to value creation to maximize shareholder value.</div>
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                <div style="margin: 6pt 0px 0px; font-weight: bold; text-align: center;">Your Vote Is Important, No Matter How Many or How Few Shares You Own!</div>
                <div>&#160;</div>
                <div style="text-align: center; font-family: Arial, Helvetica, sans-serif;">Please vote today by telephone, via the Internet or</div>
                <div style="text-align: center; font-family: Arial, Helvetica, sans-serif;">by signing, dating and returning the enclosed <font style="font-weight: bold;">GOLD</font> proxy card.</div>
                <div style="text-align: center; font-family: Arial, Helvetica, sans-serif;">Simply follow the easy instructions on the <font style="font-weight: bold;">GOLD</font> proxy card.</div>
                <div>&#160;</div>
                <div style="text-align: center; font-family: Arial, Helvetica, sans-serif;">If you have questions about how to vote your shares, please contact:</div>
                <div>&#160;</div>
                <div style="text-align: center; font-family: Arial, Helvetica, sans-serif; font-weight: bold;">INNISFREE M&amp;A INCORPORATED</div>
                <div style="text-align: center; font-family: Arial, Helvetica, sans-serif; font-weight: bold;">Shareholders May Call Toll-free: (888) 750-5834</div>
                <div style="text-align: center; font-family: Arial, Helvetica, sans-serif; font-weight: bold;">Banks and Brokers May Call Collect: (212) 750-5833</div>
                <div>&#160;</div>
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        <div>Cadwalader, Wickersham &amp; Taft LLP and Pepper Hamilton LLP are serving as legal advisors to Hudson Executive.</div>
        <div><br>
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        <div style="font-weight: bold;">About Hudson Executive Capital LP</div>
        <div><br>
        </div>
        <div>Hudson Executive Capital LP (&#8220;Hudson Executive&#8221;), based in New York City, is a SEC-registered investment advisor to certain affiliated investment funds.</div>
        <div><br>
        </div>
        <div style="font-weight: bold;">Press Contact</div>
        <div><br>
          Jonathan Gasthalter/Nathaniel Garnick<br>
          Gasthalter &amp; Co.<br>
          212.257.4170</div>
        <div><br>
        </div>
        <div style="font-weight: bold;">Investor Contact</div>
        <div><br>
          Scott Winter/Gabrielle Wolf</div>
        <div>Innisfree M&amp;A Incorporated<br>
          212.750.5833</div>
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