Document:

<PAGE>

EXHIBIT 4.16

                             SUBSCRIPTION AGREEMENT

     This  Subscription  Agreement  is made this 25 day of October 2002, by and
between USA TECHNOLOGIES, INC., a Pennsylvania corporation ("USA" or "Company"),
and  RATNER & PRESTIA, P.C., a Pennsylvania professional corporation ("Ratner").

                                   BACKGROUND
                                   ----------

     As of the date hereof, USA owes Ratner unpaid professional fees of
approximately $165,000.  As more fully set forth herein, Ratner has agreed to
subscribe for 400,000 shares of Common Stock of USA (the "Shares") and to apply
the sales proceeds thereof towards the professional fees due or to become due in
the future.

                                    AGREEMENT
                                    ---------

     NOW THEREFORE, intending to be legally bound hereby, the parties hereto
agree as follows:

     1. SUBSCRIPTION. Ratner hereby subscribes for the Shares. Ratner and USA
        ------------
agree that the proceeds from the sale of the Shares (net of applicable brokerage
commissions and all other costs of Ratner relating to this Agreement and the
sale of the Shares) shall be applied towards the unpaid balance of the
professional fees due and to become due in the future to Ratner by USA.  USA
shall deliver to Ratner a certificate representing the Shares registered in the
name of Ratner within 15 days of the date hereof. Ratner agrees that all sales
of the Shares shall satisfy the manner of sale requirements set forth in
subsections (f) and (g) of Rule 144 promulgated under the Securities Act of
1933, as amended ("Act"). The foregoing sentence shall not apply (i) unless at
the applicable time of sale there is an effective registration statement in
effect covering the Shares, or (ii) to block sales by Ratner consisting of at
least 50,000 of the Shares.  Ratner shall notify the Company of all such sales
within 48 hours thereof and comply with the prospectus delivery requirements of
the Act.

     Promptly following the date hereof, USA shall at its cost and expense  file
and use its best efforts to have declared effective, an appropriate Registration
Statement with the Securities and Exchange Commission registering all of the
Shares for resale by Ratner under the Act.  USA shall use its best efforts to
keep the Registration Statement effective and current for a 12 month period.

<PAGE>
     2. VERIFICATION OF SUITABILITY AND STATUS AS "ACCREDITED INVESTOR".  Ratner
hereby represents to USA that it qualifies as an "accredited investor" as such
term is defined in Rule 501 promulgated under the Act because it is a
corporation not formed for the purpose of investing in the Company with total
assets in excess of $5,000,000.

     3. REPRESENTATIONS BY RATNER. Ratner represents and warrants to the Company
as follows:

          (a) Ratner has received, read and understands the provisions of the
following: (i) the Company's Annual Report on Form 10-KSB for the fiscal year
ended June 30, 2002; (ii) the Company's draft Registration Statement on Form
SB-2 covering the Shares to be filed promptly after the date hereof with the
Securities and Exchange Commission; and (iii) the Risk Factors section
incorporated by reference herein in Section 3(f) hereof. Ratner understands that
all of the foregoing together with this Subscription Agreement shall be referred
to herein as "Offering Materials".  Ratner agrees to keep the information set
forth in the draft Registration Statement in confidence until the Registration
Statement has been filed with the Securities and Exchange Commission for at
least 24 hours.

          (b) Ratner has relied only upon the information presented and
contained in the Offering Materials. Ratner has had the opportunity to ask of
the person or persons acting on behalf of the Company any and all relevant
questions in connection with any aspect of the Company including, but not
limited to, the Shares offered by the Offering Materials and has received
answers which it considers to be reasonably responsive to such questions. Ratner
has had the opportunity to verify the accuracy of the information contained in
the Offering Materials.

          (c) Ratner understands that it is subscribing for the Shares without
being furnished any literature or prospectus in connection with the offering of
the Shares other than the Offering Materials, and that the offering of the
Shares presented in the Offering Materials  will not have been scrutinized by
the securities administrator or similar bureau, agency, or department of the
state of its incorporation.

     (d) Ratner understands (i) that the Shares have not been registered under
the Act or registered or qualified under the securities laws of the state of
incorporation of Ratner (i.e., Pennsylvania); (ii) that except as otherwise
provided herein, Ratner has no right to require such registration or
qualification; and (iii) that therefore Ratner must bear the economic risk of
the investment for an indefinite period of time because the Shares may not be
sold unless so registered or qualified or unless an exemption from such
registration and qualification is available.

Although the Company has agreed to use its best efforts to register for resale
the Shares with the Securities and Exchange Commission, and to use its best
efforts to keep such registration statement current and effective, there can be
no assurance that such efforts will be successful.  In any such event, the
Shares would not be registered for resale under the Act, and could only be sold
by the holder in reliance upon exemptions from registration under the Act.

          (e) Subject to being resold pursuant to an effective registration
statement, the Shares are being purchased for Ratner's own account for
investment purposes only and not for the interest of any other person and are
not being purchased with a view to or for the resale, distribution, subdivision
or fractionalization thereof. Although the Common Stock is currently traded on
the OTC Bulletin Board under the symbol USTT, Ratner also understands that there
may not be any established public trading market for the sale of the Shares.

          (f) Ratner recognizes that the purchase of the Shares involves a high
degree of risk including those special risks set forth under the caption "Risk
Factors" and "Forward Looking Statements" in the draft of the Form SB-2
Registration Statement of the Company to be filed with the Securities and
Exchange Commission promptly after the date hereof, all of which are
incorporated herein by reference.

          (g) Subject to the registration rights set forth above, Ratner
understands that its right to transfer the Shares will be restricted as set
forth on the stock certificates. Such restrictions include provisions against
transfer unless such transfer is not in violation of the Act, or applicable
state securities laws (including investor suitability standards).

          (h) All information which Ratner has provided to the Company
including, but not limited to, its Social Security or tax identification number,
its financial position, and status as an accredited investor,  and its knowledge
of financial and business matters is true,  correct and complete as of the date
of execution of this Subscription Agreement. Ratner understands that USA will
rely in a material degree upon the representations contained herein.

<PAGE>
          (i) Ratner maintains a business at the address shown on the signature
page of this Subscription Agreement, at which address Ratner has subscribed for
the Shares.

          (j)     Ratner understands that legends may be placed on any stock
certificate representing the Shares substantially to the following effect:

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES STATUTES AND
REGULATIONS. SUCH SHARES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD,
TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT FOR SUCH SHARES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
APPLICABLE STATE SECURITIES STATUTES AND REGULATIONS, UNLESS, IN THE OPINION
(WHICH SHALL BE IN FORM AND SUBSTANCE SATISFACTORY TO THE CORPORATION) OF
COUNSEL SATISFACTORY TO THE CORPORATION, SUCH REGISTRATION IS NOT REQUIRED.

     (k) The execution and delivery of this Agreement, and the consummation of
the transactions contemplated hereby has been duly authorized by Ratner.

     4.  SURVIVAL OF REPRESENTATIONS, WARRANTIES, COVENANTS, AGREEMENTS AND
         ------------------------------------------------------------------
REMEDIES.  Except as specifically provided otherwise herein, all
representations, warranties, covenants, agreements and remedies of the parties
hereto, shall survive the date hereof.

     5.      ENTIRE AGREEMENT.     This Agreement constitutes the entire
             ----------------
understanding and agreement between the parties hereto with respect to the
transactions contemplated herein, supersedes all prior and contemporaneous
agreements, understandings, negotiations and discussions, whether oral or
written, of the parties, and there have been no warranties, representations or
promises, written or oral, made by any of the parties hereto except as herein
expressly set forth herein.

     6.  BINDING AGREEMENT.  This Agreement shall be binding upon and inure to
         -----------------
the benefit of the parties hereto, as well as their respective heirs, personal
representatives, successors and assigns but no party may assign its obligations
hereunder.

     7. PENNSYLVANIA LAW CONTROLS.  This Agreement shall be construed in
        -------------------------
accordance with and shall be governed by the laws of the Commonwealth of
Pennsylvania without regard to its conflicts of law rules.

<PAGE>
     IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Subscription Agreement the date first above written.

                              RATNER & PRESTIA, P.C.

                                  /s/ Paul Prestia
                              By:___________________________
                                 Paul Prestia, President

                              Address:

                              One Westlakes
                              Berwyn, Suite 301
                              P.O. Box 980
                              Valley Forge, PA 19482-0980

                              USA TECHNOLOGIES, INC.

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

<PAGE><PAGE>

EXHIBIT 4.17

                            STOCK PURCHASE AGREEMENT
                            ------------------------
     This Stock Purchase Agreement is made this 26th day of October 2002, by and
between USA TECHNOLOGIES, INC., a Pennsylvania corporation ("USA" or "Company"),
and  KAZI  MANAGEMENT  VI,  INC.,  a  U. S. Virgin Islands corporation ("KAZI").

                                   Background
                                   ----------

          As  more  fully  set forth herein, KAZI has purchased from the Company
     3,571,429  shares of Common Stock of USA (the "Shares") for $.07 per share,
     for  an  aggregate of $250,000, and will also receive from USA (a) warrants
     to  purchase  up to 7,142,858 shares of Common Stock of the Company at $.07
     per  share  at  any  time  through  October  26,  2007, as evidenced by the
     certificate attached hereto as Exhibit "A"("Warrants"), and (b) warrants to
     purchase  (i)  up  to  7,142,858  additional  shares of Common Stock of the
     Company  at  $.07  per share, and (ii) up to 5,000,000 additional shares of
     common  stock  of  the  Company  at  $.10  per  share  as  evidenced by the
     certificates  attached  hereto  as  Exhibit  "B"  and  "C",  respectively
     ("Additional  Warrants").  The  Warrants  and  Additional Warrants shall be
     hereinafter  referred  to  as the "Warrants" and the shares of Common Stock
     underlying  the  Warrants shall be referred to as the "Warrant Shares". The
     Additional  Warrants, Warrants, and Shares shall be referred to hereinafter
     collectively  as  the  "Securities".

                                    Agreement
                                    ---------

          NOW  THEREFORE,  intending  to be legally  bound  hereby,  the parties
     hereto agree as follows:

          1. Subscription.
             -------------

          KAZI hereby  purchases the Securities from the Company and the Company
     hereby  sells and issues the  Securities  to KAZI.  In full payment for the
     Securities,  KAZI has delivered to USA  immediately  available funds in the
     amount of $250,000 payable to USA. In exchange therefore,  USA has executed
     and delivered to KAZI the  certificates  representing  the Warrants and the
     Additional  Warrants and shall deliver to KAZI within 5 days after the date
     hereof a  certificate  representing  2,500,000  shares of USA Common  Stock
     registered in the name of KAZI.

          At the time of the  execution  and  delivery  of this  Stock  Purchase
     Agreement,  KAZI and USA have also executed and delivered the  Registration
     Rights  Agreement  attached  hereto as Exhibit  "C"  ("Registration  Rights
     Agreement").

          2.  Verification  of  Status as  "Accredited  Investor".
              ----------------------------------------------------

          KAZI hereby  represents  to USA that it  qualifies  as an  "accredited
     investor"  as such term is  defined in Rule 501  promulgated  under the Act
     because  either  (a)  KAZI  was not  formed  for the  specific  purpose  of
     investing in the  Securities  and has total assets in excess of $5,000,000,
     or (b) each of the  equity  owners  of KAZI has a net  worth in  excess  of
     $1,000,000.

          3.  Representations And Warranties of the Company.
              ----------------------------------------------

          The Company hereby makes the following  representations and warranties
     to KAZI:

          (a) Issuance of Securities.  The issuance of the Shares, Warrants, and
     Warrant  Shares has been duly  authorized  by USA,  and when issued will be
     validly  issued.  The Shares and  Warrant  Shares when issued will be fully
     paid and non-assessable.

          (b)  Corporate  Organization.   The  Company  is  a  corporation  duly
     organized,  validly  existing  and in good  standing  under the laws of the
     Commonwealth  of  Pennsylvania,  with all  requisite  power,  authority and
     licensing  to own,  operate  and  lease  its  properties  and  carry on its
     business as now being conducted.

          (c) Authority.  The execution and delivery of this Agreement,  and the
     consummation  of  the  transactions   contemplated  hereby  has  been  duly
     authorized by the Board of Directors of the Company and no other  corporate
     proceedings  on the part of the Company are  necessary  to  authorize  this
     Agreement or to carry out the transactions contemplated hereby.

          (d) Warrant Shares. There has been reserved,  and the Company shall at
     all times keep reserved out of the authorized and unissued shares of Common
     Stock,  a number of shares of Common  Stock  sufficient  to provide for the
     exercise of the right of purchase  represented by the Warrants.  All shares
     of Common Stock issued upon exercise of the Warrants  shall be, at the time
     of delivery of the certificates  for such Common Stock,  validly issued and
     outstanding, fully paid and non-assessable.

          4.  Representations  by KAZI.
              -------------------------

          KAZI represents and warrants to the Company as follows:

                  (a) KAZI has received, read and understands the provisions of
         each of the following: (i) the Company's Annual Report on Form 10-KSB
         for the fiscal year ended June 30, 2001; (ii) the Company's Quarterly
         Report on Form 10-QSB for the quarter ended September 30, 2001; (iii)
         the Company's Quarterly Report on Form 10-QSB for the quarter ended
         December 31, 2001; (iii) the Company's Quarterly Report on Form 10-QSB
         for the quarter ended March 31, 2002; (iv) the Company's Registration
         Statement on Form SB-2 (File No. 333-86064) filed on April 11, 2002
         with the Securities and Exchange Commission and the final prospectus
         thereto filed on June 13, 2002; (v) the Risk Factors section
         incorporated by reference herein in Section 3(f) hereof; and (vi) the
         Report on Form 8-K filed July 29, 2002. KAZI understands that all of
         the foregoing together with this Subscription Agreement shall be
         referred to herein as "Offering Materials".

                  (b) KAZI has relied only upon the information presented and
         contained in the Offering Materials. KAZI has had the opportunity to
         ask of the person or persons acting on behalf of the Company any and
         all relevant questions in connection with any aspect of the Company
         including, but not limited to, the Securities offered by the Offering
         Materials and has received answers which it considers to be reasonably
         responsive to such questions. KAZI has had the opportunity to verify
         the accuracy of the information contained in the Offering Materials.
         KAZI understands that the proceeds from the sale of the Shares will be
         used for working capital purposes, primarily to make payment of
         obligations and debts of the Company (or its subsidiary).

                  (c) KAZI understands that it is subscribing for the Securities
         withoutbeing furnished any literature or prospectus in connection with
         the offering of the Securities other than the Offering Materials, and
         that the offering of the Securities presented in the Offering Materials
         will not have been scrutinized by the securities administrator or
         similar bureau, agency, or department of the state of its domicile.

                  (d) KAZI understands (i) that neither the Shares, Warrants nor
         the Warrant Stock has been registered under the Act or registered or
         qualified under the securities laws of the state of domicile of KAZI;
         (ii) that except as otherwise provided in the Registration Rights
         Agreement, KAZI has no right to require such registration or
         qualification; and (iii) that therefore KAZI must bear the economic
         risk of the investment for an indefinite period of time because neither
         the Shares, Warrants nor Warrant Stock may be sold unless so registered
         or qualified or unless an exemption from such registration and
         qualification is available.

                  (e) Subject to being resold pursuant to an effective
         registration statement, the Securities are being purchased for KAZI's
         own account for investment purposes only and not for the interest of
         any other person and are not being purchased with a view to or for the
         resale, distribution, subdivision or fractionalization thereof.
         Although the Common Stock of USA is currently traded on the OTC
         Bulletin Board under the symbol USTT, KAZI also understands that there
         may not be any established public trading market for the sale of the
         Shares.

                  (f) KAZI recognizes that the purchase of the Securities
         involves a high degree of risk including those special risks set forth
         under the caption "Risk Factors" and "Forward Looking Statements" in
         the Form SB-2 Registration Statement of the Company (File No.
         333-86064) filed with the Securities and Exchange Commission on April
         11, 2002 and the Form 10-QSB for the quarter ended March 31, 2002, all
         of which are incorporated herein by reference.

                  (g) Subject to the registration rights set forth above, KAZI
         understands that its right to transfer the Shares, Warrants and Warrant
         Stock will be restricted as set forth on the stock certificates. Such
         restrictions include provisions against transfer unless such transfer
         is not in violation of the Act, or applicable state securities laws
         (including investor suitability standards).

                  (h) All information which KAZI has provided to the Company
         including, but not limited to, its tax identification number, its
         financial position, and status as an accredited investor, and its
         knowledge of financial and business matters is true, correct and
         complete as of the date of execution of this Stock Purchase Agreement.
         KAZI understands that USA will rely in a material degree upon the
         representations contained herein.

                  (i) KAZI maintains its principal place of business at the
         address shown on the signature page of this Stock Purchase Agreement,
         at which address KAZI has subscribed for the Securities.

                  (j) KAZI understands that legends may be placed on any
         certificate representing the Shares, Warrants, and Warrant Shares
         substantially to the following effect:

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES STATUTES AND
REGULATIONS. SUCH SHARES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD,
TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT FOR SUCH SHARES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
APPLICABLE STATE SECURITIES STATUTES AND REGULATIONS, UNLESS, IN THE OPINION
(WHICH SHALL BE IN FORM AND SUBSTANCE SATISFACTORY TO THE CORPORATION) OF
COUNSEL SATISFACTORY TO THE CORPORATION, SUCH REGISTRATION IS NOT REQUIRED.

                  (k) The execution and delivery of this Agreement, and the
         consummation of the transactions contemplated hereby has been duly
         authorized by KAZI.

          5.  Right  of  First  Refusal.
              --------------------------

          For any private capital raising  transactions of Equity Securities (as
     defined  below)  which  close  after the date hereof and on or prior to the
     date that is one year after the date of this  Agreement,  not including any
     Warrants issued in conjunction  with this Agreement,  the Company agrees to
     deliver  to KAZI,  at least  three (3) days  prior to the  closing  of such
     transaction, written notice describing the proposed transaction,  including
     the terms and conditions thereof,  and providing KAZI an option (the "Right
     of First Refusal")  during the three (3) day period  following  delivery of
     such notice to purchase the securities being offered in such transaction on
     the same terms as contemplated by such  transaction.  For purposes  hereof,
     the  following  shall be  collectively  referred  to herein as, the "Equity
     Securities":  (i) private  placements of Common Stock at prices equal to or
     less than the price that KAZI has  purchased  the Shares;  or (ii)  private
     placements of any debt or equity  securities  which are  convertible  into,
     exercisable or exchangeable  for, or carry the right to receive  additional
     shares of Common  Stock or other  equity  securities  at prices equal to or
     less than the price that KAZI purchased the Shares.

          Notwithstanding the above, the Rights of First Refusal shall not apply
     to any transaction  involving  issuances of securities in connection with a
     merger, consolidation, acquisition or sale of assets, or in connection with
     any strategic partnership or joint venture (the primary purpose of which is
     not to raise equity  capital),  or in connection  with the  disposition  or
     acquisition of a business, product or license by the Company or exercise of
     options by employees,  consultants or directors,  or a primary underwritten
     offering of the Company's  Common  Stock.  The Rights of First Refusal also
     shall  not  apply  to (a) the  issuance  of  securities  upon  exercise  or
     conversion  of  the  Company's  options,   warrants  or  other  convertible
     securities  outstanding as of the date hereof,  (b) the grant of additional
     options or warrants,  or the issuance of additional  securities,  under any
     Company  stock  option  or stock  plan  for the  benefit  of the  Company's
     employees,  directors or consultants or under any Employee Benefit Plan (as
     defined in Rule 405 of the Act), (c) the issuance of debt securities,  with
     no equity feature,  incurred solely for working  capital  purposes,  or (d)
     private  placements of Equity  Securities  headed by nationally  recognized
     investment banking firms, such as Salomon Smith Barney.

          6. Delay of Registration.
             ----------------------

          Notwithstanding  anything  contained  herein to the  contrary,  if the
     Registration  Statement (as such term is defined in the Registration Rights
     Agreement)  has not  been  (1)  filed  with  the  Securities  and  Exchange
     Commission  within  30 days  following  the date  hereof,  or (2)  declared
     effective under the Act by the Securities and Exchange Commission within 90
     days  following  the date  hereof,  then in either such event,  the Company
     shall  issue to KAZI an  additional  three  percent  (3%) of the  aggregate
     number of Shares,  Warrants,  and Additional Warrants issued to KAZI by the
     Company  hereunder  on the date  hereof,  on a pro rata  basis for  partial
     months, for each full month that the Registration Statement is not so filed
     or declared  effective.  In lieu of receiving  additional Shares,  KAZI may
     elect to receive the cash  equivalent of the additional  Shares (based upon
     the then closing price of the Common Stock). The additional Shares, if any,
     and the additional shares of Common Stock underlying the new warrants shall
     be covered by the Registration Rights Agreement.

          7. Survival of Representations,  Warranties, Covenants, Agreements and
             -------------------------------------------------------------------
             Remedies.
             ---------

          Except as specifically provided otherwise herein, all representations,
     warranties, covenants, agreements and remedies of the parties hereto, shall
     survive the date hereof.

          8.  Entire   Agreement.
              -------------------

          This  Agreement  constitutes  the entire  understanding  and agreement
     between the parties  hereto with respect to the  transactions  contemplated
     herein,    supersedes   all   prior   and    contemporaneous    agreements,
     understandings,  negotiations and discussions,  whether oral or written, of
     the  parties,  and  there  have  been  no  warranties,  representations  or
     promises,  written or oral,  made by any of the  parties  hereto  except as
     herein expressly set forth herein.

          9. Binding  Agreement.
             -------------------

          This  Agreement  shall be binding upon and inure to the benefit of the
     parties   hereto,   as   well   as   their   respective   heirs,   personal
     representatives,  successors  and  assigns  but no  party  may  assign  its
     obligations hereunder.

          10.  Pennsylvania  Law Controls.
               ---------------------------
          This  Agreement  shall be  construed in  accordance  with and shall be
     governed by the laws of the Commonwealth of Pennsylvania  without regard to
     its conflicts of law rules.

          11. Expenses.
              --------

          The Company  shall pay for and prepare all  documentation  and filings
     related to this transaction and shall pay a  non-accountable  legal and due
     diligence fee to KAZI or its legal counsel in the amount of $5,000.

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Stock Purchase Agreement the date first above written.

                                                     KAZI MANAGEMENT VI, INC.

         /s/                   /s/
Witness:_________________  By:__________________________

                                                     Address:

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

                                                     USA TECHNOLOGIES, INC.

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

<PAGE>

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