Exhibit 10.45

Second Modification to Loan and Security Agreement

This Second Modification to Loan and Security Agreement
(this Modification) is entered into by and between Spy Optic, Inc. (Borrower) and BFI Business Finance (Lender) as of this 12th day of February, 2008, at San Jose, California.

RECITALS



| | A. | Lender and Borrower have previously entered into or are concurrently herewith entering into a Loan and Security Agreement (the Agreement) dated
February 26, 2007.
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| | B. | Lender and Borrower may have previously executed one or more Modifications to Loan and Security Agreement (the Previous Modification(s)).
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| | C. | Borrower has requested, and Lender has agreed, to modify the Agreement as set forth below.
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AGREEMENT

For good and valuable consideration, the parties agree as set
forth below:



| | 1. | Incorporation by Reference. The Agreement and the Previous Modification(s), if any, as modified hereby and the Recitals are incorporated herein by this reference.
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| | 2. | Effective Date. The terms of this Modification shall be in full force and effect as of February 12, 2008.
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| | 3. | Modification to Agreement. The Agreement is hereby modified to amend and restate the section(s) referenced below:
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Borrowing Base means the sum of the following:



| | (a) | Eighty percent (80%) of the Net Face Amount of Prime Accounts, but in any event not in an aggregate amount in excess of the Maximum Account Advance (the A R
Borrowing Base) excepting therefrom the Accounts of No Fear where Fifty percent (50%) of the Net Face Amount of Prime Accounts shall be allowed up to a maximum amount of Two Hundred Fifty Thousand and 00/100 Dollars ($250,000.00) so long
as there is availability under the line; plus
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| | (b) | Twenty-Five percent (25%) of the Current Market Cost of raw materials that constitute Eligible Inventory; plus Twenty-Five percent (25%) of the Current
Market Cost of finished goods that constitute Eligible Inventory, but in any event not in an aggregate amount in excess of the Maximum Inventory Advance (the Inventory Borrowing Base).
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Maximum Account Advance means Eight Million and 00/100 Dollars ($8,000,000.00).

Maximum Amount means Eight Million and 00/100 Dollars ($8,000,000.00).

Maximum Inventory Advance means the lesser of One Million Five Hundred Thousand and 00/100 Dollars ($1,500,000.00) or
fifty percent (50%) of the A R Borrowing Base.



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Prime Rate means the variable rate of interest announced as the prime rate
in the Western Edition of the Wall Street Journal which is in effect from time to time; provided that the Prime Rate shall at all times be deemed to be not less thanN/A percent (N/A%) per annum (the Deemed Prime
Rate).



| | 4. | Fee. At the time of execution of the Modification, Borrower agrees to pay a one-time fee in the amount ofN/A and 00/100 Dollars ($n/a).
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| | 5. | Legal Effect. Except as specifically set forth in this Modification, all of the terms and conditions of the Agreement remain in full force and effect.
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| | 6. | Integration. This is an integrated Modification and supersedes all prior negotiations and agreements regarding the subject matter hereof. All amendments hereto must be in
writing and signed by the parties.
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IN WITNESS WHEREOF, the parties have executed this Second Modification to Loan and Security
Agreement as of the date first set forth above.



|                     |  |              |  |                 |  |      |  |                        
|-------------------- |  | ------------ |  | --------------- |  | ---- |  | -----------------------
|BFI Business Finance |  |              |  | Spy Optic, Inc.
|                     |  |             
|/s/ David Drogos     |  |              |  | /s/ Mark Simo  
|By:                  |  | David Drogos |  |                 |  | By:  |  | Mark Simo              
|Its:                 |  | President    |  |                 |  | Its: |  | Chief Executive Officer



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