Document:

Exhibit 10.35

 

EMPLOYMENT AGREEMENT

 

This
Employment Agreement (this “Agreement”), entered into
the 3rd day of March, 2005, effective as of January 1, 2005 is by
and between Dynamic Materials Corporation, a Delaware corporation (the “Company”), and John G. Banker (“Executive”).

 

WHEREAS,
Executive has significant experience in the management of companies and is
willing to serve the Company on the terms and subject to the conditions
hereinafter set forth; and

 

WHEREAS, the
Company desires to secure the continued services of Executive subject to the
terns and conditions hereinafter set forth; and

 

NOW,
THEREFORE, in consideration of the foregoing and the mutual covenants and
promises contained herein, the parties agree as follows:

 

1.   Employment

 

The Company
hereby employs Executive as Vice President Marketing and Sales, Clad Metal
Division of the Company reporting to the Chief Executive Officer of the
Company, and Executive hereby accepts such employment and agrees to perform
such duties and responsibilities as are assigned to him from time-to-time by
the CEO of the Company.

 

2.   Full-time
Best Efforts

 

Executive
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 this obligations hereunder.

 

3.   Term
of Agreement

 

This agreement
shall be effective on January 1, 2005 (the Effective Date) and shall continue
until December 31, 2007 (the “Initial Term”), unless otherwise terminated by
either party pursuant to Section 5 below. 
Prior to the expiration of the Initial Term, the parties hereto shall
negotiate in good faith a new employment contract.  If the parties are unable to negotiate such
new agreement prior to the expiration of the Initial Term, this agreement shall
automatically be extended and shall continue until terminated pursuant to
Section 5 below.

 

4.   Compensation
Reimbursement

 

(a)    Salary

 

During the term of this Agreement, the Company shall pay Executive an
annual base salary (“Base Salary”) of $200,000 payable in accordance with the
Company’s standard payroll practices for similarly situated employees.  The Base Salary shall be adjusted annually at
the discretion of the Board.

 

(b)    Bonus

 

Executive shall be eligible to receive an
annual bonus (“Bonus”) with a maximum payout amount
of 60 % of the Base Salary.  The Bonus
will be based on an operating income target for DMC consolidated Clad
Operations expressed in US Dollars and on performance goals and rules
established by the Board. The Bonus, if any, will be payable before March 15
following the end of the year for which the performance is evaluated.

 

1

 

(c)    Stock Options

 

Executive
shall be eligible to receive options to purchase shares of the Common Stock of
the Company under the Company’s 1997 Equity Incentive Plan (the “Option Plan”),
subject to the terms and conditions of such plan and the terms and conditions
of the option agreement.  If the Company
terminates the Executive’s employment for any reason other than Cause pursuant
to Section 5(b), all options held by the Executive shall immediately vest,
subject to the terms and conditions of the Option Plan and the terms and
conditions of the option agreement.

 

(d)    Benefits

 

Executive
shall receive the following standard Company benefits:

 

(i).                                       term
life insurance coverage in the amount of $300,000 which is in addition to the
standard term life insurance provided in the Company’s standard benefit 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 Executive’s length of service
entitled Executive 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 holiday and certain other standard
benefits provided by the Company; and

 

(v).                                   participation
in the Company’s 401(k) retirement plan.

 

(e)    Expense Reimbursement

 

The Company
shall reimburse Executive for all travel expenses and other disbursements
incurred by Executive for or on behalf of the Company in the performance of his
duties hereunder, subject to and in accordance with the Company’s expense
reimbursement policies and procedures, as in effect from time-to-time.

 

5.   Termination

 

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

 

(i).                                       The
continued failure by Executive 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 identities the manner in which he believes that
Executive has not substantially performed his duties.

 

(ii).                                    The
commission by Executive 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
misconduct by Executive with respect to the business and affairs of the
Company, including material violations of any Company policy, including the
Code of Conduct.

 

b)   After
the expiration of the Initial Term, the Company may terminate the Executive’s
employment for any reason other than Cause at any time upon one-year’s written
notice to the Executive or the payment to the Executive of one year’s salary,
including a bonus for such period, based on the average bonus paid to Executive
for the two years preceding the termination; provided, that the Executive shall
execute a release releasing the Company from all claims as a condition of
receiving the one year’s salary and bonus.

 

2

 

c)   Upon
the termination of the Executive’s employment hereunder, neither Executive nor
Executive’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 Salary computed on a pro rata basis to the date of
termination;

 

(ii).                                    any
unpaid bonus owing under Section 4(b) or 5(b), and

 

(iii).                                 reimbursement
for any expenses for which Executive shall not have theretofore bee reimbursed
as provided in Section 4(e).

 

d)   Notwithstanding
any other provision of this Section 5, the Executive shall have the right to
terminate his employment at any time upon one month’s written notice to the
Company. Any such termination by the Executive shall be deemed effective upon
receipt by the Company of such notice.

 

6.   Proprietary Information and Non-Competition
Agreements

 

Executive shall be bound by the terms of the Company’s standard form of
the Key Employee Proprietary Information and Inventions Agreement, attached
hereto as Exhibit A, and the Non-Competition Agreement, attached hereto as
Exhibit B, from and after the date hereof until the termination of his
employment hereunder.

 

7.   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 thereof. In addition, if any one or
more of the terms contained in this Agreement shall for any reason be held to
be excessively broad or of an 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 intend
that the Company shall nonetheless be entitled to recover monetary damages as a
result of any breach hereof.

 

(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, Executive understands and agrees
that the Company could not be reasonably or adequately compensated in damages
in an action at law for Executive’s breach of his obligations hereunder.
Accordingly, Executive 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 or 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 of the provisions of this Agreement or to
require any performance by Executive 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.

 

3

 

(f)    Entire Agreement

 

This Agreement,
including the Proprietary Information Agreement and the Non Competition
Agreement referred to herein, and which are incorporated herein and made a part
hereof by reference, embody the entire agreement and understanding of the
parties hereto and supersede all prior agreements or understanding (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
consent 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.

 

(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 the parties indicated as the
signatories hereto.

 

(j)    Notices

 

All notices,
requests, demands and other communications under the 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.

 

4

 

(l)    Attorney’s 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 attorney’s fees.

 

 

EXECUTED as
the date first set above

 

 

	
  DYNAMIC
  MATERIALS CORPORATION

  	
   

  
	
   

  
	
   

  
	
  /s/ Michel
  Nicolas

  	
   

  
	
  By: Michel
  Nicolas

  
	
  Title:
  Chairman

  
	
   

  
	
   

  
	
  EXECUTIVE

  	
   

  
	
   

  
	
   

  
	
  /s/ John G.
  Banker

  	
   

  
				

 

5

 

Exhibit A

 

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.         NON DISCLOSURE

 

1.1                  Recognition of Company’s Rights; Non
disclosure.

 

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 (as 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.

 

A-1

 

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 by that former
employer of 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 INVENTION

 

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 Schedule I (Previous
Inventions) 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 of 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 Schedule
I 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 Schedule I
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 sublicences) 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 hereof, I 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
registable under copyrights 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:

 

A-2

 

A-             qualifies fully for
protection under a Specific Inventions Law or,

 

B-               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 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 Laws; 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 for 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.

 

A-3

 

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 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.

 

A-4

 

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 resident. 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 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
assignments 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

 

A-5

 

and merges all
prior discussions between us. No modification of or amendment of this
Agreement, not 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: December 27, 1977 & June 16, 2000

 

 

I HAVE READ
THIS AGREEMENT CAREFULLY AND UNDERSTAND ITS TERMS.

I HAVE
COMPLETELY FILLED OUT EXHIBIT A TO THIS AGREEMENT.

 

 

DATE: January
1, 2005

 

 

SIGNATURE:

 

 

PRINTED NAME:

 

 

 

ACCEPTED AND
AGREE TO:

 

 

By: January 1,
2005

 

 

Title:

 

 

Dated:

 

A-6

 

EXHIBIT A

To:

 

 

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 have been made or conceived or first reduced to practice by
me alone or jointly with others prior to my engagement by Dynamic Materials.

 

	
  No
  inventions or improvements.

  
	
   

  
	
  See below:

  
	
   

  
	
  On file at 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.

  	
   

  	
   

  	
   

  	
   

  

 

I-1

 

EXHIBIT B

 

NON COMPETITION AGREEMENT

 

This
Non-Competition Agreement (this “Agreement”) effective as of January 1, 2005 is
by and between Dynamic Materials Corporation (the “Company”) and John G. Banker
(“Executive”).

 

WHEREAS
Executive has significant experience in the management of companies and is
willing to serve the Company on the terms and subject to the conditions of a
Employment Agreement, dated January 1, 2005; and

 

WHEREAS the
Company wishes to secure its business:

 

NOW,
THEREFORE, in consideration of the foregoing and the mutual covenants and
promises contained herein, the parties agree as follows:

 

1-Covenant
of non competition

 

The Company
and Executive hereby acknowledge the highly competitive nature of the Company’s
businesses.

 

Accordingly,
the parties covenant and agree that Executive shall not, other than for the
direct purpose of his duties as Executive of the Company, directly or
indirectly engage in the business of developing, manufacturing, selling or
distributing explosive cladding products or technologies developed manufactured
or sold by the Company or its affiliates, as of the duration of the Employment
Agreement and up to two (2) years following the Executive’s termination.

 

2-Non
competition conditions

 

During a
period of two (2) years following the Executive’s termination, Executive shall
neither, without the prior written approval of the Chairman of the Company,
which approval shall not be refused without reason:

 

(A)         solicit any person or
entity which is then a supplier of the Company or which had been a supplier of
the Company;

 

(B)           solicit or make other
similar business contact with any person or entity which is then a customer of
the Company;

 

(C)           solicit the services
of, or initiate discussions with any employee of the Company in order to cause
such employee to terminate his or her employment with the Company, or employ
any such employee.

 

If any
provision of this Agreement or the application of any such provision is
invalid, illegal or unenforceable in any jurisdiction, such invalidity,
illegality or unenforceability shall not affect any other provision of this
Agreement or invalidate or render unenforceable such provision in any other
jurisdiction.

 

B-1

 

EXECUTED as of
the date first set forth above,

 

 

DYNAMIC
MATERIALS CORPORATION

 

 

	
   

  	
   

  
	
  By: Michel
  Nicolas

  
	
  Title:
  Chairman

  
	
   

  
	
   

  
	
  EXECUTIVE

  
	
   

  
	
   

  
	
   

  	
   

  

 

B-2Exhibit
10.36

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement (this “Agreement”), entered into
the 3rd day of March, 2005, effective as of January 1, 2005 is
by and between Dynamic Materials Corporation, a Delaware corporation (the “Company”), and Richard A. Santa (“Executive”).

 

WHEREAS, Executive has significant experience in the management of
companies and is willing to serve the Company on the terms and subject to the
conditions hereinafter set forth; and

 

WHEREAS, the Company desires to secure the continued services of
Executive subject to the terns and conditions hereinafter set forth; and

 

NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants and promises contained herein, the parties agree as follows:

 

1.  Employment

 

The Company
hereby employs Executive as Vice President and Chief Financial Officer of the
Company reporting to the Chief Executive Officer of the Company, and Executive
hereby accepts such employment and agrees to perform such duties and
responsibilities as are assigned to him from time-to-time by the CEO of the
Company.

 

2.  Full-time Best Efforts

 

Executive
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 this obligations hereunder.

 

3.  Term of Agreement

 

This agreement
shall be effective on January 1, 2005 (the Effective Date) and shall
continue until terminated pursuant to Section 5 below.

 

4.  Compensation Reimbursement

 

(a)  Salary

 

During the
term of this Agreement, the Company shall pay Executive an annual base salary (“Base
Salary”) of $223,500 payable in accordance with the Company’s standard payroll
practices for similarly situated employees. 
The Base Salary shall be adjusted annually at the discretion of the
Board.

 

(b)  Bonus

 

Executive shall be eligible to
receive an annual bonus (“Bonus”) with a maximum
payout amount of 40 % of the Base Salary. 
The Bonus will be based on pre-tax income, before extraordinary items
target for DMC Consolidated, expressed in US Dollars, and on performance goals
and rules established by the Board. The Bonus, if any, will be payable before March 15
following the end of the year for which the performance is evaluated.

 

(c)  Stock Options

 

Executive
shall be eligible to receive options to purchase shares of the Common Stock of
the Company under the Company’s 1997 Equity Incentive Plan (the “Option Plan”),
subject to the terms and conditions of such plan and the terms and conditions
of the option agreement.  If the Company
terminates the Executive’s employment

 

1

 

for any reason
other than Cause pursuant to Section 5(b), all options held by the
Executive shall immediately vest, subject to the terms and conditions of the
Option Plan and the terms and conditions of the option agreement.

 

(d)  Benefits

 

Executive
shall receive the following standard Company benefits:

 

(i).                                       term
life insurance coverage in the amount of $300,000 which is in addition to the
standard term life insurance provided in the Company’s standard benefit 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 Executive’s length of service
entitled Executive 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 holiday and certain other standard
benefits provided by the Company; and

 

(v).                                   participation
in the Company’s 401(k) retirement plan.

 

(e)  Expense Reimbursement

 

The Company
shall reimburse Executive for all travel expenses and other disbursements
incurred by Executive for or on behalf of the Company in the performance of his
duties hereunder, subject to and in accordance with the Company’s expense
reimbursement policies and procedures, as in effect from time-to-time.

 

5.  Termination

 

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

 

(i).                                       The
continued failure by Executive 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 identities the manner in which he believes that
Executive has not substantially performed his duties.

 

(ii).                                    The
commission by Executive 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
misconduct by Executive with respect to the business and affairs of the
Company, including material violations of any Company policy, including the
Code of Conduct.

 

b)          The Company may
terminate the Executive’s employment for any reason other than Cause at any
time upon one-year’s written notice to the Executive or the payment to the
Executive of one year’s salary, including a bonus for such period, based on the
average bonus paid to Executive for the two years preceding the termination;
provided, that the Executive shall execute a release releasing the Company from
all claims as a condition of receiving the one year’s salary and bonus.

 

c)           Upon the termination of
the Executive’s employment hereunder, neither Executive nor Executive’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 Salary computed on a pro rata basis to the date of
termination;

 

(ii).                                    any
unpaid bonus owing under Section 4(b) or 5(b), and

 

2

 

(iii).                                 reimbursement
for any expenses for which Executive shall not have theretofore bee reimbursed
as provided in Section 4(e).

 

d)          Notwithstanding any
other provision of this Section 5, the Executive shall have the right to
terminate his employment at any time upon one month’s written notice to the
Company. Any such termination by the Executive shall be deemed effective upon
receipt by the Company of such notice.

 

6.  Proprietary Information and
Non-Competition Agreements

 

Executive shall be bound by the terms of the
Company’s standard form of the Key Employee Proprietary Information and
Inventions Agreement, attached hereto as Exhibit A, and the Non-Competition
Agreement, attached hereto as Exhibit B, from and after the date hereof until
the termination of his employment hereunder.

 

7.  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 thereof. In addition, if any one or
more of the terms contained in this Agreement shall for any reason be held to
be excessively broad or of an 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 intend
that the Company shall nonetheless be entitled to recover monetary damages as a
result of any breach hereof.

 

(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, Executive understands and agrees
that the Company could not be reasonably or adequately compensated in damages
in an action at law for Executive’s breach of his obligations hereunder.
Accordingly, Executive 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 or 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 of the provisions of this Agreement or to
require any performance by Executive 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, and which are incorporated herein and made a part
hereof by reference, embody the entire

 

3

 

agreement and
understanding of the parties hereto and supersede all prior agreements or
understanding (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
consent 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.

 

(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 the parties indicated as the
signatories hereto.

 

(j)  Notices

 

All notices,
requests, demands and other communications under the 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.

 

4

 

(l)  Attorney’s 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 attorney’s fees.

 

EXECUTED as the date first set above

 

 

DYNAMIC MATERIALS CORPORATION

 

 

	
  /s/ Michel Nicolas

  	
   

  
	
  By: Michel Nicolas

  
	
  Title: Chairman

  

 

 

EXECUTIVE

 

 

	
  /s/ Richard A. Santa

  	
   

  

 

5

 

Exhibit A

 

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.         NON DISCLOSURE

 

1.1                  Recognition of
Company’s Rights; Non disclosure.

 

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 (as 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.

 

A-1

 

 

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 by that
former employer of 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 INVENTION

 

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 Schedule I
(Previous Inventions) 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 of 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 Schedule I 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 Schedule I 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 sublicences) 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 hereof, I
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 registable under copyrights 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:

 

A-2

 

A-             qualifies fully for
protection under a Specific Inventions Law or,

 

B-               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 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 Laws; 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 for
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.

 

A-3

 

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 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.

 

A-4

 

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 resident. 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 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 assignments 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

 

A-5

 

and merges all prior discussions between us. No modification of or
amendment of this Agreement, not 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: October 29,1996

 

 

I HAVE READ THIS AGREEMENT CAREFULLY AND UNDERSTAND ITS TERMS.

I HAVE COMPLETELY FILLED OUT EXHIBIT A TO THIS AGREEMENT.

 

 

DATE: January 1, 2005

 

 

SIGNATURE:

 

 

PRINTED NAME:

 

 

 

 

ACCEPTED AND AGREE TO:

 

 

By: January 1, 2005

 

 

Title:

 

 

Dated:

 

A-6

 

EXHIBIT A

 

To:

 

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 have been made or conceived or first reduced to practice by me alone
or jointly with others prior to my engagement by Dynamic Materials.

 

	
  No inventions or improvements.

  
	
   

  
	
  See below:

  
	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  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.

  	
   

  	
   

  	
   

  	
   

  

 

I-1

 

EXHIBIT B

 

NON COMPETITION AGREEMENT

 

This Non-Competition Agreement (this “Agreement”) effective as of January 1
2005 is by and between Dynamic Materials Corporation (the “Company”) and
Richard A. Santa (“Executive”).

 

WHEREAS Executive has significant experience in the management of
companies and is willing to serve the Company on the terms and subject to the
conditions of a Employment Agreement, dated January 1, 2005; and

 

WHEREAS the Company wishes to secure its business:

 

NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants and promises contained herein, the parties agree as follows:

 

1-Covenant of non competition

 

The Company and Executive hereby acknowledge the highly competitive
nature of the Company’s businesses.

 

Accordingly, the parties covenant and agree that Executive shall not,
other than for the direct purpose of his duties as Executive of the Company,
directly or indirectly engage in the business of developing, manufacturing,
selling or distributing in the United States explosive cladding products or
technologies developed manufactured or sold by the Company or its affiliates,
as of the duration of the Employment Agreement and up to one (1) year following
the Executive’s termination.

 

2-Non competition conditions

 

During a period of two (2) years following the Executive’s termination,
Executive shall neither, without the prior written approval of the Chairman of
the Company, which approval shall not be refused without reason:

 

(A)         solicit any person or
entity which is then a supplier of the Company or which had been a supplier of
the Company;

 

(B)           solicit or make other
similar business contact with any person or entity which is then a customer of
the Company;

 

(C)           solicit the services
of, or initiate discussions with any employee of the Company in order to cause
such employee to terminate his or her employment with the Company, or employ
any such employee.

 

If any provision of this Agreement or the application of any such
provision is invalid, illegal or unenforceable in any jurisdiction, such
invalidity, illegality or unenforceability shall not affect any other provision
of this Agreement or invalidate or render unenforceable such provision in any
other jurisdiction.

 

B-1

 

EXECUTED as of the date first set forth above,

 

 

	
  DYNAMIC MATERIALS CORPORATION

  
	
   

  
	
   

  
	
   

  	
   

  
	
  By: Michel Nicolas

  
	
  Title: Chairman

  
	
   

  
	
   

  
	
  EXECUTIVE

  
	
   

  
	
   

  
	
   

  	
   

  

 

B-2

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