MALVERN, PA — USA Technologies, Inc. (OTC: USAT), a cashless payments and software services company that provides end-to-end technology solutions for the self-service retail market, recently announced that, because of the uncertainty created by the COVID-19 global pandemic, the base salaries of the Company’s named executive officers and other members of the Company’s senior leadership team have been reduced by 20%.
These base salary reductions are effective as of May 11, 2020 and are expected to continue through December 31, 2020.
In addition, the Company announced that, on May 8, 2020, as an inducement material to Sean Feeney’s entering into employment with the Company as Chief Executive Officer, the Company awarded Mr. Feeney a one-time award of stock options to purchase up to 1,000,000 shares of the Company’s common stock, at an exercise price equal to $6.30, the closing price of the Company’s common stock on the grant date.
Fifty percent of the options are eligible to vest in four equal annual installments on the first four anniversaries of the grant date, 12.5% of the options are eligible to vest on June 30, 2021, and an additional 12.5% of the options are eligible to vest on each of June 30, 2022, June 30, 2023, and June 30, 2024, subject to the achievement of performance goals for the fiscal year ending on each such date to be established by the Board of Directors, following consultation with Mr. Feeney (and subject to proration if so determined by the Compensation Committee of the Company’s Board of Directors if at least 80% of the performance goal for an applicable fiscal year is achieved).
Any outstanding and unvested portion of the options are eligible to vest upon certain “change in control” events involving the Company. This one-time inducement award was made outside of the Company’s current equity compensation plans in accordance with NASDAQ Listing Rule 5635(c)(4).
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