Exhibit 10.45B

CONSENT AND AMENDMENT NO. 2 TO LOAN AGREEMENT

This CONSENT AND AMENDMENT NO. 2 TO LOAN AGREEMENT (this “Amendment”) is dated
as of March 25, 2003 by and among Allied Capital Corporation, a Maryland
corporation (“Holder”), Simula, Inc., an Arizona corporation (“Simula”), and the
direct and indirect subsidiaries of Simula listed on the signature pages hereof.

WHEREAS, Simula, the Subsidiaries of Simula (collectively with Simula, the
“Companies”) and Holder are parties to a certain Loan Agreement dated as of
September 26, 2001 (as amended, supplemented or otherwise modified from time to
time, the “Loan Agreement”);

WHEREAS, Simula has advised Holder that Simula desires to sell, or to contract
to sell, its owned real properties (the “Properties”) located as (i) 537 Sweeten
Creek Industrial Park Drive, Asheville, North Carolina 28803 and (ii) 10008
South 50th Place, Phoenix, Arizona 85044, which property is subject to a Lien in
favor of Holder pursuant to that certain Junior Deed of Trust, Assignment of
Rents, Security Agreement and Fixture Filing dated as of September 26, 2001
executed by Simula in favor of Holder.

WHEREAS, Simula has further advised Holder that Simula desires to sell, or to
cause one of its Subsidiaries to sell, the equipment described on Exhibit A
hereto (the “Designated Equipment”), which Designed Equipment is subject to a
Lien in favor of Holder pursuant that certain Security Agreement dated as of
September 26, 2001. WHEREAS, Absent the prior written consent of Holder,
disposition of the Properties and the Designated Equipment by Simula would
constitute separate breaches of Section 5.3 of the Loan Agreement and separate
Events of Default pursuant to Section 7.1(c) of the Loan Agreement. Simula has
requested that Holder consent to the disposition of the Properties and the
Designated Equipment by Simula and its Subsidiaries, free and clear of any Lien
in favor of Holder.

WHEREAS, Simula has further requested that Holder agree to amend the Loan
Agreement in certain respects.

NOW THEREFORE, in consideration of the mutual conditions and agreements set
forth in the Loan Agreement and this Amendment, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto hereby agree as follows:

Definitions. Capitalized terms used in this Amendment, unless otherwise defined
herein, shall have the meanings ascribed to such terms in the Loan Agreement.

Consent. Notwithstanding any provisions of the Loan Agreement to the contrary,
in reliance on the representations, warranties, covenants and agreements set
forth herein, and subject to the consummation of the conditions precedent set
forth herein, Holder hereby consents to the disposition of the Properties and
the Designated Equipment by Simula or its Subsidiaries, free and clear of any
Lien in favor of Holder; provided, however, that the Simula or its Subsidiaries
shall use any and all net proceeds available to Simula and its Subsidiaries in
connection with such dispositions to repay Debt that is pari passu with, or
ranks superior to, the Obligations. Except as expressly provided herein, the
foregoing consent shall not constitute (a) a modification or alteration of the
terms, conditions or covenants of the Loan Agreement, any Security Document or
any document entered into in connection therewith, or (b) a waiver, release or
limitation upon the exercise by Holder of any of its rights, legal or equitable,
hereunder or under the Loan Agreement, any Security Document or any Loan
Document. Except as set forth above, Holder reserves any and all rights and
remedies which it has had, has or may have under the Loan Agreement, each
Security Document and each Loan Document.

Amendments. In reliance on the representations, warranties, covenants and
agreements set forth herein, and subject to the consummation of the conditions
precedent set forth herein,, the Loan Agreement is hereby amended as follows:

 

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Paragraph (e) of Section 4.13 of the Loan Agreement is hereby amended and
restated in its entirety, as follows:

  (e)   ASD Capital Expenditures and Capitalized Leases. No Company will, nor
will any Company permit any of its Subsidiaries to, make any ASD Capital
Expenditure or enter into any ASD Capitalized Lease Obligation, if the sum of
(i) the aggregate amount of all ASD Capital Expenditures (including the ASD
Capital Expenditure in question) made by the Companies and their Subsidiaries
during each fiscal quarter of the Companies ending as of the dates set forth
below, plus (ii) the aggregate amount of all ASD Capitalized Lease Obligations
(including the ASD Capitalized Lease Obligation in question) made or required to
be made by the Companies and their Subsidiaries during each such fiscal quarter
of the Companies ending as of the dates set forth below, would exceed the amount
set forth below opposite each such date:

          Fiscal Quarter Ending   Amount

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December 31, 2002
  $ 650,000  
March 31, 2003
  $ 400,000  
June 30, 2003
  $ 250,000  
September 30, 2003
  $ 200,000  
December 31, 2003
  $ 200,000  

If the Companies and their Subsidiaries do not utilize the entire amount of ASD
Capital Expenditures and ASD Capitalized Lease Obligations permitted in any
fiscal quarter set forth above, the Companies may carry forward to the
immediately following fiscal quarter only the unutilized amount of such ASD
Capital Expenditures and ASD Capitalized Lease Obligations (with the amounts
expensed or made by the Companies in such succeeding fiscal quarter applied last
to such carried forward amount).

Section 20.1 of the Loan Agreement is hereby amended by amending and restating
the following definitions set forth therein as follows:

“ASD Capital Expenditures” means Capital Expenditures made by the Companies in
connection with the operation of Simula Automotive Safety Devices, Inc. and/or
Simula Automotive Safety Devices, Ltd.; provided, however, that in calculating
such amounts, the Companies shall be permitted to deduct therefrom the net
amount of tooling reimbursements and grants related to any such Capital
Expenditures and in each case either (i) received by a Company in cash within
thirty (30) days of the incurrence of such Capital Expenditures or (ii) approved
in writing by Holder;

“ASD Capitalized Lease Obligations” means capitalized lease obligations incurred
by the Companies in connection with the operation of Simula Automotive Safety
Devices, Inc. and/or Simula Automotive Safety Devices, Ltd.; provided, however,
that in calculating such amounts, the Companies shall be permitted to deduct
therefrom the net amount of tooling reimbursements and grants related to any
such capitalized lease obligations and in each case either (i) received by a
Company in cash within thirty (30) days of the incurrence of such capitalized
lease obligations or (ii) approved in writing by Holder;

Conditions. The effectiveness of this Amendment is subject to the following
conditions precedent:
Each Company shall have delivered to Holder a manually executed original of this
Amendment;
The Companies shall have paid to Holder the amount set forth in that certain
letter agreement of even date herewith between the Companies and Holder;

The Companies shall have delivered to Holder an agreement executed by each
Company and CIT in form and substance satisfactory to Holder (the “CIT
Amendment”), pursuant to which, among other things, CIT shall have consented to
the disposition of the Properties and the Designated Equipment on substantially
the same terms and conditions as those set forth herein;

After giving effect to the amendments contemplated hereby, no Default or Event
of Default shall be in existence as of the date hereof; and

After giving effect to the CIT Amendment, no Default or Event of Default (as
such terms are defined in the CIT Financing Agreement) shall be in existence as
of the date hereof under the CIT Financing Agreement.

 

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Representations and Warranties. To induce Holder to enter into this Amendment,
the Companies represent and warrant to Holder that (a) the execution, delivery
and performance of this Amendment has been duly authorized by all requisite
corporate action on the part of the Companies and that this Amendment has been
duly executed and delivered by the Companies, and (b) after giving effect to the
amendments contemplated hereby, no Default or Event of Default shall have
occurred and be continuing before and immediately after giving effect to this
Amendment.

DCI Capital Expenditures. Notwithstanding anything contained in this Amendment
or in the Loan Agreement to the contrary, Holder and Companies hereby agree that
no Company shall make any DCI Capital Expenditures, or incur any DCI Capitalized
Lease Obligations, during the Companies’ 2003 fiscal year in an aggregate
amount, with respect to all Companies, in excess of $225,000.

Consent under Intercreditor Agreement. Holder hereby consents to the execution
and delivery of the CIT Amendment by CIT and the Companies, to the extent such
consent is required pursuant to the terms of the Intercreditor Agreement.

Severability. Any provision of this Amendment held by a court of competent
jurisdiction to be invalid or unenforceable shall not impair or invalidate the
remainder of this Amendment and the effect thereof shall be confined to the
provision so held to be invalid or unenforceable.

References. Any reference to the Loan Agreement contained in any document,
instrument or agreement executed in connection with the Loan Agreement shall be
deemed to be a reference to the Loan Agreement as modified by this Amendment.

Counterparts. This Amendment may be executed in one or more counterparts, each
of which shall constitute an original, but all of which taken together shall be
one and the same instrument.

Ratification. The terms and provisions set forth in this Amendment shall modify
and supersede all inconsistent terms and provisions of the Loan Agreement and
shall not be deemed to be a consent to the modification or waiver of any other
term or condition of the Loan Agreement. Except as expressly modified and
superseded by this Amendment, the terms and provisions of the Loan Agreement are
ratified and confirmed and shall continue in full force and effect.

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed and delivered by their respective duly authorized officers on the date
first written above.

              SIMULA, INC.,
an Arizona corporation               By  
/s/ John A. Jenson
       

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    Its  
Chief Financial Officer
              The Subsidiaries of Simula, Inc.:

AI CAPITAL CORP.,
an Arizona corporation               By  
/s/ Mari I. Valenzuela
       

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    Its  
Secretary

 

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            CCEC CAPITAL CORP.,
an Arizona corporation
                By               /s/ Mari I. Valenzuela        

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      Its               Secretary                 INTERNATIONAL CENTER FOR
SAFETY EDUCATION,
INC., an Arizona corporation                 By               /s/ Mari I.
Valenzuela        

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      Its               Secretary                 SAI CAPITAL CORP., an Arizona
corporation f/k/a Simula
Artcraft Industries, Inc.                 By               /s/ Mari I.
Valenzuela        

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      Its               Secretary                 SIMULA AUTOMOTIVE SAFETY
DEVICES, INC., an
Arizona corporation                 By               /s/ Mari I. Valenzuela    
   

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      Its               Secretary                 SIMULA COMPOSITES CORPORATION,
a Delaware corporation                 By               /s/ Mari I. Valenzuela  
     

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      Its               Secretary                 SIMULA POLYMER SYSTEMS, INC.,
an Arizona corporation                 By               /s/ Mari I. Valenzuela  
     

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      Its               Secretary               SIMULA AEROSPACE & DEFENSE
GROUP, INC.,
an Arizona corporation f/k/a Simula Safety Systems, Inc.                 By
              /s/ Mari I. Valenzuela        

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      Its               Assistant Secretary    

 

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            SIMULA TECHNOLOGIES, INC.,
an Arizona corporation                 By               /s/ Mari I. Valenzuela  
     

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      Its               Secretary                 SIMULA TRANSPORTATION
EQUIPMENT
CORPORATION, an Arizona corporation                 By               /s/ Mari I.
Valenzuela        

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      Its               Secretary                 SIMULA AUTOMOTIVE SAFETY
DEVICES, LTD., a United
Kingdom limited company                 By               /s/ Mari I. Valenzuela
       

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      Its               Secretary                 Holder:                 ALLIED
CAPITAL CORPORATION                 By               /s/ Peter Fidler        

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      Its               Vice President