USA TECHNOLOGIES, INC.
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(Name of Registrant as Specified in Its Charter)
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S.A.V.E. PARTNERS IV, LLC
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LOCKE PARTNERS I LLC
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JOHN S. IOANNOU
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AJOY H. KARNA
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RODMAN K. REEF
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ANDREW SALISBURY
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CRAIG W. THOMAS
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BRADLEY M. TIRPAK
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GEORGE WALLNER
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JAMES W. STUCKERT REVOCABLE TRUST U/A DTD 2/10/86 AMENDED & RESTATED 2/7/07
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DIANE V. STUCKERT REVOCABLE TRUST U/A DTD 8/7/03
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JAMES W. STUCKERT
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DIANE V. STUCKERT
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(Name of Persons(s) Filing Proxy Statement, if Other Than the Registrant)
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(3)
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Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):
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The share price of USAT has declined more than 45% in the past year.
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Since Stephen Herbert became President and COO in August 1999, the Company has accumulated net losses each fiscal year, totaling more than $175 million. During that time, the Company’s stock price has declined over 99%.
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Mr. Herbert recently replaced George Jensen as CEO after it was discovered that Mr. Jensen posted over 450 inappropriate comments on a Yahoo! message board, which led to an ongoing SEC investigation that has cost the Company $886,000 in severance payments and other expenses to date.
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Rather than bring in an outside candidate to energize the business and represent a new direction, the Board appointed Mr. Herbert to the role of CEO.
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While the value of your investment was deteriorating, the Board voted to issue themselves stock, raising their own Board compensation by 35%.
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The Board approved four securities offerings from March 2010 to March 2011, and shareholders have been diluted by over 43% in the past two years.
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One long-standing Board member, Douglas Lurio, has billed the Company over $2,300,000 through his small law firm during the past five fiscal years while collecting an additional $100,000 in Board fees during that time.
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Eliminate Wasteful Spending – Reduce the Company’s cash burn by eliminating waste, starting by terminating the Company’s outside corporate counsel, Douglas Lurio, who is also a Board member. Mr. Lurio’s small law firm has billed the Company over $2,300,000 during the past five fiscal years, in addition to the $100,000 in Board fees he has collected in that time;
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Develop New Hardware – Develop lower cost, higher functioning terminals to enable the Company’s customers to take advantage of the rapidly changing mobile payments market and accelerate the return on investment for all stakeholders;
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Increase Processing Profits – Reduce costs and increase profitability in the transaction processing segment;
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Launch Vending Route Management Solutions – Develop services to help customers use data to optimize their vending routes and increase their profitability;
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Expand Internationally – Distribute the Company’s products on a global scale. The worldwide market is expected to grow to 35 million vending machines by 2015;
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Protect Intellectual Property – Enforce and defend the Company’s key and valuable patents against emerging competitive threats;
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Minimize Dilution – Minimize dilution to shareholders. The majority of the current Board has overseen an increase in the Company’s share count by over 43% in the past two years;
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Align the Board’s Interests with Shareholders and Reward Employees – Our nominees plan to accept only options for service on the Board. We want it to be entirely clear that we believe in a pay for performance culture. We also plan to implement a stock option program for employees so that high-performing employees can benefit along with shareholders.
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George Wallner founded Hypercom Corporation, a global payment technology provider that offered high security end-to-end electronic payment products, software solutions and services. Hypercom Corporation (NYSE:HYC) was acquired by VeriFone Systems, Inc. (NYSE:PAY) in 2011 in an all-stock transaction valued at approximately $485 million. Mr. Wallner has extensive industry knowledge and experience in bringing technology to market, developing point-of-sale hardware and transaction processing solutions.
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Rodman K. Reef was Chairman and Chief Executive Officer of Citishare Corporation, a subsidiary of Citigroup Inc. engaged in the retail electronic payments business. Mr. Reef has participated on the boards and advisory committees of NYCE, Visa, MasterCard’s and Europay’s Maestro, and The Clearing House’s Payments Company. Mr. Reef has extensive experience in the payment industry, including high volume transaction processing experience in the credit card industry.
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John S. Ioannou is the former President of Next Generation Vending, LLC, a leader in vending services for the Northeast region with over 25,000 vending machines. Mr. Ioannou led the turnaround of Next Generation and spearheaded the efforts to apply vending route management technology to increase route operation efficiency. Mr. Ioannou has vast knowledge of the vending industry, experience building a growth company and an extensive technology background.
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Ajoy H. Karna served in various senior-level finance and strategic capacities at Pepsico, Inc., including Senior Vice President, Finance of Frito Lay, Inc. and Senior Vice President, Mergers and Acquisitions at PepsiCo Corporate. Mr. Karna has broad strategic and operational experience in the food, beverage and vending industries and valuable capital markets and finance experience.
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Andrew Salisbury is the former Chief Executive Officer of Corsidian, one of the largest distributors of customer contact and call center solutions in Latin America. Corsidian was sold to Aspect Software in July 2011. Mr. Salisbury is currently CEO of Videlica, a technology distributor. Mr. Salisbury has extensive experience in building profitable growth companies in international markets.
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Craig W. Thomas co-founded and is a managing member of Shareholder Advocates for Value Enhancement, and is a former portfolio manager at S.A.C. Capital Advisors and financial analyst at Rainwater, Inc. Mr. Thomas serves on the board of directors of Direct Insite Corp. and previously served on the boards of Laureate Education, Inc. and WCI Communities, Inc. Mr. Thomas has extensive experience as an investor and as a director of public companies.
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Bradley M. Tirpak co-founded and is a managing member of Shareholder Advocates for Value Enhancement, and is a former portfolio manager at Sigma Capital Management, Caxton Corporation and Credit Suisse First Boston. Mr. Tirpak has extensive experience as an investor, is a former member of the Company’s Board and has a comprehensive understanding of the Company’s business.
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