Document:

ex10_32.htm

Exhibit 10.32

 

PORTIONS OF THIS AGREEMENT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS, WHICH ARE MARKED BY ASTERISKS (“***”).

 

FIRST AMENDMENT TO

 

 VISA PROMOTIONAL AGREEMENT

 

This First Amendment to Visa Promotional Agreement (“First Amendment”) is effective as of October 14, 2012 (“First Amendment Effective Date”) and is by and between Visa U.S.A. Inc., with its principal place of business at 900 Metro Center Boulevard, Foster City, California 94404 (mailing address P.O. Box 8999, San Francisco, CA 94128-8999) ("Visa") and USA Technologies, Inc., with its principal place of business at 100 Deerfield Lane, Suite 140, Malvern, PA 19355  (“Merchant”).

 

BACKGROUND

 

A. Visa and Merchant (individually a “Party” and collectively the “Parties”) previously entered into a Visa Promotional Agreement which was fully executed as of October 12, 2011 (“Agreement”).

B.      The Parties wish to amend the Agreement as set forth herein.

C.      Capitalized terms used but not defined herein shall have the meaning ascribed to them in the Agreement.

 

AGREEMENT

 

In furtherance of the foregoing, and in consideration of the mutual covenants and conditions set forth below, both Parties agree as follows.

 

	
  

	
1.

	
The “Term of Agreement” provision on the cover page of the agreement is hereby deleted in its entirety and replaced with the following:

 

“Unless this agreement is terminated earlier in accordance with Section 5 of Schedule A, its term will begin on the Effective Date and expire on October 31, 2013 (“Initial Term”).  Thereafter, the agreement will automatically renew for an additional period beginning from November 1, 2013 and ending on October 31, 2014 (“Renewal Term” and collectively, with the Initial Term, the “Term”), unless (i) a Party provides the other Party with at least sixty (60) days advance written notice of its intent to not to renew the Agreement for the Renewal Term or (ii) this agreement is terminated earlier in accordance with Section 5 of Schedule A.”

 

	
  

	
2.

	
The following  definitions are hereby added to Section 1 (Definitions) of Schedule A of the Agreement as follows:

 

PROPRIETARY AND CONFIDENTIAL

 

 

Page 1 of 6

 

 

“Incentive Quarter” refers to any three-month period during the Term, starting with the three-month period that begins on October 1, 2011 and each successive three-month period during the Term.

 

“Interchange Transaction Fee” refers to any fee established, charged, or received by a payment card network and paid by a Non-Visa Acquirer for the purpose of compensating an issuer for its involvement in an electronic debit or credit transaction.

“Non-Visa Acquirer” refers to the entity with which Merchant has entered into an agreement for the acceptance of Other Debit Cards.

 

“Other Debit Cards” refers to a Debit Card that is branded with a name or trademark not owned by Visa.

 

“Visa Credit Sales Volume” refers to the U.S. dollar amount of Visa Credit Transactions, net of credits and chargebacks and excluding Cash Transactions.

 

“Visa Debit-Routed Sales Volume” refers to the U.S. dollar amount of Visa Debit-Routed Transactions, net of credits and chargebacks and excluding Cash Transactions.”

 

	
  

	
3.

	
A new Section 5(e) is hereby added to Section 5 of Schedule A of the Agreement as follows:

 

“(e)  Additional Termination Right related to certain Specific Events.  Visa has the right to terminate the agreement at any time during the Term by providing notice to Merchant in the event that Visa determines, based on VisaNet records, that either or both of the following events occurred:

 

	
  

	
(i)

	
The transaction amount of *** of the total combined Visa *** Transactions and Visa *** Transactions originated at the Merchant Locations during any three-month period during the Term, commencing with the three-month period that starts on October 1, 2012 and ends on December 31, 2012, is $*** United States dollars *** (such event a “*** Event”); or

 

	
  

	
(ii)

	
The result of *** the aggregate amount of the total combined Visa *** Volume and Visa *** generated at all of the Merchant Locations during any three-month period during the Term, commencing with the three-month period that starts on October 1, 2012 and ends on December 31, 2012, *** the total number of Visa *** Transactions and Visa *** Transactions generated during that same three-month period at the Merchant Locations *** than $*** United States dollars (such event a “*** Event”).”

 

	
  

	
4.

	
Section 1.A(i) of Schedule B of the Agreement is hereby deleted in its entirety and replaced with the following:

 

PROPRIETARY AND CONFIDENTIAL

 

 

Page 2 of 6

 

 

“Effective the earlier of October 14, 2011 or upon the  Acquiring Member systems being ready to process transactions with the Visa Promotional IRF’s, and continuing through the end of the Term Visa shall make available to the Acquiring Member the following Visa promotional IRF’s (collectively, the “Visa Promotional IRF’s”) for each of the following face-to-face and CPS-qualified transactions (per the Visa Operating Regulations) originated at the Merchant Locations: *** (capped at $0.22 per transaction) (“Visa Debit Regulated Promotional IRF”) for each Visa Debit-Routed Transaction that is a Regulated Debit Card Transaction (“Eligible Visa Debit Regulated Transaction”)***”

	
  

	
5.

	
Section 1.A(ii) of Schedule B of the Agreement is hereby deleted in its entirety and restated with the following:

 

“(ii)          Reserved.”

 

	
  

	
6.

	
Section 1.B of Schedule B of the Agreement is hereby deleted in its entirety and restated with the following:

“If: (i) Merchant discontinues acceptance, in whole or in part, of any or all Visa Cards (including, without limitation transactions initiated with contactless Visa Cards) at any Merchant Location at any time during the Term, as required in Section 1 of Schedule C; (ii) there is a *** at any time during the Term; (iii) a *** Event occurs; or (iv) a *** Event occurs, then Visa will, upon 45 calendar days written notice to Merchant, stop making available systematically the ***, the Visa Debit Regulated Promotional IRF*** to the Acquiring Member for the ***, the Eligible Visa Debit Regulated Transactions***, respectively, that originated at the Merchant Locations.”

 

	
  

	
7.

	
The third and fourth paragraphs in Section 2 of Schedule C of the Agreement are hereby deleted in their entirety and restated with the following:

“Within forty-five (45) calendar days of the end of each Incentive Quarter, starting with the Incentive Quarter that begins on October 1, 2012, an officer of Merchant must execute and provide Visa on Merchant letterhead with the certification attached to this agreement as Rider 1 (the “Quarterly Merchant Certification”).”

 

*** refers to the *** assessed by *** to the pertinent *** for each *** generated with *** at the Merchant Locations during such Incentive Quarter and that was authorized, cleared, and settled by that ***.  Financial consideration, financial incentives, financial marketing support, or other financial support or arrangement that Merchant may receive from *** or any other entity may not be used or considered, in whole or in part, when calculating ***.”

 

PROPRIETARY AND CONFIDENTIAL

 

 

Page 3 of 6

 

 

	
  

	
8.

	
Rider 1, attached hereto as Attachment A, is hereby added to the Agreement at the end of the Agreement.

 

	
  

	
9.

	
General.  Except as specifically amended herein, the terms of the Agreement shall remain in full force and effect.  In the case of a conflict between this First Amendment and the Agreement, the terms of this First Amendment shall govern.  The Agreement, as amended by this First Amendment, may not be further amended or waived except by a written instrument signed by the Parties.  This First Amendment may be executed in one or more counterparts, each of which, taken together, shall constitute but one original document.  This First Amendment may also be signed and transmitted by facsimile or electronic mail, with such signature to be treated as an original and the document transmitted to be considered to have the same binding effect as an original signature on an original document.  At the request of either party, any facsimile document or document produced via electronic mail will be re-executed in original form by the parties who signed this First Amendment.

 

IN WITNESS WHEREOF, each of the Parties has caused this First Amendment to be executed by its duly authorized representatives:

	
Visa U.S.A. Inc.

	
USA Technologies, Inc.

	
By: /s/ ***

	
By: /s/ Stephen P. Herbert

	
Name: ***

	
Name: Stephen P. Herbert

	
Title: ***

	
Title: Chairman and Chief Executive Officer

	
Date: 10/8/2012

	
Date: 9/28/2012

 

PROPRIETARY AND CONFIDENTIAL

 

 

Page 4 of 6

 

 

ATTACHMENT A

Rider 1

 

to

Visa Promotional Agreement

between

Visa U.S.A. Inc. and USA Technologies, Inc.

effective as of [●] (“Agreement”)

The language above in the header of this Rider 1 is only for purposes of identifying this document in the context of the agreement.  When this form of certification is provided to Visa it should include only the language that is below this paragraph.  This Rider 1 is to be submitted within forty-five calendar days of the end of the applicable Incentive Quarter.

Quarterly Merchant Certificate

*   *   *

USA Technologies Inc. (“Merchant”) confirms and certifies that, in respect of the three-month period that started on [date] and concluded on [date] (the “Relevant Quarter”), all of the assertions in (1) and (6) below are true, accurate, and complete:

	
  

	
(1)

	
During the Relevant Quarter, the rate of the *** was *** the rate of the Visa Debit Regulated Promotional IRF;

	
  

	
(2)

	
When calculating the ***, Merchant only considered the *** assessed by *** to the pertinent *** for each Regulated *** generated with *** at the Merchant Locations;

	
  

	
(3)

	
The transaction amount of *** of the Visa *** and Visa *** originated at the Merchant Locations during the Relevant Quarter  is $*** United States dollars ***;

	
  

	
(4)

	
The result of *** the aggregate amount of the Visa *** Volume and Visa *** generated at all of the Merchant Locations during the Relevant Quarter *** the total number of Visa *** and Visa *** generated during the Relevant Quarter at the  Merchant Locations *** than $*** United States dollars;

 

PROPRIETARY AND CONFIDENTIAL

 

 

Page 5 of 6

 

 

	
  

	
(5)

	
During the Relevant Quarter, all of the Merchant Locations accepted any and all Visa Cards; and

	
  

	
(6)

	
All of the Merchant Locations are located in the Territory.

Acknowledgment and Agreement

Merchant acknowledges and agrees that the *** at all of the Merchant Locations, as of the Effective Date and continuing throughout the Term, is a material inducement to Visa offering and maintaining to the Acquiring Member the Visa Promotional IRF’s, and that Visa may not offer and maintain the Visa Promotional IRF’s if at any time during the Term there is *** at any of the Merchant Locations.

Definitions

Capitalized terms that are not defined in this Rider 1 have the meaning ascribed to them in the Agreement.

I certify that I am responsible for preparing this certification on behalf of Merchant and that Merchant used commercially reasonable diligence in determining the information necessary to make the assertions and certifications contained in this document in accordance with Merchant’s records and that to the best of my knowledge those assertions and certifications are true, accurate, and complete.

 

	
By:

	 	 
	 	 	 
	
Name:

	 	 
	 	 	 
	
Title:

	 	 
	 	 	 
	
(Must be an officer of USA Technologies, Inc.)

	
Date:

	 	 

 

PROPRIETARY AND CONFIDENTIAL

 

 

 Page 6 of 6___________, 2012

 

CIS Acquisition Ltd.

89 Udaltsova Street, Suite 84

Moscow, Russia 119607

 

Chardan Capital Markets, LLC

17 State Street, Suite 1600

New York, NY 10004

 

Re:           
Initial Public Offering

 

Gentlemen:

 

The undersigned [shareholder]
[Insert position] of CIS Acquisition Ltd. (the “Company”), in consideration of Chardan Capital Markets, LLC (“Chardan”)
entering into an agreement to underwrite an initial public offering of the securities of the Company (“IPO”) and embarking
on the IPO process, hereby agrees as follows (certain capitalized terms used herein are defined in paragraph 12 hereof):

 

1.
           If the Company initiates an issuer tender offer in
connection with the consummation of an Acquisition Transaction, the undersigned will not tender  any Shares owned by the
undersigned in such tender offer. If the Company solicits approval of its shareholders to approve the Acquisition
Transaction, the undersigned will vote all Insider Shares owned by the undersigned in accordance with the majority of the
votes cast by the holders of the IPO Shares, and will vote any IPO Shares acquired in the IPO or the aftermarket owned
by the undersigned in favor of such Acquisition Transaction. If the Company solicits approval of its shareholders
to amend Clause 6(3) of our Amended and Restated Memorandum and Articles of Association prior to consummation of an
Acquisition Transaction, the undersigned will vote all Insider Shares owned by the undersigned in accordance with the
majority of the votes cast by the holders of the IPO Shares. The undersigned will not exercise any appraisal rights (if such
appraisal rights are available) to which the undersigned may be entitled under the British Virgin Islands Law (“BVI
Law”) in connection with the vote to approve any Acquisition Transaction, as the case may be, with respect to any
Shares acquired in the aftermarket owned by the undersigned.

 

2.            In
the event that the Company fails to consummate an Acquisition Transaction within 18 months (or 21 months pursuant to the automatic
period extension) from the consummation of the IPO (such date being referred to herein as the “Termination Date”),
the undersigned shall take all such action reasonably within its power as is necessary to dissolve the Company and liquidate the
Trust Fund to holders of IPO Shares as soon as reasonably practicable, subject to any applicable requirements of BVI Law.  [The
undersigned in its capacity as a member of the board of directors of the Company hereby agrees not to recommend to shareholders
of the company to vote in favor of an amendment to Clause 6(3) of the Company’s Amended and Restated Memorandum and
Articles of Association, if such amendment would take effect prior to the consummation of an Acquisition Transaction.] The undersigned
hereby waives any and all right, title, interest or claim of any kind in or to any distribution of the Trust Fund and any remaining
net assets of the Company as a result of such liquidation with respect to his Insider Shares, and his Placement Warrants (“Claim”).
The undersigned hereby agrees that he will not seek recourse against the Trust Account for any Claim he may have in the future
as a result of, or arising out of, any negotiations, contracts or agreements with the Company and will not seek recourse against
the Trust Fund for any reason whatsoever, other than liquidation distributions for any IPO Shares acquired by him in the IPO or
the aftermarket.

 

3.            The
undersigned agrees to indemnify and hold harmless the Company against any and all loss, liability, claims, damage and expense whatsoever
(including, but not limited to, any and all legal or other expenses reasonably incurred in investigating, preparing or defending
against any litigation, whether pending or threatened, or any claim whatsoever) which the Company may become subject as a result
of any claim by any vendor or other person who is owed money by the Company for services rendered or products sold or contracted
for, or by any Target Business (“Third-Party Claimant”), but only to the extent necessary to ensure that such loss,
liability, claim, damage or expense does not reduce the amount in the Trust Fund; provided, however, that the undersigned shall
not be required to so indemnify the Company if the Third-Party Claimant has waived its right to proceed against the Trust Fund.  The
undersigned further agrees to advance such funds as are necessary to complete the plan of dissolution and distribution, and not
seek repayment thereof, if and to the extent the Company’s assets outside of the Trust Fund are insufficient.

 

    	 

    	 

    

 

4.            In
order to minimize potential conflicts of interest which may arise from multiple affiliations, the undersigned agrees to present
to the Company for its consideration, prior to presentation to any other person or entity, any suitable opportunity to acquire
a Target Business, until the earlier of the consummation by the Company of an Acquisition Transaction, the liquidation of the Company
or until such time as the undersigned ceases to be a director of the Company, subject to any pre-existing fiduciary and contractual
obligations the undersigned might have.

 

5.            To
further minimize potential conflicts of interest, the undersigned acknowledges and agrees that the Company will not consummate
any Acquisition Transaction with an entity which is affiliated with any of its founding shareholders unless the Company obtains
an opinion from an independent investment banking firm that the Acquisition Transaction is fair to the Company’s unaffiliated
shareholders from a financial point of view.

 

6.            Neither
the undersigned, any member of the family of the undersigned, nor any Affiliate of the undersigned will be entitled to receive
and will not accept any compensation for services rendered to the Company prior to the consummation of the Acquisition Transaction.  Notwithstanding
the foregoing, the undersigned shall be entitled to reimbursement from the Company for its reasonable out-of-pocket expenses incurred
in connection with identifying, investigating and consummating an Acquisition Transaction and the undersigned acknowledges that
(i) the Company has an obligation to repay a $[_______] non-interest bearing loan made to the Company by Intercarbo Holding AG,
an affiliate of the Company’s officers and directors, and (ii) CIS Acquisition Holding Co. Ltd., an affiliate of the Company’s officers and directors, shall
be allowed to charge the Company up to $7,500 per month to compensate it for the Company’s use of CIS Acquisition Holding Co. Ltd.’s office
space, utilities and secretarial services.

 

7.            Neither
the undersigned, any member of the family of the undersigned, nor any Affiliate of the undersigned will be entitled to receive
or accept a finder’s fee or any other compensation in the event the undersigned, any member of the family of the undersigned
or any Affiliate of the undersigned originates an Acquisition Transaction.

 

8.            The
undersigned will escrow, in accordance with the terms of a Securities Escrow Agreement which the Company will enter into with the
undersigned and Continental Stock Transfer & Trust Company, as escrow agent: (i) all of his Insider Shares until the date which
is two (2) years after the date on the prospectus in the IPO, and (ii) all of his Placement Warrants until the date on which the
Company consummates its initial Acquisition Transaction or post-acquisition tender offer, as the case may be.

 

9.            [The
undersigned agrees to be [a member of the Company’s board of directors] [and] [the Company’s [Insert Officer Position]]
until the earlier of the consummation by the Company of an Acquisition Transaction or the liquidation of the Company.  The
undersigned’s biographical information furnished to the Company and Chardan and attached hereto as Exhibit A is true
and accurate in all respects, does not omit any material information with respect to the undersigned’s background and contains
all of the information required to be disclosed pursuant to Item 401 of Regulation S-K, promulgated under the Securities Act of
1933, as amended.]  The undersigned’s Questionnaire furnished to the Company and Chardan is true and accurate in
all respects.  The undersigned represents and warrants that:

 

(a)            The
undersigned is not subject to or a respondent in any legal action for, any injunction, cease-and-desist order or order or stipulation
to desist or refrain from any act or practice relating to the offering of securities in any jurisdiction;

 

(b)            The
undersigned has never been convicted of or pleaded guilty to any crime (i) involving any fraud or (ii) relating to any financial
transaction or handling of funds of another person, or (iii) pertaining to any dealings in any securities and he is not currently
a defendant in any such criminal proceeding; and

 

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(c)            The
undersigned has never been suspended or expelled from membership in any securities or commodities exchange or association or had
a securities or commodities license or registration denied, suspended or revoked.

 

10.            The
undersigned has full right and power, without violating any agreement by which he is bound, to enter into this letter agreement
[and to serve as [a member of the Company’s board of directors] [and] [the Company’s [Insert Officer Position]].

 

11.            This
letter agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York, without
giving effect to conflicts of law principles that would result in the application of the substantive laws of another jurisdiction.  The
undersigned hereby (i) agrees that any action, proceeding or claim against him arising out of or relating in any way to this letter
agreement (a “Proceeding”) shall be brought and enforced in the courts of the State of New York of the United States
of America for the Southern District of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive,
(ii) waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum and (iii) irrevocably
agrees to appoint Loeb & Loeb LLP as agent for the service of process in the State of New York to receive, for the undersigned
and on his behalf, service of process in any Proceeding.  If for any reason such agent is unable to act as such, the
undersigned will promptly notify the Company and Chardan and appoint a substitute agent acceptable to each of the Company Chardan
within 30 days and nothing in this letter will affect the right of either party to serve process in any other manner permitted
by law.

 

12.            As
used herein, (i) an “Acquisition Transaction” shall mean an acquisition by a merger, stock exchange, asset acquisition,
stock purchase or other similar business combination, or controlling, through contractual arrangements, of one or more Target Businesses
that have a fair market value, individually or collectively, of at least equal to 80% of the balance in the trust account (less
the deferred underwriting discounts and commissions and taxes payable) at the time of such acquisition transaction; (ii) “Shares”
shall mean shares of the Company’s ordinary shares, par value $.0001 per share; (iii) “Insiders” shall mean all
officers, directors and shareholders of the Company immediately prior to the Private Placement; (iv) “Insider Shares”
shall mean all of the Series C Shares owned by an Insider prior to the Private Placement; (v) “IPO Shares” shall mean
the Series A Shares issued in the Company’s IPO; (vii) “Private Placement” shall mean the private placement of
securities of the Company consummated immediately prior to the IPO; (viii) “Placement Warrants” shall mean the warrants
issued in the Private Placement; (ix) “Series C Shares” shall mean the Shares issued to the Insiders prior to the Private
Placement; (x) “Target Business” shall mean an operating business that the Company seeks to acquire; and (xi) “Trust
Fund” shall mean the trust account established by the Company at the consummation of its IPO and into which a certain amount
of the net proceeds of the IPO is deposited.

 

	 	By:	 
	 	Name:	 

 

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EXHIBIT A

 

[Insert Biographical Information from “Management”
section of Final Prospectus]

  

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