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EXHIBIT 10.45    
    

LETTER AGREEMENT  

July
17, 2002 

Special
Devices, Incorporated

14370 White Sage Road

Moorpark, CA 93021 

Ladies
and Gentlemen: 

        Reference
is made to that certain Loan and Security Agreement dated as of June 27, 2001, between Special Devices, Incorporated, a Delaware corporation (the "Company") and Foothill
Capital Corporation (the "Lender") (the "Loan Agreement"). Capitalized terms used but not otherwise defined in this letter shall have the meanings ascribed to them in the Loan Agreement. 

        Lender
understands that the Company has entered into a Settlement Agreement, dated May 7, 2002, by and among Chartech Engineering, Inc. ("Chartech"), George Neff, IsoVac,
and Company (the "Settlement") pursuant to which the Company has agreed to grant Chartech a lien on five (5) RADIFLO machines owned by Company (serial number 2686, 2696, 2700, 2701 and 2711)
(the "Machines") to secure certain license payments to be made by the Company to Chartech (the "Chartech Lien"). Lender currently has a security interest in the Machines. 

        Section 7.2
of the Loan Agreement provides that the Company shall not create, incur, assume or permit to exist any lien on its assets except for Permitted Liens. 

        To
facilitate the consummation of the Settlement, the Company has requested that Lender release its security interest in the Machines and consent to the Chartech Lien. In order to induce
Lender to enter into this letter agreement, the Company agrees to the following: 

        1.     The
Company represents and warrants that (a) there is no existing Event of Default, and (b) the Loan Documents shall remain in full force and effect after
giving effect to the Settlement; 

        2.     The
Company acknowledges and agrees that as a condition precedent of the Lender's release of its security interest in the Machines, the Company shall pay to Lender an
amount equal to $25,000 which Lender will apply to the principal balance of the Term Loan; 

        3.     The
Company acknowledges and agrees that pursuant to Section 2.1 of the Loan Agreement Lender has a right to establish reserves in its Permitted Discretion against
the Borrowing Base and Lender intends to exercise this right by establishing and maintaining a reserve in connection with the Settlement equal to the next payment due under the Settlement (e.g., as of
today such reserve would be $250,000); 

        4.     Except
to the extent expressly set forth above, this letter does not constitute a modification or waiver of the provision of the Loan Documents or any of Lender's rights
and remedies related thereto. Except as expressly modified herein, all terms of the Loan Agreement and the other Loan Documents shall remain in full force and effect. 

        Upon
the execution and delivery of this letter agreement by the Company to Lender, Lender agrees to release its security interest in the Machines and consents to the Chartech Lien (the
"Release"); provided, however, that the Release shall be effective upon Lender's receipt of the final Settlement, which Settlement shall be in form and substance satisfactory to Lender (in Lender's
sole discretion). In connection with the release of its security interest in the Machines, Lender agrees to execute one or more Form(s) UCC-3, and such other documents as may be required
in order to effect the release of its security interest in the Machines, and acknowledges and agrees that the Company may file or record such documents in all states, counties and other appropriate
jurisdictions, and hereby authorizes the Company accordingly. 

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

        Please
indicate your agreement by signing as indicated below. 

Very
truly yours, 

	FOOTHILL CAPITAL CORPORATION	 
	

/s/  JOHN NOCITA      
	

 
	

Agreed and Acknowledged:	

 
	

SPECIAL DEVICES, INCORPORATED	

 
	

By:	

/s/  JAMES E. REEDER      
	

 
	Name:	JAMES E. REEDER
	 
	Title:	VICE PRESIDENT FINANCE
	 
	Date:	JULY 24, 2002
	 
	 	 	 

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EXHIBIT 10.46    
    

LETTER AGREEMENT  

October 23,
2002 

Mr. James
E. Reeder

Chief Financial Officer

Special Devices, Incorporated

14370 White Sage Road

Moorpark, CA 93021 

Dear
Mr. Reeder: 

        Reference
is hereby made to that certain Loan and Security Agreement dated as of June 27, 2001 (the "Loan Agreement"), between Special Devices, Incorporated ("Borrower") and
Foothill Capital Corporation ("Lender"). Capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Loan Agreement. 

        Borrower
has advised Lender that it proposes to repurchase up to $10 million in Senior Subordinated Notes at a discounted price (the "Proposed Transaction"). In order to
accomplish the Proposed Transaction, Borrower has requested that Lender reduce the minimum amount of credit availability and cash on hand required by Section 7.17 of the Loan Agreement to
enable Borrower to use Advances under the Loan Agreement to retire the Senior Subordinated Notes. 

        Lender
hereby agrees to modify Section 7.17 of the Loan Agreement as requested by Borrower, subject to the terms and conditions set forth in this Amendment Letter. 

        Modification of Section 7.17.    The proviso set forth in clause (b) of
Section 7.17 of the Loan Agreement is hereby modified in its entirety to read as follows: 

";
provided that Borrower may use a portion of the proceeds of the Advances and the Term Loan to retire the Senior Subordinated Notes if, after giving effect to such retirement payment, credit
availability under Section 2.1(a) hereof, plus Borrower's cash on hand, minus a reserve for any outstanding trade accounts payable in excess of historically aged levels, is in excess of
$5,000,000." 

        Amendment Fee.    As consideration of Lender's agreement to modify the Loan Agreement, Borrower shall
pay to Lender an amendment fee (the "Amendment Fee") in the amount equal to two percent (2%) of the face amount of the Senior Subordinated Notes repurchased by Borrower using the proceeds of Advances
made (or deemed made) to Borrower under the Loan Agreement. The Amendment Fee shall be paid concurrently with the consummation of each repurchase of Senior Subordinated Notes. The Amendment Fee shall
be deemed to be an Obligation that is secured by the Collateral. 

        Fees and Expenses.    Borrower hereby agrees to reimburse Lender for all of Lender's reasonable
out-of-pocket costs and expenses relating to this Amendment Letter and the Proposed Transaction, including, but not limited to, reasonable attorneys fees and expenses. 

        Reaffirmation of Loan Documents; No Defaults.    Borrower hereby reaffirms each of the Loan Documents
and confirms that the representations and warranties set forth in the Loan Documents remain true and correct as of the date of this Amendment Letter. 

        All
other terms and conditions of the Loan Documents remain unchanged. 

        The
Loan Agreement and all other Loan Documents executed in connection therewith, as amended and supplemented by this Amendment Letter, shall remain in full force and effect in
accordance with their terms. For purposes of this Amendment Letter, the terms and conditions of Sections 13, 15.1, 16.1, 16.2, 16.3, 16.4, 16.6, 16.7 and 16.9 of the Loan Agreement are hereby 

incorporated
by reference, provided that all references to "Agreement" in such sections shall mean this "Amendment Letter". 

        Please
acknowledge your agreement with the foregoing by signing in the space provided below and return it to the undersigned. This Amendment Letter shall become effective upon execution
by both Lender and Borrower. 

Very
truly yours, 

	FOOTHILL CAPITAL CORPORATION	 
	

By:	

/s/  JOHN NOCITA      
 Name: JOHN NOCITA

Title: VICE PRESIDENT	

 
	

ACCEPTED BY:	

 
	

SPECIAL DEVICES, INCORPORATED	

 
	

By:	

/s/  JAMES E. REEDER      
 Name: JAMES E. REEDER	

 
	 	Title: VICE PRESIDENT FINANCE
	 	 	 

	DATED:	OCTOBER 23, 2002
	 
	 	 	 

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EXHIBIT 10.47    
    

LETTER AGREEMENT  

March
28, 2003 

Special
Devices, Incorporated

14370 White Sage Road

Moorpark, CA 93021 

Ladies
and Gentlemen: 

        This
letter agreement is entered into by and between Special Devices, Incorporated, a Delaware corporation (the "Company"), and Foothill Capital Corporation (the "Lender") (this "Letter
Agreement"). Reference is made to that certain Loan and Security Agreement dated as of June 27, 2001, between the Company and Lender, as amended by that certain letter agreement dated as of
July 17, 2002, and that certain letter agreement dated as of October 23, 2002 (as amended, the "Loan Agreement"). Capitalized terms used but not otherwise defined in this Letter
Agreement shall have the meanings ascribed to them in the Loan Agreement. The term "Loan Documents" as defined in the Loan Agreement is hereby amended and supplemented to include this Letter
Agreement. 

        The
Company and Lender desire to amend the Loan Agreement to permit Interest Periods of four (4) months for LIBOR Rate Loans (in addition to permitting 1, 2, 3 and 6 month
Interest Periods). 

        Therefore,
the Loan Agreement is hereby amended as follows: 

        1.    Section 1.1 of the Loan Agreement.    The definition of "Interest Period" appearing in Section 1.1
of the Loan Agreement is hereby amended by replacing the clause "1, 2, 3, or 6 months" where it appears in both places of such definition with the clause "1, 2, 3, 4 or 6 months." 

        2.    Section 2.13(a) of the Loan Agreement.    Section 2.13(a) of the Loan Agreement is hereby amended
by replacing the clause "1, 2 or 3 months" with the clause "1, 2, 3 or 4 months." 

        Except
as specifically set forth above and as set forth in other amendments and agreements in writing between the parties in accordance with Section 15.1 of the Loan Agreement,
the respective rights and obligations of the parties under the Loan Agreement shall remain unchanged. 

        This
Letter Agreement may be executed in counterparts, each of which shall constitute an original, but all of which taken together shall constitute one and the same instrument. The terms
and conditions of the Loan Agreement are hereby incorporated by reference into this Letter Agreement. 

        This
Letter Agreement shall become effective upon the Company returning a executed copy of this Letter Agreement to Lender. 

        Please
indicate your agreement by signing as indicated below. 

Very
truly yours, 

	FOOTHILL CAPITAL CORPORATION	 
	

/s/  JOHN NOCITA      
	

 
	

Agreed and Acknowledged:	

 
	

SPECIAL DEVICES, INCORPORATED	

 
	

By:	

/s/  JAMES E. REEDER      
	

 
	Name:	JAMES E. REEDER
	 
	Title:	VICE PRESIDENT FINANCE
	 
	Date:	MARCH 28, 2003
	 
	 	 	 

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EXHIBIT 10.47

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