Item 1.01 Entry into a Material Definitive Agreement



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On December 31st, 2020, the Company entered into a Preferred Supplier Agreement which includes a Promissory Note and Security Agreement with Covarrubia Engineering, LLC ("Covarrubia") an international engineering and construction firm based in Ohio. The agreements provide Covarrubia with preferred supplier status related to providing EPC (engineering, procurement & construction) contracting services to TransAct over the next five years (estimated construction value $14.7 Billion) subject to industry tender protocols. As part of the Preferred Supplier Agreement Covarrubia has agreed to lend fourteen million dollars ($14,000,000) secured against all assets of TransAct. Interest under the agreement is two point six five percent (2.65%) or three-hundred and seventy-one thousand dollars ($371,000) per year. The term is for two years with the ability to repay early without penalty.

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