PERSONAL SERVICES AGREEMENT

     This Personal Services Agreement (this  "Agreement"),  effective as of June
16,  2000,  is  by  and  between  Dynamic  Materials  Corporation,   a  Delaware
corporation (the "Company"), and John G. Banker ("Employee").

     WHEREAS,  the  Company  wishes to employ  the  Employee,  and the  Employee
desires to accept such employment, on the terms and conditions set forth herein.

     WHEREAS, it is the mutual objective of the parties:

          To return the Company to  profitability  quickly by reducing  cost and
          raising prices prudently;

          To have the lowest cost,  most efficient clad metal sales operation in
          the world;

          To have the strongest,  most efficient clad metal marketing  effort in
          the world;

          To make the highest return for our market  exposure by selling a range
          of synergistic products; and

          To increase the market for  profitable  explosion  clad  products in a
          cost effective manner.

     1.  Employment.  The Company  hereby  employs  Employee as Vice  President,
Marketing and Sales,  Bonding Division,  reporting to the CEO of the Company and
the Board of Directors. Employee agrees to work with and to consult with the COO
and the CFO of the Company,  as requested by the CEO, it being  understood  that
neither of such officers  shall have  ultimate  supervisory  authority  over the
Employee.  Employee  hereby  accepts such  employment and agrees to perform such
duties and  responsibilities as are assigned to him from time to time by the CEO
and the Board of Directors.

     2.  Responsibility.  The  obligations  of the  Employee  shall  include (a)
complete  responsibility for worldwide sales and marketing of clad products; and
(b) if so  requested  by the CEO,  the range of products  for which the Employee
will have  sales  responsibility  may be  expanded  from  time to time;  and (c)
providing advice and support to the R & D and technical teams.

     3.  Full-Time  Best Efforts.  Employee  shall devote his full and exclusive
professional time and attention to the performance of his obligations under this
Agreement,  and will at all times  faithfully,  industriously and to the best of
his ability, experience and talent, perform all of his obligations hereunder.

     4. Term of Agreement.  This Agreement shall be effective on the date hereof
and shall continue for 5 years (the "Term") unless sooner terminated pursuant to
Section 6 below.

<PAGE>

     5. Compensation.

     (a) Base Salary.  During the term of this Agreement,  the Company shall pay
the  Employee  a yearly  salary of  $125,000  (herein  referred  to as the "Base
Salary")  payable  in such  installments  as is the policy of the  Company  with
respect to other similarly situated  employees.  Employee will be eligible for a
merit salary review at year-end 2000 and annually  thereafter,  consistent  with
the Company's policy for executive officers and financial results of the Bonding
Division.

     (b) Performance  Bonus.  Based upon performance and achievement of mutually
agreed upon goals, including those herein,  Employee will be eligible to receive
various bonuses not to exceed a total of 150% of Employee's Base Salary.

     Sales Performance Bonus: The objective is to optimize the sales performance
     of  the  Company  by  incentivizing  superior  sales  performance.  At  the
     beginning  of each  fiscal  year,  Company  management  will  establish  an
     operations budget for the sales department of the Bonding  Division,  based
     upon  projected  overhead  costs,  conservative  sales  projections  and an
     expense budget for the sales department of the Bonding Division. This shall
     permit  determination  of the  manufacturing  profit  before  manufacturing
     overhead  (i.e.,  sales  less  the  sum of  materials,  subcontract  costs,
     freight,  direct labor and other direct costs)  required to achieve minimum
     performance  targets  established and approved by the Board of Directors to
     break  even  (the  "Target  Performance"  or  "TP").  (The  ratio of actual
     performance  ("Actual  Performance" or "AP") of the sales department of the
     Bonding  Division to the TP of the sales department of the Bonding Division
     is the "TP  Ratio.")  The  Actual  Performance  shall be  deemed  to be the
     projected  manufacturing  profit of the Bonding  Division based upon actual
     selling prices, actual metal and services costs, and projected direct labor
     costs (based upon Company  standards).  Employee's Sales  Performance Bonus
     shall  be  based  upon  the  sales  department  of the  Bonding  Division's
     achieving a level of Actual Performance that exceeds the Target Performance
     level,  based  upon  the  operations  budget  of the  Bonding  Division  as
     described  above.  In  computing  the  Actual   Performance  of  the  sales
     department of the Bonding  Division,  the amount of profit shall be reduced
     on a dollar-for-dollar  basis for any amounts spent by the sales department
     of the Bonding Division over such department's expense budget.

     Actual Performance                Bonus as a Percent of Actual Performance,
                                       with a Maximum of 150% of Employee's
                                       Base Salary

                  If                                Then
                  --                                ----
     AP < or = 1.2 x TP..............  .....0% times AP = bonus
     1.2 x TP < AP < or = 1.4 x TP...  .....0.6% times AP = bonus
     1.4 x TP < AP < or = 1.6 x TP...  .....1.0% times AP = bonus
     1.6 x TP < AP...................  .....1.5% times AP = bonus

                                      -2-
<PAGE>

     The sales  performance  shall be calculated on orders  received,  produced,
     shipped and invoiced.

     Justified  claims in respect of the  performance of the Bonding  Division's
     sales department shall be deducted from Actual  Performance.  Specifically,
     in the event  there are  uncollectible  accounts,  the  actual  performance
     amount  related to such  uncollectible  accounts shall be deducted from the
     Actual Performance of the Bonding Division sales department.

     Unless mutually agreed to the contrary,  the actual TP Ratio must be higher
     than 1.00.

     In FY2000, the calculation shall be based upon the DMC FY2000 Budget, shall
     be prorated for the number of months remaining in the year, and shall apply
     to sales after dating of this Agreement only.

     This  incentive  system may be adjusted  and other  performance  incentives
     established as mutually agreed upon,  particularly in the event  Employee's
     responsibility is expanded to include manufacturing operations.

     (c)  Stock  Options.  As a  "sign-on  bonus,"  within  six  months  of  the
Employee's  employment  date,  Employee  will be granted  an option to  purchase
shares of the Common Stock of the Company  pursuant to the Company's 1997 Equity
Incentive  Plan or any other stock option plan  adopted  during the term of this
Agreement (the "Option Plan"). The number of shares subject to such stock option
grant shall be  determined by a committee of the Board of Directors and shall be
comparable  to the number of stock option  shares  customarily  granted to other
senior  executive  officers of the Company as a "sign-on  bonus."  Future  stock
options  may be granted at the  discretion  of the  management  and the Board of
Directors.

     (d) Benefits. Employee shall be entitled to receive all benefits materially
comparable to those generally available from time to time to other executives of
the  Company,  including  (i) term  life  insurance  coverage  in the  amount of
$300,000,  which is in addition to the  standard  term life  insurance  coverage
provided in the Company's  standard  benefits plan;  (ii)  participation  in the
executive  long-term   disability  plan,  subject  to  any  waiting  periods  or
exclusions required by the insurance provider;  (iii) four weeks of vacation per
year  until  such time as  Employee's  length of service  entitled  Employee  to
additional  vacation;  (iv)  participation  in the  Company's  standard  benefit
programs including health and dental insurance, term life insurance,  accidental
death and dismemberment insurance, short and long-term disability, paid holidays
and  certain  other  standard  benefits   provided  by  the  Company;   and  (v)
participation  in  the  Company's   401(k)   retirement  plan  with  a  matching
contribution  made by the Company to the plan  (subject to standard plan waiting
periods and other provisions of the plan consistent with the Company's  policies
with respect to executive officers).

     (e) Expense  Reimbursement.  The Company shall  reimburse  Employee for all
travel expenses and other disbursements incurred by Employee for or on behalf of
the Company in

                                       -3-
<PAGE>

the performance of his duties  hereunder,  subject to and in accordance with the
Company's expense reimbursement policies and procedures, as amended from time to
time.

     6. Termination.

     (a) The  Company  may  terminate  the  Agreement  at any time for Cause (as
hereinafter defined) effective immediately upon written notice to Employee. Such
notice shall  specify that a  termination  is being made for Cause and state the
basis therefor. For purposes of this Agreement, termination for "Cause" shall be
defined as termination because of:

          (i) The willful  and  continued  failure by Employee to  substantially
     perform,  or  the  gross  negligence  in the  performance  of,  his  duties
     hereunder for a period of 15 days after the Chief Executive  Officer of the
     Company  has made a  written  demand  for  performance  which  specifically
     identifies   the  manner  in  which  he  believes  that  Employee  has  not
     substantially performed his duties.

          (ii) The  commission  by Employee of a willful  act of  dishonesty  or
     misconduct which is injurious to the Company.

          (iii)  A  conviction  or a  plea  of  guilty  or  nolo  contendere  in
     connection  with  fraud or any  crime  that  constitutes  a  felony  in the
     jurisdiction involved.

          (iv) The willful  misconduct  by Employee with respect to the business
     and affairs of the Company, including the violation of any material Company
     policy.

     A termination pursuant to this Section 6(a) shall take effect 30 days after
the giving of the notice  contemplated hereby unless Employee shall, during such
30-day period,  remedy to the satisfaction of the Company the behavior specified
in such  notice;  provided,  however,  that such  termination  shall take effect
immediately  upon the giving of such notice if the Company shall have determined
that such behavior is not  remediable  (which  determination  shall be stated in
such notice).

     (b) The Company may  terminate  the  Employee's  employment  for any reason
other than Cause at any time (referred to herein as a termination Without Cause)
during the Term.

     (c) Involuntary Termination.

          (i) If Employee is incapacitated or disabled by accident,  sickness or
     otherwise  so as to render  Employee  mentally or  physically  incapable of
     performing  the services  required to be  performed by Employee  under this
     Agreement for a period of 90  consecutive  days or longer or for a total of
     90 days  within any  six-month  period,  the  Company  may, at that time or
     within  any  reasonable  time  thereafter,  at its  option,  terminate  the
     employment of the Employee under this Agreement immediately upon giving the
     Employee notice to that effect.

          (ii) If  Employee  dies  during the Term,  the Term shall be deemed to
     have terminated as of the date of Employee's death.

                                       -4-
<PAGE>

          (iii)  Any  termination  of  the  Term  under  this  Section  6(c)  is
     hereinafter referred to as an "Involuntary Termination."

     (d) Any termination of the employment of the Employee  hereunder other than
(i) a termination  for Cause;  (ii) a  termination  Without  Cause;  or (iii) an
Involuntary  Termination  shall  be  deemed  to be a  Voluntary  Termination.  A
Voluntary  Termination  shall be deemed to be  effective  immediately  upon such
termination.

     (e) Upon the termination of the Employee's employment hereunder pursuant to
an Involuntary Termination, a termination for Cause, a termination Without Cause
or a Voluntary  Termination,  neither  Employee nor  Employee's  beneficiary  or
estate shall have any further  rights or claims  against the Company  under this
Agreement except the right to receive:

          (i) the unpaid  portion  of the Base  Salary  provided  for in Section
     5(a), computed on a pro rata basis to the date of termination;

          (ii)  reimbursement for any expenses for which Employee shall not have
     theretofore been reimbursed as provided in Section 5; and

          (iii)  if  Employee  has been  terminated  pursuant  to a  termination
     Without  Cause,  Employee  shall be  entitled,  in  addition to the amounts
     computed pursuant to Sections 5(a) and (b), to continue  receiving the Base
     Salary for a period  equal to the longer of (a) six months from the date of
     termination;  or (b) that  period  beginning  on the  termination  date and
     ending on the fifth  anniversary  of the date of this  Agreement,  provided
     that Employee shall  continue to comply with the  applicable  provisions of
     this Agreement.

     7.  Proprietary  Information  Agreement.  Employee  shall  enter  into  the
Company's standard form of Proprietary  Information Agreement attached hereto as
Exhibit A as of the date  hereof,  with the  exception  that the  provisions  of
Section 4 of such Exhibit A regarding non-  competitive  activities shall become
effective  only  in the  event  of a  Voluntary  Termination  of the  Employee's
employment as defined herein.

     8. Additional Non-Competition  Provisions. In furtherance of the agreements
contained  in paragraph 7,  Employee and Clad Metal  Products,  Inc. (a business
owned by Employee)  shall cease to sell clad metals under the name of CLAD Metal
Products,  Inc.  effective  no later  than 10 days after the  execution  of this
Agreement.

     9. Miscellaneous.

     (a) Judicial Limitation.  In the event that any provision of this Agreement
is more  restrictive  than permitted by the law of the jurisdiction in which the
Company seeks  enforcement  thereof,  the provisions of this Agreement  shall be
limited only to that extent that a judicial  determination  finds the same to be
unreasonable or otherwise enforceable. Such invalidity or unenforceability shall
not affect any other terms herein,  but such term shall be deemed  deleted,  and
such  deletion  shall not affect the  validity  of the other  terms  hereof.  In
addition,  if any one or more of the terms  contained in the Agreement shall for
any reason be held to be excessively broad or of an

                                       -5-
<PAGE>

overly long  duration,  that term shall be construed in a manner to enable it to
be  enforced  to  the  extent   compatible  with   applicable   law.   Moreover,
notwithstanding any judicial  determination that any provision of this Agreement
is not  specifically  enforceable,  the parties agree that either of them may be
entitled  to recover  monetary  damages as a result of any breach  hereof by the
other.

     (b)  Injunctive  Relief.  In view of the nature of the rights in  goodwill,
business  reputation  and  prospects of the Company to be  protected  under this
Agreement,  Employee  understands  and  agrees  that the  Company  could  not be
reasonably  or  adequately  compensated  in  damages  in an  action  of law  for
Employee's   breach  of  his  obligations   hereunder.   Accordingly,   Employee
specifically  agrees  that  the  Company  shall be  entitled  to  temporary  and
permanent injunctive relief to enforce the provisions of this Agreement and that
such relief may be granted without the necessity of proving actual damages. This
provision  with respect to injunctive  relief shall not,  however,  diminish the
right of the  Company to claim and recover  damages in  addition  to  injunctive
relief.

     (c)  Waiver.  The  failure of the Company to enforce at any time any of the
provisions of this Agreement or to require at any performance by Employee of the
provisions hereof shall in no way be construed to be a waiver of such provisions
or to affect either the validity of this Agreement,  or any part hereof,  or the
right  of the  Company  thereafter  to  enforce  each  and  every  provision  in
accordance with the terms of this Agreement.

     (d)  Severability.  The  invalidity or  unenforceability  of any particular
provision of this Agreement shall not affect the other  provisions  hereof,  and
this  Agreement  shall  be  construed  in all  respects  as if such  invalid  or
unenforceable provisions were omitted.

     (e) Assignability. This Agreement shall be freely assignable by the Company
and shall inure to the benefit of its successors and assigns.

     (f) Entire Agreement. This Agreement, including the Proprietary Information
Agreement  and the  Non-Competition  Agreement  referred  to  herein,  which are
incorporated  herein and made a part  hereof,  embody the entire  agreement  and
understanding  of the  parties  hereto and  supersede  all prior  agreements  or
understandings  (whether  written or oral) with  respect to the  subject  matter
hereof.

     (g) Governing Law and Venue.  The validity of this Agreement and any of its
terms and provisions, as well as the rights and duties of the parties hereunder,
shall be governed by the laws of the State of  Colorado  (without  regard to its
conflicts  of law  doctrines)  and the venue for any  action  to  enforce  or to
interpret this Agreement shall be in a court of competent  jurisdiction  located
in the State of Colorado and each of the parties consents to the jurisdiction of
such court in any such action or  proceeding  and waives any  objection to venue
laid therein.

     (h)  Amendments.  This  Agreement  may not be amended,  altered or modified
other than by a written  agreement  between the parties hereto.  Notwithstanding
the  foregoing,  the terms of this Agreement will be amended in the event of any
acquisition of or merger by the Company with any other entity.

                                       -6-
<PAGE>

     (i)  Counterparts.  This  Agreement  may  be  executed  in  any  number  of
counterparts,  each of which shall be deemed to be an original  and all of which
shall together  constitute  one and the same  instrument.  This Agreement  shall
become binding when one or more counterparts hereof shall bear the signatures of
all of the parties indicated as the signatories hereto.

     (j) Notices. All notices,  requests, demands and other communications under
this Agreement shall be given in writing and shall be served either  personally,
by facsimile or delivered by first class mail,  registered or certified,  return
receipt  requested,  postage  prepaid and  properly  addressed to the parties as
noticed  herein.  Notice  shall be deemed  received  upon the earliest of actual
receipt,  confirmed  facsimile or three (3) days following  mailing  pursuant to
this section.

     (k) Interpretation. Each party has had the opportunity and has reviewed and
revised this Agreement and, therefore,  the rule of construction  requiring that
any  ambiguity be resolved  against the drafting  party shall not be employed in
the  interpretation  of this Agreement.  The section headings  contained in this
Agreement are for convenience  and reference  purposes only and shall not affect
in any way the meaning and interpretation of this Agreement.

     (l) Attorneys' Fees and Costs. If either party shall commence any action or
proceeding  against the other to enforce the  provisions  hereof,  or to recover
damages  as a  result  of the  alleged  breach  of any  provisions  hereof,  the
prevailing  party  therein  shall be entitled to recover  all  reasonable  costs
incurred in connection therewith, including reasonable attorneys' fees.


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                                       -7-
<PAGE>

     EXECUTED as of the date first set forth above.

                                       DYNAMIC MATERIALS CORPORATION

                                       /s/ Bernard Fontana
                                       ----------------------------------
                                       Bernard Fontana, President and
                                       Chief Executive Officer


                                       EMPLOYEE

                                       /s/ John G. Banker
                                       ----------------------------------
                                       John G. Banker

                                       -8-

<PAGE>

                                                                       EXHIBIT A

                          DYNAMIC MATERIALS CORPORATION

                      KEY EMPLOYEE PROPRIETARY INFORMATION
                            AND INVENTIONS AGREEMENT

     In  consideration  of my  employment  or  continued  employment  by Dynamic
Materials  Corporation,  and the  compensation  now and hereafter  paid to me, I
hereby agree as follows:

1.   NONDISCLOSURE.

     1.1 Recognition of Company's Rights; Nondisclosure.  At all times during my
employment  and  thereafter,  I will hold in strictest  confidence  and will not
disclose,  use,  lecture  upon  or  publish  any  of the  Company's  Proprietary
Information (defined below),  except as such disclosure,  use or publication may
be required in connection with my work for the Company,  or unless an officer of
the Company  expressly  authorizes such in writing.  I will obtain the Company's
written  approval  before  publishing or submitting for publication any material
(written,  verbal or  otherwise)  that relates to my work at the Company  and/or
incorporates  any  Proprietary  Information.  I hereby assign to the Company any
rights I may have or acquire in such Proprietary  Information and recognize that
all  Proprietary  Information  shall be the sole property of the Company and its
assigns.

     1.2 Proprietary Information.  The term "Proprietary Information" shall mean
any and all confidential  and/or proprietary  knowledge,  data or information of
the  Company.   By  way  of  illustration   but  not  limitation,   "Proprietary
Information"  includes  (a)  trade  secrets,   inventions,  mask  works,  ideas,
processes,  formulas,  source and object codes, data,  programs,  other works of
authorship,  know-how,  improvements,  discoveries,  developments,  designs  and
techniques  (hereinafter  collectively  referred  to as  "Inventions");  and (b)
information regarding plans for research,  development,  new products, marketing
and selling,  business  plans,  budgets and  unpublished  financial  statements,
licenses,  prices  and  costs,  suppliers  and  customers;  and (c)  information
regarding  the  skills  and  compensation  of other  employees  of the  Company.
Notwithstanding  the foregoing,  it is understood  that, at all such times, I am
free to use information which is generally known in the trade or industry, which
is not  gained  as a result  of a breach of this  Agreement,  and my own  skill,
knowledge,  know-how and  experience  to whatever  extent and in whichever way I
wish.

     1.3 Third Party Information.  I understand,  in addition,  that the Company
has received and in the future will receive from third parties  confidential  or
proprietary  information  ("Third Party  Information")  subject to a duty on the
Company's part to maintain the confidentiality of such information and to use it
only  for  certain  limited  purposes.  During  the  term of my  employment  and
thereafter,  I will hold Third Party Information in the strictest confidence and
will not disclose to anyone (other than Company  personnel who need to know such
information  in  connection  with their work for the Company) or use,  except in
connection  with my  work  for  the  Company,  Third  Party  Information  unless
expressly authorized by an officer of the Company in writing.

1.4 No Improper Use of  Information  of Prior  Employers  and Others.  During my
employment by the Company I will not improperly use or disclose any confidential
information or trade secrets, if any, of any former employer or any other person
to whom I have an obligation of  confidentiality,  and I will not bring onto the
premises of the Company any unpublished  documents or any property  belonging to
any  former  employer  or any  other  person  to  whom I have an  obligation  of
confidentiality  unless  consented  to in writing

<PAGE>

by that former  employer or person.  I will use in the  performance of my duties
only information  which is generally known and used by persons with training and
experience  comparable to my own,  which is common  knowledge in the industry or
otherwise  legally in the  public  domain,  or which is  otherwise  provided  or
developed by the Company.

2.   ASSIGNMENT OF INVENTIONS.

     2.1 Proprietary Rights. The term "Proprietary  Rights" shall mean all trade
secret,  patent,  copyright,  mask work and other  intellectual  property rights
throughout the world.

     2.2 Prior Inventions.  Inventions, if any, patented or unpatented,  which I
made prior to the  commencement  of my employment  with the Company are excluded
from the scope of this Agreement.  To preclude any possible uncertainty,  I have
set forth on Exhibit A (Previous  Inventions) attached hereto a complete list of
all Inventions that I have, alone or jointly with others,  conceived,  developed
or  reduced  to  practice  or caused to be  conceived,  developed  or reduced to
practice prior to the  commencement  of my employment  with the Company,  that I
consider to be my property or the  property of third  parties and that I wish to
have  excluded  from the scope of this  Agreement  (collectively  referred to as
"Prior  Inventions").  If disclosure of any such Prior Inventions would cause me
to violate any prior  confidentiality  agreement,  I understand that I am not to
list such Prior  Inventions  in Exhibit A but am only to disclose a cursory name
for each such invention,  a listing of the party(ies) to whom it belongs and the
fact  that  full  disclosure  as to such  inventions  has not been made for that
reason. A space is provided on Exhibit A for such purpose. If no such disclosure
is attached,  I represent that there are no Prior Inventions.  If, in the course
of my  employment  with the Company,  I  incorporate  a Prior  Invention  into a
Company  product,  process or machine,  the Company is hereby  granted and shall
have a nonexclusive,  royalty-free,  irrevocable,  perpetual,  worldwide license
(with rights to sublicense through multiple tiers of sublicensees) to make, have
made, modify, use and sell such Prior Invention.  Notwithstanding the foregoing,
I agree  that I will  not  incorporate,  or  permit  to be  incorporated,  Prior
Inventions  in any  Company  Inventions  without  the  Company's  prior  written
consent.

     2.3  Assignment  of  Inventions.  Subject to Sections 2.4 and 2.6, 1 hereby
assign  and  agree  to  assign  in the  future  (when  any  such  Inventions  or
Proprietary  Rights are first  reduced to  practice or first fixed in a tangible
medium, as applicable) to the Company all my right, title and interest in and to
any and all Inventions (and all Proprietary Rights with respect thereto) whether
or not patentable or registrable  under copyright or similar  statutes,  made or
conceived or reduced to practice or learned by me,  either alone or jointly with
others, during the period of my employment with the Company. Inventions assigned
to the Company,  or to a third party as directed by the Company pursuant to this
Section 2, are hereinafter referred to as "Company Inventions."

     2.4  Nonassignable  Inventions.  I  recognize  that,  in  the  event  of  a
specifically applicable state law, regulation, rule, or public policy ("Specific
Inventions Law"), this Agreement will not be deemed to require assignment of any
invention which (1) qualifies fully for protection  under a Specific  Inventions
Law or,  (2) by virtue of the fact that any such  invention  was,  for  example,
developed  entirely  on my own  time  without  using  the  Company's  equipment,
supplies,  facilities,  or trade  secrets and neither  related to the  Company's
actual or anticipated business, research or development,  nor resulted from work
performed by me for the Company.

     2.5 Obligation to Keep Company Informed. During the period of my employment
and for six (6) months after  termination of my employment  with the Company,  I
will  promptly  disclose  to the  Company  fully and in writing  all  Inventions
authored,  conceived or reduced to practice by me,  either alone or jointly with
others. In

<PAGE>

addition,  I will promptly disclose to the Company all patent applications filed
by me or on my behalf within a year after termination of employment. At the time
of each such disclosure,  I will advise the Company in writing of any Inventions
that I believe fully qualify for  protection  under the provisions of a Specific
Inventions  Law;  and I will at that time  provide to the Company in writing all
evidence  necessary  to  substantiate  that  belief.  The  Company  will keep in
confidence and will not use for any purpose or disclose to third parties without
my consent  any  confidential  information  disclosed  in writing to the Company
pursuant  to this  Agreement  relating  to  Inventions  that  qualify  fully for
protection under a Specific  Inventions Law. I will preserve the confidentiality
of any  Invention  that does not fully qualify for  protection  under a Specific
Inventions Law.

     2.6 Government or Third Party.  I also agree to assign all my right,  title
and interest in and to any  particular  Invention  to a third  party,  including
without limitation the United States, as directed by the Company.

     2.7 Works for Hire. I  acknowledge  that all original  works of  authorship
which are made by me  (solely  or jointly  with  others)  within the scope of my
employment  and which are  protectable  by copyright  are "works made for hire,"
pursuant to United States Copyright Act (17 U.S.C., Section 101).

     2.8 Enforcement of Proprietary  Rights.  I will assist the Company in every
proper way to obtain,  and from time to time enforce,  United States and foreign
Proprietary Rights relating to Company  Inventions in any and all countries.  To
that end I will  execute,  verify and deliver  such  documents  and perform such
other acts  (including  appearances  as a witness) as the Company may reasonably
request for use in applying for, obtaining, perfecting,  evidencing,  sustaining
and enforcing such Proprietary Rights and the assignment thereof. In addition, I
will execute,  verify and deliver  assignments of such Proprietary Rights to the
Company or its  designee.  My  obligation  to assist the Company with respect to
Proprietary  Rights relating to such Company Inventions in any and all countries
shall continue  beyond the  termination of my employment,  but the Company shall
compensate me at a reasonable  rate after my  termination  for the time actually
spent by me at the Company's request on such assistance.

In the event the Company is unable for any reason,  after reasonable  effort, to
secure my  signature  on any  document  needed in  connection  with the  actions
specified in the preceding paragraph, I hereby irrevocably designate and appoint
the Company and its duly authorized officers and agents as my agent and attorney
in fact,  which  appointment  is coupled with an interest,  to act for and in my
behalf  to  execute,  verify  and file any such  documents  and to do all  other
lawfully permitted acts to further the purposes of the preceding  paragraph with
the same  legal  force  and  effect  as if  executed  by me. I hereby  waive and
quitclaim to the Company any and all claims, of any nature  whatsoever,  which I
now or may hereafter have for  infringement of any  Proprietary  Rights assigned
hereunder to the Company.

     3. RECORDS.  I agree to keep and maintain  adequate and current records (in
the form of notes, sketches, drawings and in any other form that may be required
by  the  Company)  of  all  Proprietary  Information  developed  by me  and  all
Inventions  made by me during the period of my employment at the Company,  which
records shall be available to and remain the sole property of the Company.

     4. ADDITIONAL  ACTIVITIES.  I agree that during the period of my employment
by the  Company  and  for one (1)  year  after  the  date of  termination  of my
employment  by the Company I will not,  without the  Company's  express  written
consent,  engage in any  employment or business  activity  which is  competitive
with, or would  otherwise  conflict with, my employment by the Company.  I agree
further that for the period of my employment by the Company and for one (1) year
after the date of termination of my employment by the

<PAGE>

Company I will not (a) induce any employee of the Company to leave the employ of
the Company or (b) solicit the business of any client or customer of the Company
(other  than on behalf of the  Company).  If any  restriction  set forth in this
Section  is found by any court of  competent  jurisdiction  to be  unenforceable
because  it  extends  for too long a period of time or over too great a range of
activities or in too broad a geographic  area, it shall be interpreted to extend
only over the maximum period of time,  range of activities or geographic area as
to which it may be enforceable.

     5. NO CONFLICTING OBLIGATION. I represent that my performance of all of the
terms of this  Agreement and as an employee of the Company does not and will not
breach  any  agreement  to  keep in  confidence  information  acquired  by me in
confidence or in trust prior to my employment by the Company. I have not entered
into, and I agree I will not enter into, any agreement either written or oral in
conflict herewith.

     6. RETURN OF COMPANY  DOCUMENTS.  When I leave the employ of the Company, I
will  deliver  to  the  Company  any  and  all   drawings,   notes,   memoranda,
specifications,  devices,  formulas  and  documents,  together  with all  copies
thereof, and any other material containing or disclosing any Company Inventions,
Third Party  Information  or Proprietary  Information of the Company.  I further
agree that any  property  situated on the  Company's  premises  and owned by the
Company,  including disks and other storage media, filing cabinets or other work
areas, is subject to inspection by Company personnel at any time with or without
notice.  Prior to leaving,  I will  cooperate with the Company in completing and
signing the Company's termination statement.

     7. LEGAL AND  EQUITABLE  REMEDIES.  Because my services  are  personal  and
unique  and  because  I may  have  access  to and  become  acquainted  with  the
Proprietary  Information  of the  Company,  the Company  shall have the right to
enforce  this  Agreement  and  any of its  provisions  by  injunction,  specific
performance or other equitable relief, without bond and without prejudice to any
other  rights  and  remedies  that the  Company  may  have for a breach  of this
Agreement.

     8. NOTICES.  Any notices required or permitted  hereunder shall be given to
the appropriate party at the address specified below or at such other address as
the party shall  specify in  writing.  Such  notice  shall be deemed  given upon
personal  delivery  to the  appropriate  address  or if  sent  by  certified  or
registered mail, three (3) days after the date of mailing.

     9.  NOTIFICATION  OF NEW EMPLOYER.  In the event that I leave the employ of
the  Company,  I hereby  consent to the  notification  of my new  employer of my
rights and obligations under this Agreement.

     10. GENERAL PROVISIONS.

     10.1 Governing Law; Consent to Personal  Jurisdiction.  This Agreement will
be governed by and construed according to the laws of the State of Colorado,  as
such laws are applied to  agreements  entered into and to be performed  entirely
within Colorado between Colorado  residents.  I hereby expressly  consent to the
personal jurisdiction of the state and federal courts located in Boulder County,
Colorado for any lawsuit filed there  against me by the Company  arising from or
related to this Agreement.

     10.2 Severability.  In case any one or more of the provisions  contained in
this  Agreement  shall,  for  any  reason,  be held to be  invalid,  illegal  or
unenforceable in any respect,  such invalidity,  illegality or  unenforceability
shall not affect the other  provisions  of this  Agreement,  and this  Agreement
shall be construed as if such invalid,  illegal or  unenforceable  provision had
never been  contained  herein.  If moreover,  any one or more of the  provisions
contained in this Agreement shall for any reason be held to be excessively broad
as to duration,  geographic scope, activity or subject, it shall be construed by
limiting and reducing it, so as to be enforceable to the extent

<PAGE>

compatible with the applicable law as it shall then appear.

     10.3 Successors And Assigns.  This Agreement will be binding upon my heirs,
executors,  administrators and other legal  representatives  and will be for the
benefit of the Company to any successor in interest or other assigns.

     10.4  Survival.   The  provisions  of  this  Agreement  shall  survive  the
termination of my employment and the assignment of this Agreement by the Company
to any successor in interest or other assignee.

     10.5  Employment.  I agree and  understand  that nothing in this  Agreement
shall  confer  any right with  respect  to  continuation  of  employment  by the
Company,  nor shall it interfere in any way with my right or the Company's right
to terminate my employment at any time, with or without cause.

     10.6 Waiver. No waiver by the Company of any breach of this Agreement shall
be a waiver of any preceding or succeeding  breach.  No waiver by the Company of
any right  under  this  Agreement  shall be  construed  as a waiver of any other
right.  The  Company  shall not be  required  to give  notice to enforce  strict
adherence to all terms of this Agreement.

     10.7 Entire Agreement. The obligations pursuant to Sections 1 and 2 of this
Agreement shall apply to any time during which I was previously employed,  or am
in the future  employed,  by the Company as a consultant  if no other  agreement
governs  nondisclosure  and  assignment of inventions  during such period.  This
Agreement  is the final,  complete and  exclusive  agreement of the parties with
respect  to the  subject  matter  hereof  and  supersedes  and  merges all prior
discussions  between us. No modification of or amendment of this Agreement,  nor
any  waiver of any rights  under this  Agreement,  will be  effective  unless in
writing and signed by the party to be charged.  Any subsequent change or changes
in my duties,  salary or  compensation  will not affect the validity or scope of
this Agreement.

This Agreement  shall be effective as of the first day of my employment with the
Company, namely: June the 16th, 2000.

<PAGE>

     I HAVE READ THIS  AGREEMENT  CAREFULLY  AND  UNDERSTAND  ITS TERMS.  I HAVE
COMPLETELY FILLED OUT EXHIBIT A TO THIS AGREEMENT.

Dated:  16 June 2000

/s/ John Banker
-----------------------------
Signature

John Banker
-----------------------------
Printed Name

ACCEPTED AND AGREED TO:

DYNAMIC MATERIALS CORPORATION

By: /s/ Richard Santa
   --------------------------

Richard Santa
-----------------------------
Printed Name

Title:  Vice President, Finance & CFO

Dated:
      -----------------------


                                    EXHIBIT A


To:    Dynamic Materials Corporation

From:
       ----------------------------------
Date:
       ----------------------------------

Re:    Previous Inventions

     1. Except as listed in Section 2 below, the following is a complete list of
all inventions or  improvements  relevant to the subject matter of my employment
by  Dynamic  Materials  Corporation  that have been made or  conceived  or first
reduced to practice by me alone or jointly with others prior to my engagement by
Dynamic Materials Corporation.

                         No inventions or improvements.

                    See below:

All active patents previously assigned to EFI/DMC
--------------------------------------------------------------------------------

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

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

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

                           Additional sheets attached.

     2.  Due  to a  prior  confidentiality  agreement,  I  cannot  complete  the
disclosure  under  Section 1 above with respect to  inventions  or  improvements
generally listed below, the proprietary rights and duty of confidentiality  with
respect to which I owe the following party(ies):

        Invention or Improvement          Party(ies)             Relationship

1.
     -----------------------------   ---------------------     -----------------
2.
     -----------------------------   ---------------------     -----------------
3.
     -----------------------------   ---------------------     -----------------