Document:

ex10_1.htm

    
      

    

    
      Exhibit
10.1

      

      

      THIS
DOCUMENT CONSTITUTES PART OF A PROSPECTUS COVERING

      SECURITIES
THAT HAVE BEEN REGISTERED UNDER

      THE
SECURITIES ACT OF 1933, AS AMENDED.

      

      USA
TECHNOLOGIES, INC.

      2008
STOCK INCENTIVE PLAN

      

      1.
Purpose. The purpose of the USA Technologies, Inc. 2008 Stock Incentive Plan is
to provide an incentive to Employees, Consultants and Directors of the Company
who are in a position to contribute materially to the long-term success of the
Company, to increase their interest in the Company’s welfare, and to aid in
gaining the services of Employees, Consultants and Directors of outstanding
ability who will contribute to the Company’s success.

      

      2.
Definitions.

      

      2.1.
"Award" means an award of Stock under the Plan.

      

      2.2.
"Board" means the Board of Directors of USA.

      

      2.3.
"Code" means the Internal Revenue Code of 1986, as amended. Reference to a
specific section of the Code shall include any successor to such
section.

      

      2.4.
"Committee" means the committee designated by the Board to administer the Plan
under Section 4; provided, however, that if an Award is to be made to an
Employee who is an executive officer of USA or to a Director of USA, the term
“Committee” shall mean the compensation committee of the Board of
USA.

      

      2.5.
"Common Stock" means USA common stock, no par value per share, or such other
class or kind of shares of capital stock or other securities as may result from
the application of Section 7 hereof.

      

      2.6.
"Company" means USA and any successor thereof.

      

      2.7.
"Consultant" means a consultant retained to provide bona fide services to, and
who is not an employee of USA.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      2.8.
"Director" means each director of USA who is not an employee of
USA.

      

      2.9.
"Employee" means an officer or employee of the Company including a director who
is such an employee.

      

      2.10.
"Fair Market Value" means, on any given date, the mean between the high and low
prices of actual sales of Common Stock on the principal national securities
exchange on which the Common Stock is listed on such date, or, if the Common
Stock was not so listed, the average closing bid price of the stock for each of
the five trading days prior to such date.

      

      2.11.
"Holder" means an Employee, Director or Consultant to whom an Award is
made.

      

      2.12.
"USA" means USA Technologies, Inc., a Pennsylvania corporation and any successor
thereto.

      

      2.13.
"1933 Act" means the Securities Act of 1933, as amended.

      

      2.14.
"Plan" means the USA 2008 Stock Incentive Plan herein set forth, as amended from
time to time.

      

      2.15.
"Stock" means Common Stock awarded by the Committee under Section 6 of the
Plan.

      

      2.16.
"SEC" means the United States Securities and Exchange Commission.

      

      2.17.
“Stock Award Agreement” means a Stock Award Agreement evidencing an Award
granted under the Plan.

      

      3.
Eligibility. Any Employee, Director or Consultant is eligible to receive an
Award.

      

      4.
Administration of Plan.

      

      4.1. The
Plan shall be administered and interpreted by the Committee, which shall have
full authority to act in selecting Employees, Directors and Consultants to whom
Awards will be made, in determining the type and amount of Awards to be granted
to each such Holder, the terms and conditions of Awards and the terms of
agreements which will be entered into with Holders in connection with Awards.
The Committee shall be appointed by the Board and shall have at least one member
and shall act unanimously in all matters.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      4.2. The
Committee’s powers shall include, but not be limited to, the power to determine
whether, to what extent and under what circumstances an Award is
made.

      

      4.3. The
Committee shall have the power to adopt regulations for carrying out the Plan
and to make such changes in such regulations as it shall from time to time deem
advisable. The Committee shall have the power unilaterally and without approval
of a Holder to amend any existing Award in order to carry out the purposes of
the Plan so long as such amendment does not deprive the Holder of any benefit
granted by the Award and so long as the amended Award comports with the terms of
the Plan. Amendments adverse to the interests of the Holder must be approved by
the Holder. Any interpretation by the Committee of the terms and provisions of
the Plan and the administration thereof, and all action taken by the Committee,
shall be final and binding on Plan participants.

      

      5. Shares
of Stock Subject to the Plan.

      

      5.1.
Subject to adjustment as provided in Section 7, the total number of shares of
Common Stock available for Awards under the Plan shall be 300,000
shares.

      

      5.2. Any
shares issued hereunder may consist, in whole or in part, of authorized and
unissued shares or treasury shares. If any shares subject to any Award granted
hereunder are forfeited or such Award otherwise terminates without the issuance
of such shares, the shares subject to such Award, to the extent of any such
forfeiture or termination, shall again be available for Awards under the
Plan.

      

      6.
Stock.

      

      An Award
of Stock is a grant by the Company of a specified number of shares of Common
Stock to the Holder, which shares may be subject to forfeiture upon the
happening of specified events. Such an Award may be subject to the following
terms and conditions:

      

      6.1. An
Award of Stock may be evidenced by a Stock Award Agreement. Such agreements
shall conform to the requirements of the Plan and may contain such other
provisions as the Committee shall deem advisable.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      6.2. Upon
determination of the number of shares of Stock to be granted to the Holder, the
Committee shall direct that a certificate or certificates representing the
number of shares of Common Stock be issued to the Holder with the Holder
designated as the registered owner.

      

      6.3. The
Committee may condition the grant of an Award of Stock upon the Holder’s
achievement of one or more performance goal(s) specified in the Stock Award
Agreement. If the Holder fails to achieve the specified performance goal(s), the
Committee shall not grant the Stock to the Holder, or the Holder shall forfeit
the Award of Stock and the Common Stock shall be forfeited to the
Company.

      

      6.4. The
Stock Award Agreement, if any, shall specify the performance, employment or
other conditions (including termination of employment on account of death,
disability, retirement or other cause) under which the Stock may be forfeited to
the Company.

      

      6.5. The
Stock Award Agreement may also contain (a) an agreement not to compete with the
Company and its subsidiaries which shall become effective as of the date of the
grant of the Award and remain in effect for a specified period of time following
termination of the Holder’s employment with or affiliation with the Company; (b)
an agreement to cancel any employment agreement, fringe benefit or compensation
arrangement in effect between the Company and the Holder; and (c) an agreement
to retain the confidentiality of certain information.

      

      7.
Adjustments Upon Changes in Capitalization. In the event of a reorganization,
recapitalization, stock split, spin-off, split-off, split-up, stock dividend,
issuance of stock rights, combination of shares, merger, consolidation or any
other change in the corporate structure of USA affecting the Common Stock, or
any distribution to shareholders other than a cash dividend, the Board shall
make appropriate adjustment in the number and kind of shares authorized by the
Plan as it determines appropriate. No fractional shares of stock shall be issued
pursuant to such an adjustment, but an amount equivalent to the portion of Fair
Market Value attributable to any such fractional shares shall, where
appropriate, be paid in cash to the Holder.

      

      8.
Termination and Amendment. The Plan shall remain in full force and effect until
terminated by the Board. The Board shall have the power to amend, suspend or
terminate the Plan at any time without the approval of the shareholders of the
Company, unless such approval is required by applicable law, regulation or rule
of any stock exchange on which the shares of Common Stock are
listed.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      9. Form
S-8.

      

      9.1.
Promptly upon the approval of this Plan by the Board of Directors of USA and the
shareholders, the Company shall, at its cost and expense, register all of the
Stock under the 1933 Act pursuant a to Form S-8 registration
statement.

      

      9.2.
Notwithstanding anything else set forth herein, an Award shall not be made to
any Director, Consultant or Employee unless such person is eligible to receive
Stock which has been registered under a Form S-8 registration statement. In this
regard, any Stock issuable to a Consultant or Director shall be issued to an
individual who provided bona fide services to USA and such services shall not be
in connection with the offer or sale of securities in a capital-raising
transaction, and shall not directly or indirectly promote or maintain a market
for USA’s securities.

      

      9.3. In
connection with the issuance of any Stock pursuant to the Plan, USA shall at its
expense, use its best efforts to have any such Stock exempted from the
registration requirements under applicable state securities laws.

      

      9.4. The
documents incorporated by reference in Item 3 of Part II of the Form S-8
registration statement, and any additional information about the Company, the
Plan and the Plan administrators may be obtained, without charge, upon written
request made to the Company at 100 Deerfield Lane, Suite 140, Malvern, PA 19355,
Attn: Stephen P. Herbert, President, or by calling 610-989-0340.

      

      10.  General
Provisions.

      

      10.1. The
Plan shall become effective upon its approval by the Board, subject to the
approval of the Plan by the shareholders of the Company at the Company’s annual
meeting of shareholders held on February 28, 2008, and any adjournment or
postponement thereof.

      

      10.2.
Nothing contained in the Plan, or an Award granted pursuant to the Plan, shall
confer upon an Employee any right with respect to continuance of employment by
the Company or upon any Director or Consultant any right with respect to
continuance of Board service or the consulting arrangement (as the case may be),
nor interfere in any way with the right of the Company to terminate such
relationships at any time.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      10.3.
Holders shall be responsible to make appropriate provision for all taxes
required to be withheld in connection with any Award. Such responsibility shall
extend to all applicable federal, state, local or foreign withholding taxes.
Stock Award Agreements evidencing Awards may contain appropriate provisions to
effect withholding, including providing for the withholding of Stock by USA
otherwise deliverable to a Holder having a Fair Market Value equal to the
minimum amount required to be withheld by the Company. The Plan is not qualified
under Section 401(a) of the Code.

      

      10.4. To
the extent that federal laws (such as the 1934 Act, the Code or the Employee
Retirement Income Security Act of 1974) do not otherwise control, the Plan and
all determinations made and actions taken pursuant hereto shall be governed by
the law of the Commonwealth of Pennsylvania and construed
accordingly.

      

      Dated:
January 11, 2008ex10_27.htm

    
      

    

    
      Exhibit
10.27

      SECOND AMENDMENT TO
EMPLOYMENT AND

      NON-COMPETITION
AGREEMENT

      

      This
Second Amendment is made on the 22nd day of September 2008, by and between
GEORGE R. JENSEN, JR. ("Jensen"), and USA TECHNOLOGIES, INC., a Pennsylvania
corporation ("USA").

      

      Background

      

      USA and
Jensen entered into an Amended and Restated Employment And Non-Competition
Agreement dated May 11, 2006, and a First Amendment thereto dated March 13, 2007
(collectively, the "Employment Agreement"). As more fully set forth herein, the
parties desire to amend the Employment Agreement in certain
respects.

      Agreement

      

      NOW,
THEREFORE, in consideration of the covenants set forth herein, and intending to
be legally bound hereby, the parties agree as follows:

      

      1.          
  Amendments.

      

      A.           The
date “June 30, 2009” appearing in the first and second sentences of subparagraph
(a) of Section 1. Employment of the
Agreement is hereby deleted and the date “June 30, 2011” is hereby substituted
in its place.

      

      B.           The
first sentence of subparagraph (a) of Section 2. Compensation and
Benefits of the Agreement is hereby deleted and the following sentence
substituted in its place:

      

      In
consideration of his services rendered, USA shall pay to Jensen, from and after
October 1, 2008, a base salary of $365,000 per year during the Employment
Period, subject to any withholding required by law.

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      C.           The
following new subparagraph (g) shall be added to Section 2. Compensation and
Benefits of the Agreement:

      

      (g) On
the date of the execution and delivery by each of USA and Jensen of this Second
Amendment, USA shall issue to Jensen 110,000 shares of Common Stock as a bonus.
These shares shall vest as follows: 36,000 on the date of this Agreement; 37,000
on January 15, 2009; and 37,000 on June 30, 2009. The shares shall be issued
pursuant to USA’s 2008 Stock Incentive Plan and shall be registered under the
Securities Act of 1933, as amended, pursuant to a Form S-8 Registration
Statement. Jensen acknowledges that the vesting of the shares will represent
taxable income to him and that he (and not USA) shall be responsible for the
payment of any and all income or other taxes (including any withholding tax
obligations of USA) attributable to the vesting of the shares. Not later than
the business day following the date on which any of the shares are included in
the taxable income of Jensen, Jensen shall satisfy USA’s withholding tax
obligations in connection with such shares by either (a) the delivery by Jensen
to USA of a cash payment equal to the amount of the withholding tax obligations,
or (b) the assignment and transfer by Jensen to USA of that number of shares of
Common Stock (which may consist of the vested shares issued hereunder as a bonus
to Jensen or any other shares of Common Stock owned by Jensen) having a value
equal to the withholding tax obligations required to be withheld by law, or (c)
such other payment method that shall be satisfactory to USA.

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      D.
Subsection H of Section 3.A. Long-Term Equity
Compensation Plan of the Agreement is hereby deleted and the following
new Subsection H substituted in its place:

      

      H. Jensen
shall be responsible for any and all applicable federal, state or local income
and other tax withholding obligations of USA in connection with the Shares. Not
later than the business day immediately following the date on which any Shares
are included in the taxable income of Jensen, Jensen shall satisfy USA’s
withholding tax obligations in connection with such Shares by either (a) the
delivery by Jensen to USA of a cash payment in the amount of the withholding tax
obligations, or (b) the assignment and transfer by Jensen to USA of that number
of shares of Common Stock (which may consist of Shares or any other shares of
Common Stock owned by Jensen) having a value equal to the withholding tax
obligations required to be withheld by law, or (c) such other payment method
that shall be satisfactory to USA.

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      2.            
Modification.  Except
as otherwise specifically set forth in Paragraph 1, the Employment Agreement
shall not be amended or modified in any respect whatsoever and shall continue in
full force and effect.

      

      3.             Effective
Time.  The amendments to the Employment Agreement made in
Paragraph 1 hereof shall be effective from and after the date
hereof.

      

      IN
WITNESS WHEREOF, the parties hereto have executed this Second Amendment on the
day and year first above written.

      
 

      
        	 
      	
                /s/George R. Jensen,
      Jr.

              
	 
      	
                GEORGE
      R. JENSEN, JR.

              
	 
      	 
      
	 
      	
                USA
      TECHNOLOGIES, INC.

              
	 
      	 
      
	 	 
	 
      	
                By:

              	
                /s/Stephen P.
      Herbert

              
	 
      	 
      	
                Stephen
      P. Herbert,

              
	 
      	 
      	
                President

              

      

       

    

     

    4

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