Exhibit 10.4
THIRD AMENDMENT TO THE
SECOND AMENDED AND RESTATED CREDIT AGREEMENT
THIS THIRD AMENDMENT TO THE SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this
“Amendment”), effective as of the 6th day of March, 2017 (the “Amendment
Effective Date”), is entered into by and among DMC GLOBAL INC. (formerly known
as Dynamic Materials Corporation), a Delaware corporation (the “Parent”), the US
Borrowers party hereto, the Alternative Currency Borrowers party hereto (the
Parent, the US Borrowers and Alternative Currency Borrowers are, collectively,
the “Borrowers”), the Guarantors party hereto (the “Guarantors”), the Lenders
party hereto (the “Lenders”), and JPMORGAN CHASE BANK, N.A., as Administrative
Agent.
RECITALS
WHEREAS, the Borrowers, the Guarantors, the Lenders, the Administrative Agent,
the London Agent and the Canadian Agent entered into that certain Second Amended
and Restated Credit Agreement dated as of February 23, 2015 (as amended by that
certain First Amendment to the Second Amended and Restated Credit Agreement
dated as of December 18, 2015 and by that certain Second Amendment to the Second
Amended and Restated Credit Agreement dated as of December 30, 2016, and as may
be further amended from time to time, the “Credit Agreement”);
WHEREAS, the Parent has requested that the Administrative Agent and the Lenders
amend certain provisions of the Credit Agreement;
WHEREAS, the Administrative Agent and the Lenders are willing to so amend the
Credit Agreement subject to the terms and conditions set forth herein, provided
that the Borrowers and the Guarantors ratify and confirm all of their respective
obligations under the Credit Agreement and the Loan Documents.
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants set
forth in this Amendment, the Borrowers, the Guarantors, the Lenders and the
Administrative Agent agree as follows:
1.Defined Terms. Unless otherwise defined herein, capitalized terms used herein
have the meanings assigned to them in the Credit Agreement.
2.    Amendments to Section 1.01 of the Credit Agreement.
(a)
Section 1.01 of the Credit Agreement is hereby amended to restate the last
sentence of the definition of “Alternative Currency Commitment” in its entirety
as follows:

“The aggregate amount of the Alternative Currency Commitments as of the Third
Amendment Effective Date is $5,000,000.”

--------------------------------------------------------------------------------

(b)
Section 1.01 of the Credit Agreement is hereby amended to restate the table set
forth in the definition of “Applicable Margin” in its entirety as follows:

Level
Leverage Ratio
Applicable Margin for Eurocurrency, EURIBOR and CDOR Loans
Applicable Margin for ABR and Canadian Prime Loans
I
1.00 > X
1.75%
0.75%
II
1.50 > X > 1.00
2.00%
1.00%
III
2.00 > X > 1.50
2.25%
1.25%
IV
2.50 > X > 2.00
2.50%
1.50%
V
3.00 > X > 2.50
2.75%
1.75%
VI
X > 3.00
3.25%
2.25%

(c)
Section 1.01 of the Credit Agreement is hereby amended to restate the last
sentence of the definition of “Applicable Margin” in its entirety as follows:

“If the Parent fails to deliver the financial statements and corresponding
Compliance Certificate to the Administrative Agent at the time required pursuant
to Section 5.01, then effective as of the date such financial statements and
corresponding Compliance Certificate were required to be delivered pursuant to
Section 5.01, the Applicable Margin shall be determined at Level VI and shall
remain at such level until the date such financial statements and corresponding
Compliance Certificate are so delivered by the Parent.”
(d)
Section 1.01 of the Credit Agreement is hereby amended to add the following new
definitions of “Bail-In Action” and “Bail-In Legislation” in proper alphabetical
order:

“Bail-In Action” means the exercise of any Write-Down and Conversion Powers by
the applicable EEA Resolution Authority in respect of any liability of an EEA
Financial Institution.
“Bail-In Legislation” means, with respect to any EEA Member Country implementing
Article 55 of Directive 2014/59/EU of the European Parliament and of the Council
of the European Union, the implementing law for such EEA Member Country from
time to time which is described in the EU Bail-In Legislation Schedule.

-2-

--------------------------------------------------------------------------------

(e)
Section 1.01 of the Credit Agreement is hereby amended to restate the table set
forth in the definition of “Commitment Fee Rate” in its entirety as follows:

Level
Leverage Ratio
Commitment Fee Rate
I
1.00 > X
0.25%
II
1.50 > X > 1.00
0.30%
III
2.00 > X > 1.50
0.35%
IV
2.50 > X > 2.00
0.40%
V
3.00 > X > 2.50
0.45%
VI
X > 3.00
0.50%

(f)
Section 1.01 of the Credit Agreement is hereby amended to restate the last
sentence of the definition of “Commitment Fee Rate” in its entirety as follows:

“If the Parent fails to deliver the financial statements and corresponding
Compliance Certificate to the Administrative Agent at the time required pursuant
to Section 5.01, then effective as of the date such financial statements and
corresponding Compliance Certificate were required to be delivered pursuant to
Section 5.01, the Commitment Fee Rate shall be determined at Level VI and shall
remain at such level until the date such financial statements and corresponding
Compliance Certificate are so delivered by the Parent.”
(g)
Section 1.01 of the Credit Agreement is hereby amended to restate clause (d) of
the definition of “Defaulting Lender” in its entirety as follows:

“(d) has become the subject of (i) a Bankruptcy Event or (ii) a Bail-In Action.”
(h)
Section 1.01 of the Credit Agreement is hereby amended to add the following new
definitions of “EEA Financial Institution,” “EEA Member Country,” “EEA
Resolution Authority” and “EU Bail-In Legislation Schedule” in proper
alphabetical order:

“EEA Financial Institution” means (a) any institution established in any EEA
Member Country which is subject to the supervision of an EEA Resolution
Authority, (b) any entity established in an EEA Member Country which is a parent
of an institution described in clause (a) of this definition, or (c) any
institution established in an EEA Member Country which is a subsidiary of an
institution described in clauses (a) or (b) of this definition and is subject to
consolidated supervision with its parent.
“EEA Member Country” means any of the member states of the European Union,
Iceland, Liechtenstein, and Norway.
“EEA Resolution Authority” means any public administrative authority or any
Person entrusted with public administrative authority of any EEA Member Country
(including any delegee) having responsibility for the resolution of any EEA
Financial Institution.

-3-

--------------------------------------------------------------------------------

“EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule
published by the Loan Market Association (or any successor Person), as in effect
from time to time.
(i)
Section 1.01 of the Credit Agreement is hereby amended to restate the definition
of “Federal Funds Effective Rate” in its entirety as follows:

“Federal Funds Effective Rate” means, for any day, the rate calculated by the
Federal Reserve Bank of New York (the “FRBNY”) based on such day’s federal funds
transactions by depositary institutions, as determined in such manner as the
FRBNY shall set forth on its public website from time to time, and published on
the next succeeding Business Day by the FRBNY as the federal funds effective
rate; provided, that, if the Federal Funds Effective Rate shall be less than
zero, such rate shall be deemed to be zero for purposes of this Agreement.
(j)
Section 1.01 of the Credit Agreement is hereby amended to add the following new
definition of “Third Amendment Effective Date” in proper alphabetical order:

“Third Amendment Effective Date” means March 6, 2017.
(k)
Section 1.01 of the Credit Agreement is hereby amended to restate the last
sentence of the definition of “US Commitment” in its entirety as follows:

“The aggregate amount of the US Commitments as of the Third Amendment Effective
Date is $30,000,000.”
(l)
Section 1.01 of the Credit Agreement is hereby amended to add the following new
definition of “Write-Down and Conversion Powers” in proper alphabetical order:

“Write-Down and Conversion Powers” means, with respect to any EEA Resolution
Authority, the write-down and conversion powers of such EEA Resolution Authority
from time to time under the Bail-In Legislation for the applicable EEA Member
Country, which write-down and conversion powers are described in the EU Bail-In
Legislation Schedule.
3.    Amendment to Section 2.04. Section 2.04 of the Credit Agreement is hereby
amended to restate subsection (a) thereof in its entirety as follows:
“(a)    Subject to the terms and conditions set forth herein, (i) the US
Swingline Lender agrees to make US Swingline Loans to the US Borrowers from time
to time during the US Availability Period in an aggregate principal amount at
any time outstanding that will not result in (A) the US Swingline Exposure
exceeding $3,500,000 or (B) the total US Credit Exposures exceeding the total US
Commitments and (ii) the Euro Swingline Lender agrees to make Euro Swingline
Loans to the Alternative Currency Borrowers from time to time during the
Alternative Currency Availability Period in an aggregate principal amount that
will not result in (A) the Euro Swingline Exposure exceeding $1,250,000 or
(B) the total Alternative Currency Credit Exposures exceeding the total
Alternative Currency Commitments; provided that (x) no Swingline Lender shall be
required to make a Swingline Loan to refinance an outstanding Swingline Loan and
(y) for purposes

-4-

--------------------------------------------------------------------------------

of this Section 2.04 only, the terms “Alternative Currency Borrower” and
“Alternative Currency Borrowers” shall not include the Parent. Within the
foregoing limits and subject to the terms and conditions set forth herein, the
US Borrowers and Alternative Currency Borrowers, as applicable, may borrow,
prepay and reborrow Swingline Loans. Each US Swingline Loan shall be in an
amount that is an integral multiple of $1 and not less than $25,000 and each
Euro Swingline Loan shall be in an amount that is not less than €250,000.”
4.    Amendment to Section 2.05. Section 2.05 of the Credit Agreement is hereby
amended to restate the last sentence of subsection (b) thereof in its entirety
as follows:
“A Letter of Credit shall be issued, amended, renewed or extended only if (and
upon issuance, amendment, renewal or extension of each Letter of Credit the
Borrower to which such Letter of Credit shall be issued shall be deemed to
represent and warrant that), after giving effect to such issuance, amendment,
renewal or extension (i) in the case of a US Letter of Credit, the US LC
Exposure shall not exceed $10,000,000 and the total US Credit Exposures shall
not exceed the total US Commitments and (ii) in the case of an Alternative
Currency Letter of Credit, the Alternative Currency LC Exposure shall not exceed
$2,500,000 and the total Alternative Currency Credit Exposures shall not exceed
the total Alternative Currency Commitments.”
5.    Amendment to Section 2.19. Section 2.19 of the Credit Agreement is hereby
amended to restate the first sentence of subsection (a) thereof in its entirety
as follows:
“The Parent may from time to time elect to increase the Commitments of any one
or more Classes (each, an “Incremental Commitment Increase”), in each case with
a minimum aggregate principal amount of (i) $10,000,000 (and increments of
$5,000,000 in excess thereof) with respect to an increase in the US Commitments,
(ii) $5,000,000 (and increments of $1,000,000 in excess thereof) with respect to
an increase in the Alternative Currency Commitments and (iii) $10,000,000 (and
increments of $5,000,000 in excess thereof) with respect to an increase in the
Term Commitments, so long as, after giving effect thereto, (x) the minimum
aggregate principal amount of any one Incremental Commitment Increase across all
increased Classes is $10,000,000 (and increments of $5,000,000 in excess
thereof) and (y) the aggregate amount of all Incremental Commitment Increases
during the term hereof does not exceed $25,000,000.”
6.    Amendments to Section 2.20.
(a)
Section 2.20 of the Credit Agreement is hereby amended to add the following new
proviso at the end of clause (i) of subsection (c) thereof:

“provided, further that, subject to Section 10.17, no reallocation hereunder
shall constitute a waiver or release of any claim of any party hereunder against
a Defaulting Lender arising from that Lender having become a Defaulting Lender,
including any claim of a non-Defaulting Lender as a result of such
non-Defaulting Lender’s increased exposure following such reallocation;”

-5-

--------------------------------------------------------------------------------

(b)
Section 2.20 of the Credit Agreement is hereby amended to restate the
penultimate paragraph thereof in its entirety as follows:

“If (i) a Bankruptcy Event or a Bail-In Action with respect to a Lender Parent
shall occur following the Effective Date and for so long as such event shall
continue or (ii) any Swingline Lender or Issuing Lender has a good faith belief
that any Lender has defaulted in fulfilling its obligations under one or more
other agreements in which such Lender commits to extend credit, such Swingline
Lender shall not be required to fund any Swingline Loan and such Issuing Lender
shall not be required to issue, amend or increase any Letter of Credit, unless
such Swingline Lender or such Issuing Lender, as the case may be, shall have
entered into arrangements with the Parent or such Lender, satisfactory to such
Swingline Lender or Issuing Lender, as the case may be, to defease any risk to
it in respect of such Lender hereunder.”
7.    Amendment to Article III. Article III of the Credit Agreement is hereby
amended to add the following new Section 3.21 at the end of said Article III:
“Section 3.21    EEA Financial Institution. No Obligor is an EEA Financial
Institution.”
8.    Amendments to Article VI. Article VI of the Credit Agreement is hereby
amended to restate Sections 6.14 and 6.15 thereof in their entirety as follows
and add the following new Section 6.17 at the end of said Article VI:
“Section 6.14    Debt Service Coverage Ratio. The Parent shall not permit the
Debt Service Coverage Ratio for any trailing four quarter period measured as of
the last day of any fiscal quarter (other than the fiscal quarters ending March
31, 2017, June 30, 2017 and September 30, 2017) to be less than 1.35 to 1.0.
Section 6.15    Leverage Ratio. The Parent shall not permit the Leverage Ratio
for any trailing four quarter period measured as of the last day of any fiscal
quarter to exceed (a) 4.00 to 1.0 for the fiscal quarter ending March 31, 2017,
(b) 5.00 to 1.0 for the fiscal quarter ending June 30, 2017, (c) 3.50 to 1.0 for
the fiscal quarter ending September 30, 2017 and (d) 3.00 to 1.0 for each fiscal
quarter ending thereafter.
Section 6.17    Minimum Consolidated Pro Forma EBITDA. The Parent shall not
permit Consolidated Pro Forma EBITDA to be less than (a) $4,500,000 for the
trailing four quarter period ending on March 31, 2017, (b) $4,000,000 for the
trailing four quarter period ending on June 30, 2017 and (c) $6,500,000 for the
trailing four quarter period ending on September 30, 2017.”
9.    Amendment to Article X. Article X of the Credit Agreement is hereby
amended to add the following new Section 10.17 at the end of said Article X:
“Section 10.17    Acknowledgement and Consent to Bail-In of EEA Financial
Institutions. Notwithstanding anything to the contrary in any Loan Document or
in any other agreement, arrangement or understanding among any such parties,
each party hereto acknowledges that any liability of any EEA Financial
Institution arising under any Loan Document may be subject to the Write-Down and
Conversion

-6-

--------------------------------------------------------------------------------

Powers of an EEA Resolution Authority and agrees and consents to, and
acknowledges and agrees to be bound by:
(a)    the application of any Write-Down and Conversion Powers by an EEA
Resolution Authority to any such liabilities arising hereunder which may be
payable to it by any party hereto that is an EEA Financial Institution; and
(b)    the effects of any Bail-In Action on any such liability, including, if
applicable:
(i)    a reduction in full or in part or cancellation of any such liability;
(ii)    a conversion of all, or a portion of, such liability into shares or
other instruments of ownership in such EEA Financial Institution, its parent
entity, or a bridge institution that may be issued to it or otherwise conferred
on it, and that such shares or other instruments of ownership will be accepted
by it in lieu of any rights with respect to any such liability under this
Agreement or any other Loan Document; or
(iii)    the variation of the terms of such liability in connection with the
exercise of the Write-Down and Conversion Powers of any EEA Resolution
Authority.”
10.    Amendment to Schedule 2.01. Schedule 2.01 attached to the Credit
Agreement is hereby deleted in its entirety and replaced with Schedule 2.01
attached hereto.
11.    Amendment to Exhibit 5.01(c). Exhibit 5.01(c) attached to the Credit
Agreement is hereby amended to restate Exhibit B thereto in its entirety as set
forth on Exhibit B attached hereto.
12.    Ratification. Each of the Borrowers and Guarantors hereby ratifies all of
its Obligations under the Credit Agreement and each of the Loan Documents to
which it is a party, and agrees and acknowledges that the Credit Agreement and
each of the Loan Documents to which it is a party are and shall continue to be
in full force and effect as amended and modified by this Amendment. Nothing in
this Amendment extinguishes, novates or releases any right, claim, lien,
security interest or entitlement of any of the Lenders, the Administrative
Agent, the London Agent or the Canadian Agent created by or contained in any of
such documents nor are the Borrowers nor Guarantors released from any covenant,
warranty or obligation created by or contained herein or therein.
13.    Representations and Warranties. Each of the Borrowers and Guarantors
hereby represents and warrants to the Administrative Agent, the London Agent,
the Canadian Agent and the Lenders that (a) this Amendment has been duly
executed and delivered on behalf of each of the Borrowers and Guarantors,
(b) this Amendment constitutes a valid and legally binding agreement enforceable
against each of the Borrowers and Guarantors in accordance with its terms,
subject to applicable bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium or other laws affecting creditors’ rights generally
and subject to general principles of equity, regardless of whether considered in
a proceeding in equity or at law, (c) the representations and warranties
contained in the Credit Agreement and the Loan Documents are true and correct on
and as of the date hereof in all material respects as though made as of the date
hereof (provided, that to the extent any such representation and warranty was
made as of a specific date, such representation and warranty shall be true and
correct in all material respects as of such specific date), (d) after giving
effect to this Amendment, no Default or Event of Default exists and (e) the
execution, delivery and performance of this Amendment has been duly authorized
by each of the Borrowers and Guarantors.

-7-

--------------------------------------------------------------------------------

14.    Conditions to Effectiveness. This Amendment shall be effective on the
Amendment Effective Date upon (a) the execution and delivery hereof by the
Borrowers, the Guarantors and the Required Lenders to the Administrative Agent
and receipt by the Administrative Agent of this Amendment and (b) the receipt by
the Administrative Agent of all fees and other amounts due and payable on or
prior to the date hereof, including the fees set forth in that certain
Engagement Letter dated as of February 17, 2017, between the Administrative
Agent and the Parent, and the reasonable fees and expenses of legal counsel to
the Administrative Agent.
15.    Release and Indemnity. Each of the Borrowers and Guarantors does hereby
release and forever discharge the Administrative Agent, London Agent, the
Canadian Agent, each of the Lenders, each of the Issuing Lenders and each
Related Party of any of the foregoing from any and all claims, demands, damages,
actions, cross-actions, causes of action, costs and expenses (including legal
expenses), of any kind or nature whatsoever, whether based on law or equity,
which any of said parties has held or may now or in the future own or hold,
whether known or unknown, for or because of any matter or thing done, omitted or
suffered to be done on or before the actual date upon which this Amendment is
signed by any of such parties arising directly or indirectly out of the Loan
Documents, any other documents, instruments or transactions relating thereto or
the performance by any party thereto of their respective obligations thereunder.
Such release, waiver, acquittal and discharge shall and does include, without
limitation, any claims of usury, fraud, duress, misrepresentation, lender
liability, control, exercise of remedies and all similar items and claims, which
may, or could be, asserted by any Borrower or Guarantor, but such release,
waiver, acquittal and discharge shall not and does not include any claims,
demands, damages, actions, cross-actions, causes of action, costs and expenses
arising out of or relating to (a) the gross negligence or willful misconduct of
any Indemnitee, (b) in the case of Section 2.14 of the Credit Agreement, the
matters set forth in Section 2.14(e) of the Credit Agreement, (c) the
obligations of each Lender under Section 2.16(e) of the Credit Agreement, or (d)
any assignment or transfer by any Lender of its rights or obligations under the
Credit Agreement and the other Loan Documents, except for any such assignment or
transfer made in accordance with Section 10.04 of the Credit Agreement and the
applicable provisions of the other Loan Documents, respectively. Each of the
Borrowers and Guarantors hereby ratifies its obligations under the
indemnification provisions contained in the Loan Documents to which it is a
party, including, without limitation, Section 10.03 of the Credit Agreement, and
agrees that this Amendment and losses, claims, damages and expenses related
thereto shall be covered by such indemnification obligations to the same extent
as the Loan Documents.
16.    Counterparts. This Amendment may be signed in any number of counterparts,
which may be delivered in original, facsimile or other electronic form (i.e.,
“PDF”) each of which shall be construed as an original, but all of which
together shall constitute one and the same instrument.
17.    Governing Law. This Amendment, all Notes, the other Loan Documents and
all other documents executed in connection herewith shall be deemed to be
contracts and agreements under the laws of the State of New York and of the
United States of America and for all purposes shall be construed in accordance
with, and governed by, the laws of New York and of the United States.
18.    Final Agreement of the Parties. Any previous agreement among the parties
with respect to the subject matter hereof is superseded by the Credit Agreement,
as amended by this Amendment. Nothing in this Amendment, express or implied is
intended to confer upon any party other than the parties hereto any rights,
remedies, obligations or liabilities under or by reason of this Amendment.
19.    Amendment is a Loan Document. This Amendment is a Loan Document.
[Signature Pages Follow]

-8-

--------------------------------------------------------------------------------

-9-

--------------------------------------------------------------------------------

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
by their respective officers thereunto duly authorized as of the Amendment
Effective Date.
PARENT, US BORROWER,  
ALTERNATIVE CURRENCY BORROWER AND
US GUARANTOR:

DMC GLOBAL INC.
 
By: /s/ Michael Kuta
Name: Michael Kuta
Title: Chief Financial Officer
 
 

Signature Page to Third Amendment
to the Second Amended and Restated Credit Agreement

--------------------------------------------------------------------------------

US BORROWER AND US GUARANTOR:

DMC KOREA, INC.
 
 
 
By: /s/ Michael Kuta
Name: Michael Kuta
Title: Vice President

Signature Page to Third Amendment
to the Second Amended and Restated Credit Agreement

--------------------------------------------------------------------------------

US BORROWER AND US GUARANTOR:

DynaEnergetics US, INC.
 
 
 
 
 
By: /s/ Michael Kuta
Name: Michael Kuta
Title: Vice President

Signature Page to Third Amendment
to the Second Amended and Restated Credit Agreement

--------------------------------------------------------------------------------

FOREIGN GUARANTOR:

DYNAENERGETICS CANADA INC.
 
 
 
 
 
By: /s/ Ian Grieves
Name: Ian Grieves
Title: President

Signature Page to Third Amendment
to the Second Amended and Restated Credit Agreement

--------------------------------------------------------------------------------

FOREIGN GUARANTOR:
DYNAMIC MATERIALS LUXEMBOURG 1 S.Á R.L.
 
 
 
 
 
By: /s/ Ian Grieves  
Name: Ian Grieves
Title: Class B Director

Signature Page to Third Amendment
to the Second Amended and Restated Credit Agreement

--------------------------------------------------------------------------------

ALTERNATIVE CURRENCY BORROWER AND FOREIGN GUARANTOR:
DYNAMIC MATERIALS LUXEMBOURG 2 S.Á R.L.
 
 
 
 
 
By: /s/ Ian Grieves  
Name: Ian Grieves
Title: Class B Director

Signature Page to Third Amendment
to the Second Amended and Restated Credit Agreement

--------------------------------------------------------------------------------

FOREIGN GUARANTOR:

NOBELCLAD EUROPE SA
 
 
 
 
 
By: /s/ Antoine Nobili  
Name: Antoine Nobili
Title: Administrator et Directeur Général

Signature Page to Third Amendment
to the Second Amended and Restated Credit Agreement

--------------------------------------------------------------------------------

FOREIGN GUARANTOR:
NITRO METALL AB
 
 
 
 
 
By: /s/ Antoine Nobili  
Name: Antoine Nobili
Title: Director

Signature Page to Third Amendment
to the Second Amended and Restated Credit Agreement

--------------------------------------------------------------------------------

ALTERNATIVE CURRENCY BORROWER AND FOREIGN GUARANTOR:
DYNAENERGETICS HOLDING GMBH
 
 
 
 
 
By: /s/ Ian Grieves  
Name: Ian Grieves
Title: Managing Director

Signature Page to Third Amendment
to the Second Amended and Restated Credit Agreement

--------------------------------------------------------------------------------

ALTERNATIVE CURRENCY BORROWER AND FOREIGN GUARANTOR:

DYNAENERGETICS BETEILIGUNGS GMBH
 
 
 
By: /s/ Achim Pabst  
Name: Achim Pabst
Title: Managing Director

Signature Page to Third Amendment
to the Second Amended and Restated Credit Agreement

--------------------------------------------------------------------------------

ALTERNATIVE CURRENCY BORROWER AND FOREIGN GUARANTOR:
DYNAENERGETICS GMBH & CO., KG
 
By: DYNAENERGETICS BETEILIGUNGS GMBH, as general partner
 
 
 
By: /s/ Achim Pabst  
Name: Achim Pabst
Title: Managing Director

Signature Page to Third Amendment
to the Second Amended and Restated Credit Agreement

--------------------------------------------------------------------------------

FOREIGN GUARANTOR:
NOBELCLAD EUROPE HOLDING GmbH
 
 
 
 
 
By: /s/ Antoine Nobili  
Name: Antoine Nobili
Title: Managing Director

Signature Page to Third Amendment
to the Second Amended and Restated Credit Agreement

--------------------------------------------------------------------------------

ALTERNATIVE CURRENCY BORROWER AND FOREIGN GUARANTOR:
NOBELCLAD EUROPE GmbH AND CO., KG
 
 
 
By: NOBELCLAD EUROPE HOLDING GMBH, as general partner
 
 
 
By: /s/ Antoine Nobili     
Name: Antoine Nobili
Title: Managing Director

Signature Page to Third Amendment
to the Second Amended and Restated Credit Agreement

--------------------------------------------------------------------------------

FOREIGN GUARANTOR:
DYNAENERGETICS SIBERIA LIMITED
 
 
 
 
 
By: /s/ Wilhelm Sonnenberg  
Name: Wilhelm Sonnenberg
Title: General Director

Signature Page to Third Amendment
to the Second Amended and Restated Credit Agreement

--------------------------------------------------------------------------------

FOREIGN GUARANTOR:
TOO KAZ DynaEnergetics
 
 
 
 
 
By: /s/ Assel Tazhenova  
Name: Assel Tazhenova
Title: Managing Director

Signature Page to Third Amendment
to the Second Amended and Restated Credit Agreement

--------------------------------------------------------------------------------

FOREIGN GUARANTOR:
DYNAMIC MATERIALS CORPORATION (HK) LIMITED
 
 
 
 
 
By: /s/ Michael Kuta  
Name: Michael Kuta
Title: Director

Signature Page to Third Amendment
to the Second Amended and Restated Credit Agreement

--------------------------------------------------------------------------------

FOREIGN GUARANTOR:
DYNAMIC MATERIALS CORPORATION (SHANGHAI) TRADING CO. LTD.
 
 
 
 
 
By: /s/ Bin Zhang  
Name: Bin Zhang
Title: Director/Legal Representative

Signature Page to Third Amendment
to the Second Amended and Restated Credit Agreement

--------------------------------------------------------------------------------

FOREIGN GUARANTOR:
DYNAENERGETICS COLOMBIA S A S EN LIQUIDACTION
 
 
 
 
 
By: /s/ Michael Kuta  
Name: Michael Kuta
Title: Director

Signature Page to Third Amendment
to the Second Amended and Restated Credit Agreement

--------------------------------------------------------------------------------

ADMINISTRATIVE AGENT,
US ISSUING LENDER,
US SWINGLINE LENDER AND
US LENDER:
JPMORGAN CHASE BANK, N.A.

By: /s/ Karl Thomasma      
Name: Karl Thmasma
Title: Senior Underwriter

Signature Page to Third Amendment
to the Second Amended and Restated Credit Agreement

--------------------------------------------------------------------------------

LONDON AGENT:
J.P. MORGAN EUROPE LIMITED

By:  /s/ Belinda Lucas  
Name: Belinda Lucas
Title: Associate

Signature Page to Third Amendment
to the Second Amended and Restated Credit Agreement

--------------------------------------------------------------------------------

LONDON ISSUING LENDER,
EURO SWINGLINE LENDER AND
ALTERNATIVE CURRENCY LENDER TO DYNAMIC MATERIALS LUXEMBOURG 2 S.Á R.L.:
J.P. MORGAN EUROPE LIMITED

By: /s/ Belinda Lucas     
Name: Belinda Lucas
Title: Associate

Signature Page to Third Amendment
to the Second Amended and Restated Credit Agreement

--------------------------------------------------------------------------------

CANADIAN AGENT,
CANADIAN ISSUING LENDER AND ALTERNATIVE CURRENCY LENDER:
JPMORGAN CHASE BANK, N.A., TORONTO BRANCH

By: /s/ M.N. Tam     
Name: M.N. Tam
Title: Senior Vice President

Signature Page to Third Amendment
to the Second Amended and Restated Credit Agreement

--------------------------------------------------------------------------------

SYNDICATION AGENT, 
US LENDER AND
ALTERNATIVE CURRENCY LENDER:
KEYBANK NATIONAL ASSOCIATION

By: /s/ Michael Fesl      
Name: Michael Fesl
Title: Assistant Vice President

Signature Page to Third Amendment
to the Second Amended and Restated Credit Agreement

--------------------------------------------------------------------------------

DOCUMENTATION AGENT,  
US LENDER AND
ALTERNATIVE CURRENCY LENDER:
WELLS FARGO BANK, NATIONAL ASSOCIATION

By: /s/ Thomas J. Zak
Name: Thomas J. Zak
Title: Senior Vice President

Signature Page to Third Amendment
to the Second Amended and Restated Credit Agreement

--------------------------------------------------------------------------------

US LENDER AND
ALTERNATIVE CURRENCY LENDER:
BANK OF AMERICA, N.A.

By: /s/ Satish Chander   
Name: Satish Chander
Title: Senior Vice President

Signature Page to Third Amendment
to the Second Amended and Restated Credit Agreement

--------------------------------------------------------------------------------

ALTERNATIVE CURRENCY LENDER:
BANK OF AMERICA, NATIONAL ASSOCIATION (CANADA BRANCH)

By: /s/ Medina Sales de Andrade  
Name: Medina Sales de Andrade
Title: Vice President

Schedule 2.01
Commitments

LENDER
US
COMMITMENT
ALTERNATIVE CURRENCY
COMMITMENT
JPMorgan Chase Bank, N.A.
$9,500,000.00
 
J.P. Morgan Europe Limited / JPMorgan Chase Bank, N.A., London Branch / JPMorgan
Chase Bank, N.A., Toronto Branch
 
$1,583,333.33
KeyBank National Association
$7,250,000.00
$1,208,333.34
Wells Fargo Bank, National Association
$7,250,000.00
$1,208,333.34
Bank of America, N.A.
$6,000,000.00
 
Bank of America, N.A. / Bank of America, National Association (Canada Branch)
 
$1,000,000.00
TOTAL
$30,000,000.00
$5,000,000.00

Signature Page to Third Amendment
to the Second Amended and Restated Credit Agreement

--------------------------------------------------------------------------------

EXHIBIT B
FINANCIAL COVENANT CALCULATION WORKSHEET
($ in 000’s)
 
Calculation
Covenant Requirement
Debt Service Coverage Ratio
x
1.35 to 1.0
Leverage Ratio
x
[___] to 1.0
Minimum Consolidated Pro Forma EBITDA
x
$[_______]
 
 
 
Debt Service Coverage Ratio: for the trailing four quarter period measured as of
the last day of the fiscal quarter ended ____________, 20___
 
 
(i) Consolidated Pro Forma EBITDA for such period
 
 
minus the sum of
 
 
(A) Cash Dividends,
 
 
(B) capital expenditures for such period for the Parent and its Subsidiaries
determined on a consolidated basis in accordance with GAAP and
 
 
(C) cash income Taxes paid, net of cash income Taxes refunded, for such period
by the Parent and its Subsidiaries (excluding $2,000,000 of German income taxes
paid in cash in the first fiscal quarter of 2016)
 
 
to
 
 
(ii) (A) cash Interest Expense of the Parent for such period
 
 
plus
 
 
(B) scheduled principal payments of Consolidated Funded Indebtedness actually
made during such period
 
 
 
 
 

--------------------------------------------------------------------------------

Leverage Ratio: for the trailing four quarter period measured as of the last day
of the fiscal quarter ended ____________, 20___
 
 
(i) Consolidated Funded Indebtedness of the Parent on the last day of such
period
 
 
to
 
 
(ii) Consolidated Pro Forma EBITDA of the Parent for such trailing four quarter
period
 
 
 
 
 
Minimum Consolidated Pro Forma EBITDA: for the trailing four quarter period
measured as of the last day of the fiscal quarter ending _____________, 2017