SEC Contract Filing

Filing Date: 2022-03-31

Document Content:
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<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>ex10_1.htm
<DESCRIPTION>EXHIBIT 10.1
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0; text-align: right"><B>Exhibit 10.1</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>COOPERATION AGREEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This Cooperation Agreement,
dated as of March 30, 2022 (this &ldquo;<U>Agreement</U>&rdquo;), is by and among TransAct Technologies Incorporated, a Delaware corporation
(the &ldquo;<U>Company</U>&rdquo;), 325 Capital Master Fund LP, a Cayman Islands exempted limited partnership (&ldquo;<U>325 Master Fund</U>,&rdquo;
collectively and with the other persons and entities listed on <U>Schedule A</U> hereto, the &ldquo;<U>325 Investors</U>&rdquo;), and
Harbert Discovery Fund, LP, a Delaware limited partnership (&ldquo;<U>Harbert Fund</U>,&rdquo; collectively and with the other persons
and entities listed on <U>Schedule B</U> hereto, the &ldquo;<U>Harbert Investors</U>&rdquo; and, together with the 325 Investors, the
&ldquo;<U>Investor Group</U>&rdquo;). The Company and each member of the Investor Group are collectively herein referred to as a &ldquo;<U>Party</U>&rdquo;
and shall collectively be referred to herein as the &ldquo;<U>Parties</U>.&rdquo;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, the Company and representatives
of the Investor Group have engaged in discussions regarding various matters concerning the Company, including matters concerning the Board
of Directors of the Company (the &ldquo;<U>Board</U>&rdquo;);</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, on February 8, 2022,
325 Master Fund, on behalf of itself and the 325 Investors, and Harbert Fund, on behalf of itself and the Harbert Investors, submitted
a notice to the Company (the &ldquo;<U>Notice</U>&rdquo;) as to the presentation of two (2) business proposals and the nomination of a
slate of director candidates to be elected to the Board at the 2022 annual meeting of stockholders of the Company (the &ldquo;<U>2022
Annual Meeting</U>&rdquo;);</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, on March 11, 2022,
325 Master Fund, on behalf of itself and the 325 Investors, and Harbert Fund, on behalf of itself and the Harbert Investors, submitted
a letter to the Company demanding to inspect books, records and documents of the Company pursuant to Section 220 of the Delaware General
Corporation Law (the &ldquo;<U>Demand Letter</U>&rdquo;);</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, as of the date of
this Agreement, the 325 Investors directly or Beneficially Own (as defined below) common stock of the Company, par value $0.01 per share
(the &ldquo;<U>Common Stock</U>&rdquo;), as set forth on <U>Schedule A</U> hereto;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, as of the date of
this Agreement, the Harbert Investors directly or Beneficially Own the Common Stock as set forth on <U>Schedule B</U> hereto; and</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, the Parties have
determined that it is in their respective best interests to come to an agreement with respect to the composition of the Board and certain
other matters, as provided in this Agreement.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">NOW, THEREFORE, in consideration
of and reliance upon the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the Parties hereto agree as follows:</P>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0%"></TD><TD STYLE="width: 0.5in; text-align: left">1.</TD><TD><U>Board Matters.</U></TD>
</TR></TABLE>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">a.</TD><TD STYLE="text-align: justify">The Company shall, effective with the execution and delivery of this Agreement, (i) increase the size
of the Board from five (5) to seven (7) directors and (ii) appoint to the Board Audrey P. Dunning and Daniel M. Friedberg (together, the
&ldquo;<U>Investor Group Appointees</U>&rdquo; and each, an &ldquo;<U>Investor Group Appointee</U>&rdquo;) to the class of directors