Document:

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EXHIBIT 4.22

THIS WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS WARRANT
AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD,
OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT UNDER SAID ACT OR AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO USA TECHNOLOGIES, INC. THAT SUCH REGISTRATION IS NOT REQUIRED.

             Right to Purchase 750,000 shares of Common Stock of USA
          Technologies, Inc. (subject to adjustment as provided herein)

                          COMMON STOCK PURCHASE WARRANT

No. 2002-__                                        Issue Date: November 4, 2002

          USA TECHNOLOGIES,  INC., a corporation organized under the laws of the
     State of Pennsylvania  (the  "Company"),  hereby  certifies that, for value
     received,  ALPHA CAPITAL  AKTIENGESELLSCHAFT (the "Holder"), or assigns, is
     entitled,  subject  to the terms  set forth  below,  to  purchase  from the
     Company  from and after the Issue Date and at any time or from time to time
     before  5:00 p.m.,  New York time,  through  five (5) years after such date
     (the "Expiration Date"), up to 750,000 fully paid and nonassessable  shares
     of Common Stock (as  hereinafter  defined),  no par value per share, of the
     Company at a per share  purchase  price of $.15 [the closing  price of the
     Common Stock for the trading day immediately preceding the Issue Date]. The
     aforedescribed  purchase price per share,  as adjusted from time to time as
     herein provided, are referred to herein as the "Purchase Price". The number
     and  character of such shares of Common  Stock and the  Purchase  Price are
     subject to adjustment as provided herein.

          As used  herein the  following  terms,  unless the  context  otherwise
     requires, have the following respective meanings:

          (a) The term "Company"  shall include USA  Technologies,  Inc. and any
     corporation   which  shall  succeed  or  assume  the   obligations  of  USA
     Technologies, Inc. hereunder.

          (b) The term "Common Stock"  includes (a) the Company's  Common Stock,
     no par value  per  share,  as  authorized  on the date of the  Subscription
     Agreement  referred to in Section 9 hereof,  (b) any other capital stock of
     any class or classes (however designated) of the Company,  authorized on or
     after  such date,  the  holders  of which  shall  have the  right,  without
     limitation  as to  amount,  either to all or to a share of the  balance  of
     current dividends and liquidating  dividends after the payment of dividends
     and distributions on any shares entitled to preference,  and the holders of
     which shall  ordinarily,  in the absence of  contingencies,  be entitled to
     vote for the election of a majority of  directors  of the Company  (even if
     the  right  so to  vote  has  been  suspended  by the  happening  of such a
     contingency)  and (c) any other  securities  into which or for which any of
     the  securities  described  in (a) or (b)  may be  converted  or  exchanged
     pursuant to a plan of  recapitalization,  reorganization,  merger,  sale of
     assets or otherwise.

          (c) The term "Other Securities" refers to any stock (other than Common
     Stock) and other  securities of the Company or any other person  (corporate
     or otherwise) which the holder of the Warrant at any time shall be entitled
     to receive, or shall have received, on the exercise of the Warrant, in lieu
     of or in addition to Common  Stock,  or which at any time shall be issuable
     or shall have been issued in exchange for or in replacement of Common Stock
     or Other Securities pursuant to Section 4 or otherwise.

<PAGE>

         1.       Exercise of Warrant.
                  -------------------

                  1.1. Number of Shares Issuable upon Exercise.
                       ----------------------------------------

          From and after the Issue Date  through and  including  the  Expiration
     Date, the holder hereof shall be entitled to receive, upon exercise of this
     Warrant in whole in  accordance  with the terms of  subsection  1.2 or upon
     exercise of this Warrant in part in accordance  with subsection 1.3, shares
     of Common Stock of the Company,  subject to adjustment  pursuant to Section
     4.

                  1.2. Full Exercise.
                       --------------

          This Warrant may be exercised in full by the holder hereof by delivery
     of an original or facsimile  copy of the form of  subscription  attached as
     Exhibit A hereto (the "Subscription Form") duly executed by such holder and
     surrender of the original Warrant within seven (7) days of exercise, to the
     Company at its  principal  office or at the office of its Warrant Agent (as
     provided hereinafter), accompanied by payment, in cash, wire transfer or by
     certified or official  bank check  payable to the order of the Company,  in
     the amount obtained by multiplying the number of shares of Common Stock for
     which  this  Warrant  is then  exercisable  by the  Purchase  Price then in
     effect.

                  1.3. Partial Exercise.
                       -----------------

          This Warrant may be exercised in part (but not for a fractional share)
     by  surrender  of this  Warrant in the manner and at the place  provided in
     subsection 1.2 except that the amount payable by the holder on such partial
     exercise  shall be the amount  obtained  by  multiplying  (a) the number of
     whole shares of Common Stock  designated by the holder in the  Subscription
     Form  by (b) the  Purchase  Price  then  in  effect.  On any  such  partial
     exercise,  the Company, at its expense, will forthwith issue and deliver to
     or upon the order of the holder hereof a new Warrant of like tenor,  in the
     name of the holder hereof or as such holder (upon payment by such holder of
     any applicable  transfer taxes) may request,  the whole number of shares of
     Common Stock for which such Warrant may still be exercised.

                  1.4.  Fair Market  Value.
                        -------------------

          Fair Market Value of a share of Common  Stock as of a particular  date
     (the  "Determination  Date") shall mean the Fair Market Value of a share of
     the Company's Common Stock. Fair Market Value of a share of Common Stock as
     of a Determination Date shall mean:

          (a) If the  Company's  Common  Stock is  traded on an  exchange  or is
     quoted on the National  Association of Securities  Dealers,  Inc. Automated
     Quotation  ("NASDAQ") National Market System, the NASDAQ SmallCap Market or
     the American  Stock  Exchange,  Inc.,  then the closing or last sale price,
     respectively,  reported for the last business day immediately preceding the
     Determination Date.

          (b) If the  Company's  Common Stock is not traded on an exchange or on
     the  NASDAQ  National  Market  System,  the NASDAQ  SmallCap  Market or the
     American  Stock  Exchange,  Inc.,  but is  traded  in the  over-the-counter
     market,  then the mean of the closing bid and asked prices reported for the
     last business day immediately preceding the Determination Date.

          (c) Except as provided in clause (d) below,  if the  Company's  Common
     Stock is not publicly  traded,  then as the Holder and the Company agree or
     in the absence of agreement by  arbitration  in  accordance  with the rules
     then  standing of the  American  Arbitration  Association,  before a single
     arbitrator to be chosen from a panel of persons  qualified by education and
     training to pass on the matter to be decided.

          (d)  If  the  Determination   Date  is  the  date  of  a  liquidation,
     dissolution  or  winding  up,  or any  event  deemed  to be a  liquidation,
     dissolution  or winding up  pursuant  to the  Company's  charter,  then all
     amounts to be payable per share to holders of the Common Stock  pursuant to
     the charter in the event of such  liquidation,  dissolution  or winding up,
     plus all other  amounts  to be  payable  per share in respect of the Common
     Stock in liquidation  under the charter,  assuming for the purposes of this
     clause  (d) that all of the  shares  of Common  Stock  then  issuable  upon
     exercise of all of the Warrants are outstanding at the Determination Date.

                  1.5. Company Acknowledgment.
                       -----------------------

          The Company will, at the time of the exercise of the Warrant, upon the
     request  of  the  holder  hereof  acknowledge  in  writing  its  continuing
     obligation  to afford to such holder any rights to which such holder  shall
     continue  to be  entitled  after  such  exercise  in  accordance  with  the
     provisions  of this  Warrant.  If the  holder  shall  fail to make any such
     request,  such failure  shall not affect the  continuing  obligation of the
     Company to afford to such holder any such rights.

                  1.6. Trustee for Warrant Holders.
                       ----------------------------

          In the event that a bank or trust company shall have been appointed as
     trustee for the holders of the Warrants  pursuant to  Subsection  3.2, such
     bank or trust  company  shall  have all the  powers and duties of a warrant
     agent (as hereinafter  described) and shall accept, in its own name for the
     account of the Company or such successor person as may be entitled thereto,
     all amounts otherwise payable to the Company or such successor, as the case
     may be, on exercise of this Warrant pursuant to this Section 1.

         2.1 Delivery of Stock Certificates, etc. on Exercise.
             -------------------------------------------------

          The Company  agrees  that the shares of Common  Stock  purchased  upon
     exercise of this Warrant  shall be deemed to be issued to the holder hereof
     as the record  owner of such shares as of the close of business on the date
     on which this Warrant shall have been surrendered and payment made for such
     shares as  aforesaid.  As soon as  practicable  after the  exercise of this
     Warrant  in full  or in  part,  and in any  event  within  seven  (7)  days
     thereafter,  the Company at its expense (including the payment by it of any
     applicable  issue  taxes)  will  cause  to be  issued  in the  name  of and
     delivered to the holder  hereof,  or as such holder  (upon  payment by such
     holder of any  applicable  transfer  taxes) may direct in  compliance  with
     applicable securities laws, a certificate or certificates for the number of
     duly and  validly  issued,  fully paid and  nonassessable  shares of Common
     Stock (or Other  Securities) to which such holder shall be entitled on such
     exercise,  plus, in lieu of any fractional share to which such holder would
     otherwise be entitled,  cash equal to such fraction  multiplied by the then
     Fair Market Value of one full share, together with any other stock or other
     securities and property  (including cash,  where  applicable) to which such
     holder is entitled upon such exercise pursuant to Section 1 or otherwise.

         2.2.     Cashless Exercise.
                  -----------------

          (a) If a  Registration  Statement is effective and the Holder may sell
     its Shares of Company Common Stock upon exercise  hereof  thereunder,  this
     Warrant may be  exercisable  in whole or in part for cash only as set forth
     in Section 1 above. If no such Registration Statement is available, payment
     upon exercise may be made at the option of the Holder either in (i) cash or
     by  certified  or official  bank check  payable to the order of the Company
     equal to the  applicable  aggregate  Purchase  Price,  (ii) by  delivery of
     Common Stock  issuable  upon  exercise of the Warrants in  accordance  with
     Section  (b)  below  or  (iii)  by a  combination  of any of the  foregoing
     methods,  for the number of Common  Shares  specified in such form (as such
     exercise  number shall be adjusted to reflect any  adjustment  in the total
     number of shares of Common  Stock  issuable  to the holder per the terms of
     this  Warrant)  and the holder  shall  thereupon be entitled to receive the
     number of duly authorized,  validly issued,  fully-paid and  non-assessable
     shares of Common Stock (or Other Securities) determined as provided herein.

          (b) Notwithstanding any provisions herein to the contrary, if the Fair
     Market  Value of one share of Common  Stock is  greater  than the  Purchase
     Price  (at  the  date  of  calculation  as set  forth  below),  in  lieu of
     exercising this Warrant for cash,  upon consent of the Company,  the holder
     may elect to receive  shares  equal to the value (as  determined  below) of
     this Warrant (or the portion thereof being  cancelled) by surrender of this
     Warrant at the principal  office of the Company  together with the properly
     endorsed  Subscription  Form in which event the Company  shall issue to the
     holder a number  of shares of Common  Stock  computed  using the  following
     formula:
                           X=Y (A-B)
                                     A

 Where    X=  the number of shares of Common Stock to be issued to the holder

          Y=  the number of shares of Common Stock
              purchasable under the Warrant or, if only a
              portion of the Warrant is being exercised,
              the portion of the Warrant being exercised
              (at the date of such calculation)

          A=  the Fair Market Value of one share of the Company's Common Stock
              (at the date of such calculation)

          B=  Purchase Price (as adjusted to the date of such calculation)

          (c) The Holder may not employ the cashless  exercise feature described
     above at any time that the  Warrant  Stock to be issued  upon  exercise  is
     included for unrestricted resale in an effective registration statement.

         3.    Adjustment for Reorganization, Consolidation, Merger, etc.
               ----------------------------------------------------------

                  3.1. Reorganization, Consolidation, Merger, etc.
                       ------------------------------------------

          In case at any time or from time to time, the Company shall (a) effect
     a  reorganization,  (b) consolidate  with or merge into any other person or
     (c) transfer all or  substantially  all of its  properties or assets to any
     other person under any plan or arrangement contemplating the dissolution of
     the Company, then, in each such case, as a condition to the consummation of
     such a  transaction,  proper and  adequate  provision  shall be made by the
     Company  whereby  the holder of this  Warrant,  on the  exercise  hereof as
     provided  in  Section  1,  at any  time  after  the  consummation  of  such
     reorganization,  consolidation  or  merger  or the  effective  date of such
     dissolution, as the case may be, shall receive, in lieu of the Common Stock
     (or Other Securities)  issuable on such exercise prior to such consummation
     or such  effective  date,  the  stock  and other  securities  and  property
     (including  cash) to which such holder would have been  entitled  upon such
     consummation or in connection with such dissolution, as the case may be, if
     such holder had so exercised this Warrant,  immediately prior thereto,  all
     subject to further adjustment thereafter as provided in Section 4.

                  3.2. Dissolution.
                       -----------

          In the event of any dissolution of the Company  following the transfer
     of all or substantially all of its properties or assets, the Company, prior
     to such dissolution,  shall at its expense deliver or cause to be delivered
     the  stock  and  other  securities  and  property  (including  cash,  where
     applicable)  receivable by the holders of the Warrants  after the effective
     date of such  dissolution  pursuant  to this  Section  3 to a bank or trust
     company  having its  principal  office in New York,  NY, as trustee for the
     holder or holders of the Warrants.

                  3.3. Continuation of Terms.
                       ---------------------

          Upon any  reorganization,  consolidation,  merger or transfer (and any
     dissolution  following  any  transfer)  referred to in this Section 3, this
     Warrant shall  continue in full force and effect and the terms hereof shall
     be  applicable  to the shares of stock and other  securities  and  property
     receivable on the exercise of this Warrant after the  consummation  of such
     reorganization,   consolidation   or  merger  or  the  effective   date  of
     dissolution  following any such transfer,  as the case may be, and shall be
     binding upon the issuer of any such stock or other  securities,  including,
     in the case of any such transfer, the person acquiring all or substantially
     all of the properties or assets of the Company,  whether or not such person
     shall have  expressly  assumed  the terms of this  Warrant as  provided  in
     Section 4. In the event this  Warrant  does not  continue in full force and
     effect after the consummation of the transaction  described in this Section
     3, then only in such  event  will the  Company's  securities  and  property
     (including  cash,  where  applicable)  receivable  by  the  holders  of the
     Warrants be delivered to the Trustee as contemplated by Section 3.2.

                  3.4 Share Issuance.
                      --------------

          If the  Company  shall  issue any shares of Common  Stock prior to the
     complete  exercise  of this  Warrant  for a  consideration  less  than  the
     Purchase Price that would be in effect at the time of such issue, then, and
     thereafter  successively  upon each such issue, the Purchase Price shall be
     reduced as follows:  (i) the number of shares of Common  Stock  outstanding
     immediately  prior to such issue shall be multiplied by the Purchase  Price
     in effect at the time of such issue and the  product  shall be added to the
     aggregate consideration, if any, received by the Company upon such issue of
     additional  shares of Common Stock;  and (ii) the sum so obtained  shall be
     divided by the  number of shares of Common  Stock  outstanding  immediately
     after such issue.  The resulting  quotient  shall be the adjusted  Purchase
     Price. For purposes of this adjustment, the issuance of any security of the
     Company  carrying the right to convert such  security into shares of Common
     Stock or of any  warrant,  right or option to purchase  Common  Stock shall
     result in an adjustment  to the Purchase  Price upon the issuance of shares
     of Common Stock upon exercise of such conversion or purchase rights.

         4. Extraordinary Events Regarding Common Stock.
            -------------------------------------------

          In the event that the Company shall (a) issue additional shares of the
     Common  Stock as a dividend or other  distribution  on  outstanding  Common
     Stock, (b) subdivide its outstanding  shares of Common Stock or (c) combine
     its outstanding  shares of the Common Stock into a smaller number of shares
     of the Common Stock,  then, in each such event,  the Purchase  Price shall,
     simultaneously with the happening of such event, be adjusted by multiplying
     the then Purchase Price by a fraction,  the numerator of which shall be the
     number  of shares of Common  Stock  outstanding  immediately  prior to such
     event and the  denominator of which shall be the number of shares of Common
     Stock outstanding immediately after such event, and the product so obtained
     shall thereafter be the Purchase Price then in effect.  The Purchase Price,
     as so adjusted,  shall be  readjusted in the same manner upon the happening
     of any successive  event or events  described herein in this Section 4. The
     number of shares of Common  Stock  that the  holder of this  Warrant  shall
     thereafter, on the exercise hereof as provided in Section 1, be entitled to
     receive shall be increased to a number determined by multiplying the number
     of shares of Common Stock that would  otherwise  (but for the provisions of
     this Section 4) be issuable on such exercise by a fraction of which (a) the
     numerator  is  the  Purchase  Price  that  would  otherwise  (but  for  the
     provisions of this Section 4) be in effect,  and (b) the denominator is the
     Purchase Price in effect on the date of such exercise.

         5. Certificate as to Adjustments.
            -----------------------------

          In each case of any adjustment or readjustment in the shares of Common
     Stock (or Other Securities)  issuable on the exercise of the Warrants,  the
     Company at its expense will promptly cause its Chief  Financial  Officer or
     other  appropriate  designee to compute such  adjustment or readjustment in
     accordance with the terms of the Warrant and prepare a certificate  setting
     forth such adjustment or readjustment  and showing in detail the facts upon
     which such adjustment or  readjustment  is based,  including a statement of
     (a)  the  consideration  received  or  receivable  by the  Company  for any
     additional shares of Common Stock (or Other  Securities)  issued or sold or
     deemed to have  been  issued  or sold,  (b) the  number of shares of Common
     Stock (or Other Securities) outstanding or deemed to be outstanding and (c)
     the Purchase  Price and the number of shares of Common Stock to be received
     upon  exercise  of  this  Warrant,  in  effect  immediately  prior  to such
     adjustment  or  readjustment  and as adjusted or  readjusted as provided in
     this  Warrant.  The  Company  will  forthwith  mail a  copy  of  each  such
     certificate  to the  holder of the  Warrant  and any  Warrant  Agent of the
     Company (appointed pursuant to Section 11 hereof).

         6. Reservation of Stock, etc. Issuable on Exercise of Warrant;
            -----------------------------------------------------------
            Financial Statements.
            --------------------

          The Company will at all times reserve and keep  available,  solely for
     issuance and delivery on the exercise of the Warrants, all shares of Common
     Stock (or Other  Securities)  from time to time issuable on the exercise of
     the Warrant.  This Warrant  entitles the holder hereof to receive copies of
     all  financial  and  other  information   distributed  or  required  to  be
     distributed to the holders of the Company's Common Stock.

         7. Assignment; Exchange of Warrant.
            -------------------------------

          Subject to compliance with applicable  securities  laws, this Warrant,
     and the rights  evidenced  hereby,  may be  transferred  by any  registered
     holder hereof (a "Transferor") with respect to any or all of the Shares. On
     the  surrender  for  exchange  of  this  Warrant,   with  the  Transferor's
     endorsement  in the form of  Exhibit B  attached  hereto  (the  "Transferor
     Endorsement  Form") and together with evidence  reasonably  satisfactory to
     the Company  demonstrating  compliance with applicable securities laws, the
     Company  at  its  expense,  but  with  payment  by  the  Transferor  of any
     applicable transfer taxes, will issue and deliver to or on the order of the
     Transferor  thereof a new Warrant or Warrants of like tenor, in the name of
     the  Transferor  and/or  the  transferee(s)  specified  in such  Transferor
     Endorsement  Form (each a  "Transferee"),  calling in the  aggregate on the
     face or faces  thereof for the number of shares of Common  Stock called for
     on the face or faces of the Warrant so surrendered by the Transferor.

         8. Replacement of Warrant.
            ----------------------

          On receipt of evidence  reasonably  satisfactory to the Company of the
     loss, theft,  destruction or mutilation of this Warrant and, in the case of
     any such loss,  theft or  destruction  of this  Warrant,  on delivery of an
     indemnity agreement or security reasonably  satisfactory in form and amount
     to the Company or, in the case of any such  mutilation,  on  surrender  and
     cancellation  of this Warrant,  the Company at its expense will execute and
     deliver, in lieu thereof, a new Warrant of like tenor.

         9. Registration Rights.
            -------------------

          The  Holder of this  Warrant  has been  granted  certain  registration
     rights  by the  Company.  These  registration  rights  are set  forth  in a
     Subscription  Agreement  entered into by the Company and  Subscriber of the
     Company's  Common Stock at or prior to the issue date of this Warrant.  The
     terms  of the  Subscription  Agreement  are  incorporated  herein  by  this
     reference.  For each 30 days of the pendency of a  Non-Registration  Event,
     the Purchase  Price shall be reduced by 10% of the initial  Purchase  Price
     (subject to other  adjustments  described  in this  Warrant).  The Purchase
     Price may not be reduced below $.001 pursuant to this Section 9 (subject to
     other adjustments described in this Warrant).

         10. Maximum Exercise.
             ----------------

          The  Holder  shall not be  entitled  to  exercise  this  Warrant on an
     exercise  date,  in  connection  with that number of shares of Common Stock
     which  would be in excess of the sum of (i) the  number of shares of Common
     Stock  beneficially  owned by the Holder and its  affiliates on an exercise
     date,  and (ii) the  number of shares of  Common  Stock  issuable  upon the
     exercise of this Warrant with  respect to which the  determination  of this
     limitation  is being  made on an  exercise  date,  which  would  result  in
     beneficial ownership by the Holder and its affiliates of more than 9.99% of
     the outstanding shares of Common Stock of the Company on such date. For the
     purposes of the immediately preceding sentence,  beneficial ownership shall
     be determined in accordance  with Section 13(d) of the Securities  Exchange
     Act of 1934, as amended,  and Regulation 13d-3  thereunder.  Subject to the
     foregoing,  the Holder  shall not be limited to aggregate  exercises  which
     would result in the issuance of more than 9.99%. The restriction  described
     in this paragraph may be revoked upon  seventy-five  (75) days prior notice
     from the Holder to the Company. The Holder may allocate which of the equity
     of the  Company  deemed  beneficially  owned  by the  Subscriber  shall  be
     included in the 9.99% amount  described  above and which shall be allocated
     to the excess above 9.99%.

         11. Warrant Agent.
             -------------

          The Company may, by written  notice to the each holder of the Warrant,
     appoint  an agent  for the  purpose  of  issuing  Common  Stock  (or  Other
     Securities)  on the  exercise  of  this  Warrant  pursuant  to  Section  1,
     exchanging  this Warrant  pursuant to Section 7, and replacing this Warrant
     pursuant to Section 8, or any of the  foregoing,  and  thereafter  any such
     issuance,  exchange or  replacement,  as the case may be,  shall be made at
     such office by such agent.

         12.  Transfer  on the  Company's  Books.
              ----------------------------------

          Until this Warrant is  transferred  on the books of the  Company,  the
     Company may treat the registered holder hereof as the absolute owner hereof
     for all purposes, notwithstanding any notice to the contrary.

         13.  Notices.
              -------

          All  notices,  demands,  requests,  consents,   approvals,  and  other
     communications  required or  permitted  hereunder  shall be in writing and,
     unless otherwise  specified herein,  shall be (i) personally  served,  (ii)
     deposited in the mail,  registered or certified,  return receipt requested,
     postage  prepaid,  (iii)  delivered by reputable  air courier  service with
     charges  prepaid,  or (iv)  transmitted  by  hand  delivery,  telegram,  or
     facsimile,  addressed  as set forth below or to such other  address as such
     party shall have specified most recently by written  notice.  Any notice or
     other  communication  required or permitted to be given  hereunder shall be
     deemed  effective  (a) upon hand  delivery or delivery by  facsimile,  with
     accurate confirmation  generated by the transmitting  facsimile machine, at
     the address or number  designated  below (if  delivered  on a business  day
     during normal  business hours where such notice is to be received),  or the
     first  business day following  such delivery (if delivered  other than on a
     business  day during  normal  business  hours  where  such  notice is to be
     received) or (b) on the second  business day  following the date of mailing
     by express courier service,  fully prepaid,  addressed to such address,  or
     upon actual  receipt of such  mailing,  whichever  shall first  occur.  The
     addresses  for such  communications  shall be: (i) if to the Company to USA
     Technologies,  Inc., 200 Plant Avenue,  Wayne,  PA 19087,  Attn:  George R.
     Jensen, Jr., telecopier: (610) 989-0344, with a copy by telecopier only to:
     Lurio & Associates,  One Commerce  Square,  Suite 2340, 2005 Market Street,
     Philadelpha, PA 19103-7015, Attn: Douglas M. Lurio, Esq., telecopier: (215)
     665-8582,  and (ii) if to the Holder of this  Warrant,  to:  Alpha  Capital
     Aktiengesellschaft,  Pradafant 7, 9490  Furstentums,  Vaduz,  Lichtenstein,
     telecopier:  011-42-32323196,  with a copy by telecopier  only to Grushko &
     Mittman,  P.C.,  551 Fifth Avenue,  Suite 1601,  New York,  New York 10176,
     telecopier number: (212) 697-3575.

         14. Miscellaneous.
             -------------

          This Warrant and any term hereof may be changed, waived, discharged or
     terminated  only by an  instrument  in writing  signed by the party against
     which  enforcement  of such change,  waiver,  discharge or  termination  is
     sought. This Warrant shall be construed and enforced in accordance with and
     governed  by the laws of New York.  Any dispute  relating  to this  Warrant
     shall be  adjudicated  in New York  County in the  State of New  York.  The
     headings in this Warrant are for purposes of reference  only, and shall not
     limit or  otherwise  affect  any of the terms  hereof.  The  invalidity  or
     unenforceability  of  any  provision  hereof  shall  in no way  affect  the
     validity or enforceability of any other provision.

<PAGE>

         IN WITNESS WHEREOF, the Company has executed this Warrant as of the
date first written above.

                                              USA TECHNOLOGIES, INC.

                                                 /s/ George R. Jensen, Jr.
                                              By:_________________________
                                                  Name: George R. Jensen
                                                  Title: CEO

Witness:

________________________________

<PAGE>

                                    Exhibit A

                              FORM OF SUBSCRIPTION
                                    (to be signed only on exercise of Warrant)
TO:  USA TECHNOLOGIES, INC.
The undersigned, pursuant to the provisions set forth in the attached Warrant
(No.____), hereby irrevocably elects to purchase (check applicable box):

___      ________ shares of the Common Stock covered by such Warrant; or
___ the maximum number of shares of Common Stock covered by such Warrant
pursuant to the cashless exercise procedure set forth in Section 2.

The undersigned herewith makes payment of the full purchase price for such
shares at the price per share provided for in such Warrant, which is
$___________. Such payment takes the form of (check applicable box or boxes):

___      $__________ in lawful money of the United States; and/or
___ the cancellation of such portion of the attached Warrant as is exercisable
for a total of _______ shares of Common Stock (using a Fair Market Value of
$_______ per share for purposes of this calculation); and/or

___ the cancellation of such number of shares of Common Stock as is necessary,
in accordance with the formula set forth in Section 2, to exercise this Warrant
with respect to the maximum number of shares of Common Stock purchasable
pursuant to the cashless exercise procedure set forth in Section 2.

The undersigned requests that the certificates for such shares be issued in the
name of, and delivered to
_________________________________ whose        address          is
_______________________________________________________________________________
_______________________________________________________________________________

The undersigned represents and warrants that all offers and sales by the
undersigned of the securities issuable upon exercise of the within Warrant shall
be made pursuant to registration of the Common Stock under the Securities Act of
1933, as amended (the "Securities Act"), or pursuant to an exemption from
registration under the Securities Act.

Dated:___________________              ________________________________________
                                      (Signature must conform to name of holder
                                       as specified on the face of the Warrant)

                                       ________________________________________
                                       ________________________________________
                                       (Address)

<PAGE>

                                    Exhibit B

                         FORM OF TRANSFEROR ENDORSEMENT
                    (To be signed only on transfer of Warrant)

                  For value received, the undersigned hereby sells, assigns, and
transfers unto the person(s) named below under the heading "Transferees" the
right represented by the within Warrant to purchase the percentage and number of
shares of Common Stock of USA TECHNOLOGIES, INC. to which the within Warrant
relates specified under the headings "Percentage Transferred" and "Number
Transferred," respectively, opposite the name(s) of such person(s) and appoints
each such person Attorney to transfer its respective right on the books of USA
TECHNOLOGIES, INC. with full power of substitution in the premises.

--------------------- -------------------------------- -------------------------
     Transferees           Percentage Transferred          Number Transferred
--------------------- -------------------------------- -------------------------
--------------------- -------------------------------- -------------------------

--------------------- -------------------------------- -------------------------
--------------------- -------------------------------- -------------------------

--------------------- -------------------------------- -------------------------
--------------------- -------------------------------- -------------------------

--------------------- -------------------------------- -------------------------

Dated:  ____________, _______
                                   --------------------------------------------
                                   (Signature must conform to name of holder as
                                    specified on themface of the warrant)

Signed in the presence of:

_____________________________      _____________________________
         (Name)                    _____________________________
                                           (address)

ACCEPTED AND AGREED:               _____________________________
[TRANSFEREE]                       _____________________________
                                           (address)

_____________________________
    (Name)

<PAGE><PAGE>
EXHIBIT 10.9.2

                       SECOND AMENDMENT TO EMPLOYMENT AND
                       ----------------------------------
                            NON-COMPETITION AGREEMENT
                            -------------------------

     This  Second  Amendment  is  made  as of the 15th day of April 2002, by and
between  STEPHEN  P.  HERBERT  ("Herbert"),  and  USA  TECHNOLOGIES,  INC.,  a
Pennsylvania  corporation  ("USA").
                                   Background
                                   ----------
     USA  and  Herbert  entered into an Employment And Non-Competition Agreement
dated  April 4, 1996 and a First Amendment thereto dated as of February 22, 2000
(collectively,  the  "Agreement").  As  more fully set forth herein, the parties
desire  to  amend  the  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.     Subparagraph  (a)  of  Section  1.  Employment of the Agreement is hereby
                                           ----------
deleted  and  the  following  new  subparagraph (a) is hereby substituted in its
place:

<PAGE>
          (a)  USA shall employ Herbert as President and Chief Operating Officer
     commencing  on  the  date  hereof and continuing through June 30, 2004 (the
     "Employment  Period")  and  Herbert  hereby accepts such employment. Unless
     terminated by either party hereto upon at least 60-days notice prior to end
     of the original Employment Period ending June 30, 2004, or prior to the end
     of  any  one year extension of the Employment Period, the Employment Period
     shall  not be terminated and shall automatically continue in full force and
     effect  for  consecutive  one  year  periods.

     B.     Subparagraph  (a)  of  Section  2.  Compensation and Benefits of the
                                                -------------------------
Agreement  is  hereby  deleted  and the following new subparagraph (a) is hereby
substituted  in  its  place:

          A.  In  consideration  of  his services rendered, commencing April 15,
          2002,  USA  shall  pay  to  Herbert a base salary of $165,000 per year
          during  the  Employment Period, subject to any withholding required by
          law.  Herberts  base  salary may be increased from time to time in the
          discretion  of  the  Board  of  Directors.

     C.  The  following new subparagraphs (v) and (vi) are added to Subparagraph
(b)  of  Section  2.  Compensation  and  Benefits  of  the  Agreement:
                      ---------------------------

<PAGE>

          (v)  On  April  15, 2002, USA shall issue to Herbert 300,000 shares of
          fully  vested  Common  Stock as a bonus. Herbert acknowledges that the
          Common  Stock has not been registered under the Act or under any state
          securities  law,  and  the Common Stock can not be sold or transferred
          unless  such  Common  Stock  has been registered under the Act or such
          state  securities  laws,  or unless USA has received an opinion of its
          counsel  that  such  registration is not required. Notwithstanding the
          foregoing,  USA  shall  at  its  cost  and  expense prepare and file a
          registration  statement  with  the  Securities and Exchange Commission
          covering these shares for resale under the Act, and shall use its best
          efforts  to have such registration statement declared effective and to
          remain  current and effective. These shares shall represent the shares
          underlying  the  options  to purchase up to 300,000 shares at $.40 per
          share which were granted to Herbert by USA in November 2001 (and which
          became vested in March 2002). These options shall be canceled upon the
          issuance  to  Herbert  by  USA  of  the  shares without any payment by
          Herbert  to  USA.
<PAGE>
          (vi)  USA  shall pay to Herbert the sum of $80,000 in cash in order to
          reimburse Herbert for the income tax payable by him as a result of the
          shares  of  Common  Stock  delivered to him as a bonus during the 2001
          calendar year. These monies shall be paid to Herbert as follows: up to
          fifty  percent  on  April 15, 2002, with the balance to be paid in six
          equal  consecutive  monthly  installments  commencing May 2002. In the
          alternative,  and  in  lieu  of any cash payment, Herbert may elect to
          receive  shares  of  Common  Stock or other securities of USA having a
          value  equal  to  such  cash  payment.

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

3.  Capitalized  Terms.  Except  as  specifically provided otherwise herein, all
    ------------------
capitalized  terms  used  herein shall have the meanings ascribed to them in the
Agreement.

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

<PAGE>
     IN  WITNESS WHEREOF, the parties hereto have executed this Second Amendment
as  of  the  day  and  year  first  above  written.

                              USA  TECHNOLOGIES,  INC.

                               /s/ George R. Jensen, Jr.
                              By:________________________
                              George  R.  Jensen,  Jr.,
                              Chief  Executive  Officer

                              /s/ Stephen P. Herbert
                              ---------------------------
                              STEPHEN  P.  HERBERT

<PAGE>

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