EXHIBIT 10.40

SIXTH AMENDMENT AND CONSENT TO CREDIT AGREEMENT

SIXTH AMENDMENT AND CONSENT TO CREDIT AGREEMENT (this "Amendment"), dated as of April 25, 2001, among SPECIAL DEVICES, INCORPORATED, a corporation
organized under the laws of the State of Delaware (the "Borrower"), the lenders party to the Credit Agreement referred to below (collectively, the "Banks") and BANKERS TRUST COMPANY, as Administrative
Agent. All capitalized terms used herein and not otherwise defined shall have the respective meanings provided such terms in the Credit Agreement.

W I T N E S S E T H:

WHEREAS, the Borrower, the Banks and the Administrative Agent are parties to a Credit Agreement, dated as of December 15, 1998 (as in effect on the date
hereof, the "Credit Agreement");

WHEREAS,
the Borrower has determined that it is in its best interests (i) to sell all or substantially all of its assets that are used in the design, manufacture and sale of
precision-engineered pyrotechnic components and subsystems for use in aerospace applications (the "Aerospace Sale") and (ii) to enter into the Mesa Sale-Leaseback Transaction and
the Moorpark Sale-Leaseback Transaction simultaneously (collectively, the "Sale-Leaseback Transaction");

WHEREAS,
to effectuate the Aerospace Sale, the Borrower, PS/EMC West, LLC (the "Buyer") and Pacific Scientific Corporation (the "Parent") have heretofore entered into an Asset
Purchase Agreement, dated as of March 27, 2001 (the "Aerospace Purchase Agreement");

WHEREAS,
the Borrower has requested that the Banks (i) consent to the Aerospace Sale and (ii) modify the terms of the Sale-Leaseback Transaction from that
which exists in the Credit Agreement prior to giving effect to this Amendment, both as provided herein;

WHEREAS,
the Borrower also has requested certain other amendments to the Credit Agreement as provided herein; and

WHEREAS,
subject to the terms and conditions of this Amendment, the Banks hereby agree to grant the consents, modifications and amendments under the Credit Agreement as herein
provided;

NOW,
THEREFORE, it is agreed:

I.Consents under Credit Agreement.

1.  Notwithstanding
anything to the contrary contained in Section 3.03(d) or 9.02 of the Credit Agreement, the Banks hereby consent to the Aerospace Sale
pursuant to the Aerospace Purchase Agreement, so long as (i) no Default or Event of Default then exists or would result therefrom, (ii) such sale is in an arm's-length transaction and
the Borrower receives at least fair market value (as determined in good faith by the Borrower), (iii) the total consideration received therefrom by the Borrower is 100% cash and is paid at the
time of the closing of such sale (except for the portion of such consideration which represents any post-closing working capital purchase price adjustment), (iv) such consideration
shall be at least $45,000,000 (subject to a pre-closing and a post-closing working capital purchase price adjustment as provided in the Aerospace Purchase Agreement) (the
"Gross Sale Proceeds") and the Net Sale Proceeds therefrom shall be at least $29,100,000, (v) 100% of the Net Sale Proceeds therefrom are applied upon receipt thereof soley as a mandatory
repayment of principal of outstanding Term Loans in accordance with the requirements of Sections 4.02(h) and (i) of the Credit Agreement (for avoidance of doubt, it is acknowledged and agreed
that no portion of such Net Sale Proceeds shall be permitted to be reinvested pursuant to Section 4.02(d) of the Credit Agreement), (vi) to the extent that the Net Sale Proceeds from the
Aerospace Sale are not sufficient to repay all outstanding Term Loans in full at the time of the closing of the Aerospace Sale, the Borrower shall use a portion of the Gross Sale Proceeds not
constituting Net Sale Proceeds upon the receipt thereof to repay in full all remaining outstanding Term Loans at the time of the closing of the Aerospace Sale,

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and (vii) an amount (the "Revolver Blocked Amount") equal to $9,000,000 of non-Net Sale Proceeds from the Aerospace Sale is applied upon receipt thereof to repay outstanding
Revolving Loans (with no corresponding reduction to the Total Revolving Loan Commitment as a result of such repayment pursuant to this clause (vii)). To the extent Collateral is sold in
compliance with the preceding provisions of this Section 1, such Collateral shall be sold free and clear of the Liens created by the respective Security Documents and the Banks hereby authorize
the Administrative Agent and the Collateral Agent to take any actions deemed appropriate in order to effect such releases.

2.  Notwithstanding
anything to the contrary contained in Sections 9.02(xviii) and (xix) of the Credit Agreement, the Banks hereby consent to the
Sale-Leaseback Transaction, so long as (i) such transaction occurs after the consummation of the Aerospace Sale, (ii) no Default or Event of Default then exists or would
result therefrom, (iii) such transaction is in an arm's-length transaction and the Borrower receives at least fair market value (as determined in good faith by the Borrower), (iv) the
Mesa Sale-Leaseback Transaction and the Moorpark Sale-Leaseback Transaction occur simultaneously with each other as part of one transaction, (v) the total consideration
received therefrom by the Borrower is 100% cash (except for a seller note in an aggregate principal amount not to exceed $4,550,000) and is paid (or delivered) at the time of the closing of such
transaction and such note shall be pledged and delivered to the Collateral Agent pursuant to the Pledge Agreement, (vi) such consideration shall be at least $36,000,000 (the "Gross
Sale-Leaseback Proceeds") and the Net Sale Proceeds therefrom shall be at least $29,000,000 in cash, (vii) 100% of the Net Sale Proceeds therefrom are applied upon receipt thereof
as a mandatory reduction to the Total Revolving Loan Commitment pursuant to Section 3.03(d) of the Credit Agreement (with a corresponding mandatory repayment of outstanding Revolving Loans
pursuant to Section 4.02(a) of the Credit Agreement) (for avoidance of doubt, it is acknowledged and agreed that no portion of such Net Sale Proceeds shall be permitted to be reinvested
pursuant to Section 4.02(d) of the Credit Agreement),providedthat, notwithstanding the foregoing, the Total Revolving Loan Commitment shall not
be reduced to below $8,500,000 as a result of the application of the Net Sale Proceeds from the Sale-Leaseback Transaction. To the extent Collateral is sold in compliance with the
preceding provisions of this Section 2, such Collateral shall be sold free and clear of the Liens created by the respective Security Documents and the Banks hereby authorize the Administrative
Agent and the Collateral Agent to take any actions deemed appropriate in order to effect such releases.

3.  Prior
to giving effect to this Amendment, the Borrower and the Banks acknowledge that the Total Revolving Loan Commitment is $25,000,000, although no more than
$22,500,000 of the Total Revolving Loan Commitment may be utilized by the Borrower as per the Fifth Amendment and Consent, dated as of January 12, 2001, to the Credit Agreement. At the time of
the consummation of the Aerospace Sale, the Banks agree that the Borrower shall have full access to the Total Revolving Loan Commitment then in effect subject to the terms and conditions of the Credit
Agreement and this Amendment (it being understood that, for the avoidance of doubt, the Total Revolving Loan Commitment shall still be reduced as, and to the extent, provided in Section 2 of
this Part I and as provided in the Credit Agreement and utilization thereof shall still be limited as provided in Section 4 of Part I of this Amendment).

4.  In
order to induce the Banks to grant the consents set forth in preceding Sections 1, 2 and 3 of this Part I, the following restrictions shall apply:



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5.  Notwithstanding
anything to the contrary contained in the Credit Agreement or in the Capital Call Agreement, from and after the consummation of the Aerospace Sale
and the application of the proceeds therefrom as provided in Section 1 of this Part I, the Capital Call Agreement shall be terminated and shall be of no further force or effect.

II.Amendments to Credit Agreement.

1.  Section 9.02(xxi) of
the Credit Agreement is hereby amended by deleting the number "30" appearing in the first sentence of said
Section 9.02(xxi) and inserting the number "33" in lieu thereof.

2.  Section 9.08
of the Credit Agreement is hereby deleted in its entirety and the following new Section 9.08 is inserted in lieu thereof:



3.  Section 9.09
of the Credit Agreement is hereby deleted in its entirety and the following new Section 9.09 is inserted in lieu thereof:



4.  Section 9.10
of the Credit Agreement is hereby deleted in its entirety and the following new Section 9.10 is inserted in lieu thereof:



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"and
(v) up to $1,000,000 in the aggregate of payments, fines, penalties and legal and other expenses relating to the settlement of administrative, civil and criminal proceedings arising out of
the accidental initiation incident that occurred on April 24, 2000 at the Borrower's former facility located in Hollister, California to the extent that such charges were deducted in arriving
at Consolidated EBIT for such period".

6.  The
definition of "Revolving Loan Maturity Date" appearing in Section 11.01 of the Credit Agreement is hereby amended by deleting the date
"December 15, 2003" appearing therein and inserting the date "April 30, 2002" in lieu thereof.

7.  Section 11.01
of the Credit Agreement is hereby further amended by inserting in the appropriate alphabetical order the following new definitions:



8.  Section 13.07(a)
of the Credit Agreement is hereby deleted in its entirety and the following new Section 13.07(a) is inserted in lieu thereof:



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IV.Miscellaneous.

1.  In
order to induce the Banks to enter into this Amendment, the Borrower hereby represents and warrants that (i) all representations, warranties and
agreements contained in Section 7 of the Credit Agreement are true and correct in all material respects on and as of the Sixth Amendment Effective Date (unless such representations and
warranties relate to a specific earlier date, in which case such representations and warranties shall be true and correct as of such earlier date) and (ii) there exists no Default or Event of
Default on the Sixth Amendment Effective Date, in each case both before and after giving effect to this Amendment.

2.  This
Amendment is limited as specified and shall not constitute a modification, acceptance or waiver of any other provision of the Credit Agreement or any other
Credit Document.

3.  This
Amendment may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which counterparts when executed
and delivered shall be an original, but all of which shall together constitute one and the same instrument. A complete set of counterparts shall be lodged with the Borrower and the Administrative
Agent.

4.THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE
STATE OF NEW YORK.

5.  This
Amendment shall become effective on the date (the "Sixth Amendment Effective Date") when (i) each Credit Party and the Required Banks shall have signed
a counterpart hereof (whether the same or different counterparts) and shall have delivered (including, without limitation, by way of facsimile transmission) the same to the Administrative Agent at the
Notice Office and (ii) the Aerospace Sale shall have been consummated on the terms and conditions set forth herein. This Amendment and the agreements contained herein shall be binding on the
successors and assigns of the parties hereto.

6.  From
and after the Sixth Amendment Effective Date, all references in the Credit Agreement and in the other Credit Documents to the Credit Agreement shall be deemed
to be references to the Credit Agreement as modified hereby.

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IN
WITNESS WHEREOF, the parties hereto have caused their duly authorized officers to execute and deliver this Amendment as of the date first above written.

| |  | SPECIAL DEVICES, INCORPORATED                                  
| |  | ---------------------------------------------------------------
| |  | By:                                                            
| |  | BANKERS TRUST COMPANY, Individually and as Administrative Agent
| |  | By:                                                            
| |  | BANKBOSTON, N.A.                                               
| |  | By:                                                            
| |  | THE BANK OF NOVA SCOTIA                                        
| |  | By:                                                            
| |  | CITY NATIONAL BANK                                             
| |  | By:                                                            
| |  | FIRST UNION NATIONAL BANK                                      
| |  | By:                                                            

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| |  | GENERAL ELECTRIC CAPITAL CORPORATION           
| |  | -----------------------------------------------
| |  | By:                                            
| |  | MORGAN STANLEY DEAN WITTER
  PRIME INCOME TRUST
| |  | By:                                            
| |  | NATIONAL CITY BANK                             
| |  | By:                                            
| |  | PARIBAS                                        
| |  | By:                                            
| |  | By:                                            
| |  | KZH STERLING LLC                               
| |  | By:                                            
| |  | UNION BANK OF CALIFORNIA, N.A.                 
| |  | By:                                            

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| |  | ARK CLO 2000-1, LIMITED
| |  | -----------------------
| |  | By:                    
| |  | By:                    

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