LOAN AND SECURITY AGREEMENT
THIS LOAN AND SECURITY AGREEMENT is made as of August 1, 2006 by and between TACTICAL
SOLUTION PARTNERS, INC. , a Delaware corporation (“Borrower”), and AMERICAN BANK (“Lender”).
Borrower has requested Lender to make a loan to Borrower, and Lender has agreed to do so in accordance
with the terms of this Agreement.
NOW, THEREFORE, in consideration of these premises, and other good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, Borrower and Lender agree as follows:
DEFINITIONS AND GENERAL RULES OF CONSTRUCTION
1.1. Definitions . In this Agreement, all defined terms are capitalized and have the meaning given on Exhibit A
attached hereto and made a part hereof.
1.2. Accounting Terms . All accounting terms not specifically defined herein shall have the meanings assigned to
them as determined by generally accepted accounting principles, consistently applied.
1.3. UCC Terms . All terms used in this Agreement that are defined in the Maryland Uniform Commercial Code
shall have the meanings ascribed to them therein, unless specifically defined otherwise in this Agreement.
Tense; Gender; Section Headings . In this Agreement, the singular includes the plural and vice versa . Each
reference to any gender also applies to any other gender. The Section headings are for convenience only and are not
part of this Agreement.
TERMS OF LOAN
2.1. Agreement to Lend . Subject to and in accordance with the terms, conditions and provisions of this Agreement,
Lender agrees to advance to Borrower from time to time, as proceeds of the Loan, such principal amounts as are
requested by Borrower, provided that the outstanding principal balance of the Loan shall never exceed the lesser of (a)
$1,500,000 or (b) the Maximum Advance Amount. “Maximum Advance Amount” means 80% of Eligible Receivables
until the Trigger Date and 75% of Eligible Receivables thereafter. “T