Document:

Exhibit 10.6

 

MANAGEMENT SERVICES AGREEMENT

 

THIS MANAGEMENT SERVICES AGREEMENT
(this “Agreement”) is made and entered into as of December 23, 2021 (the “Effective Date”), between
Arcadia Products, LLC, a Colorado limited liability company (the “Company”), and DMC Global Inc., a Delaware corporation
(the “Service Provider”).

 

WHEREAS, the Company and the
Service Provider wish to enter into this Agreement in order to govern the terms and conditions of the provision of certain management
services as described herein.

 

NOW, THEREFORE, in consideration
of the services to be rendered by the Service Provider hereunder, and to evidence the obligations of the Company to the Service Provider
and the mutual covenants herein contained, the Company and the Service Provider hereby agree as follows:

 

1.                 
Retention. The Company hereby retains the Service Provider to provide, and the Service Provider hereby agrees to provide
the Company with, general administrative and management services, including services relating to oversight of strategy, accounting, legal,
compliance, information technology and other matters as may be mutually agreed by the Company and the Service Provider (the “Services”)
during the term of this Agreement. The Service Provider may contract with individuals or other entities to provide any such Services;
provided that contracting with individuals or other entities to provide any such Services shall not relieve the Service Provider of its
obligations hereunder. For the avoidance of doubt, the Service Provider, and not the Company, shall (i) be the employer of or contracting
party with, as appropriate, any individuals or other entities providing the Services, (ii) control and direct the actions of such individuals
or other entities, and (iii) make all hiring, retention, dismissal, compensation, and other similar decisions related to such individuals
or other entities.

 

2.                 
Term. This Agreement shall be effective as of the Effective Date and shall continue until December 31, 2024 (the “Initial
Term”). Upon the end of the Initial Term, and on each anniversary thereof, the term of this Agreement shall automatically be
extended for one additional year from such date unless notice to the contrary is given by either party at least thirty (30), but no more
than sixty (60), calendar days prior to the end of such term.

 

3.                 
Compensation. As compensation for the Service Provider’s provision of the Services, the Company shall pay to the Service
Provider an annual fee equal to 0.50% of the Company’s annual revenue as set forth in its annual financial statements prepared in
accordance with U.S. GAAP (“Annual Revenue”) up to Annual Revenue of $500 million and 0.30% of Annual Revenue in excess
of $500 million. Each year, the Company shall make payments based on an estimation of Annual Revenue for such year within 30 days following
the end of the first, second and third fiscal quarters and a final payment promptly following the completion of the Company’s financial
statements for such year, but in no event more than 60 days following the end of the Company’s fiscal year. Upon termination of
this Agreement, the amount of the annual fee for the year in which termination occurred shall be pro rated based on the portion of the
year during which Services were provided.

 

     

     

    

 

4.                 
 Reimbursement of Expenses. The Company shall pay directly or reimburse the Service Provider, promptly following demand
therefor, together with written invoices or reasonably detailed descriptions thereof, for all direct or indirect out-of-pocket expenses
incurred by the Service Provider in connection with the performance by it of the Services contemplated by Section 1 hereof; provided that
such expenses shall not include the salary and benefits of employees engaged in providing the Services or office rent or expenses incurred
in connection with providing the Services.

 

5.                 
Independent Contractor. The Service Provider shall for all purposes be an independent contractor and not an agent or employee
of the Company, and the Service Provider shall have no authority to act for, represent, bind or obligate the Company except as specifically
provided herein. This Agreement shall not be construed for any purposes to create any joint venture or partnership among the parties hereto.

 

6.                 
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Colorado.

 

7.                 
Assignment. This Agreement and all provisions contained herein shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns; provided that neither this Agreement nor any of the rights, interests, or obligations
hereunder shall be assigned by either of the parties without the prior written consent of the other party.

 

8.                 
Entire Agreement; Amendments. This Agreement contains the entire understanding of the parties with respect to its subject
matter and supersedes any and all prior agreements, and neither it nor any part of it may in any way be altered, amended, extended, waived,
discharged or terminated except by a written agreement signed by each of the parties hereto.

 

9.                 
Waivers. Either party to this Agreement may, by written notice to the other party, waive any provision of this Agreement.
The waiver by any party of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent
breach.

 

10.             
Counterparts. This Agreement may be executed in two or more counterparts (including facsimile counterparts), each of which
shall be deemed an original, but all of which together shall constitute one and the same instrument, and the signature of any party to
any counterpart shall be deemed a signature to, and may be appended to, any other counterpart.

 

[Signature page follows]

 

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IN WITNESS WHEREOF, the parties
hereto have caused this Agreement to be duly executed as of the day and year first above written.

 

	 	SERVICE PROVIDER
	 	 	 
	 	DMC Global Inc.
	 	 	 
	 	By:	/s/  Michael Kuta
	 	 	Name: Michael Kuta
	 	 	Title: Chief Financial Officer
	 	 	 
	 	COMPANY
	 	 	 
	 	Arcadia, Products, LLC
	 	 	 
	 	By:	/s/ James Schladen
	 	 	Name: James Schladen
	 	 	Title: President

 

Signature
Page To

Management Services AgreementExhibit 10.7

 

Certain identified information has been excluded from the exhibit because it is both (i) not material and (ii) would be competitively
harmful if publicly disclosed.

 

CONSULTING SERVICES AGREEMENT

 

This Consulting Services Agreement
(“Agreement”) is made between (i) Synergex Group LLC, Trustee of the Munera Family ESBT (“Contractor”) and (ii)
DMC Global Inc. (the “Company”) effective as of December 23, 2021. Contractor and the Company are referred to collectively
as the “Parties” and individually as a “Party.”

 

WHEREAS, the Company desires
to retain the services of Contractor as an independent contractor, and Contractor desires to perform certain consulting and related services
for the Company as an independent contractor; and

 

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

 

1.                 
Description of Services. Contractor agrees to provide services as may be requested by the Company from time to time, and
as may be more fully described in the attached Exhibit A (the “Services”).

 

2.                 
Independent Contractor Status. Contractor and the Company understand and intend that Contractor shall perform the Services
under this Agreement as an independent contractor and not as an employee of the Company or any of its subsidiaries. Contractor is not
authorized to assume or create any obligation or responsibility, express or implied, on behalf of, or in the name of, the Company or any
of its subsidiaries or to bind the Company or any of its subsidiaries in any manner.

 

3.                 
Term and Termination. This Agreement shall be effective as of the Effective Date and shall continue until December 31, 2024
(the “Initial Term”). Upon the end of the Initial Term, and on each anniversary thereof, the term of this Agreement shall
automatically be extended for one additional year from such date unless notice to the contrary is given by either party at least thirty
(30), but no more than sixty (60), calendar days prior to the end of such term.

 

4.                 
Compensation.

 

(a)              
Fees. In consideration of Contractor providing the Services and performing the obligations hereunder, the Company shall
pay Contractor as specified in Exhibit A.

 

(b)              
Payment. Payment of the fees shall be made by the Company to Contractor annually on each anniversary of the date of this
Agreement. The Company may offset amounts due to the Company by Contractor, with notice to Contractor.

 

(c)              
Taxes. No income tax or payroll tax of any kind shall be withheld or paid by the Company on behalf of Contractor for any
payment under this Agreement, except as may be required by law for payments to independent contractors. Contractor shall be responsible
for all taxes and similar payments arising out of any activities contemplated by this Agreement, including without limitation, federal,
state, and local income tax, social security tax (FICA), self employment taxes, unemployment insurance taxes, and all other taxes, fees,
and withholdings.

 

     

     

    

 

(d)              
 Benefits. Contractor is not an employee of the Company and, therefore, shall not be entitled to any benefits, coverages,
or privileges, including, without limitation, social security, unemployment compensation insurance, workers’ compensation insurance,
medical benefits, or pension payments.

 

5.                 
Notices. All notices required or permitted under this Agreement shall be in writing and shall be deemed effective upon personal
delivery or upon deposit in the United States Post Office, by registered or certified mail, postage prepaid, addressed to the other Party
at the following addresses:

 

	The Company:  	Contractor:
	 	 
	Attn: Michelle Shepston

                                                          DMC Global Inc.

                                                          11800 Ridge Parkway, Suite 300

 Broomfield, CO 80021

                                                          Email: mshepston@dmcglobal.com
	Attn: Gerard Munera

                                                          Synergex Group LLC, Trustee of the

                                                          Munera Family ESBT

                                            [***]

                                            [***]

                                            Email: groupsynergex@gmail.com  

 

6.                 
Assignment; Subcontracting. Contractor shall not assign this Agreement or any of its rights hereunder, or delegate or subcontract
any of its obligations hereunder, without the prior written consent of the Company. The Company may transfer or assign this Agreement
and its rights hereunder without the consent of Contractor.

 

7.                 
Entire Agreement. This Agreement, including the attached Exhibit A, contains the entire agreement between the Parties with
respect to the matters contemplated herein. This Agreement supersedes and replaces any previous agreements, statements, and representations
by or between the Parties. No promises or representations have been made by the Company or Contractor other than those contained in this
Agreement concerning the subject matter contained herein.

 

8.                 
Waiver and Modification. No waiver or modification of this Agreement or any covenant, condition, or limitation herein contained,
shall be valid unless in writing and duly executed by Contractor and the Company. No delay or omission by the Company in exercising any
right under this Agreement shall operate as a waiver of that or any other right. A waiver or consent given by the Company on any one occasion
shall be effective only in that instance and shall not be construed as a bar or waiver of any right on any other occasion.

 

9.                 
Venue and Applicable Law. This Agreement shall be interpreted and construed in accordance with the laws of the State of
Colorado, without regard to its conflicts of law provisions. Venue and jurisdiction will be in the Colorado state or federal courts.

 

10.              Severability.
If any provision of this Agreement is held illegal, invalid, or unenforceable, such holding shall not affect any other provision
hereof. In the event any provision is held illegal, invalid, or unenforceable, such provision shall be limited so as to give effect
to the intent of the Parties to the fullest extent permitted by applicable law.

 

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11.             
Survivorship. This Agreement shall be binding upon and inure to the benefit of the respective parties hereto and their executors,
administrators, heirs, personal representatives, successors, and assigns.

 

12.             
Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all
of which together shall constitute one and the same instrument. Facsimile and electronic signatures shall be treated as originals.

 

13.             
Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY VOLUNTARILY AND IRREVOCABLY WAIVES TRIAL BY JURY IN ANY ACTION OR
OTHER PROCEEDING BROUGHT IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY.

 

14.             
Attorneys’ Fees and Costs. In the event of a breach of this Agreement by Contractor, the Company shall be entitled
to recover from Contractor the Company’s reasonable attorneys’ fees and costs incurred in enforcing the terms of this Agreement.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the Parties
have executed this Agreement on the dates below, effective as of the date first written above.

 

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

 

Synergex
Group LLC, Trustee of the Munera Family ESBT

 

	By:	/s/ Gerard Munera	 
	Name: Gerard Munera
	Title: Manager

 

 

 

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EXHIBIT A

 

Description of Services:

 

Contractor shall provide advice and input regarding
business and product strategy, as requested by the Company from time to time.

 

Fixed or contract rate of pay:

 

The Company shall pay Contractor an annual fee
of 840,375.

 

Contractor and the Company agree that this amount
shall be reviewed annually and any agreed adjustments reflected on Exhibit A

 

Other:

 

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