Document:

Exhibit 10.2

 

Execution Version

 

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.

 

AMENDED AND RESTATED

LIMITED LIABILITY COMPANY AGREEMENT

 

OF

 

ARCADIA PRODUCTS, LLC

 

December 23, 2021

 

     

     

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	ARTICLE I DEFINED TERMS	 	     2
	 	 	 	 	 
	Section 1.1	 	Definitions	 	2
	 	 	 	 	 
	ARTICLE II FORMATION OF THE COMPANY	 	11
	 	 	 	 	 
	Section 2.1	 	Formation	 	11
	Section 2.2	 	Company Name	 	11
	Section 2.3	 	The Articles, etc.	 	11
	Section 2.4	 	Term of Company	 	11
	Section 2.5	 	Registered Agent and Office	 	11
	Section 2.6	 	Principal Place of Business	 	11
	Section 2.7	 	Qualification in Other Jurisdictions	 	11
	Section 2.8	 	Fiscal Year; Taxable Year	 	11
	Section 2.9	 	Effectiveness	 	12
	 	 	 	 	 
	ARTICLE III PURPOSE AND POWERS OF THE COMPANY	 	12
	 	 	 	 	 
	Section 3.1	 	Purpose	 	12
	Section 3.2	 	Powers of the Company	 	12
	Section 3.3	 	Tax Partnership	 	12
	 	 	 	 	 
	ARTICLE IV MEMBERS	 	12
	 	 	 	 	 
	Section 4.1	 	Powers of Members	 	12
	Section 4.2	 	Interests	 	12
	Section 4.3	 	Meetings of Members	 	13
	Section 4.4	 	Business Transactions of a Member with the Company	 	14
	Section 4.5	 	No Cessation of Membership upon Bankruptcy	 	14
	Section 4.6	 	Restricted and Non-Restricted Activities	 	14
	Section 4.7	 	Confidentiality	 	15
	Section 4.8	 	Additional Members	 	16
	 	 	 	 	 
	ARTICLE V MANAGEMENT	 	16
	 	 	 	 	 
	Section 5.1	 	Board	 	16
	Section 5.2	 	Meetings of the Board	 	21
	Section 5.3	 	Quorum and Acts of the Board	 	21
	Section 5.4	 	Electronic Communications	 	22
	Section 5.5	 	Compensation of Directors and Officers	 	22
	Section 5.6	 	Resignation	 	22
	Section 5.7	 	Removal of Directors	 	22
	Section 5.8	 	Vacancies	 	22
	Section 5.9	 	Directors as Managers	 	23
	Section 5.10	 	Officers	 	23
	Section 5.11	 	Affirmative Covenants	 	24

 

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TABLE OF CONTENTS

(continued)

 

	 	 	 	 	Page
	 	 	 	 	 
	ARTICLE VI REPRESENTATIONS AND WARRANTIES OF THE MEMBERS	 	24
	 	 	 	 	 
	Section 6.1	 	Investment Representations and Warranties	 	24
	Section 6.2	 	Additional Representations and Warranties	 	26
	Section 6.3	 	Certain Members	 	26
	 	 	 	 	 
	ARTICLE VII CAPITAL ACCOUNTS; CAPITAL CONTRIBUTIONS	 	26
	 	 	 	 	 
	Section 7.1	 	Capital Accounts	 	26
	Section 7.2	 	Adjustments to the Capital Accounts	 	27
	Section 7.3	 	Capital Contributions	 	27
	Section 7.4	 	Additional Capital Contributions	 	28
	Section 7.5	 	Negative Capital Accounts	 	29
	 	 	 	 	 
	ARTICLE VIII ALLOCATIONS	 	29
	 	 	 	 	 
	Section 8.1	 	Book Allocations of Net Profit and Net Loss	 	29
	Section 8.2	 	Special Book Allocations	 	29
	Section 8.3	 	Transfer of Interests	 	30
	Section 8.4	 	Certain Tax Matters	 	31
	 	 	 	 	 
	ARTICLE IX DISTRIBUTIONS 	 	31
	 	 	 	 	 
	Section 9.1	 	Distributions Generally	 	31
	Section 9.2	 	Distributions In Kind	 	32
	Section 9.3	 	No Withdrawal of Capital	 	32
	Section 9.4	 	Withholding; Payment of Member Taxes by the Company	 	32
	Section 9.5	 	Restrictions on Distributions	 	33
	Section 9.6	 	Offset	 	33
	 	 	 	 	 
	ARTICLE X BOOKS AND RECORDS	 	33
	 	 	 	 	 
	Section 10.1	 	Books and Records; Reports	 	33
	Section 10.2	 	Filings of Returns and Other Writings; Tax Matters Member	 	34
	Section 10.3	 	Accounting Method	 	35
	Section 10.4	 	Section 754 Election	 	35
	Section 10.5	 	Combined Group Taxes	 	35
	 	 	 	 	 
	ARTICLE XI LIABILITY, EXCULPATION AND INDEMNIFICATION 	 	36
	 	 	 	 	 
	Section 11.1	 	Liability	 	36
	Section 11.2	 	Exculpation	 	36
	Section 11.3	 	Fiduciary Duty	 	36
	Section 11.4	 	Indemnification	 	36
	Section 11.5	 	Expenses	 	37
	Section 11.6	 	Indemnification Procedures	 	37
	Section 11.7	 	Directors’ and Officers’ Indemnity Insurance Coverage	 	37
	Section 11.8	 	Severability; Survival	 	38
	 	 	 	 	 
	ARTICLE XII TRANSFERS OF INTERESTS	 	38
	 	 	 	 	 
	Section 12.1	 	Restrictions on Transfers of Interests	 	38

 

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TABLE OF CONTENTS

(continued)

 

	 	 	 	 	Page
	 	 	 	 	 
	Section 12.2	 	Estate Planning Transfers; Transfers upon Death	 	38
	Section 12.3	 	Effect of Assignment	 	38
	Section 12.4	 	Overriding Provisions	 	38
	Section 12.5	 	Involuntary Transfers	 	39
	Section 12.6	 	Substitute Members	 	39
	Section 12.7	 	Release of Liability	 	40
	Section 12.8	 	Right of First Refusal and Drag-Along Right	 	40
	Section 12.9	 	Initial Public Offering	 	41
	Section 12.10	 	Put/Call Rights	 	41
	 	 	 	 	 
	ARTICLE XIII DISSOLUTION, LIQUIDATION AND TERMINATION	 	44
	 	 	 	 	 
	Section 13.1	 	Dissolving Events	 	44
	Section 13.2	 	Dissolution and Winding Up	 	44
	Section 13.3	 	Distributions in Cash or in Kind	 	45
	Section 13.4	 	Termination	 	45
	Section 13.5	 	Claims of the Members	 	45
	 	 	 	 	 
	ARTICLE XIV MISCELLANEOUS	 	45
	 	 	 	 	 
	Section 14.1	 	Notices	 	45
	Section 14.2	 	Securities Act Matters	 	45
	Section 14.3	 	Headings	 	46
	Section 14.4	 	Entire Agreement	 	46
	Section 14.5	 	Counterparts	 	46
	Section 14.6	 	Governing Law; Attorneys’ Fees	 	46
	Section 14.7	 	Waiver of Jury Trial	 	46
	Section 14.8	 	Waiver of Partition	 	46
	Section 14.9	 	Waiver Generally	 	46
	Section 14.10	 	Severability	 	46
	Section 14.11	 	Further Actions	 	46
	Section 14.12	 	Amendments	 	46
	Section 14.13	 	Fees and Expenses	 	47
	Section 14.14	 	No Third Party Beneficiaries	 	47
	Section 14.15	 	Submission to Jurisdiction; Enforcement	 	47

 

SCHEDULES
AND EXHIBITS

 

Schedule A: Members

Schedule B: Officers of Arcadia Products, LLC

Exhibit A: Term Sheet for Series A Preferred Stock

Exhibit B: Form of Spousal Waiver

 

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AMENDED AND RESTATED

LIMITED LIABILITY COMPANY AGREEMENT

OF

ARCADIA PRODUCTS, LLC

 

This
Amended and Restated Limited Liability Company Agreement of Arcadia Products, LLC, a Colorado limited liability company (the “Company”),
is made and entered into effective as of December 23, 2021 (the “Effective Date”) by and among the Company, DMC Global
Inc., a Delaware corporation (the “DMC”), DMC Korea, Inc., a Colorado corporation (“DMC Korea” and
together with DMC, the “DMC Members”) and New Arcadia Holdings, Inc. (the “Munera Member”). The DMC Members,
the Munera Member and each Person admitted as an additional or substitute Member of the Company pursuant to this Agreement are collectively
referred to herein as the “Members” and are each individually referred to herein as a “Member.”

 

RECITALS

 

WHEREAS, the DMC Members and
the Munera Member are party to that certain Equity Purchase Agreement dated as of December 16, 2021 (as amended, modified or supplemented
from time to time, the “Purchase Agreement”);

 

WHEREAS, the Company is the
entity resulting from the conversion of Arcadia, LLC, a California limited liability company (previously Arcadia, Inc., a California corporation),
as contemplated by the Purchase Agreement on December 22, 2021, upon the filing of the Articles and a Certificate of Conversion with the
Secretary of State of the State of Colorado;

 

WHEREAS, at the date of conversion,
the Munera Member owned 100% of the Company pursuant to the Limited Liability Company Agreement of the Company dated December 21, 2021
(the “Original Agreement”), all as contemplated by the Purchase Agreement;

 

WHEREAS, effective as of December
22, 2021, DMC Korea acquired its Interest in the Company by acquiring 66.45 Units from the Munera Member in exchange for a contribution
in cash in the amount of $4,750,000, and effective as of the consummation of the transactions contemplated by the Purchase Agreement (the
 “Effective Time”), DMC acquired its Interest in the Company by acquiring 3,920.64 Units from the Munera Member in exchange
for a contribution in the amount of $280,250,000, subject to certain adjustments as set forth in the Purchase Agreement; and

 

WHEREAS, the parties hereto
desire to enter into this Agreement effective as of the Effective Time on the Effective Date, which is deemed to be simultaneous with
the Closing (as that term is defined in the Purchase Agreement) and with the Company’s entry into the Senior Debt Facility, in order
to amend and restate the Original Agreement to reflect the parties’ mutual rights and obligations as set forth herein.

 

AGREEMENTS

 

NOW,
THEREFORE, in consideration of the premises and the mutual agreements contained herein, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree that the Original Agreement is amended
and restated in its entirety as follows:

 

    

     

    

 

ARTICLE
I

DEFINED TERMS

 

Section
1.1            Definitions.
As used in this Agreement, the following terms shall have the following meanings:“Accounting Expert” has the meaning
provided in Section 12.10(c).

 

“Accounting Period”
means, for the first Accounting Period, the period commencing on the Effective Date and ending on the next Adjustment Date. All succeeding
Accounting Periods shall commence on the day after an Adjustment Date and end on the next Adjustment Date.

 

“Acquisition Indebtedness”
means any principal, interest, fees and other amounts due or that may be due with respect to or under amounts drawn by DMC under the Senior
Debt Facility or otherwise related to the transaction contemplated by the Purchase Agreement.

 

“Additional Member”
has the meaning provided in Section 4.8(a).

 

“Adjustment Date”
means the last day of each fiscal year of the Company, the last day of the winding up of the Company, or any other date determined by
the Board, in its sole and absolute discretion, as appropriate for an interim closing of the Company’s books.

 

“Affiliate”
means, with respect to a specified Person, any Person that directly, or indirectly through one or more intermediaries, Controls, is Controlled
by, or is under common Control with the specified Person.

 

“Agreement”
means this Amended and Restated Limited Liability Company Agreement of the Company, as this agreement may be amended, modified, supplemented
or restated from time to time after the Effective Date.

 

“Annual Capital Expenditure
Budget” has the meaning provided in Section 5.11(b).

 

“Annual Operating
Budget” has the meaning provided in Section 5.11(a).

 

“Articles”
means the Articles of Organization of the Company and any and all amendments thereto and restatements thereof filed on behalf of the Company
with the office of the Secretary of State of the State of Colorado pursuant to the Colorado Act.

 

“Bridge Loan”
means that promissory note dated as of December ●, 2021 between DMC and [Synergex Group LLC, Trustee of the Munera Family ESBT].

 

“Bridge Loan Allocation”
means for any transaction under Section 12.10, an amount equal to (a) the quotient of (i) the number of Option Units and (ii) the total
number of Units held by the Munera Member at the date of the Option Closing, multiplied by (b) the total accrued and outstanding principal
and interest under the Bridge Loan on such date.

 

“Business”
has the meaning provided in Section 3.1.

 

    -2-

     

    

 

“Business Competitor”
means any Person other than the Company and its Subsidiaries that is engaged in Business activities.

 

“Business Day”
means any day of the week other than a Saturday, Sunday or a day on which the commercial banks in New York, New York or Denver, Colorado
are not open for business.

 

“Call Closing”
has the meaning provided in Section 12.10(e).

 

“Call Consideration”
has the meaning provided in Section 12.10(b).

 

“Call Notice”
has the meaning provided in Section 12.10(b).

 

“Call Option”
has the meaning provided in Section 12.10(b).

 

“Capital Account”
has the meaning provided in Section 7.1.

 

“Capital Call”
has the meaning provided in Section 7.4(a).

 

“Capital Call Amount”
has the meaning provided in Section 7.4(a).

 

“Capital Call Notice”
has the meaning provided in Section 7.4(a).

 

“Capital Contribution”
means, for any Member, the total amount of cash and the Fair Market Value of any property contributed to the Company by such Member.

 

“Carrying Value”
means with respect to any Interest purchased by the Company from any Involuntary Transferee, the value equal to the Capital Contribution
made by such Member in respect of such Interest less the amount of distributions made in respect of such Interest.

 

“Cash”
shall have the meaning ascribed thereto in the Purchase Agreement.

 

“Code”
means the Internal Revenue Code of 1986, as amended.

 

“Colorado Act”
means the Colorado Limited Liability Company Act, as amended from time to time.

 

“CBCA”
means the Colorado Business Corporation Act, as amended from time to time.

 

“Company”
has the meaning provided in the Preamble.

 

“Contributing Member”
has the meaning provided in Section 7.4(b).

 

“Control”
or “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management
or policies of a Person, whether through the ownership of or right to exercise voting power or voting securities, by contract or otherwise,
and “controlling” and “controlled” shall have meanings correlative thereto. Without limiting the
foregoing, a Person shall be deemed to be controlled by another Person if such other Person possesses, directly or indirectly, (a) power
to vote fifty percent (50%) or more of the securities or interests having ordinary voting power for the election of directors, managing
general partners, managers, or members of the governing body or management of such Person, (b) powers of a general partner of a limited
partnership, or (c) power to direct or cause the direction of the management and policies of such Person, whether by contract or otherwise.

 

    -3-

     

    

 

“Covered Person”
means a current or former Member, Director or Tax Matters Member, and any Related Party of any such Person, or any current or former officer,
employee or agent of the Company or any of its Affiliates.

 

“Distributable Amount”
has the meaning provided in Section 9.1(a).

 

“DMC” has
the meaning provided in the Preamble.

 

“DMC Common Stock”
means shares of common stock of DMC, par value $0.05 per share.

 

“DMC Korea”
has the meaning provided in the Preamble.

 

“DMC Members”
has the meaning provided in the Preamble.

 

“DMC Series A Preferred
Stock” means preferred stock of DMC, par value $.05, issued pursuant to a Certificate of Designations in a customary form to
be agreed between DMC and the Munera Member with principal terms as set forth on Exhibit A hereto.

 

“Drag Notice”
has the meaning provided in Section 12.8(b).

 

“EBITDA”
means, for any period, the earnings of the Company and its Subsidiaries in that period plus any amounts deducted in the computation thereof
for interest expense, taxes, depreciation and amortization, all as determined in accordance with GAAP and with reference to the financial
statements of the Company and its Subsidiaries for such period.

 

“Economic Capital
Account” means, with respect to any Member, such Member’s Capital Account balance as of the date of determination, after
crediting to such Capital Account any amounts that the Member is expressly obligated to restore, is treated as obligated to restore under
Treasury Regulations Section 1.704-1(b)(2)(ii)(c), or is deemed obligated to restore under the penultimate sentences of Treasury Regulations
Section 1.704-2(g)(1) and 1.704-2(i)(5).

 

“Effective Date”
has the meaning provided in the Preamble.

 

“Effective Time”
has the meaning provided in the Recitals.

 

“Entity”
means any Person other than an individual Person.

 

“Equity Value”
means, as of any date, the quotient of (a) (i) nine and one-half (9.5) times the average annual EBITDA for the two (2) most recently
completed Fiscal Years and the Projected Current Year EBITDA of the Company and its Subsidiaries prior to such date, minus (ii)
the amount of Indebtedness of the Company and its Subsidiaries as of such date, plus (iii) the amount of Cash as of such date in excess
of the Working Capital Peg, divided by (b) the aggregate number of outstanding Units as of such date.

 

    -4-

     

    

 

“Exercising Party”
has the meaning provided in Section 12.10(c).

 

“Exit Event”
means:

 

(a)       a
transaction or series of transactions involving the sale, transfer or other disposition, including by way of merger, consolidation or
other similar extraordinary transaction, by the Members of all of the Interests in the Company held by the Members; or

 

(b)       a
transaction or series of transactions involving the sale, transfer or other disposition of all of the assets of the Company and its Subsidiaries

 

in each case, to one or more Persons that are
not (i) immediately prior to such sale, transfer or other disposition, Affiliates of the Company or any Member, and (ii) Persons in which
any Member or Affiliate of a Member, or any immediate family members of any such Affiliate, has any material direct or indirect ownership
or investment interest; provided, that, in no event shall an Initial Public Offering constitute an “Exit Event”
for any purposes of this Agreement.

 

“Fair Market Value”
means, as of any date,

 

(a)       for
purposes of determining the value of any property owned by, contributed to or distributed by the Company, (i) in the case of publicly
traded securities, the average of their last sales prices on the applicable trading exchange or quotation system on each trading day during
the five (5) trading day period ending on such date and (ii) in the case of any other property, the fair market value of such property,
as determined upon a reasonable basis and in good faith by the Board and taking into account any liabilities encumbering such property;
or

 

(b)       for
purposes of determining the value of any Member’s Interest in connection with Section 12.5 (“Involuntary Transfers”),
the fair market value of such Interest, as determined upon a reasonable basis and in good faith by the Board.

 

“Final Equity Value”
means as of the specified date, the greater of (a) the Equity Value and (b) the Floor Value.

 

“Fiscal Year”
means a fiscal year ending December 31.

 

“Floor Value”
means the quotient of (a) (i) $467,700,000 minus (ii) the amount of Indebtedness of the Company and its Subsidiaries as of such date,
plus (iii) the amount of Cash as of such date in excess of the Working Capital Peg, divided by (b) the aggregate number of outstanding
Units as of such date.

 

“GAAP”
means United States generally accepted accounting principles, consistently applied during the periods involved.

 

“Incapacity”
occurs with respect to an individual when such individual has been judicially determined to lack capacity to act for himself or herself,
or has voluntarily appointed a representative to act for him or her generally without restriction as it relates to the Company or its
Subsidiaries.

 

    -5-

     

    

 

“Indebtedness”
shall have the meaning ascribed thereto in the Purchase Agreement, except that such amounts shall include principal, interest,
fees and other amounts due or that may be due with respect to or under amounts drawn by the Company as a borrower under the Senior Debt
Facility or used in furtherance of the Company’s business and shall exclude Acquisition Indebtedness and Non-Company
Indebtedness (whether or not the Company or any Subsidiary of the Company is contingently liable therefore or a guarantor thereof, and
whether or not considered a liability for financial accounting or valuation purposes).

 

“Initial Public Offering”
or “IPO” means the first underwritten public offering of the common stock (or other equity securities) of Newco or
a Subsidiary of the Company to the general public through a registration statement filed with the Securities and Exchange Commission that
(together with prior effective registrations) covers shares (or other equity securities) of Newco or such Subsidiary that will be traded
on a national securities exchange after the close of any such general public offering.

 

“Interest”
means the limited liability company interest in the Company which represents the interest of each Member in and to the profits and losses
of the Company, and such Member’s right to receive distributions of the Company’s assets, as set forth in this Agreement.

 

“Majority in Interest”
means, as of any given record date or other applicable time, the holders of a majority of the outstanding Units held by Members as of
such date that are entitled to vote at a meeting of Members or to consent in writing in lieu of a meeting of Members.

 

“Makeup Contribution
Amount” has the meaning provided in Section 7.4(b).

 

“Malfeasance”
means (a) gross negligence or willful misconduct with respect to the Company or its Subsidiaries, (b) fraud or misappropriation of funds
of the Company or its Subsidiaries or (c) conviction of a felony involving moral turpitude.

 

“Management Agreement”
means that certain Management Agreement, dated as of the Effective Date, by and between the Company and DMC, as amended, supplemented
or modified from time to time.

 

“Members”
has the meaning provided in the Preamble.

 

“Member Nonrecourse
Debt” has the same meaning as “partner nonrecourse debt” as set forth in Treasury Regulations Section 1.704-2(b)(4)
and the term “Member Nonrecourse Debt Minimum Gain” has the same meaning as “partner nonrecourse debt minimum
gain” as set forth in Treasury Regulations Section 1.704-2(i)(2).

 

“Munera Member”
has the meaning provided in the Preamble.

 

“Net Profit”
and “Net Loss” means, with respect to any Accounting Period, net income or net loss of the Company for such Accounting
Period, determined in accordance with Section 703(a) of the Code, including any items that are separately stated for purposes of Section
702(a) of the Code, as determined in accordance with federal income tax accounting principles with the following adjustments:

 

    -6-

     

    

 

 

(a)       any
income of the Company that is exempt from United States federal income tax shall be included as income;

 

(b)       any
expenditures of the Company described in Section 705(a)(2)(B) of the Code or treated as such expenditures pursuant to Section 1.704-1(b)(2)(iv)(i)
of the Treasury Regulations shall be treated as current expenses;

 

(c)       any
items of income, gain, loss or deduction specially allocated pursuant to this Agreement, including pursuant to Section 8.2, shall be excluded
from the determination of Net Profit and Net Loss;

 

(d)       treating
as an item of gain (loss) the excess (deficit), if any, of the Fair Market Value of property distributed in such Accounting Period
over (under) the amount at which such property was carried on the books of the Company.

 

(e)       if
property is reflected in the Capital Accounts at a book value that is different from its adjusted basis, then (i) depreciation and amortization
deductions with respect to such property shall be determined based upon such book value in accordance with Section 1.704-1(b)(2)(iv)(g)(3)
of the Treasury Regulations or, as applicable, Section 1.704-3(d)(2) of the Treasury Regulations, and (ii) gain or loss shall be determined
with reference to such book value in lieu of adjusted basis;

 

(f)       if
the book value as determined for purposes of maintaining the Capital Accounts of any asset is adjusted pursuant to Section 1.704-1(b)(2)(iv)(f)
of the Treasury Regulations, the amount of such adjustment shall be treated as an item of gain (if the adjustment increases the book value
of the asset) or an item of loss (if the adjustment decreases the book value of the asset) from the disposition of such asset and shall
be taken into account for purposes of computing Profits or Losses; and

 

(g)       to
the extent an adjustment to the adjusted tax basis of any asset pursuant to Code Section 734(b) is required, pursuant to Section 1.704-1(b)(2)(iv)(m)(4)
of the Treasury Regulations, to be taken into account in determining Capital Account balances as a result of a distribution other than
in liquidation of a Member’s interest in the Company, the amount of such adjustment shall be treated as an item of gain (if the
adjustment increases the basis of the asset) or an item of loss (if the adjustment decreases such basis) from the disposition of such
asset and shall be taken into account for purposes of computing Profits or Losses.

 

“Neutral Accounting
Firm” has the meaning provided in Section 12.10(c).

 

“New Securities”
means Units or any other Interests, including any securities exchangeable or exercisable for, or convertible into, such Interests, issued
after the Effective Date.

 

“Non-Company Indebtedness”
means any principal, interest, fees and other amounts due or that may be due with respect to or under indebtedness incurred or drawn
by any borrower under the Senior Debt Facility other than the Company, the proceeds of which are not used in furtherance of the Company’s
business. For example, and without limitation, any indebtedness borrowed by or used in DMC or DMC’s Subsidiaries other than the
Company is Non-Company Indebtedness, to the extent it is so used.

 

    -7-

     

    

 

“Non-Contributing
Member” has the meaning provided in Section 7.4(b).

 

“Offered Units”
has the meaning provided in Section 12.8(a).

 

“Option Closing”
means a Put Closing or a Call Closing, as the context requires.

 

“Option Notice”
means a Put Notice or a Call Notice, as the context requires.

 

“Option Purchase
Agreement” means an equity purchase agreement mutually agreed between one or more DMC Members and the Munera Member that includes
customary representations and warranties from the Munera Member and customary indemnification provisions for the sale of equity interests
(e.g., with the DMC Members to be fully indemnified if the Options Units are not sold free and clear of any liens, encumbrances
or restrictions on transfer).

 

“Option Purchase
Price” means the amount equal (a) to the product of (i) the Final Equity Value as of the date of the Option Closing multiplied
by (ii) the total number of all Option Units being sold at the Option Closing, minus (b) any Bridge Loan Allocation. Effective
simultaneously with a Put Closing or a Call Closing, the Bridge Loan shall be deemed repaid to the extent that the Bridge Loan Allocation
reduces the Option Purchase Price pursuant to the preceding sentence.

 

“Option Purchase
Price Dispute” has the meaning provided in Section 12.10(c).

 

“Option Purchase
Price Dispute Statement” has the meaning provided in Section 12.10(c).

 

“Option Share Issue
Price” means a price equal to the volume weighted average trading price for shares of DMC Common Stock on The Nasdaq Global
Select Market (or, if shares of DMC Common Stock are not then listed on The Nasdaq Global Select Market, on the securities exchange on
which shares of DMC Common Stock are listed) over the period consisting of the sixty (60) consecutive trading days immediately preceding
the date of the Option Notice or ROFR Option Notice.

 

“Option Units”
means all of the Units held by the Munera Member as of the date of any Put Notice delivered pursuant Section 12.10(a) or Call Notice delivered
pursuant Section 12.10(b).

 

“Original Agreement”
has the meaning provided in the Recitals.

 

“Other Member”
has the meaning provided in Section 12.8(a).

 

“Owing Member”
has the meaning provided in Section 9.6.

 

“Partnership Minimum
Gain” has the meaning set forth in Sections 1.704-2(b)(2) and 1.704-2(d) of the Treasury Regulations.

 

“Percentage Interest”
means, for each Member, as of any date, the percentage determined by multiplying by one hundred (100) the quotient of (a) the number
of Units held by such Member divided by (b) the aggregate number of outstanding Units.

 

    -8-

     

    

 

“Person”
means any individual, corporation, association, partnership (general or limited), joint venture, trust, estate, limited liability company
or other legal entity or organization.

 

“Priority Loan”
has the meaning provided in Section 7.4(b).

 

“Projected Current
Year EBITDA” means the estimate of EBITDA for the current Fiscal Year as approved by the Board and as reflected in DMC’s
financial guidance to the public.

 

“Purchase Agreement”
has the meaning provided in the Recitals.

 

“Put Closing”
has the meaning provided in Section 12.10(e).

 

“Put Consideration”
has the meaning provided in Section 12.10(a).

 

“Put Notice”
has the meaning provided in Section 12.10(a).

 

“Put Option”
has the meaning provided in Section 12.10(a).

 

“Qualifying Transaction”
means a proposed Transfer by the Selling Member, to a Person or Persons who are not Affiliates of the Selling Member, in which the value
of the consideration to be received by the Other Member for each Unit transferred would be equal to or greater than the Final Equity Value
as of the date of the Selling Member Notice or Drag Notice.

 

“Receiving Party”
has the meaning provided in Section 12.10(c).

 

“Registration Rights
Agreement” means a registration rights agreement in form and substance approved by the Board.

 

“Related Party”
means, with respect to any specified Person, such Person’s Affiliates and the respective directors, officers, managers, shareholders,
partners, members, employees, advisors, representatives and agents of such Person and such Person’s Affiliates.

 

“Resolution Period”
has the meaning provided in Section 12.10(c).

 

“Restricted Member”
means any Member other than the DMC Members or their successors or assigns and such Member’s Affiliates.

 

“Restricted Period”
has the meaning provided in Section 4.6.

 

“Revised Partnership
Audit Provisions” means the partnership audit provisions enacted in the Bipartisan Budget Act of 2015, as they may be amended
from time to time, and any Treasury Regulations (or other guidance from the Internal Revenue Services or U.S. Treasury Department or both)
issued thereunder.

 

“ROFR Notice Period”
has the meaning provided in Section 12.8(a).

 

“ROFR Offer Notice”
has the meaning provided in Section 12.8(a).

 

“Rule 144”
has the meaning provided in Section 6.1(b).

 

    -9-

     

    

 

“Securities Act”
means the Securities Act of 1933, as amended from time to time.

 

“Selling Member”
has the meaning provided in Section 12.8(a).

 

“Selling Member Notice”
has the meaning provided in Section 12.8(a).

 

“Senior
Debt Facility” means that certain Amended and Restated Credit and Security Agreement dated on or about the Effective
Date, among DMC and certain of its subsidiaries, including the Company, as borrowers, KeyBank, National Association, as administrative
agent, and the lenders and other parties from time to time party thereto, as the same may be amended, restated, amended and restated,
supplemented, extended, renewed, refinanced, replaced or otherwise modified from time to time.

 

“Subsidiary”
means, with respect to any Person, any Entity controlled by such Person (either alone or through or together with any other Subsidiary).

 

“Super-Majority Board
Approval” has the meaning provided in Section 5.1(a)(iii).

 

“Target Balance”
means, with respect to any Member as of the close of any Accounting Period for which allocations are made under Article VIII, the amount
such Member would receive (or be required to contribute) in a hypothetical liquidation of the Company as of the close of such period,
assuming for purposes of any such hypothetical liquidation (i) a sale of all of the assets of the Company at prices equal to their then
book values (as maintained by the Company for purposes of, and as maintained pursuant to, the capital account maintenance provisions of
Treasury Regulations Section 1.704-1(b)(2)(iv)) and (ii) the distribution of the net proceeds thereof to the Members pursuant to the provisions
of Article IX (after the payment of all actual Company indebtedness, including all Priority Loans, and any other liabilities related to
the Company’s assets, limited, in the case of non-recourse liabilities, to the collateral securing or otherwise available to
satisfy such liabilities). If such Member would be required to contribute, the “Target Balance” will be reflected as a negative
value.

 

“Target Distribution”
means aggregate annual distributions based on 75% of annual EBITDA for the previous completed fiscal year after deducting cash paid for
taxes and bank interest expense and with appropriate cash reserves for immediate working capital needs and known liabilities, in each
case in the reasonable judgment of the Board.

 

“Tax Matters Member”
has the meaning provided in Section 10.2(b).

 

“Transfer”
means a direct or indirect transfer, assignment, sale or other disposition (including the creation of any derivative or synthetic interest,
but excluding any Hypothecation), or the act of so doing, as the context requires.

 

“Treasury Regulations”
means the Regulations of the Treasury Department of the United States issued pursuant to the Code.

 

“Unit”
means a unit of Interests.

 

    -10-

     

    

 

“Working Capital
Peg” shall mean the average of the Net Working Capital (as that term is defined in the Purchase Agreement) as of the end of
each of the 12 months preceding the date the Working Capital Peg is determined pursuant to this Agreement.

 

ARTICLE
II

FORMATION OF THE COMPANY

 

Section
2.1            Formation.
The Company was reorganized in Colorado upon the filing of the Articles and a Certificate of Conversion with the Secretary of State of
the State of Colorado and hereby continues as a limited liability company under and pursuant to the Colorado Act and the Articles.

 

Section
2.2            Company Name.
The name of the Company is Arcadia Products, LLC. The business of the Company may be conducted under such other names as the Board may
from time to time designate.

 

Section
2.3            The Articles, etc.
Any authorized person of the Company shall execute, deliver, file and record all such other certificates and documents, including amendments
to or restatements of the Articles, and do such other acts as may be appropriate to comply with all requirements for the formation, continuation
and operation of a limited liability company, the ownership of property, and the conduct of business under the laws of the State of Colorado
and any other jurisdiction in which the Company may own property or conduct business.

 

Section
2.4            Term of Company.
The term of the Company in Colorado commenced on the date of the filing of the Articles and the Certificate of Conversion with the Secretary
of State of the State of Colorado. The Company may be terminated in accordance with the terms and provisions hereof, and shall continue
unless and until dissolved as provided in Article XIII. The existence of the Company as a separate legal entity shall continue until the
cancellation of the Articles as provided in the Colorado Act.

 

Section
2.5            Registered Agent and Office.
The Company’s registered agent and office in the State of Colorado shall be ●. The Board may designate another registered
agent and/or registered office from time to time in accordance with the then applicable provisions of the Colorado Act and any other applicable
laws.

 

Section
2.6            Principal Place of Business.
The principal place of business of the Company shall be located at 2301 E. Vernon Ave., Vernon, CA 90058. The location of the Company’s
principal place of business may be changed by the Board from time to time in accordance with the then applicable provisions of the Colorado
Act and any other applicable laws.

 

Section
2.7            Qualification in Other Jurisdictions.
Any authorized person of the Company shall execute, deliver and file any certificates (and any amendments and/or restatements thereof)
necessary for the Company to qualify to do business in a jurisdiction in which the Company may wish to conduct business.

 

Section 2.8           Fiscal
Year; Taxable Year. The fiscal year of the Company for
financial accounting purposes shall be the same as its taxable year. The taxable year of the Company for federal, state and local income
tax purposes shall end on December 31 unless otherwise required by applicable tax law or as determined by the Tax Matters Member in accordance
with applicable tax law.

 

    -11-

     

    

 

Section
2.9            Effectiveness.
This Agreement shall be effective as of the Effective Time.

 

ARTICLE
III

PURPOSE AND POWERS OF THE COMPANY

 

Section
3.1            Purpose.
The purposes of the Company are, and the nature of the business to be conducted and promoted by the Company is, to engage (a) generally
in the business of the design, manufacture and sale of architectural building products (the “Business”), (b) subject
to Section 5.1(a)(ii), in any lawful act or activity for which limited liability companies may be formed under the Colorado Act and (v)
in all acts or activities as the Company deems necessary, advisable or incidental to the furtherance of the foregoing.

 

Section
3.2            Powers of the Company.
The Company shall have the power and authority to take any and all actions that are necessary, appropriate, advisable, convenient or incidental
to or for the furtherance of the purposes set forth in Section 3.1.

 

Section
3.3            Tax Partnership.
The Company and each Member intend that the Company shall be treated as a partnership for U.S. federal and applicable state or local income
tax purposes and the Company shall not elect, and the Board shall not permit the Company to elect, to be treated as an association taxable
as a corporation for U.S. federal income tax purposes under Treasury Regulations Section 301.7701-3 or under any corresponding
provision of state or local law without the prior written consent of all of the Members. Each Member and the Company shall file all tax
returns consistent with the foregoing and shall otherwise take all tax positions in a manner consistent with such intended treatment of
the Company as a partnership for U.S. federal, state and local income tax purposes. The Company and the Board shall not, without the prior
written consent of all of the Members, permit the registration or listing of interests in the Company on an “established securities
market” or a “secondary market or the substantial equivalent thereof” as such terms are used in Treasury Regulations
Section 1.7704-1.

 

ARTICLE
IV

MEMBERS

 

Section
4.1            Powers of Members.
The Members shall have the power to exercise any and all rights or powers granted to the Members pursuant to the express terms of this
Agreement. The approval or consent of the Members shall not be required in order to authorize the taking of any action by the Company
and the Members shall have no right to reject, overturn, override, veto or otherwise approve or pass judgment upon any action taken by
the Board or an authorized officer of the Company, unless and then only to the extent that (a) this Agreement shall expressly provide
therefor (including Section 5.1(a)(iv) hereof), (b) such approval or consent shall be required by non-waivable provisions of the
Colorado Act or (c) the Board shall have determined in its sole and absolute discretion that obtaining such approval or consent
would be appropriate or desirable. The Members, as such, shall have no power or authority to bind the Company.

 

Section
4.2            Interests.
All Interests shall be denominated in Units. The number of Units held by the Members as of the Effective Time after giving effect to the
consummation of the transactions contemplated by the Purchase Agreement are set forth on Schedule A. The number of Units held
by each Member as of any given time after the Effective Time shall be set forth on Schedule A, as it may be updated from time
to time in accordance with this Agreement. The authorization of any additional classes of Units shall be subject to the approval requirements
of Section 5.1(a)(iii). Subject to the approval requirements of Section 5.1(a)(iii), Units in a particular class may be issued from time
to time, to such Persons, in such amounts, at such prices and on such terms as the Board may determine.

 

    -12-

     

    

 

Section
4.3            Meetings of Members.

 

(a)              
Meetings; Notice of Meetings. Meetings of the Members, including any special meeting, may be called by the Secretary of
the Company, the Chairman of the Board or any Member from time to time. Notice of any such meeting shall be given to all Members not less
than ten (10) nor more than sixty (60) calendar days prior to the date of such meeting and shall state the location, date and
hour of the meeting and, in the case of a special meeting, the nature of the business to be transacted. Meetings shall be held at the
location (within or without the State of Colorado) at the date and hour set forth in the notice of the meeting. Any one or more Members
may participate in a meeting of the Members by means of conference telephone or similar communications equipment by which all persons
participating in the meeting can hear each other, and participating in a meeting by such means shall constitute presence in person at
such meeting.

 

(b)              
Waiver of Notice. No notice of any meeting of Members need be given to any Member who submits a written waiver of notice,
whether before or after the meeting. Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the
Members need be specified in a written waiver of notice. The attendance of any Member at a meeting of Members shall constitute a waiver
of notice of such meeting, except when the Member attends a meeting for the express purpose of objecting, at the beginning of the meeting,
to the transaction of any business on the ground that the meeting is not lawfully called or convened.

 

(c)              
Quorum. The presence in person or by proxy of the holders of record of a Majority in Interest shall constitute a quorum
for the transaction of business at such meeting.

 

(d)              
Voting. If the Board has fixed a record date, every holder of record of Units entitled to vote at a meeting of Members
or to consent in writing in lieu of a meeting of Members shall be entitled to one (1) vote for each such Unit outstanding in such Member’s
name at the close of business on such record date. If no record date has been so fixed, then every holder of record of such Units entitled
to vote at a meeting of Members or to consent in writing in lieu of a meeting of Members shall be entitled to one (1) vote for each Unit
outstanding in its name on the close of business on the day next preceding the day on which notice of the meeting is given or the first
consent in respect of the applicable action is executed and delivered to the Company, or, if notice is waived, at the close of business
on the day next preceding the day on which the meeting is held. Except as otherwise required by this Agreement, the vote of a Majority
in Interest at any meeting at which a quorum is present shall be sufficient for the transaction of any business at such meeting.

 

(e)              
Proxies. Each Member may authorize any Person to act for such Member by proxy on all matters in which a Member is entitled
to participate, including waiving notice of any meeting, or voting or participating at a meeting. Every proxy must be signed by the Member
or such Member’s attorney in fact. No proxy shall be valid after the expiration of three years from the date thereof unless otherwise
provided in the proxy. Every proxy shall be revocable at the pleasure of the Member executing it unless otherwise provided in such proxy,
provided, that such right to revocation shall not invalidate or otherwise affect actions taken under such proxy prior to such revocation.

 

    -13-

     

    

 

(f)               
Organization. Each meeting of Members shall be conducted by such Person as the Board may designate.

 

(g)              
Action Without a Meeting. Unless otherwise provided in this Agreement, any action which may be taken at any meeting of the
Members may be taken without a meeting, without prior notice and without a vote, if a consent in writing, setting forth the action so
taken, shall be signed by a Majority in Interest (unless a higher percentage is required by this Agreement, in which case it shall be
signed by Members holding at least such higher percentage). A copy of the action taken by written consent shall be filed with the records
of the Company and, upon written request, a copy of such action shall be given to all Members who have not consented in writing to the
taking of such action.

 

(h)              
Approved Agreements. The Management Agreement, as in effect on the Effective Date, has been approved in all respects (including
by all the Members pursuant to the execution of this Agreement), and, except as otherwise provided in such agreement, any management fees
or other amounts payable to DMC or any of its Affiliates thereunder shall not be subject to any further approval hereunder or otherwise.
The Senior Debt Facility, as in effect on the Effective Date, has been approved in all respects, and the Members hereby ratify the approval
of the Senior Debt Facility by the members of the Company as set forth on Exhibit C hereto.

 

Section
4.4            Business Transactions of a Member with the Company.
Subject to the prior approval of the Board and Section 5.1(a)(iv), a Member (or an Affiliate thereof) may lend money to, borrow money
from, act as surety or endorser for, guarantee or assume one or more specific obligations of, provide collateral for, or transact any
other business with the Company or any of its Subsidiaries. 

 

Section
4.5            No Cessation of Membership upon Bankruptcy.
A Person shall not cease to be a Member of the Company upon the happening, with respect to such Person, of such Person’s bankruptcy
or insolvency. 

 

Section
4.6            Restricted and Non-Restricted Activities.

 

(a)              
Each Restricted Member covenants and agrees that during the period of its direct or indirect ownership of an Interest in the Company
(the “Restricted Period”), such Person and its Affiliates shall not directly or indirectly own, manage, operate or
Control, or participate in the ownership, management, operation or Control of, any Business Competitor in the United States; provided,
that nothing in this Section 4.6(a) shall prohibit a Restricted Member from acquiring or owning, directly or indirectly up to three percent
(3%) of the aggregate securities of any Business Competitor that is a publicly traded Entity, so long as such Member or its Affiliates
does not serve on the board of directors or similar governing body of such Business Competitor or its Affiliates.

 

    -14-

     

    

 

(b)              
Subject to the foregoing restrictions set forth in this Section 4.6, the other terms of this Agreement, and the obligations of
any Member or any Affiliate of any Member under any agreement between such Person and the Company or its Subsidiaries, (i) each Member
and each of their respective Affiliates may engage in, or possess an interest in, other business ventures of any nature or description,
independently or with others, and the Company and the other Members shall have no rights by virtue of this Agreement in and to such independent
ventures or the income or profits derived therefrom, and the pursuit of any such venture shall not be deemed wrongful or improper; and
(ii) none of the Members or the Directors, nor any of their respective Affiliates shall be obligated to present any particular investment
opportunity to the Company even if such opportunity is of a character that, if presented to the Company, could be taken by the Company;
and each Member, each Director, and each of their respective Affiliates shall have the right to take for such Person’s own account
(individually or as a partner or fiduciary) or to recommend to others any such particular investment opportunity.

 

Section
4.7            Confidentiality.

 

(a)              
Each Restricted Member hereby acknowledges that, in connection with the operation of the Company and its Subsidiaries, such Restricted
Member and its Designated Directors may have access to confidential material regarding the operations of the Company and its Subsidiaries
or the other Members. Each Restricted Member agrees that it shall, and shall cause its Designated Directors to: (i) take all reasonable
steps necessary to hold and maintain such confidential information in confidence and not to disclose it to any third party, except as
required by law or legal process; and (ii) only disclose such confidential information to (A) his or her employees, advisors and agents
who have a need to know such information in order to assist such Restricted Member or its Designated Directors to evaluate and/or monitor
such Restricted Member’s investment in the Company, to carry out his or her responsibilities to the Company or to comply with any
laws, rules or regulations applicable to such Restricted Member or its Designated Directors, or (B) in the case of reports furnished by
the Company to such Restricted Member pursuant to Section 10.1(b), to beneficial owners and Affiliates of the Restricted Member, and to
each of their respective lenders and financial advisors, in each case so long as such Persons are each bound to keep such information
confidential in accordance with the terms of this Agreement.

 

(b)              
Each Restricted Member agrees that, upon the dissolution and termination of the Company or withdrawal of the Restricted Member
from the Company, the Restricted Member will return to each requesting Member and/or the Company, as appropriate, or destroy all confidential
information of that Member or the Company (other than tax information of the Company attributable to the returning Restricted Member’s
Interest therein) then in its or its Designated Directors’ possession and specified in the request. Each Restricted Member further
agrees upon request to return or destroy all other memoranda, notes, copies, or other writings which contain confidential information
of the other Members and/or the Company (other than tax information of the Company attributable to the returning Restricted Member’s
Interest therein).

 

(c)              
The provisions of this Section 4.7 shall apply to each Restricted Member, regardless of the status of such Restricted Member as
a member of the Company, while such Restricted Member is a member of the Company and for a period of two (2) years from the effective
date of the termination of the applicable Restricted Member’s status as a member of the Company or if the confidential information
constitutes a trade secret, as defined under applicable law, then the life of the trade secret. The term “confidential information”
under this Section 4.7 shall not include information that (i) is publicly available (other than as a result of a breach of this Agreement)
or (ii) was or becomes available to a Restricted Member on a non-confidential basis from a source other than the Company or its representatives,
provided that such source is not to such Restricted Member’s knowledge bound to a confidentiality agreement with the Company
with respect to such confidential information.

 

    -15-

     

    

 

Section
4.8            Additional Members.

 

(a)              
Admission. Subject to Section 5.1(a)(iii), the Company may admit one or more additional Members (each an “Additional
Member”) to be treated as a “Member” or one of the “Members” for all purposes hereunder. Each Person
shall be admitted as an Additional Member at the time such Person (i) executes a joinder agreement to this Agreement, (ii) complies
with the applicable Board resolution, if any, with respect to such admission and (iii) is named as a Member in Schedule A
hereto. The Board is authorized to amend Schedule A to reflect any such admission and any actions pursuant to Section 4.8(b)
below.

 

(b)              
Rights and Obligations of Additional Members. Upon the admission of an Additional Member and subject to Sections 5.1(a)(iii)
and 14.12:

 

(i)                
the Board shall determine the Capital Contribution (if any) of such Additional Member;

 

(ii)             
the Board shall determine the rights, if any, of such Additional Member to appoint Directors to the Board (subject to Section 5.1(a));

 

(iii)           
such Additional Member shall make Capital Contributions to the Company in an amount (if any) determined by the Board; and

 

(iv)            
without duplication of any of foregoing, the Board shall issue Interests, if any, to such Additional Member.

 

(c)              
Notice. The Board will ensure that notice of the admission of any Additional Members is given to the Secretary of the Company,
so that they may make the required amendments to Schedule A hereto.

 

ARTICLE
V

MANAGEMENT

 

Section
5.1            Board.

 

(a)              
 Management Authority.

 

(i)                
Generally. The business and affairs of the Company shall be managed by or under the direction of a committee of the Company
(the “Board”) consisting of up to seven (7) natural persons (each a “Director”). The number of Directors
comprising the Board may be changed only with the consent of both the DMC Members and the Munera Member. Directors need not be Members.
Except as otherwise expressly provided in this Agreement, the Board shall have full, exclusive and complete discretion to manage and control
the business and affairs of the Company, to make all decisions affecting the business and affairs of the Company and to take all such
actions as it deems necessary or appropriate to accomplish the purposes of the Company as set forth herein, including, without limitation,
to exercise all of the powers of the Company set forth in Section 3.2 of this Agreement to the extent such powers and actions would be
within the scope of authority granted under the CBCA to the board of directors of a corporation organized under the laws of the State
of Colorado.

 

    -16-

     

    

 

(ii)             
Actions Requiring Board Approval. Notwithstanding the general authority of the Board set forth in Section 5.1(a)(i), and
subject to Section 5.1(a)(iii) and Section 14.12, the Company shall not, and shall not, in circumstances where the Company has the authority
to cause a Subsidiary to take or omit to take such actions, permit or cause any of the Company’s Subsidiaries to, directly or indirectly,
take any of the following actions without the prior approval of the Board:

 

(A)            
taking actions requiring approval under Section 5.1(a)(iii) and Section 5.1(a)(iv);

 

(B)             
amending, modifying or supplementing this Agreement, or becoming a party to any agreement which by its terms restricts or is inconsistent
with its performance of its obligations under this Agreement;

 

(C)             
amending the Articles;

 

(D)            
fixing the timing and amounts of, and making, distributions by the Company to its Members;

 

(E)             
adopting or amending in any material respect any multi-year business plan, annual plan or annual operating budget;

 

(F)             
materially deviating from the Annual Operating Budget then in effect;

 

(G)            
amending in any material respect any Annual Capital Expenditure Budget;

 

(H)            
making any Capital Expenditure in excess of an Annual Capital Expenditure Budget;

 

(I)               
 other than under the Senior Debt Facility, (1) creating, incurring, assuming or suffering to exist, (2) amending, restating,
extending, consenting, waiving or otherwise modifying the terms of or documentation governing or (3) repaying (other than in accordance
with its terms) or prepaying, any existing or future indebtedness for borrowed money or notes, other than Priority Loans;

 

    -17-

     

    

 

(J)               
other than under the Senior Debt Facility, guarantying or Hypothecating assets or securities in support of the obligations of any
other Person;

 

(K)            
lending money to any other Person, or modifying the terms of any loans to any other Person;

 

(L)             
(1) selling, leasing, transferring or otherwise disposing (including through entry into a joint venture with another Person) of
any material assets or group of material assets of the Company or its Subsidiaries having a net book value in excess of $2.0 million or
(2) granting a license of intellectual property or materially modifying any such license, in each case other than in the ordinary course
of business;

 

(M)           
(1) purchasing, acquiring or obtaining all or a substantial portion of the business of another Person for consideration (including
assumed liabilities), whether by way of an asset purchase, stock or other equity purchase, merger, consolidation or otherwise, or (2)
acquiring, structuring, financing or selling, or investing in, any real property interest, or any entity holding real property interests,
including but not limited to the exercise of any rights of first refusal or first offer, put or call rights, buy-sell rights, or similar
rights, in each case other than in the ordinary course of business;

 

(N)            
appointing or removing any officers of the Company or its Subsidiaries or entering into any employment agreements with employees
of the Company or its Subsidiaries;

 

(O)            
(1) commencing, settling or compromising any litigation or arbitration, other than actions to collect amounts owed, or (2) settling
or compromising any claim, litigation or arbitration on terms that require the payment of amounts greater than $100,000 in each case or
restrict the activities of the Company, a Member or any of their respective Affiliates;

 

(P)             
entering into, modifying or terminating any contracts, agreements, leases or other undertakings that provide for total expenditure
of greater than $250,000 in each case and are not terminable without cost or liability on ninety (90) or fewer days’ notice, other
than in the ordinary course of business;

 

(Q)            
making any assignment for the benefit of creditors, or filing a petition for relief under bankruptcy or insolvency laws; or

 

(R)             
exercising any rights of approval or consent with respect to actions of any Subsidiary that is not controlled by the Company.

 

(iii)           
 Actions Requiring Super-Majority Board Approval. Without limiting the general authority of the Board set forth in Section
5.1(a)(i) and notwithstanding approval of the Board pursuant to Section 5.1(a)(ii), the Company shall not, and shall not, in circumstances
where the Company has the authority to cause a Subsidiary to take or omit to take such actions, permit or cause any of the Company’s
Subsidiaries to, directly or indirectly, take any of the following actions without the prior approval of at least 80% of the Directors
(“Super-Majority Board Approval”):

 

    -18-

     

    

 

(A)            
adopt or amend in any material respect any Annual Capital Expenditure Budget with contemplated capital expenditures in excess of
twenty-five percent (25%) of EBITDA for the previous completed fiscal year;

 

(B)             
requesting the Members to contribute additional capital to the Company pursuant to Section 7.4;

 

(C)             
make aggregate distributions to its Members in any year that are less than the Target Distribution except to the extent a Target
Distribution cannot be paid in compliance with applicable law, the terms of an Annual Capital Expenditure Budget approved under this Section
5.1(a)(iii) or the terms of an agreement that was previously approved by the Designated Directors of both the DMC Members and the Munera
Member;

 

(D)            
enter into the ownership, active management, development or operation of any line of business other than the Business and businesses
ancillary or incident thereto or otherwise change in any material respect the nature of the Business undertaken by the Company and its
Subsidiaries;

 

(E)             
admit an additional Member of the Company, other than in connection with a Transfer that is otherwise expressly permitted under
this Agreement;

 

(F)             
create, designate, authorize, issue, sell, grant, or enter into any agreement or plan providing for the issuance (contingent or
otherwise) of, any Interests or other securities convertible into or exercisable for Interests except in accordance with Section 7.4(d)
or otherwise change the equity structure of the Company or its Subsidiaries.

 

(G)            
effect an IPO or any other public offering of Units, Interests or other equity securities;

 

(H)            
effect an Exit Event;

 

(I)               
voluntarily liquidate, dissolve or wind up;

 

(J)               
make, revoke or modify any material tax election with respect to the Company or its Subsidiaries that would have a material adverse
impact on the Munera Members;

 

(K)            
borrow or incur any liability under the Senior Debt Facility for any purpose outside the ordinary course of the Company’s
business, except as contemplated in an Annual Capital Expenditure Budget; or

 

(L)             
 agree or otherwise commit to take any actions set forth in the foregoing subparagraphs (A) through (K).

 

(iv)            
Actions Requiring Unanimous Member Approval. The prior approval of (i) each Member shall be required for the entry by the
Company or any of its Subsidiaries into any transaction on non-arms’ length terms (except as expressly contemplated by this Agreement),
or the amendment or waiver of rights of the Company or any of its Subsidiaries under any agreement for any such transaction, between the
Company or any Subsidiary of the Company, on the one hand, and any Member or Affiliate of any Member (other than the Company and its Subsidiaries),
on the other hand, and (ii) the affected Member shall be required for the entry by the Company or any of its Subsidiaries into any agreement
that purports to restrict the business activities of any Member or any of its Related Parties. Any action taken in violation of this Section
5.1(a)(iv) shall be void ab initio and of no force or effect. Notwithstanding the foregoing, neither Section 5.1(a)(iii) nor this Section
5.1(a)(iv) shall apply to entering into the Senior Debt Facility or the transactions contemplated thereby.

 

    -19-

     

    

 

(b)              
Election of Directors.

 

(i)                
Initial Directors; Term. The Board shall initially consist of seven (7) Directors. The initial Directors of the Company
will be Kevin Longe, Michael Kuta, Michelle Shepston, James Schladen, Gerard Munera, Catherine Munera and Emmanuelle VanVleet. Each Director
shall hold office until a successor is appointed in accordance with this Section 5.1(b) or until such Director’s earlier death,
resignation or removal in accordance with the provisions hereof.

 

(ii)             
Composition.

 

(A)            
The DMC Members shall have the right to appoint four (4) Directors. A Director appointed by the DMC Members shall serve as Chairman
of the Board.

 

(B)             
So long as the Munera Member holds a Percentage Interest of at least 25%, the Munera Member shall have the right to appoint three
(3) Directors. If the Munera Member holds a Percentage Interest less than 25% but greater than 15%, the Munera Member shall have the right
to appoint two (2) Directors. If the Munera Member holds a Percentage Interest less than 15% but greater than 5%, the Munera Member shall
have the right to appoint one (1) Director. If the Munera Member’s Percentage Interest falls below 5%, the Munera Member shall no
longer have a right to appoint a Director.

 

(C)             
Each Director appointed by the DMC Members or the Munera Member in accordance with this Section 5.1(b)(ii) is referred to as a
 “Designated Director” of the DMC Members or the Munera Member, as applicable. In the event that any Director appointed
by a Member for any reason ceases to serve as a member of the Board during his or her term in office, that Member shall have the right
to designate a representative to fill the resulting vacancy on the Board. In the event that the Munera Member loses the right to appoint
a Director due to a decrease in Percentage Interest under Section 5(b)(ii)(B), the Designated Director serving in such capacity as of
the date of the decrease shall be deemed to resign from his or her position as of such date.

 

The Designated Directors
of the DMC Members shall initially be Kevin Longe, Michael Kuta, Michelle Shepston and James Schladen, with Kevin Longe to serve as Chairman
of the Board. The Designated Directors of the Munera Members shall initially be Gerard Munera, Catherine Munera and Emmanuelle VanVleet.

 

    -20-

     

    

 

(c)              
Furtherance of Actions. To the extent that any Director serves as a director or officer of a Subsidiary of the Company,
each such Director shall take all necessary actions in his or her applicable capacity at such Subsidiary to effectuate any action taken
by the Board, including, without limitation, voting as directed by the Board.

 

Section
5.2            Meetings of the Board.

 

(a)              
The Board shall meet from time to time to discuss the business of the Company. The Board may hold meetings either within or without
the State of Colorado. Attendance at meetings of the Board may be in person, by conference telephone or by any other communications device
by which all those participating in the meeting may hear each other. Directors who are unable to attend an in-person meeting of the Board
or any committee thereof may participate in such meeting by conference telephone or other communications device and shall be considered
present for all purposes during such participation. The Secretary of the Company, the Chairman of the Board or any of the Directors may
call a meeting of the Board by providing two (2) Business Days’ notice to each Director, either personally, by telephone, by email,
by facsimile or by any other similarly timely means of communication which notice requirement may be waived by the Directors.

 

(b)              
The Company reserves the right to request the exclusion of the Designated Directors of either the DMC Members or the Munera Member
from access to any material or meeting or a portion thereof during which the Company will be discussing any transaction between, or proposed
to be entered into between, the Company or its Subsidiaries, on the one hand, and the DMC Members or their Affiliates, or the Munera Member
or its Affiliates, as the case may be, on the other hand; provided such Designated Directors shall not be excluded from the portion
of any meeting when a vote occurs, and such Designated Directors shall make their own determination as to whether to recuse themselves.
Nothing in this Section 5.2(b) shall limit any applicable requirement to obtain the consent of Members under Section 5.1(a)(iv).

 

Section
5.3            Quorum and Acts of the Board.
At all meetings of the Board, a majority of the Directors then in office shall constitute a quorum for the transaction of business. Each
Director shall have one (1) vote on all matters before the Board; provided, however, that if at any time there are
fewer Designated Directors of a Member serving on the Board or in attendance at a meeting of the Board than such Member is entitled to
appoint pursuant to Section 5.1(b)(ii)(A) or (B), as applicable, the Designated Director or Directors of such Member then serving on
the Board, or in attendance at a meeting of the Board, as applicable, shall have, in the aggregate, that number of votes equal to the
votes the Designated Directors of such Member would have been entitled to vote if such Member had appointed all Directors they were entitled
to appoint pursuant to Section 5.1(b)(ii)(A) or (B), as applicable, or if all Designated Directors of such Member were in attendance
at such meeting of the Board. Except as otherwise provided in this Agreement, the act of a majority of the Directors present at any meeting
at which there is a quorum shall be the act of the Board. If a quorum shall not be present at any meeting of the Board, the Directors
present thereat may adjourn the meeting from time to time, upon at least two (2) Business Days’ notice to the absent Directors,
until a quorum shall be present. Any action required or permitted to be taken at any meeting of the Board may be taken without a meeting,
if all members of the Board consent thereto in writing, and the writing or writings are filed with the minutes of proceedings of the
Board.

 

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Section
5.4            Electronic Communications.
Members of the Board, or any committee designated by the Board, may participate in a meeting of the Board, or any committee, by means
of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other,
and such participation in a meeting shall constitute presence in person at the meeting.

 

Section
5.5            Compensation of Directors and Officers.

 

(a)              
The Board shall have the authority to fix the compensation (if any) of the Directors. The Directors may be paid their expenses
(if any) of attendance at such meetings of the Board. No such payment shall preclude any Director from serving the Company in any other
capacity and receiving compensation therefor.

 

(b)              
The compensation and other employee benefits of the Officers of the Company shall be fixed by the Board; provided that the
Chief Executive Officer shall have the right to recommend the amount and nature of such compensation and employee benefits to the Board
from time to time, and at least annually, and the Board shall consult with the Chief Executive Officer concerning his or her recommendations
and consider such recommendations in good faith.

 

Section
5.6            Resignation.
Any Director may resign at any time by giving written notice to the Company. The resignation of any Director shall take effect upon receipt
of such notice or at such later time as shall be specified in the notice; and, unless otherwise specified in the notice, the acceptance
of the resignation by the Company, the Members or the remaining Directors shall not be necessary to make it effective. Upon the effectiveness
of any such resignation, such Director shall cease to be a “manager” (within the meaning of the Colorado Act).

 

Section
5.7            Removal of Directors.

 

(a)              
Subject to Section 5.7(b), each Director may be removed solely by the Member that designated such Director pursuant Section 5.1(b)(ii)(A)
or (B), and may be removed by such Member at any time, with or without cause. Any such removal shall be without prejudice to the rights
(if any) of such Director under any services or employment agreement between such Director and the Company or any Subsidiary of the Company
that employs such individual (as an employee, consultant or otherwise), if applicable, and, if such Director is also a Member, shall not
affect such Director’s rights as a Member or constitute a withdrawal of such Member. Upon the removal of a Director, the Director
shall cease to be a “manager” (within the meaning of the Colorado Act).

 

(b)              
 Notwithstanding the foregoing, in the event any Director (i) has suffered an Incapacity, or (ii) has committed any Malfeasance,
then the Board shall remove such Person from all of his duties to the Company and its Subsidiaries, and the DMC Members or the Munera
Member, as applicable, shall remove such Person as a Designated Director of such Member.

 

Section
5.8            Vacancies.
Any vacancy on the Board, by reason of death, resignation, removal or otherwise, shall be filled at any time in accordance with Section
5.1(b)(ii)(A) or (B), as applicable. A Director elected to fill a vacancy shall hold office until his or her successor has been elected
and qualified or until his or her earlier death, resignation or removal.

 

    -22-

     

    

 

Section
5.9            Directors as Managers.
Each person named as a Director herein or subsequently appointed as a Director is hereby designated as a “manager” (within
the meaning of the Colorado Act) of the Company. Notwithstanding the foregoing and the last sentence of Section 7-80-405 of the Colorado
Act, no single Director shall have the power or authority to bind the Company and the Board shall have the power to act only collectively
in the manner specified herein.

 

Section
5.10        Officers.

 

(a)              
The Board may appoint from time to time as it deems advisable, officers of the Company (collectively, the “Officers”)
and assign such officers titles (including, without limitation, President, Vice President, Finance, Vice President, Secretary and Treasurer).
Unless the Board decides otherwise, if the title is one commonly used for officers of a business corporation formed under the Colorado
Act, the assignment of such title shall constitute the delegation to such person of the authorities and duties that are normally associated
with that office, as described below or in any written resolution adopted by the Board and delivered to such person after the Effective
Date setting forth the authorities and duties delegated to such person by the Board. The authorities delegated to an Officer under this
Section 5.10 or in any such written resolution adopted by the Board are referred to herein as the “Delegation of Authorities.”
Any delegation to an Officer pursuant to this Section 5.10 may be revoked at any time by the Board and shall in any event be subject to
the Delegation of Authorities for such Officer then in effect. Any Officer may be removed with or without cause by the Board, except as
otherwise provided in any services or employment agreement between such Officer and the Company or any Subsidiary of the Company that
employs such individual (as an employee, consultant or otherwise). The initial Officers of the Company will have such powers and duties
as provided below:

 

(i)                
The Chairman shall preside at all meetings of the Board and of the Members at which he or she is present.

 

(ii)              The
President shall have responsibility for conducting the business of the Company in accordance with the direction of the Board. The
President shall have such authority and duties as are appropriate and customary for the office of President, except for the actions
requiring Board approval pursuant to Section 5.1(a)(ii) and (iii), the authority over which is reserved to the Board, and except as
the same may be expanded or limited by the Board from time to time, including the Delegation of Authorities for the President then
in effect. The President may delegate to the other Officers such powers as he or she may determine from time to time, provided
that such powers are not reserved to or revoked by the Board.

 

(iii)           
The President shall have authority to execute, in the name and on behalf of the Company, contracts, bonds, mortgages and other
documents in connection with the business of the Company, except where required or permitted by law to be otherwise signed and executed
and except where the signing and execution thereof shall be expressly delegated by the Board to some other officer or agent of the Company
and only to the extent such execution is authorized by the Board. The President may employ and discharge employees and agents of the Company,
except such as shall be appointed by the Board, and he or she may delegate these powers.

 

    -23-

     

    

 

(iv)            
Subject to the direction and control of the Board and the President, the Vice President, Finance shall be responsible for all financial
and accounting matters of the Company and shall have control of the funds of the Company and the custody of all securities owned by the
Company, subject to the Delegation of Authorities for the Vice President, Finance then in effect. The Vice President, Finance shall also
perform such duties and exercise such powers as are normally associated with such title and such other duties as the Board or the President
may from time to time to time prescribe or delegate to him or her.

 

(v)              
The Secretary shall give, or cause to be given, notice of all meetings of the Members and, upon the request of a person entitled
to call a meeting of the Board, he or she will give notice of any such meeting. He or she shall keep the minutes of all meetings of the
Members, the Board and any committee established by the Board. The Secretary shall be responsible for the maintenance of all records of
the Company and may attest documents on behalf of the Company. The Secretary will perform such other duties as the Board, the President
or any Vice President may from time to time prescribe or delegate to him or her.

 

(b)              
As of the Effective Date, the initial officers of the Company are as set forth on Schedule D.

 

Section
5.11        Affirmative Covenants. The Company shall take the following actions:

 

(a)              
Approval by the Board, in November of each year for the following fiscal year, of an annual operating budget, which shall include
working capital reserves (the “Annual Operating Budget”);

 

(b)              
Approval by the Board, under Section 5.1(a)(ii) or (iii) as applicable, in November of each year for the following fiscal year,
of an annual Capital Expenditure Budget (“Annual Capital Expenditure Budget”).

 

(c)              
Make aggregate annual distributions, a portion of which shall be paid each fiscal quarter, to Members of at least the Target Distribution,
unless approved by the Board pursuant to Section 5.1(a)(iii).

 

ARTICLE
VI

REPRESENTATIONS AND WARRANTIES OF THE MEMBERS

 

Section
6.1            Investment Representations and Warranties.

 

(a)              
Investment Intention and Restrictions on Disposition. Each Member represents and warrants that such Member is acquiring
the Interests solely for such Member’s own account for investment and not with a view to resale in connection with any distribution
thereof. Each Member agrees that such Member will not, directly or indirectly, Transfer or offer to Transfer any of the Interests (or
solicit any offers to buy, purchase or otherwise acquire or take a pledge of any of the Interests) or any interest therein or any rights
relating thereto, except in compliance with the Securities Act, all applicable state securities or “blue sky” laws and this
Agreement, as the same shall be amended from time to time. Any attempt by a Member, directly or indirectly, to Transfer, or offer to Transfer,
any Interests or any interest therein or any rights relating thereto without complying with the provisions of this Agreement shall be
void and of no effect.

 

    -24-

     

    

 

(b)              
Securities Laws Matters. Each Member acknowledges receipt of advice from the Company that (i) the Interests have not
been registered under the Securities Act or qualified under any state securities or “blue sky” laws, (ii) it is not anticipated
that there will be any public market for the Interests, (iii) the Interests must be held indefinitely and such Member must continue
to bear the economic risk of the investment in the Interests unless the Interests are subsequently registered under the Securities Act
and such state laws, or an exemption from registration is available, (iv) Rule 144 promulgated under the Securities Act (“Rule 144”)
is not presently available with respect to sales of any securities of the Company and the Company has made no covenant to make Rule 144
available and Rule 144 is not anticipated to be available in the foreseeable future, (v) when and if the Interests may be disposed
of without registration in reliance upon Rule 144, such disposition can be made only in limited amounts and in accordance with the
terms and conditions of such rule and the provisions of this Agreement, (vi) if the exemption afforded by Rule 144 is not available,
public sale of the Interests without registration will require the availability of an exemption under the Securities Act, (vii) restrictive
legends shall be placed on any certificate representing the Interests and (viii) a notation shall be made in the appropriate records
of the Company indicating that the Interests are subject to restrictions on transfer and, if the Company should in the future engage the
services of a transfer agent, appropriate stop transfer instructions will be issued to such transfer agent with respect to the Interests.

 

(c)              
Ability to Bear Risk. Each Member represents and warrants that (i) such Member’s financial situation is such
that such Member can afford to bear the economic risk of holding the Interests for an indefinite period and (ii) such Member can
afford to suffer the complete loss of such Member’s investment in the Interests.

 

(d)               Access
to Information; Sophistication. Each Member represents and warrants that (i) such Member is familiar with the business and
financial condition, properties, operations and prospects of the Company and its Subsidiaries and that such Member has been granted
the opportunity to ask questions of, and receive answers from, representatives of the Company concerning the Company and its
Subsidiaries and the terms and conditions of the purchase of the Interests and to obtain any additional information that such Member
deems necessary, (ii) such Member’s knowledge and experience in financial and business matters is such that such Member
is capable of evaluating the merits and risk of the investment in the Interests and (iii) such Member has carefully reviewed
the terms and provisions of this Agreement and has evaluated the restrictions and obligations contained herein. In furtherance of
the foregoing, each Member represents and warrants that, except as contemplated by the Purchase Agreement (x) no representation
or warranty, express or implied, whether written or oral, as to the financial condition, results of operations, prospects,
properties or business of the Company and its Subsidiaries or as to the desirability or value of an investment in the Company has
been made to such Member by or on behalf of the Company, (y) such Member has relied upon such Member’s own independent
appraisal and investigation, and the advice of such Member’s own counsel, tax advisors and other advisors, regarding the risks
of an investment in the Company and (z) such Member will continue to bear sole responsibility for making its own independent
evaluation and monitoring of the risks of its investment in the Company.

 

    -25-

     

    

 

Section
6.2            Additional Representations and Warranties.

 

(a)              
Due Organization; Power and Authority, etc. Each Member represents and warrants that it is a limited liability company or
corporation duly organized, validly existing and in good standing under the laws of its organization. Each Member further represents and
warrants that it has all necessary organizational power and authority to enter into this Agreement and to carry out the transactions contemplated
herein.

 

(b)              
Authorization; Enforceability. All actions required to be taken by or on behalf of each Member to authorize it to execute,
deliver and perform its obligations under this Agreement have been taken, and this Agreement constitutes the valid and binding obligation
of such Member, enforceable against such Member in accordance with its terms, except as the same may be affected by bankruptcy, insolvency,
moratorium or similar laws, or by legal or equitable principles relating to or limiting the rights of contracting parties generally.

 

(c)              
Compliance with Laws and Other Instruments. The execution and delivery of this Agreement and the consummation by each Member
of the transactions contemplated hereby and thereby in the manner contemplated hereby and thereby do not and will not conflict with, or
result in a breach of any terms of, or constitute a default under, any agreement or instrument or any statute, law, rule or regulation,
or any judgment, decree, writ, injunction, order or award of any arbitrator, court or governmental authority which is applicable to such
Member or by which such Member or any material portion of its properties is bound, except for conflicts, breaches and defaults that, individually
or in the aggregate, will not have a material adverse effect upon the financial condition, business or operations of such Member or upon
such Member’s ability to enter into and carry out its obligations under this Agreement.

 

(d)              
Executing Parties. The person executing this Agreement on behalf of each Member has full power and authority to bind such
Member to the terms hereof.

 

Section
6.3            Certain Members.
Notwithstanding anything to the contrary contained herein, the representations and warranties under this Article VI shall be deemed not
to be made to Members not executing this Agreement or a joinder agreement to this Agreement.

 

ARTICLE
VII

CAPITAL ACCOUNTS; CAPITAL CONTRIBUTIONS

 

Section
7.1            Capital Accounts.
A separate capital account (a “Capital Account”) shall be established and shall be maintained for each Member in accordance
with Treasury Regulations Section 1.704-1(b)(2)(iv) and this Article VII shall be interpreted and applied in a manner consistent with
such regulations. The balance in each Member’s Capital Account at the Effective Time is set forth on Schedule A.

 

    -26-

     

    

 

Section
7.2            Adjustments to the Capital Accounts.
As of the end of each Accounting Period, the balance in each Member’s Capital Account shall be adjusted by (i) increasing such
balance by (A) such Member’s allocable share of Net Profit (allocated in accordance with Section 8.1) and (B) the amount
of cash and the Fair Market Value of any property (as of the date of the contribution thereof and net of any liabilities encumbering such
property) contributed to the Company by such Member during such Accounting Period, if any, and (ii) decreasing such balance by (A) the
amount of cash and the Fair Market Value of any property (as of the date of the distribution thereof and net of any liabilities encumbering
such property) distributed to such Member during such Accounting Period and (B) such Member’s allocable share of Net Loss (allocated
in accordance with Section 8.1). Each Member’s Capital Account shall be further adjusted with respect to any special allocations
pursuant to Section 8.2. The Company may adjust the Capital Accounts of its Members, in accordance with Treasury Regulations Section 1.704-1(b)(2)(iv)(f),
to reflect revaluations (including any unrealized income, gain or loss) of the Company’s property (including intangible assets such
as goodwill), whenever it issues additional Interests, or whenever the adjustments would otherwise be permitted under such Treasury Regulations.
In the event that the Capital Accounts of the Members are so adjusted, (i) the Capital Accounts of the Members shall be adjusted in accordance
with Treasury Regulations Section 1.704-1(b)(2)(iv)(g) for allocations of depreciation, depletion, amortization and gain or loss, as computed
for book purposes, with respect to such property as set forth in clause (e)(i) of the definition of “Net Profits” and “Net
Losses” in Section 1.1, and (ii) the Members’ distributive shares of depreciation, depletion, amortization and gain or loss,
as computed for tax purposes, with respect to such property shall be determined so as to take account of the variation between the adjusted
tax basis and book value of such property in the same manner as under Section 704(c) of the Code and Section 8.4(a) of this Agreement.
The Capital Accounts shall be maintained for the sole purpose of allocating items of income, gain, loss and deductions among the Members
and shall have no effect on the amount of any distributions to any Member in liquidation or otherwise. The provisions of this Agreement
relating to the maintenance of Capital Accounts are intended to comply with Treasury Regulations Sections 1.704-1(b) and 1.704-2
and shall be interpreted and applied in a manner consistent with such Treasury Regulations, and the Company shall be permitted to adjust
the Capital Accounts of the Members in a manner consistent with such Treasury Regulations. Without limiting the other rights and duties
of a transferee of an Interest pursuant to this Agreement, in the event of a permitted sale or exchange of an Interest, (i) the Capital
Account of the transferor will become the Capital Account of the transferee to the extent it relates to the transferred Interest in accordance
with Treasury Regulations Section 1.704-1(b)(2)(iv), and (ii) the transferee will be treated as the transferor for purposes of allocations
and distributions pursuant to Articles VIII, IX and XIII to the extent that such allocations and distributions relate to the transferred
Interest.

 

Section 7.3            Capital
Contributions. Each Member that has made (or, with respect
to the Units purchased from the Company pursuant to the Purchase Agreement, has been deemed to make, or with respect to the Units purchased
from the Original Members, was made by those from whom such Member acquired its Units) a Capital Contribution on or prior to the Effective
Date is listed on Schedule A with the amount of such Capital Contribution set forth opposite each Members name. Any contributions
of property to the Company after the Effective Date shall be valued at their Fair Market Value.

 

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Section
7.4            Additional Capital Contributions.

 

(a)              
The Board may request that each Member contribute additional capital to the Company from time to time to the extent approved pursuant
to Section 5.1(a)(iii)(B) (a “Capital Call”), in each case, in an amount equal, for each Member, to its Percentage
Interest of the total Capital Call (for each Member, its “Capital Call Amount”). Upon the Board’s determination
to make a Capital Call, the Company shall deliver written notice to each Member (each a “Capital Call Notice”), stating
such Member’s Capital Call Amount, the wire transfer instructions for transfer of its Capital Call Amount, the date by which its
Capital Call Amount must be received (which shall in no event be earlier than fifteen (15) days following the date of the Capital Call
Notice) and the Equity Value as of the date of the Capital Call. Each Member will have the right, but not the obligation, to participate
in such Capital Call by delivering notice to the Company of its election to do so, which notice shall be delivered no later than ten (10)
Business Days following receipt of the Capital Call Notice. Any Member electing to participate shall contribute its Capital Call Amount
by wire transfer of immediately available funds in accordance with the corresponding Capital Call Notice, on or before the date stated
in such Capital Call Notice.

 

(b)              
If for any reason any Member elects not to or fails to timely contribute its full Capital Call Amount pursuant to a Capital Call
Notice (such Member, a “Non-Contributing Member”), the Company shall notify the other Member (the “Contributing
Member”) of such election or failure and state the amount that the Non-Contributing Member elected not to or failed to contribute
(the “Makeup Contribution Amount”). If any Member is a Non-Contributing Member with respect to a Capital Call, then
the Contributing Member may elect to (i) receive the return of any unmatched Capital Contribution made by it in respect of such Capital
Call, (ii) convert any unmatched Capital Contribution made by it in respect of such Capital Call into a loan to the Company on the terms
set forth in Section 7.4(c) (any such loan, a “Priority Loan”), or (iii) contribute to the Company the Makeup Contribution
Amount or any portion thereof in addition to the Contributing Member’s Capital Call Amount contributed pursuant to the Capital Call
Notice for such Capital Call, in which case the provisions of Section 7.4(d) shall apply to the Makeup Contribution Amount or portion
thereof so contributed.

 

(c)               All
Priority Loans shall bear interest on the outstanding principal amount thereof at an interest rate equal to the lesser of (i) eight
percent (8%) per annum, or (ii) the maximum rate permitted by applicable law. All Priority Loans shall compound annually to the
extent unpaid. Accrued interest on all amounts advanced under a Priority Loan shall be payable on each annual anniversary of the
date such amounts are advanced. All Priority Loans shall be repaid in full prior to any distributions of Distributable Amounts to
the Members under Article IX. In any event, each Priority Loan shall in all events mature five (5) years after the date it is
funded. If more than one Priority Loan is outstanding, then repayment of all Priority Loans shall be made in the reverse order in
which such Priority Loans were made (e.g., the most recent Priority Loan shall be repaid prior to repayment of the next most recent
Priority Loan). Payments of Priority Loans shall be applied first to payment of outstanding interest and then to principal until all
amounts due thereunder have been paid in full. Priority Loans shall be pre-payable, in whole or in part, at any time or from time to
time, without penalty. Priority Loans shall be obligations of the Company and no Member shall be liable for repayment of any
Priority Loan or any interest thereon.

 

(d)              
If the Contributing Member has elected to proceed under clause (iii) of the second sentence of Section 7.4(b), then notwithstanding
any other provision of this Agreement to the contrary, upon the Contributing Member’s contribution to the Company of the Makeup
Contribution Amount or any portion thereof in addition to the Contributing Member’s Capital Call Amount contributed pursuant to
the Capital Call Notice for such Capital Call, the Company shall issue to the Contributing Member that number of additional Units equal
to the quotient of (i) the Makeup Contribution Amount (or the portion thereof, if applicable) contributed by the Contributing Member in
respect of the Non-Contributing Member’s failure or election not to contribute in accordance with such Capital Call, divided
by (b) the Equity Value as of the Capital Call date stated in the Capital Call Notice

 

    -28-

     

    

 

(e)              
Except as provided in Section 7.4(d), no additional Units shall be issued in connection with any contributions of additional capital
to the Company by or on behalf of the Members pursuant to the foregoing provisions of this Section 7.4.

 

(f)               
Unless a Member elects to contribute its Capital Call Amount pursuant to a Capital Call Notice, no Member shall be required to
make any additional Capital Contributions to the Company.

 

(g)              
The provisions of this Section 7.4 are intended solely to benefit the Members and, to the fullest extent permitted by applicable
law, shall not be construed as conferring any benefit upon any creditor of the Company (and no such creditor shall be a third party beneficiary
of this Agreement), and no Member shall have any duty or obligation to any creditor of the Company to make any additional capital contributions
or to cause the Board to consent to the making of additional capital contributions.

 

Section
7.5            Negative Capital Accounts.
Except as required by law, no Member shall be required to make up a negative balance in its Capital Account, whether to the Company or
any other Member or for the benefit of any creditor of the Company.

 

ARTICLE
VIII

ALLOCATIONS

 

Section
8.1            Book Allocations of Net Profit and Net Loss.

 

(a)              
Subject to, and after applying, Section 8.2, and subject to the terms of any other agreement of the Members, Net Profit and Net
Loss, as the case may be (and to the extent determined by the Board to be necessary and appropriate to achieve the resulting Economic
Capital Account balances described in this Section 8.1(a) but without causing (by virtue thereof) any Interest to be construed as a guaranteed
payment under Code Section 707, any allocable items of gross income, gain, loss and expense includable in the computation of Net Profits
and Net Loss), shall be allocated among the Members in such ratio or ratios as may be required to cause the balances of the Members’
Economic Capital Accounts to equal, as nearly as possible, their Target Balances, consistent with the provisions of Section 8.1(b).

 

(b)              
The allocation provisions contained in this Article VIII are intended to comply with Code Sections 704(b) and 704(c) and the Treasury
Regulations promulgated thereunder and shall be interpreted and applied in a manner consistent therewith.

 

Section
8.2            Special Book Allocations.

 

(a)              
Qualified Income Offset. If any Member unexpectedly receives any adjustment, allocation or distribution described in Treasury
Regulations Sections 1.704-1(b)(2)(ii)(d)(4), (5) or (6) and such adjustment, allocation or distribution causes or increases
a deficit in such Member’s Economic Capital Account (a “Deficit”), items of gross income and gain for such Accounting
Period and each subsequent Accounting Period shall be specifically allocated to such Member in an amount and manner sufficient to eliminate,
to the extent required by the Treasury Regulations, the Deficit of such Member as quickly as possible; provided that an allocation
pursuant to this Section 8.2(a) shall be made only if and to the extent that such Member would have a Deficit after all other allocations
provided for in this Article VIII have been tentatively made as if this Section 8.2(a) were not in this Agreement. This Section
8.2(a) is intended to comply with the qualified income offset provision of Treasury Regulations Section 1.704-1(b)(2)(ii)(d) and
shall be interpreted in a manner consistent therewith.

 

    -29-

     

    

 

(b)              
Partnership Minimum Gain. Except as otherwise provided in Treasury Regulations Section 1.704-2(f), if there is a net
decrease in Partnership Minimum Gain during any Accounting Period, each Member shall be specially allocated items of Company income and
gain for such Accounting Period in proportion to, and to the extent of, an amount equal to the portion of such Member’s share of
the net decrease in Partnership Minimum Gain, determined in accordance with Treasury Regulations Section 1.704-2(g). This Section
8.2(b) is intended to comply with the chargeback of items of income and gain requirement in Treasury Regulations Section 1.704-2(f)
and shall be interpreted consistently therewith.

 

(c)              
Nonrecourse Deductions. Nonrecourse Deductions shall be allocated to the Members in accordance with their Units. For purposes
of this Section 8.2(c), the term “Nonrecourse Deductions” has the meaning set forth in Treasury Regulations Section 1.704-2(b)(1).

 

(d)              
Member Nonrecourse Debt. Notwithstanding any other provisions of this Article VIII to the extent required by Treasury Regulations
Section 1.704-2(i), any items of income, gain, deduction and loss of the Company that are attributable to a nonrecourse debt of the Company
that constitutes Member Nonrecourse Debt (including chargebacks of Member Nonrecourse Debt Minimum Gain, as defined below) shall be allocated
in accordance with the provisions of Treasury Regulations Section 1.704-2(i). This Section 8.2(d) is intended to satisfy the requirements
of Treasury Regulations Section 1.704-2(i) (including the partner nonrecourse debt chargeback requirements) and shall be interpreted and
applied in a manner consistent therewith.

 

(e)              
 Gross Income Allocation. If any Member has a negative Economic Capital Account at the end of any Fiscal Year, such Member
shall be allocated items of Company income and gain in the amount of such deficit as quickly as possible; provided that an allocation
pursuant to this Section 8.2(e) shall be made only if and to the extent that such Member would have a negative Economic Capital Account
after all other allocations provided for in this Section 8.2 (other than Section 8.2(a)) have been tentatively made as if this Section
8.2(e) were not in this Agreement.

 

Section
8.3            Transfer of Interests.
In the event of a Transfer of Interests in the Company in accordance with the provisions of this Agreement, subject to compliance with
Code Section 706 and the regulations promulgated thereunder, items of income, gain, loss and deduction shall be allocated between the
transferor and the transferee in accordance with an interim closing of the books as of the close of the date of the Transfer to the extent
consistent with Code Sections 706(d)(2) and 706(d)(3), or pursuant to such other method agreed to by the transferor and the transferee
and reasonably acceptable to the Tax Matters Member.

 

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Section
8.4            Certain Tax Matters.

 

(a)              
Tax Allocations. The income, gains, losses, credits and deductions recognized by the Company shall be allocated among the
Members, for U.S. federal, state and local income tax purposes, to the extent permitted under the Code and the Treasury Regulations, in
the same manner that each such item is allocated to the Members’ Capital Accounts. Notwithstanding the foregoing, the Board may
adjust such allocations so long as such adjusted allocations have substantial economic effect or are in accordance with the Members’
Interests, in each case within the meaning of the Code and the Treasury Regulations. In accordance with Section 704(c) of the Code and
the Treasury Regulations thereunder, income, gain, loss and deduction with respect to any property of the Company that is reflected in
the Capital Accounts at a book value that is different from its adjusted basis for tax purposes (whether due to contribution or revaluation)
shall, solely for tax purposes, be allocated among the Members so as to take account of any variation between the adjusted basis of such
property to the Company for U.S. federal income tax purposes and its fair market value at the time of contribution or revaluation. Section
704(c) of the Code shall be administered with respect to property contributed to the Company by a Member or any revaluation due to the
capital contributions of either Member in accordance with the remedial method of Treasury Regulation Section 1.704-3(d). All other matters
concerning allocations for U.S. federal, state and local and non-U.S. income tax purposes, including Code Section 704(c) allocation methods
and other accounting procedures, not expressly provided for by the terms of this Agreement shall be determined by the Board.

 

(b)               Member
Notification Requirements. No Member shall knowingly assert a position in respect of matters relating to the Company’s
income, gain, loss, deduction, or credit under the Code, which such Member knows to be inconsistent with the tax returns prepared
with respect to the Company or otherwise to be materially adversely prejudicial to the Company, unless in either case (i) such
position is consistent with the provisions of this Agreement, and (ii) such Member provides written notice thereof to the Company at
least fifteen (15) days before taking such position. The cost of any audits or adjustments of a Member’s tax return shall be
borne solely by the affected Member. Each Member shall promptly upon request furnish to the Company any information that the Company
may reasonably request in connection with any election or contemplated election or adjustment under Section 734, 743 or 754 of
the Code or with filing the tax returns of the Company or any Subsidiary thereof.

 

ARTICLE
IX

DISTRIBUTIONS

 

Section
9.1            Distributions Generally.

 

(a)              
This Section provides for the distribution of certain amounts to the Members. The term “Distributable Amount”
means (A) upon the occurrence of an Exit Event, all amounts held by the Company immediately following such Exit Event reduced by
existing liabilities and expenses of the Company and a reasonable reserve for future liabilities and expenses; and (B) at any other
time determined by the Board, the then applicable undistributed Target Distribution or such other amounts approved pursuant to Section
5.1(a)(iii)(C). Subject to Section 7.4(c) and the other provisions of this Section 9.1, all Distributable Amounts shall be distributed,
in connection with the occurrence of an Exit Event, concurrently with or promptly following the consummation of such Exit Event, and in
all other cases, at least annually, at such time as determined by the Board in its sole discretion, to the Members on a pro rata basis
in accordance with their respective Percentage Interests.

 

    -31-

     

    

 

(b)              
In the event that an Exit Event is structured as a sale of Interests by the Members, rather than a distribution of proceeds by
the Company, the purchase agreement governing such sale will have provisions therein that replicate, to the greatest extent possible,
the economic result which would have been attained under this Article IX had the Exit Event been structured as a sale of the Company’s
assets and a distribution of proceeds thereof to the Members (or modifications will be made to this Agreement to accomplish this result).

 

Section
9.2            Distributions In Kind.
In the event of a distribution of Company property, such property shall for all purposes of this Agreement be deemed to have been sold
at its Fair Market Value and the proceeds of such sale shall be deemed to have been distributed to the Members.

 

Section
9.3            No Withdrawal of Capital.
Except as otherwise expressly provided in Article XIII or this Article IX, no Member shall have the right to withdraw capital from the
Company or to receive any distribution or return of such Member’s Capital Contributions.

 

Section
9.4            Withholding; Payment of Member Taxes by the Company.

 

(a)              
Each Member shall, to the fullest extent permitted by applicable law, indemnify and hold harmless each Person who is or who is
deemed to be the responsible withholding agent for U.S. federal, state or local income tax purposes against all claims, liabilities
and expenses of whatever nature (but, in each case, excluding any penalties and accrued interest that results from such Person’s
fraud, willful misfeasance, bad faith or gross negligence) solely relating to such Person’s obligation to withhold and to pay over
any U.S. federal, state, or local income taxes imposed on such Member and the employee’s share of social security, Medicare,
and federal unemployment taxes imposed on such Member.

 

(b)              
 Notwithstanding any other provision of this Article IX, (i) each Member hereby authorizes the Company to withhold and to
pay over, or otherwise pay, any withholding or other taxes payable by the Company or any of its Affiliates with respect to such Member
or as a result of such Member’s participation in the Company (including where required by the Revised Partnership Audit Provisions)
and (ii) if and to the extent that the Company shall be required to withhold or pay any such taxes (including any amounts withheld
from amounts payable to the Company to the extent attributable, in the judgment of the Board, to such Member’s Interest), such Member
shall be deemed for all purposes of this Agreement to have received a payment from the Company as of the time such withholding or tax
is required to be paid, which payment shall be deemed to be a distribution with respect to such Member’s Interest to the extent
that the Member (or any successor to such Member’s Interest) is then entitled to receive a distribution. To the extent that the
aggregate of such payments to a Member for any period exceeds the distributions to which such Member is entitled for such period, such
Member shall make a prompt payment to the Company of such amount.

 

(c)              
If the Company makes a distribution in kind and such distribution is subject to withholding or other taxes payable by the Company
on behalf of any Member, such Member shall make a prompt payment to the Company of the amount of such withholding or other taxes by wire
transfer.

 

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Section
9.5            Restrictions on Distributions.

 

(a)              
The Company shall not make a distribution of property in kind to a Member which results in the recognition of taxable income to
a Member under Section 704(c)(1)(B) of the Code or Section 737(a) of the Code without the prior written consent of the Member who would
be required to recognize such taxable income as a result thereof.

 

(b)              
Notwithstanding any provision to the contrary contained in this Agreement, the Company shall not make a distribution to any Member
on account of its Interest in the Company if such distribution would violate Section 7-80-606 of the Colorado Act or other applicable
law.

 

Section
9.6            Offset.
Notwithstanding anything in this Article IX to the contrary, to the extent there has been a final judicial determination under the Purchase
Agreement that a Member (the “Owing Member”) (a) owes any amount to the Company in respect of any Loss incurred by
the Company, or (b) owes any amount to the other Member in respect of any Loss incurred by such other Member, and such amount has remained
outstanding for sixty (60) days, then upon the request of the other Member, the Company shall set aside any distribution that would otherwise
be made to the Owing Member under this Agreement and, in the case of (b), deliver such set aside amount to the other Member, until all
such amounts owed by the Owing Member to the Company or the other Member, as applicable, have been reduced to zero (giving effect to any
other payments made by the Owing Member to the Company or the other Member, as applicable).

 

ARTICLE
X

BOOKS AND RECORDS

 

Section
10.1        Books and Records; Reports.

 

(a)              
 At all times during the continuance of the Company, the Company shall maintain, at its principal place of business, separate books
of account for the Company and its Subsidiaries that shall show a true and accurate record of all costs and expenses incurred, all charges
made, all credits made and received and all income derived in connection with the operation of the Company’s business in accordance
with accounting principles approved by the Board from time to time. Such books of account, together with a copy of this Agreement and
the Articles and such other books and records as may be required by the Colorado Act, shall at all times be maintained at the principal
place of business of the Company and shall be open to inspection and examination at reasonable times by each Member and its duly authorized
representative for any purpose reasonably related to such Member’s Interest.

 

(b)              
Within thirty (30) days after the end of each calendar quarter, the Company shall furnish to each Member a copy of the consolidated
income statement, cash flow statement and the balance sheet of the Company and its Subsidiaries for such quarter. Within seventy-five
(75) days after the close of each calendar year, the Manager shall furnish to each Member a copy of the consolidated income and loss statement,
cash flow statement, and the balance sheet of the Company and its Subsidiaries for such calendar year.

 

    -33-

     

    

 

Section
10.2        Filings of Returns and Other Writings; Tax Matters Member.

 

(a)              
The Company shall timely file all Company tax returns and all other tax filings required by any governmental authority having jurisdiction
to require such tax filing. The Company shall furnish to each Member an estimated U.S. Internal Revenue Service Form 1065, Schedule K-1
with respect to such Member no later than March 31st following each Tax Year and a final U.S. Internal Revenue Service Form 1065, Schedule
K-1 with respect to such Member no later than September 15th following each Tax Year and will use commercially reasonable efforts
to provide Members with the information necessary for each Member to calculate its obligation to make estimated payments of income taxes
related to the ownership of such Member’s Units on a timely basis.

 

(b)              
(i) DMC shall be designated as the “partnership representative” (as defined in Section 6223(a) of the Code) of the
Company. The partnership representative, as so designated, shall each be referred to herein as the “Tax Matters Member.”

 

(i)                
Each Member hereby consents to such designations and agrees that upon the request of the Tax Matters Member, such Member will execute,
certify, acknowledge, deliver, swear to, file and record at the appropriate public offices such documents as may be necessary or appropriate
to evidence such consent.

 

(ii)             
Any Member entering into a settlement agreement with the Internal Revenue Service (the “IRS”) that concerns
a Company item shall notify the other Members of such settlement agreement and its terms within fifteen days after the date thereof.

 

(iii)            The
Tax Matters Member shall give prompt notice to the Members upon receipt of written notice that the IRS or other taxing authority
intends to examine any income tax return, or records or books of the Company. During any Company income tax audit or other income
tax controversy with any governmental authority, the Tax Matters Member shall keep the Members informed of all material facts and
developments on a reasonably prompt basis (including, without limitation, whether it intends to file for judicial review with
respect to any final administrative adjustment relating to the Company and including providing copies of all documents received by
the Tax Matters Member in its capacity as such from a taxing authority).

 

    -34-

     

    

 

(iv)            
The Tax Matters Member shall be supervised by, and serve at the direction of, the Board. The Tax Matters Member, as directed by
the Board, has the power to represent and bind the Company in each audit conducted by any taxing authority, including without limitation
the power and authority, (i) to make an election under Section 6226 of the Code (as amended by the Revised Partnership Audit Provisions)
and any Treasury Regulations promulgated in accordance therewith and (ii) to take, and to cause the Company to take, all actions necessary
or convenient to give effect to such an election. Each Member agrees to take all actions that the Tax Matters Member determines are necessary
in connection with an audit, including without limitation (A) providing any information in such Member’s possession reasonably requested
in connection with any tax audit or related proceeding (which information may be freely disclosed to the IRS or other relevant taxing
authorities), (B) paying all liabilities attributable to such Member as the result of an election under Section 6226 of the Code (as amended
by the Revised Partnership Audit Provisions), and (C) filing any amended returns that the Tax Matters Member determines to be necessary
or appropriate to reduce an imputed underpayment under Section 6225(c) of the Code (as amended by the Revised Partnership Audit Provisions)
and paying all liabilities associated with such an amended return. The Tax Matters Member may employ tax counsel to represent the Company
in connection with any audit or investigation of the Company by the IRS and in connection with all subsequent administrative and judicial
proceedings arising out of such audit.

 

(c)              
Promptly following the written request of the Tax Matters Member, the Company shall, to the fullest extent permitted by applicable
law, reimburse and indemnify the Tax Matters Member for all reasonable expenses, including reasonable legal and accounting fees, claims,
liabilities, losses and damages incurred by the Tax Matters Member, in its capacity as such, in connection with any administrative or
judicial proceeding with respect to the tax liability of the Members in general and not with respect to the individual tax liability of
the Tax Matters Member in its capacity as a Member, except to the extent arising from the bad faith, gross negligence, willful violation
of law, fraud or breach of this Agreement by such Tax Matters Member.

 

(d)              
The provisions of this Section 10.2 shall survive the termination of the Company or the termination of any Member’s Interest
and shall remain binding on the Members for as long a period of time as is necessary to resolve with the IRS or any other taxing authority
any and all matters regarding the taxation of the Company or the Members.

 

Section
10.3        Accounting Method.
For tax reporting purposes, the Company shall report under the accrual method of accounting.

 

Section
10.4        Section 754 Election. The Company will elect, pursuant to Section 754 of
the Code, to adjust the basis of the Company’s assets as provided in Sections 734 and 743 of the Code.

 

Section 10.5       Combined
Group Taxes. If the DMC Members (or any of its direct or indirect owners) are obligated to pay taxes attributable to the Company’s
assets or operations as a result of the DMC Members and the Company being treated as members of a combined, consolidated, unitary or
other group of Entities, then the Company shall reimburse the DMC Members for the amount of taxes paid that are attributable to the Company,
which amount shall equal the amount of taxes the Company would pay if it were not included in any combined, consolidated, unitary or
other group but instead were taxed on a stand-alone basis. Any amount paid to the DMC Members pursuant to this Section 10.4 shall be
treated as a reimbursement for amounts paid on behalf of the Company and shall not be treated as a distribution to the DMC Members for
purposes of Section 9.1 (including pursuant to Section 13.2). Until paid, the amount due from the Company pursuant hereto shall bear
interest at a rate of eight percent (8%) per annum.

 

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ARTICLE
XI

LIABILITY, EXCULPATION AND INDEMNIFICATION

 

Section
11.1        Liability.
Except as otherwise provided by the Colorado Act, the debts, obligations and liabilities of the Company, whether arising in contract,
tort or otherwise, shall be solely the debts, obligations and liabilities of the Company, and no Covered Person shall be obligated personally
for any such debt, obligation or liability of the Company solely by reason of being a Covered Person.

 

Section
11.2        Exculpation.
No Covered Person shall be liable to the Company or any other Covered Person for any loss, damage or claim incurred by reason of any act
or omission performed or omitted by such Covered Person in good faith on behalf of the Company and in a manner believed to be within the
scope of authority conferred on such Covered Person by this Agreement, except that a Covered Person shall be liable for any such loss,
damage or claim incurred by reason of such Covered Person’s gross negligence, willful misconduct or willful breach of this Agreement.

 

Section
11.3        Fiduciary Duty.
Any duties (including fiduciary duties) of a Covered Person to the Company or to any other Covered Person that would otherwise apply at
law or in equity are hereby eliminated to the fullest extent permitted under the Colorado Act and any other applicable law; provided
that (a) the foregoing shall not eliminate the obligation of each Covered Person to act in compliance with the express terms of this
Agreement and (b) the foregoing shall not be deemed to eliminate the implied contractual covenant of good faith and fair dealing.
A Covered Person acting under this Agreement shall not be liable to the Company or to any other Covered Person for its good faith reliance
on the provisions of this Agreement.

 

Section
11.4        Indemnification.
To the fullest extent permitted by applicable law, a Covered Person shall be indemnified, held harmless and defended by the Company
from and against any and all losses, damages, claims, liabilities (whether joint or several), expenses (including legal fees and
expenses), judgments, fines and other amounts paid in settlement incurred or suffered by such Covered Person, as a party or
otherwise, in connection with any threatened, pending or completed claim, demand, action, suit or proceeding, whether civil,
criminal, administrative or investigative, and whether formal or informal, by reason of the Covered Person’s status as a
current or former Director, Member, Officer, or Tax Matters Member regardless of whether the Covered Person retains such status at
the time any such loss, damage, claim, liability, expense, judgment, fine or other amount paid in settlement is incurred or suffered
or by reason of any act or omission performed or omitted by such Covered Person in good faith on behalf of the Company and in a
manner believed to be within the scope of authority conferred on such Covered Person by this Agreement, and, with respect to any
criminal proceeding, where such Covered Person had no reasonable cause to believe that such conduct was unlawful, except that no
Covered Person shall be entitled to be indemnified, held harmless or defended by the Company in respect of any loss, damage, claim,
liability, expense, judgment, fine or other amount paid in settlement incurred or suffered by such Covered Person by reason of such
Covered Person’s or any Related Party of such Covered Person’s gross negligence, willful misconduct or willful breach of
this Agreement with respect to such acts or omissions; provided that any indemnity under this Section 11.4 shall be provided
out of and to the extent of Company assets only, and no Covered Person shall have any personal liability on account thereof. The
termination of any action, suit or proceeding by judgment, order, settlement or upon a plea of nolo contendere, or its equivalent,
shall not, of itself, create a presumption that a Covered Person acted in a manner contrary to the standards specified in this
Section 11.4. No Covered Person shall be denied indemnification, in whole or in part, under this Section 11.4 merely because the
Covered Person had an interest in the transaction with respect to which the indemnification applies, if the transaction was not
otherwise prohibited by the terms of this Agreement and the conduct of the Covered Person satisfies the conditions set forth in this
Agreement. The indemnification provided by this Section 11.4 shall be in addition to any other rights to which any Covered Person
may be entitled under any other agreement, as a matter of law or otherwise, and shall inure to the benefit of the heirs, legal
representatives, successors, assigns and administrators of the Covered Person.

 

    -36-

     

    

 

 

Section
11.5        Expenses.
To the fullest extent permitted by applicable law, expenses (including, without limitation, reasonable attorneys’ fees, disbursements,
fines and amounts paid in settlement) incurred by a Covered Person in defending any claim, demand, action, suit or proceeding relating
to or arising out of their performance of their duties on behalf of the Company shall, from time to time, be advanced by the Company prior
to the final disposition of such claim, demand, action, suit or proceeding upon receipt by the Company of an undertaking by or on behalf
of the Covered Person to repay such amount if it shall ultimately be determined by a court of competent jurisdiction that the Covered
Person is not entitled to be indemnified as authorized in Section 11.4; provided, however, that in such instance such Covered
Person is not defending a claim, demand, action, suit or proceeding commenced against such Covered Person by the Company itself.

 

Section
11.6        Indemnification Procedures.

 

(a)              
Within thirty (30) days after receipt by any Covered Person of notice of the commencement of any action that may result in a claim
for indemnification pursuant to Section 11.4, the Covered Person shall notify the Company in writing of such action; provided,
however, that the omission so to notify the Company shall not relieve the Company of any liability for indemnification pursuant
to Section 11.4 as to the particular item for which indemnification may then be sought (except to the extent that the failure to give
notice shall have been materially prejudicial to the Company).

 

(b)               The
Covered Person shall have the right to employ separate counsel in any action as to which indemnification may be sought under any
provision of this Agreement and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the
expense of the Covered Person unless (i) the Company has agreed in writing to pay such fees and expenses, (ii) the Company has
failed to assume the defense thereof without reservation and employ counsel within a reasonable period of time after being given the
notice required above, or (iii) the named parties to any such action (including any impleaded parties) include both the Covered
Person and the Company and the Covered Person shall have been advised by his, her or its counsel that representation of the Covered
Persons and the Company by the same counsel would be inappropriate under applicable standards of professional conduct (whether or
not such representation by the same counsel has been proposed) due to actual or potential differing interests between them. It is
understood, however, that the Company shall, in connection with any one such action or separate but substantially similar or related
actions in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and
expenses of only one separate firm of attorneys at any time for all the Covered Persons having actual or potential differing
interests with the Company.

 

(c)              
The Company shall not be liable for any settlement of any such action effected without its written consent, but if settled with
such written consent, or if there is a final judgment against the Covered Person in any such action, the Company agrees to indemnify and
hold harmless the Covered Person to the extent provided above from and against any loss, claim, damage, liability or expense by reason
of such settlement or judgment.

 

Section
11.7        Directors’ and Officers’ Indemnity Insurance Coverage.
The Company shall maintain, and shall cause its direct and indirect subsidiaries to maintain, directors’ and officers’ indemnity
insurance coverage reasonably satisfactory to the Board.

 

    -37-

     

    

 

Section
11.8        Severability; Survival.
To the fullest extent permitted by applicable law, if any portion of this Article shall be invalidated on any ground by any court of competent
jurisdiction, then the Company shall nevertheless indemnify each Director or Officer and may indemnify each employee or agent of the Company
as to costs, charges and expenses (including reasonable attorneys’ fees), judgments, fines and amounts paid in settlement with respect
to any action, suit or proceeding, whether civil, criminal, administrative or investigative, including an action by or in the right of
the Company, to the fullest extent permitted by any applicable portion of this Article that shall not have been invalidated. The indemnification
obligations set forth in this Article XI shall survive the termination of this Agreement.

 

ARTICLE
XII

TRANSFERS OF INTERESTS

 

Section
12.1        Restrictions on Transfers of Interests.
No Restricted Member may Transfer (including, without limitation, to any other Member, or by gift, or by operation of law or
otherwise) any Interests or any direct or indirect beneficial ownership of any Interests; provided, that, subject in each
case to Section 12.4, Interests may (or shall, as the case may be) be Transferred by the Restricted Members (a) pursuant to
Section 12.2 (“Estate Planning Transfers; Transfers upon Death”), (b) in accordance with Section 12.5
(“Involuntary Transfers”), (c) pursuant to Section 12.8 (“Right of First Refusal and Drag-Along
Right”), (d) pursuant to Section 12.9, in connection with the formation of Newco (as defined in Section 12.9(b)) in
anticipation of an IPO, (e) pursuant to Section 12.10 (“Put/Call Rights”) and (f) pursuant to the prior written
approval of the Board and the DMC Members in their sole and absolute discretion. The Restricted Members may not pledge, grant a
security interest in or otherwise encumber or hypothecate (a “Hypothecation”) any portion of such Member’s
Interest without the prior written approval of the Board and the DMC Members in their sole and absolute discretion.

 

Section
12.2        Estate Planning Transfers; Transfers upon Death.
Interests held by Munera may be Transferred for estate planning purposes of Munera to (a) a trust under which the distribution of
the Interests may be made only to beneficiaries who are Munera, his spouse, members of his immediate family or his lineal descendants,
(b) a charitable remainder trust, the income from which will be paid to Munera during his life, (c) a corporation, the shareholders
of which are only Munera, his spouse, members of his immediate family or his lineal descendants or (d) a partnership or limited liability
company, the partners or members of which are only Munera, his spouse, members of his immediate family or his lineal descendants. Interests
held by Munera may be transferred by will or as a result of the laws of descent and distribution, provided that any heirs, executors
or other beneficiaries shall remain subject to the terms of this Agreement as if Munera continued to hold the Interests directly.

 

Section
12.3        Effect of Assignment.
The Company shall, from the effective date of any Transfer of an Interest (or part thereof) permitted under this Article XII, thereafter
pay all further distributions on account of such Interest (or part thereof) to the transferee of such Interest (or part thereof); provided,
that such transferee shall have no rights or powers as a Member unless such transferee complies with Section 12.6.

 

Section
12.4        Overriding Provisions.

 

(a)              
Any Transfer or Hypothecation of any Interest in violation of this Article XII shall be null and void ab initio and of no force
or effect, and the provisions of Section 12.3 shall not apply to any such Transfer or Hypothecation. The approval of any Transfer or Hypothecation
of any Interest in any one or more instances shall not limit or waive the requirement for such approval in any other or future instance.

 

    -38-

     

    

 

(b)              
All Transfers of Interests permitted under this Article XII are subject to this Section 12.4 and Sections 12.6 and 12.7.

 

(c)              
Any proposed Transfer of Interests by a Member pursuant to the terms of this Article XII shall, in addition to meeting all of the
other requirements of this Agreement, satisfy the following conditions: (i) the Transfer will not be effected on or through an “established
securities market” or a “secondary market or the substantial equivalent thereof,” as such terms are used in Treasury
Regulations Section 1.7704-1, and, at the request of the Board, the transferor and the transferee will have each provided the Company
a certificate to such effect; and (ii) the proposed Transfer will not result in the Company having more than 99 Members, within the
meaning of Treasury Regulations Section 1.7704-1(h)(1) and will not result in the Company being taxed as a corporation for U.S. tax
purposes (determined pursuant to the rules of Treasury Regulations Section 1.7704-1(h)(3)). The Board may in its sole and absolute
discretion waive the condition set forth in clause (ii) of this Section 12.4(c).

 

(d)              
 The Board shall promptly amend Schedule A to reflect any Transfers of Interests permitted under this Article XII.

 

Section
12.5        Involuntary Transfers.

 

(a)              
Any Transfer of title or beneficial ownership of Interests upon default, foreclosure, forfeit, divorce, court order or otherwise
than by a voluntary decision on the part of a Restricted Member (each, an “Involuntary Transfer”), in each case to
a third party that is not a Restricted Member, shall be void unless the Restricted Member complies with this Section 12.5 and enables
the Company to exercise in full its rights hereunder. Upon the Involuntary Transfer of any Interests, the Company shall have the right
to purchase such Interests pursuant to this Section 12.5 and the Person to whom such Interests have been Transferred (the “Involuntary
Transferee”) shall have the obligation to sell such Interests in accordance with this Section 12.5. Upon the Involuntary Transfer
of any Interests, such Restricted Member shall promptly (but in no event later than two (2) Business Days after such Involuntary Transfer)
furnish written notice to the Company indicating that the Involuntary Transfer has occurred, specifying the name of the Involuntary Transferee,
giving a reasonably detailed description of the circumstances giving rise to, and stating the legal basis for, the Involuntary Transfer.
Upon the receipt of the notice described in the preceding sentence, and for ninety (90) days thereafter, the Company shall have the right
to purchase, and the Involuntary Transferee shall have the obligation to sell, all or any portion of the Interests acquired by the Involuntary
Transferee for a purchase price equal to the lesser of (i) the Fair Market Value of such Interests and (ii) the amount of the
indebtedness or other liability that gave rise to the Involuntary Transfer plus the excess, if any, of the Carrying Value of such Interests
over the amount of such indebtedness or other liability that gave rise to the Involuntary Transfer.

 

(b)              
The Company shall have the right to assign to the DMC Members (or their designees), all or any portion of its rights and obligations
under Section 12.5(a), provided that any such assignment or assumption is accepted by the DMC Members (or their designees). If
the Company has not exercised its right to purchase Interests pursuant to Section 12.5(a) within fifteen (15) days of receipt by
the Company of the letter, notice or other occurrence giving rise to such rights, then the DMC Members shall have the right to require
the Company to assign such rights. The DMC Members shall have the right to assign to one or more of its Affiliates all or any of their
rights to purchase Interests pursuant to this Section 12.5(b).

 

Section
12.6        Substitute Members.

 

(a)              
In the event any Member Transfers its direct Interest in the Company in compliance with the other provisions of this Article XII,
the transferee thereof shall have the right to become a substitute Member, but only upon satisfaction of the following:

 

(i)                
execution of such instruments as the Board deems reasonably necessary or desirable to effect such substitution; and

 

(ii)              acceptance
and agreement in writing by the transferee of such Interest to be bound by all of the terms and provisions of this Agreement and
assumption of all obligations under this Agreement (including breaches hereof) applicable to the transferor and in the case of a
transferee of any individual Member who resides in a state with a community property system, such transferee causes his or her
spouse, if any, to execute a Spousal Waiver in the form of Exhibit B attached hereto. Upon the execution of the
instrument of assumption by such transferee and, if applicable, the Spousal Waiver by the spouse of such transferee, such transferee
shall enjoy all of the rights and shall be subject to all of the restrictions and obligations of the transferor of such
Interest.

 

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(b)              
The Board will ensure that notice of the admission of any substitute members is given to the Secretary of the Company, so that
they may make the required amendments to Schedule A hereto.

 

(c)              
Notwithstanding anything herein to the contrary, in no event shall a transferee of Interests from a Munera Member, even if such
transferee is admitted as a member, receive rights to appoint Directors to the Board pursuant to Section 5.1(b)(2)(B) or otherwise.

 

Section
12.7        Release of Liability.
In the event any Member shall Transfer such Member’s entire Interest in the Company (other than pursuant to Sections 12.8 or 12.10)
in compliance with the provisions of this Agreement, including, without limitation, pursuant to Section 12.5, without retaining any interest
therein, directly or indirectly, then the transferring Member shall, to the fullest extent permitted by applicable law, be relieved of
any further liability arising hereunder for events occurring from and after the date of such Transfer.

 

Section
12.8        Right of First Refusal and Drag-Along Right.

 

(a)               If
at any time after the Effective Date, the DMC Members or the Munera Member (as applicable, the “Selling Member”)
proposes to Transfer all but not less than all of the Units it then holds (the “Offered Units”) in a Qualifying
Transaction, the Selling Member shall first offer to sell its Units to the Munera Member or the DMC Members (as applicable, the
 “Other Member”). The Selling Member shall, within five Business Days of receipt of an offer from the proposed
counterparty to the Qualifying Transaction (the “Third Party”) that it desires to accept, give written notice
(the “Selling Member Notice”) to the Company and the Other Member stating that it has received a bona fide offer
from a Third Party and specifying: (x) the name of the Third Party, (y) the per Unit purchase price and the other material terms and
conditions of the Qualifying Transaction, including a description of any non-cash consideration in sufficient detail to permit the
valuation thereof and (z) the proposed date, time and location of the closing of the Qualifying Transaction, which shall not be less
than sixty (60) Business Days from the date of the Offering Member Notice. The Selling Member Notice shall constitute the Selling
Member’s offer to Transfer its Offered Units to the Other Member on the terms set forth in the Selling Member Notice, which
offer shall be irrevocable until the end of the ROFR Notice Period (as defined below). By delivering the Selling Member Notice, the
Selling Member represents and warrants to the Company and the Other Member that: (x) the Selling Member has full right, title and
interest in and to the Offered Units, (y) the Selling Member has all necessary power and authority and has taken all necessary
action to sell such Offered Units as contemplated by this Section 12.8(a) and (z) the Offered Units are free and clear of any and
all liens other than those arising as a result of or under the terms of this Agreement. Upon receipt of the Selling Member Notice,
the Other Member shall have thirty (30) Business Days (the “ROFR Notice Period”) to elect to purchase all (and
not less than all) of the Offered Units by delivering a written notice (a “ROFR Offer Notice”) to the Selling
Member and the Company stating that it offers to purchase such Offered Units on the terms specified in the Selling Member Notice. If
the Other Member is the DMC Members, the DMC Members may offer DMC Series A Preferred Stock as the consideration for such purchase,
and such DMC Series A Preferred Stock shall be valued at the Option Share Issue Price for the purposes of this Section 12.8(a). Any
ROFR Offer Notice shall be binding upon delivery and irrevocable by the Other Member. If the Other Member does not deliver a ROFR
Offer Notice during the ROFR Notice Period, it shall be deemed to have waived all of its rights to purchase the Offered Units under
this Section 12.8(a), and the Offering Member shall thereafter be free to sell the Offered Units to the Third Party specified in the
Offer Notice, on the terms set forth in the Offer Notice, without any further obligation to such Member pursuant to this Section
12.8(a) if such sale to the Third Party occurs within forty (40) Business Days of the expiration of the ROFR Notice Period.

 

(b)              
If the Other Member does not deliver a ROFR Offer Notice during the ROFR Notice Period, the Selling Member shall have the right,
upon written notice to the Other Member delivered not less than the earlier of the expiration of the ROFR Notice Period and twenty (20)
Business Days prior to the proposed closing (the “Drag Notice”), to require that the Other Member sell all of its Units
on substantially the same (and no less favorable) terms (including with respect to representations, warranties and indemnification) as
the Selling Member; provided, that representations and warranties relating specifically to any Member shall only be made by that
Member and any indemnification provided by the Members (other than in respect of representations and warranties relating to any such Member’s
title to or ownership of the Units being sold by such Member in the proposed sale and such Member’s authority, power and right to
enter into and consummate such transaction without violating any other agreement or legal requirement) shall be based on the relative
purchase price being received by each Member in the proposed sale, either on a several, not joint, basis or solely with recourse to an
escrow established for the benefit of the proposed purchaser. For purposes of this Section 12.8(b), for each Member, “joining”
the Selling Member in such Qualifying Transaction shall include voting its Interests consistently with the Selling Member, transferring
its Interests to a corporation organized in anticipation of such sale in exchange for capital stock of such corporation, executing and
delivering agreements and documents which are being executed and delivered by the Selling Member and taking such other actions and providing
such other cooperation as the Selling Member may reasonably request. Any transaction costs, including transfer taxes and legal, accounting
and investment banking fees incurred by the Company and the Selling Member (or its Affiliates) in connection with a Qualifying Transaction
effected pursuant to Section 12.8(b), shall, unless the applicable purchaser refuses, be borne by the Company in the event of a merger,
consolidation or sale of assets and shall otherwise be borne by the Members on a pro rata basis based on the consideration received by
each Member in such transaction.

 

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Section
12.9        Initial Public Offering.

 

(a)              
Upon a determination to effect an Initial Public Offering pursuant to Section 5.1(a)(iii), the Board shall take such actions as
are necessary to structure the IPO in a manner reasonably acceptable to the Members, including, without limitation, causing the public
offering of the stock of an existing or newly formed Subsidiary of the Company or any of the Transfers, mergers, consolidations or restructurings
pursuant to Section 12.9(b) and making any such amendments to this Agreement (subject to Section 14.12) as may be deemed by the Board
in good faith solely as necessary to facilitate such IPO.

 

(b)              
 In the event of a determination by the Board (after compliance with Section 5.1(a)(iii)) to cause (i) a Transfer of all or
substantially all of (x) the assets of the Company or (y) the Interests to a newly organized stock corporation or other business
entity with the ownership interests therein allocated as specified herein (“Newco”), (ii) a merger of the Company
into Newco by merger or consolidation or (iii) any other restructuring of the Interests, in any such case, whether in anticipation
of an Initial Public Offering or otherwise, each Member shall take such reasonable steps to effect such Transfer, merger, consolidation
or other restructuring as may reasonably be requested by the Company on terms that are substantially the same (and no less favorable)
in respect of such Member’s Interests as other holders of corresponding Interests in respect of such corresponding Interests, including,
without limitation, if requested, transferring such Member’s Interests to Newco in exchange for capital stock of Newco; provided,
that in the event of such an exchange, each Interest would be exchanged for a number of shares of Newco stock determined in a manner such
that each Member is treated no less favorably than such Member would have been treated upon an Exit Event (assuming the value of the consideration
to be received by the Members in the Exit Event is the midpoint of the filing range in the IPO, to the extent such exchange is in anticipation
of an IPO). Notwithstanding the preceding sentence, no Member shall be required to take any action or omit to take any action to the extent
such action or omission violates applicable law. If the Board determines to effect an IPO pursuant to this Section 12.9(b) and the Members
receive shares of Newco pursuant to any such Transfer, merger, consolidation or restructuring, each Member agrees to enter into (A) a
Registration Rights Agreement and (B) any other customary agreements, including, without limitation, an underwriters’ lock-up agreement
for a period not to exceed 360 days following the consummation of such IPO, and in any event provides for the same lock-up period for
all Members.

 

Section
12.10    Put/Call Rights.

 

(a)              
At any time on or after the third (3rd) anniversary of the Effective Date, the Munera Member shall have the right (but not the
obligation) (the “Put Option”) to require the DMC Members to purchase, directly or indirectly, Option Units for the
Option Purchase Price. The Put Option must be exercised in tranches of no less than 664.5]Units. The Option Purchase Price payable in
connection with the exercise of the Put Option shall be paid, at DMC’s option, (i) in cash or (ii) 20% in cash and 80% in shares
of DMC Series A Preferred Stock priced at the Option Share Issue Price (the “Put Consideration”), subject to compliance
with applicable law and stock exchange rules, unless DMC and the Munera Member mutually agree that the Put Consideration shall be paid
in the form of cash or a combination of DMC Common Stock priced at the Option Share Issue Price and cash, in which case the Put Consideration
shall be paid in the manner so agreed. To exercise the Put Option, the Munera Member must deliver written notice of its exercise of the
Put Option to the DMC Members (the “Put Notice”). The Put Notice shall specify the number of Units to be sold. For
purposes of clarification, the Munera Member may not deliver a Put Notice to the DMC Members earlier than December ●, 2024.

 

    -41-

     

    

 

(b)               At
any time on or after the third (3rd) anniversary of the Effective Date, the DMC Members shall have the right (but not the
obligation) (the “Call Option”) to purchase, directly or indirectly, all, but not less than all, of the Option
Units for the Option Purchase Price. The Option Purchase Price payable in connection with the exercise of the Call Option shall be
paid in cash (the “Call Consideration”), unless DMC and the Munera Member mutually agree that the Call
Consideration shall be paid in the form of shares of DMC Common Stock priced at the Option Share Issue Price or a combination of
cash and shares of DMC Common Stock priced at the Option Share Issue Price, in which case the Call Consideration shall be paid in
the manner so agreed. To exercise the Call Option, the DMC Members must deliver written notice of its exercise of the Call Option to
the Munera Member (the “Call Notice”). For purposes of clarification, the DMC Members may not deliver a Call
Notice to the Munera Member earlier than December ●, 2024.

 

(c)              
The party delivering an Option Notice (the “Exercising Party”) shall set forth such party’s good faith
calculation of the Option Purchase Price for the Option Units. If the party receiving the Option Notice (the “Receiving Party”)
has any objections to the calculation of the Option Purchase Price set forth in the Option Notice, the Receiving Party may deliver to
the Exercising Party a statement setting forth each disputed item (each, an “Option Purchase Price Dispute”) and the
Receiving Party’s proposed calculation thereof (an “Option Purchase Price Dispute Statement”).
If an Option Purchase Price Dispute Statement is not delivered to the Exercising Party within thirty (30) days after receipt of the Option
Notice by the Receiving Party, then the calculation of the Option Purchase Price set forth in the Option Notice shall be final, binding
and non-appealable by the Exercising Party and the Receiving Party. If an Option Purchase Price Dispute Statement is timely delivered,
then the Exercising Party and the Receiving Party shall negotiate in good faith to resolve any Option Purchase Price Disputes, but if
they do not reach a final resolution on all Option Purchase Price Disputes within thirty (30) days after the delivery of the Option Purchase
Price Dispute Statement (the “Resolution Period”), the Exercising Party and the Receiving Party shall promptly submit
each unresolved Option Purchase Price Dispute to the Accounting Expert to resolve such Option
Purchase Price Dispute, and the provisions of Section 12.10(d) shall apply. The “Accounting Expert” shall be a Neutral
Accounting Firm selected by mutual agreement of the Exercising Party and the Receiving Party; provided, however, that: (i) if,
within fifteen (15) days after the end of the Resolution Period, such parties are unable to agree on a Neutral Accounting Firm to act
as the Accounting Expert, then each party shall select a Neutral Accounting Firm and such firms together shall select the Neutral Accounting
Firm to act as the Accounting Expert, and (ii) if any party does not select a Neutral Accounting Firm within ten (10) days of written
demand therefor by the other party, then the Neutral Accounting Firm selected by the other party shall act as the Accounting Expert. A
 “Neutral Accounting Firm” means an independent accounting firm of nationally recognized standing that is not at the
time it is to be engaged hereunder rendering services to any party, or any Affiliate of either, and has not done so within the two (2)
year-period prior thereto.

 

(d)              
The parties shall arrange for the Accounting Expert to agree in its engagement letter to act in accordance with this Section 12.10(d).

 

(i)                 Each
party shall present a brief to the Accounting Expert (which brief shall also be concurrently provided to the other party) within
twenty (20) days of the appointment of the Accounting Expert detailing such party’s views as to the correct nature and amount
of each remaining Option Purchase Price Dispute (and for the avoidance of doubt, no party may introduce a dispute to the Accounting
Expert that was not originally set forth on the Option Purchase Price Dispute Statement).
Within ten (10) days of receipt of the brief, the receiving party may present a responsive brief to the Accounting Expert (which
responsive brief shall also be concurrently provided to the other party). Each party may make an oral presentation to the Accounting
Expert (in which case, such presenting party shall notify the other party of such presentation, and the other party shall have the
right to be present (and speak) at such presentation), within thirty (30) days of the appointment of the Accounting Expert. The
Accounting Expert shall have the opportunity to present written questions to either party, a copy of which shall be provided to the
other party. The Accounting Expert shall consider only those items and amounts in the Exercising Party’s and the Receiving
Party’s respective calculations that are identified as being items and amounts to which the Exercising Party and the Receiving
Party have been unable to agree.

 

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(ii)             
The Accounting Expert’s determination shall be based solely on the definitions Option Purchase Price and Equity Value (including
the components thereof) contained herein and the provisions of this Agreement, including this Section 12.10, and the scope of the disputes
to be resolved by the Accounting Expert shall be limited to whether the calculations of the Option Purchase Price were done in accordance
with the terms of this Agreement, whether the accounting methods and procedures used to prepare the Option Purchase Price were done in
accordance with GAAP and the definitions of Option Purchase Price and Equity Value (including the components thereof) and whether there
were mathematical errors in the calculation of the Option Purchase Price, and the Accounting Expert shall not make any other determination.

 

(iii)           
In resolving any disputed item, the Accounting Expert shall select either the position of the Exercising Party or the Receiving
Party as a resolution for each item or amount disputed and may not impose an alternative resolution with respect to any item or amount
disputed. The Accounting Expert shall make a written determination within sixty (60) days of its appointment as to each such disputed
item, which determination shall be final and binding on the DMC Members and the Munera Member for all purposes hereunder absent manifest
error.

 

(iv)            
The fees and expenses of the Accounting Expert and of any enforcement of the determination thereof shall be borne by the Munera
Member and the DMC Members in inverse proportion as they may prevail on the matters resolved by the Accounting Expert, which proportionate
allocation shall be calculated on an aggregate basis based on the relative dollar values of the amounts in dispute and shall be determined
by the Accounting Expert at the time the determination of such firm is rendered on the merits of the matters submitted.

 

(e)              
The closing of the purchase of Option Units as a result of the exercise of the Put Option (a “Put Closing”)
or the exercise of the Call Option (a “Call Closing”) shall occur at the offices of DMC at a time designated by the
DMC Members on the later of (i) the Option Closing date specified in the Option Notice, which shall be no sooner than ninety (90) days
after delivery of the Option Notice, and (ii) fifteen (15) days after the date of which the Option Purchase Price becomes final and binding
in accordance with Section 12.10(c) or Section 12.10(d). Option Units may be purchased by either or both DMC Members in whatever ratio
they elect in their sole discretion. At the Option Closing:

 

(i)                 the
participating DMC Members shall deliver the following to the Munera Member: (A) the Put Consideration or Call Consideration, as
applicable, resulting from the finally determined Option Purchase Price for the purchased Option Units, with any such consideration
(x) in the form of cash, to be paid by wire transfer of immediately available U.S. dollars to the account designated by the Munera
Members, (y) in the form of DMC Common Stock, to be delivered via book entry registered in the name(s) designated by the Munera
Members or (z) in the form of DMC Series Preferred Stock, in the form of certificates representing the shares of DMC Series A
Preferred Stock issued in the name of the applicable Munera Members; (B) a counterpart to the Option Purchase Agreement, duly
executed by the participating DMC Members; and (C) such other instruments or documents as may be necessary or appropriate to carry
out the transactions contemplated hereby and by the Option Purchase Agreement;

 

(ii)             
the Munera Member shall deliver the following to the participating DMC Members: (A) duly executed instruments of transfer, in form
reasonably acceptable to the DMC Members, that assign all right, title and interest in and to the purchased Option Units to the participating
DMC Members; (B) a counterpart to the Option Purchase Agreement, duly executed by the Munera Member; and (C) such other endorsements,
instruments or documents as may be necessary or appropriate to carry out the transactions contemplated hereby and by the Option Purchase
Agreement;

 

    -43-

     

    

 

(f)               
Any transaction costs, including transfer taxes and legal and accounting and fees, incurred by the DMC Members or the Munera Member
in connection with the exercise of any Put Option or Call Option under this Section 12.10 and the purchase and sale of Option Units in
connection therewith shall be borne by the respective Member incurring such costs. In no event will any shares of DMC Common Stock or
DMC Series A Preferred Stock be issued to any person who is not an “accredited investor” within the meaning of Rule 501
under the Securities Act, to whom it is otherwise unlawful to issue such shares, or who refuses to provide customary representations about
such person’s investment intent with respect to such shares. Any such shares will contain customary legends restricting transfer
except in compliance with applicable securities laws.

 

ARTICLE
XIII

DISSOLUTION, LIQUIDATION AND TERMINATION

 

Section
13.1        Dissolving Events.
The Company shall be dissolved and its affairs wound up in the manner hereinafter provided upon the happening of any of the following
events:

 

(a)              
the Board makes a determination, subject to Section 5.1(a)(iii), to dissolve the Company; or

 

(b)              
any event which under applicable law would cause the dissolution of the Company; provided that, unless required by applicable
law, the Company shall not be wound up as a result of any such event and the business of the Company shall continue.

 

Notwithstanding the
foregoing, the death, retirement, resignation, expulsion, bankruptcy or dissolution of any Member or the occurrence of any other
event that terminates the continued membership of any Member in the Company under the Colorado Act shall not, in and of itself,
cause the dissolution of the Company. In such event, the remaining Member(s) shall continue the business of the Company without
dissolution.

 

Section
13.2        Dissolution and Winding Up.
Upon the dissolution of the Company, the assets of the Company shall be liquidated or distributed under the direction of and to the extent
determined by the Board and the business of the Company shall be wound up. Within a reasonable time after the effective date of dissolution
of the Company, the Company’s assets shall be distributed in the following manner and order:

 

First,
to creditors in satisfaction of indebtedness (other than any loans or advances that may have been made by any of the Members to the Company),
whether by payment or the making of reasonable provision for payment, and the expenses of liquidation, whether by payment or the making
of reasonable provision for payment, including the establishment of reasonable reserves (which may be funded by a liquidating trust) determined
by the Board or the liquidating trustee, as the case may be, to be reasonably necessary for the payment of the Company’s expenses,
liabilities and other obligations (whether fixed, conditional, unmatured or contingent);

 

Second,
to the payment of loans or advances that may have been made by any of the Members to the Company (including any Priority Loans); and

 

Third,
to the Members in accordance with Section 9.1, taking into account any amounts previously distributed (or deemed previously distributed)
under Article IX, provided
that, no payment or distribution in any of the foregoing categories shall be made until all payments (or provision for payment)
in each prior category shall have been made in full, and provided further, that if the payments due to be made in any of the
foregoing categories exceed the remaining assets available for such purpose, such payments shall be made to the Persons entitled to
receive the same pro rata in accordance with the respective amounts due to them.

 

    -44-

     

    

 

Section
13.3        Distributions in Cash or in Kind.
Upon the dissolution of the Company, the Board shall use all commercially reasonable efforts to liquidate all of the Company’s assets
in an orderly manner and apply the proceeds of such liquidation as set forth in Section 13.2, provided, that, if in the good faith
judgment of the Board, a Company asset should not be liquidated, the Board shall cause the Company to allocate, on the basis of the Fair
Market Value of any Company assets not sold or otherwise disposed of, any unrealized gain or loss based on such value to the Members’
Capital Accounts as though the assets in question had been sold on the date of distribution and, after giving effect to any such adjustment,
distribute such assets in accordance with Section 13.2 as if such Fair Market Value had been received in cash, subject to the priorities
set forth in Section 13.2, and provided, further, that the Board shall in good faith attempt to liquidate sufficient Company
assets to satisfy in cash (or make reasonable provision for) the debts and liabilities referred to in Section 13.2.

 

Section
13.4        Termination.
The Company shall terminate when the winding up of the Company’s affairs has been completed, all of the assets of the Company have
been distributed and the Articles has been canceled, all in accordance with the Colorado Act.

 

Section
13.5        Claims of the Members.
The Members and former Members shall look solely to the Company’s assets for the return of their Capital Contributions, and if
the assets of the Company remaining after payment of or due provision for all debts, liabilities and obligations of the Company are
insufficient to return such Capital Contributions, the Members and former Members shall have no recourse against the Company or any
other Member. No Member shall be obligated to make a Capital Contribution with respect to any deficit in its Capital Account and no
such deficit shall be considered an asset of the Company.

 

ARTICLE
XIV

MISCELLANEOUS

 

Section
14.1        Notices.
All notices and other communications hereunder shall be in writing and shall be deemed duly given (a) on the date of delivery if
delivered personally, (b) on the first (1st) Business Day following the date of dispatch if delivered utilizing a next-day service
by a recognized next-day courier or (c) on the earlier of confirmed receipt or the fifth (5th) Business Day following the date of
mailing if delivered by registered or certified mail, return receipt requested, postage prepaid. Notices and other communications may
be delivered as a courtesy via email or facsimile; provided, however, that any failure to do so shall not constitute a failure
to deliver notice. All notices hereunder shall be delivered to the addresses set forth below, or pursuant to such other instructions as
may be designated in writing by the party to receive such notice:

 

(i)                
If to the Company to:

 

	c/o DMC Global Inc.

11800 Ridge Parkway, Suite 300

Broomfield, CO 80021

Attention: Michelle Shepston, Chief Legal Officer

Email: [***]

Facsimile No.: (303) 604-3944	 

with a copy (which shall not constitute notice) to:

 

Davis Graham & Stubbs LLP

1550 17th Street, Suite 500

Denver, CO 80202

Attention: John A. Elofson and Mark C. Bussey

Email: [***]

Facsimile No.: (303) 893-1379

 

(ii)             
If to a Member, at the address set forth below such Member’s name on Schedule A attached hereto.

 

The Company shall provide
notice to the DMC Members and the Munera Member of all notices received by the Company from the Munera Member and the DMC Members, respectively,
under this Agreement. No Member shall be bound by a notice delivered under this Agreement unless the notice specifies that it is a notice
being provided by the Member hereunder.

 

Section
14.2        Securities Act Matters.
Each Member understands that in addition to the restrictions on transfer contained in this Agreement, he or she must bear the
economic risks of his or her investment for an indefinite period because the Interests have not been registered under the Securities
Act.

 

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Section
14.3        Headings.
The headings contained in this Agreement are for purposes of convenience only and shall not affect the meaning or interpretation of this
Agreement.

 

Section
14.4        Entire Agreement.
This Agreement constitutes the entire agreement among the Members with respect to the subject matter hereof, and supersedes any prior
agreement or understanding among them with respect to such subject matter. There are no representations, warranties, promises, inducements,
covenants or undertakings relating to the Interests, other than those expressly set forth or referred to herein.

 

Section
14.5        Counterparts.
This Agreement may be executed in several counterparts, each of which shall be deemed an original and all of which shall together constitute
one and the same instrument. Delivery of executed signature pages hereof by facsimile transmission or portable document format (pdf) shall
constitute effective and binding execution and delivery of this Agreement.

 

Section
14.6        Governing Law; Attorneys’ Fees.
This Agreement shall be governed in all respects, including as to validity, interpretation and effect, by the internal laws of the State
of Colorado, without giving effect to the conflict of laws rules thereof that would result in the application of any other jurisdiction’s
laws. The substantially prevailing party in any action or proceeding relating to this Agreement shall be entitled to receive an award
of, and to recover from the other party or parties, any fees or expenses incurred by him, her or it (including, without limitation, reasonable
attorneys’ fees and disbursements) in connection with any such action or proceeding.

 

Section
14.7        Waiver of Jury Trial.
TO THE MAXIMUM EXTENT PERMISSIBLE BY LAW, EACH MEMBER HEREBY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON,
ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS AGREEMENT, OR THE BREACH, TERMINATION OR VALIDITY OF THIS AGREEMENT, OR THE TRANSACTIONS
CONTEMPLATED HEREBY.

 

Section
14.8        Waiver of Partition.
Except as may otherwise be provided by law in connection with the winding up, liquidation and dissolution of the Company, each Member
hereby irrevocably waives any and all rights that it may have to maintain an action for partition of any of the Company’s property.

 

Section
14.9        Waiver Generally.
Waiver by any Member hereto of any breach or default by any other Member of any of the terms of this Agreement shall not operate as a
waiver of any other breach or default, whether similar to or different from the breach or default waived. No waiver of any provision of
this Agreement shall be implied from any course of dealing between the Members hereto or from any failure by any Member to assert its
or his or her rights hereunder on any occasion or series of occasions.

 

Section
14.10    Severability. If any
provision of this Agreement is inoperative or unenforceable for any reason, such circumstances shall not have the effect of
rendering the provision in question inoperative or unenforceable in any other case or circumstance, or of rendering any other
provision or provisions herein contained invalid, inoperative, or unenforceable to any extent whatsoever, so long as this Agreement,
taken as a whole, still expresses the material intent of the parties hereto. The invalidity of any one or more phrases, sentences,
clauses, sections or subsections of this Agreement shall not affect the remaining portions of this Agreement.

 

Section
14.11    Further Actions. Each
Member shall execute and deliver such other certificates, agreements and documents, and take such other actions, as may reasonably be
requested by the Company in connection with the continuation of the Company and the achievement of its purposes, including, without limitation,
(a) any documents that the Company deems necessary or appropriate to continue the Company as a limited liability company in all jurisdictions
in which the Company or its Subsidiaries conduct or plan to conduct business and (b) all such agreements, certificates, tax statements
and other documents as may be required to be filed in respect of the Company.

 

Section
14.12    Amendments. This Agreement
(including this Section 14.12) and the Articles may not be amended, modified or supplemented except by a written instrument signed by
each of the Members. Notwithstanding the foregoing, the Board may, pursuant to Sections 4.2, 4.8, 5.1(b)(ii)(D), 7.2, 12.4 and 12.6
make (or direct the Secretary of the Company to make) such modifications to this Agreement, including to Schedule A, as are
necessary to admit Additional Members or substitute members or make such other changes to Schedule A as are required by this
Agreement. The Company shall notify all Members after any such amendment, modification or supplement, other than any amendments to Schedule A,
as permitted herein, has taken effect.

 

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Section
14.13    Fees and Expenses. The
Company shall not assume or pay any legal, formation, transaction and related expenses incurred by any Member in connection with the negotiation
of this Agreement and the formation of the Company. Except (i) as provided in this Agreement or (ii) as provided in any other
agreement between the Company and such Member or its Affiliates (including the Management Agreement), all fees and expenses incurred by
any Member in connection with its investment in the Company shall be borne by the respective Member incurring such expenses.

 

Section
14.14    No Third Party Beneficiaries.
Except as otherwise provided herein, this Agreement is not intended to confer upon any Person, except for the parties hereto, any rights
or remedies hereunder.

 

Section
14.15    Submission to Jurisdiction; Enforcement.

 

(a)               Each
of the parties irrevocably agrees that any legal action or proceeding arising out of or relating to this Agreement brought by any
party or its successors or assigns against the other party shall be brought and determined in any State or federal court located in
Denver, Colorado, and each of the parties hereby irrevocably submits to the exclusive jurisdiction of the aforesaid courts for
itself and with respect to its property, generally and unconditionally, with regard to any such action or proceeding arising out of
or relating to this Agreement and the transactions contemplated hereby. Each of the parties agrees not to commence any action, suit
or proceeding relating thereto except in the courts described above in Denver, Colorado, other than actions in any court of
competent jurisdiction to enforce any judgment, decree or award rendered by any such court in Denver, Colorado as described herein.
Each of the parties hereby irrevocably and unconditionally waives, and agrees not to assert, by way of motion or as a defense,
counterclaim or otherwise, in any action or proceeding arising out of or relating to this Agreement or the transactions contemplated
hereby, (i) any claim that it is not personally subject to the jurisdiction of the courts in Denver, Colorado as described herein
for any reason, (ii) that it or its property is exempt or immune from jurisdiction of any such court or from any legal process
commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of
judgment, execution of judgment or otherwise) and (iii) that (A) the suit, action or proceeding in any such court is brought in an
inconvenient forum, (B) the venue of such suit, action or proceeding is improper or (C) this Agreement, or the subject matter
hereof, may not be enforced in or by such courts.

 

(b)              
The parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement are not performed
in accordance with their specific terms or were otherwise breached. Accordingly, each of the parties shall be entitled to specific performance
of the terms hereof, including an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms
and provisions of this Agreement in any court where venue is proper under the preceding paragraph, this being in addition to any other
remedy to which such party is entitled at law or in equity. Each of the parties hereby further waives (i) any defense in any action
for specific performance that a remedy at law would be adequate and (ii) any requirement under any Law to post security as a prerequisite
to obtaining equitable relief.

 

[The remainder of this page is intentionally
left blank.]

 

    -47-

     

    

 

 

IN WITNESS WHEREOF, the parties
hereto have executed and delivered this Agreement as of the Effective Date.

 

	 	COMPANY
	 	 
	 	ARCADIA PRODUCTS, LLC
	 	 	 
	 	By:	/s/ James Schladen
	 	Name: 	James Schladen
	 	Title:  	President
	 	 	 
	 	DMC MEMBERS
	 	 
	 	DMC Global Inc.
	 	 	 
	 	By:	/s/ Michael Kuta
	 	Name: 	Michael Kuta
	 	Title: 	Chief Financial Officer
	 	 	 
	 	DMC korea, inc.
	 	 	 
	 	By:	/s/ Michelle Shepston
	 	Name: 	Michelle Shepston
	 	Title: 	Vice President
	 	 	 
	 	 	 
	 	MUNERA MEMBERS
	 	 
	 	NEW arcadia holdings, inc.
	 	 	 
	 	By:	/s/ Gerard Munera
	 	Name: 	Gerard Munera
	 	Title:  	Chief Executive Officer

 

    -48-

     

    

 

SCHEDULE A

 

MEMBERS

 

(As of the Effective Time)

 

	Name and Address	 	 	Capital 
 Contributions	 	 	Capital 
 Account 
 Balance	 	Units	 	 	Percentage 
 Interest	 
	
DMC Global Inc.
  
 11800 Ridge Parkway, Suite 300
 Broomfield, CO 80021
 Attention: Michelle Shepston, Chief Legal Officer
 Email: [***]
 Facsimile No.: (303) 604-3944
  
 with a copy (which shall not constitute notice) to:
  
 Davis Graham and Stubbs LLP
 1550 17th Street,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Suite 500
 Denver, CO 80202
 Attention: John A. Elofson and Mark C. Bussey
 Email: [***] and [***]
 Facsimile No.: (303)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  893-1379
  
	 	$	 ●	 	$	 ●	 	 	3920.64	 	 	 	59	%
	
DMC Korea, Inc.
  
 11800
Ridge Parkway, Suite 300
 Broomfield, CO 80021
 Attention: Michelle Shepston, Chief Legal Officer
 Email: [***]

  
 with a copy (which shall not constitute notice) to:
  
 Davis
Graham and Stubbs LLP
 1550 17th Street, Suite 500
 Denver, CO 80202
 Attention: John A. Elofson and Mark C. Bussey

Email: [***] and [***]
  
	 	$	 ●	 	$	 ●	 	 	66.45	 	 	 	1	%
	New
Arcadia Holdings, Inc. 
c/o Synergex Group LLC, Trustee of the Munera Family ESBT 
  
[***]
[***] 
[***]
   
with a copy (which shall not constitute notice) to: 
 

George J Hayduk 
Attorney 
155 Fleet St 
Portsmouth CT  06830 
 
	 	 	 	 	 	 	 	 	2658.06	 	 	 	40	%
	 	 	 	 	 	 	TOTAL:	 	 	●	 	 	 	100	%

 

    A-1

     

    

 

SCHEDULE B

 

OFFICERS OF ARCADIA PRODUCTS, LLC

 

 

	NAME	OFFICE
	James Schladen	President
	Michael Kuta	Vice President of Finance
	Michelle Shepston	Vice President and Secretary
	David Mandelbaum	Assistant Treasurer and Assistant Secretary

 

    B-1

     

    

 

Exhibit
A

 

Term
sheet for series A preferred stock

 

SEE ATTACHED.

 

TERM SHEET

CONVERTIBLE PREFERRED STOCK

 

This Term Sheet summarizes
the principal terms of Series A Preferred Stock of DMC Global Inc. (“DMC”).

 

	Investors:	[] (“Investors”)
	
     

    Securities Issued:

     

     

     

    Issue Date(s):

     

     

     

    Purchase Price:

     
	
     

    DMC will issue up to [ ] shares of Series A Convertible
    Preferred stock (the “Preferred”) from time to time under the terms of the Amended and Restated Limited Liability Company
    Agreement of Arcadia Products, LLC (the “Operating Agreement”). Capitalized terms used but not defined herein shall
    have the definitions provided in the Operating Agreement.

     

    The Preferred will be issued from time to time
    upon exercise of a Put Option by Investors, with each issuance of Preferred upon exercise of a Put Option to be referred to as a “Tranche”
    and with the Issue Date for the Preferred in such Tranche to be the date of the applicable Put Closing.

     

    The Preferred will be deemed to have an initial
    value equal to the Option Share Issue Price (the “Purchase Price”).

     

	Priority:	The Preferred will rank senior in all respects to the common stock of DMC (the “Common Stock”). 
	Dividends:	Cash dividends on the Preferred will accrue at a rate of 3% of the Purchase Price per annum from the date of issuance on a cumulative, non-participating basis.  Dividends may not be paid on the Common Stock at any time when dividends on the Preferred are due and unpaid.     
	Conversion
    at Option of Investors:	Each share of Preferred shall be convertible at any time, at the option of the holder, into one share of Common Stock, subject to customary structural anti-dilution provisions (the “Conversion Ratio”), subject to Nasdaq rules.  

 

    Exhibit A

     

    

 

	Mandatory Redemption:	At any time, DMC may mandatorily redeem all or any part of the  Preferred at a price equal to the sum of the Purchase Price plus all accrued and unpaid dividends; provided, at any time before the redemption, the holder may exercise its conversion rights.  All the Preferred in a Tranche must be redeemed by DMC no later than the third anniversary of the applicable Issue Date (the “Tranche Termination Date”).  From and after June ___, 2027, DMC shall be required to redeem outstanding Tranches of Preferred in equal annual installments calculated by amortizing the aggregate Purchase Price for the outstanding Preferred over the period remaining until the Tranche Termination Date plus payment of all accrued and unpaid dividends at each payment date. 
	Registration of Securities:	DMC will, at its expense, register the Common Stock issuable upon the conversion of the Preferred pursuant to a customary registration rights agreement between DMC and the Investors.  
	Liquidation Preference:	Upon the occurrence of any of the events that customarily would entitle all holders of the Preferred to a liquidation preference (each such event, a “Liquidation Event”), all Investors will be entitled to receive, prior and in preference to any payment of any consideration to any holder of Common Stock, an amount per share equal to the greater of:  (1) the Purchase Price plus all accrued and unpaid dividends or (2) the amount that would be received by the holders of the Preferred had they converted such Preferred into Common Stock immediately prior to the Liquidation Event and participated in distributions payable to the holders of the Common Stock.  A consolidation, merger, reorganization or other form of acquisition of DMC or a sale of all or substantially all of DMC’s assets shall be deemed to be a Liquidation Event. 
	Voting Rights:	Subject to Nasdaq rules, the Preferred shall vote with the Common Stock on all matters submitted to a vote of the holders of the Common Stock on an as-converted basis.  
	Nasdaq Limitations:	If Nasdaq rules prohibit the issuance of Preferred with the conversion and voting rights as set forth above without the approval of the DMC shareholders, (i) the Preferred shall be convertible, and have voting rights, as set forth above to the maximum extent then permitted by Nasdaq rules and (ii) DMC shall use commercially reasonable efforts to obtain shareholder approval as promptly as is reasonably practicable.  
	Additional Terms:	The parties understand and acknowledge that this Term Sheet does not set forth all the terms of the Preferred and, if Preferred is to be issued pursuant to the Operating Agreement, agree to negotiate in good faith the terms of a Certificate of Designations that will set forth the definitive terms of the Preferred.Exhibit 10.3

 

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.

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

THIS EXECUTIVE
EMPLOYMENT AGREEMENT (“Agreement”) is entered into this 23 day of December 2021 (the “Effective Date”) by
and among DMC Global Inc. (“DMC”), Arcadia Products, LLC (the “Company”), and James Schladen
(“Executive”). DMC, the Company and Executive are referred to individually as a “Party” and collectively as
the “Parties.”

 

WHEREAS, DMC desires to employ
Executive to serve as the President of the Company, DMC’s majority-owned subsidiary, and Executive desires to be employed in such
capacity pursuant to the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration
of the mutual covenants, representations, warranties and agreements contained herein, and for other valuable consideration, the receipt
and adequacy of which are hereby acknowledged, the Parties agree as follows:

 

1.                 
Employment. The Parties agree that Executive’s employment with the Company is subject to the terms and conditions
set forth herein.

 

2.                 
Term. Subject to the provisions for earlier termination in Section 6 below, Executive’s employment shall
begin on the Effective Date and continue for a period of three (3) years (the “Initial Term” and together with any renewal
periods, the “Term”). Subject to the provisions for earlier termination in Section 6 below, the Term shall automatically
renew for additional one-year periods unless no later than thirty (30) days prior to the end of the applicable Term, DMC or Executive
gives written notice of non-renewal to the other, in which case, Executive’s employment will terminate at the end of the then-applicable
Term.

 

3.                 
Position. Executive shall be employed as and hold the title of President of the Company, with such duties and responsibilities
as are customarily associated with such position and as may from time to time be assigned to Executive by the Chief Executive Officer
of DMC (the “CEO”). Executive shall report directly to the CEO. Executive shall primarily perform his job duties at the principal
offices of the Company in Vernon; provided that, to the extent it does not materially interfere with Executive’s performance
of Executive’s duties under this Agreement, Executive will be permitted to periodically work remotely.

 

4.                  Scope
of Services. Executive agrees to comply with Company policies and to devote substantially all of Executive’s business
time, attention and skills to the performance of Executive’s duties hereunder and to the business and affairs of the Company
and Executive shall perform such duties in a reasonably prudent manner. Executive shall not, during Executive’s employment by
the Company, without the prior written approval of the CEO, be employed by or otherwise engage in any other business activity
requiring any material amount of Executive’s time, provided that Executive may, to the extent not otherwise prohibited
by this Agreement, devote such amount of time as does not materially interfere with the performance of Executive’s duties
under this Agreement to any one or more of the following activities: (a) passively investing Executive’s personal assets
in such manner as will not require services to be rendered by Executive in the management or operation of the affairs of the
companies in which investments are made, (b) engaging in civic, charitable, educational, professional, community or industry
affairs, including serving on the boards of directors of non-profit organizations, (c) personal education and development, or (d)
serving on the board of directors of any other for-profit company with the prior written approval of the CEO, so long as any such
company does not engage in any business or activity that is competitive with the Company.

 

     

     

    

 

5.                 
Salary, Compensation, and Benefits.

 

5.1             
Base Salary. During the Term, the Company agrees to pay, and Executive agrees to accept, as Executive’s salary
for all services to be rendered by Executive hereunder, a salary at an annualized rate of Five Hundred Fifty Thousand Dollars ($550,000),
less all applicable withholdings and deductions (the “Base Salary”), payable in installments pursuant to the Company’s
standard payroll practices and policies, as they may be modified from time to time. The Base Salary may be increased, but not decreased,
in the sole discretion of DMC; provided, however, that nothing herein shall be deemed to require any increase. The term “Base Salary”
as used in this Agreement shall refer to the Base Salary as it may be so increased from time to time.

 

5.2             
Bonus. In addition to the Base Salary, beginning with fiscal year 2022, Executive shall be eligible to receive an
annual bonus pursuant to DMC’s bonus program applicable to its senior executives generally, as in effect from time to time, which
shall not be inconsistent with the terms of this Agreement (the “Annual Bonus”). Executive’s target Annual Bonus will
be 100% of Executive’s Base Salary (the “Target Bonus”) in accordance with the program (the payout range based on business
and personal performance is 0-180%). The amount of such Annual Bonus shall be determined by the Compensation Committee of the Board of
Directors of DMC (the “Compensation Committee”); provided, however, that a minimum Annual Bonus of Five Hundred Fifty Thousand
Dollars ($550,000) for fiscal year 2022 will be guaranteed, subject to Section 6. For the avoidance of doubt, the Annual Bonus
for Executive’s first year of employment will be not prorated. Any Annual Bonus paid pursuant to this Agreement will be subject
to applicable withholdings and deductions and will be paid within seventy-four (74) days after the end of the calendar year to which the
bonus relates.

 

5.3             
Long Term Incentive Plan.

 

(a)              
Executive will be eligible to participate in DMC’s Long-Term Incentive Program (“LTIP”) as applicable to its
senior executives and as in effect from time to time. Executive’s target annual value for the LTIP shall be 200% of Executive’s
Base Salary, or such lesser amount as may be established by the Company in accordance with Company-wide expense reduction activities that
similarly reduce the LTIP award opportunities of DMC’s senior executives generally. The type and proportion of incentives provided
to Executive under the LTIP shall be the same type and proportion of incentives as are provided to similarly situated executives of DMC.

 

(b)              
The award agreements for LTIP grants pursuant to the 2016 Omnibus Incentive Plan shall be substantially in the forms attached as
Exhibit A hereto, as such forms may be changed from time to time in the Compensation Committee’s discretion and as applicable
to all senior executive officers of DMC.

 

5.4              Welfare
and Benefit Plans. During Executive’s employment, (a) Executive shall be eligible to participate in all incentive,
savings and retirement plans, practices, policies and programs of DMC and the Company; and (b) Executive and/or
Executive’s family, as the case may be, shall be eligible to participate in, and shall receive all benefits under all welfare
benefit plans, practices, policies and programs provided by DMC and the Company (including, to the extent provided, without
limitation, medical, prescription, dental, vision, disability, salary continuance, employee life insurance, group life insurance,
accidental death and travel accident insurance plans and programs) (all such plans collectively, the “Plans”), subject
to the terms and conditions of any such Plans. Except as provided herein, neither DMC nor the Company shall be required to establish
or continue the Plans or take any action to cause Executive to be eligible for any Plans on a basis more favorable than that
applicable to DMC’s executives generally.

 

    -1-

     

    

 

5.5             
Car Allowance. During the Term, Executive shall be entitled to receive a car allowance of $1,500 per month under
DMC’s policy applicable to its senior executives, as in effect from time to time.

 

5.6             
Reimbursement. The Company shall reimburse Executive (or, in the Company’s sole discretion, shall pay directly),
upon presentation of vouchers and other supporting documentation as the Company may reasonably require, for reasonable out-of-pocket expenses
incurred by Executive relating to the business or affairs of the Company or the performance of Executive’s duties hereunder, including,
without limitation, reasonable expenses with respect to entertainment, travel and similar items, dues for membership in professional organizations,
and similar professional development expenses; provided, however, that the incurring of such expenses shall have been approved in accordance
with the Company’s regular reimbursement procedures and practices in effect from time to time.

 

5.7             
Paid Time Off. In addition to statutory holidays, Executive shall be entitled to up to five (5) weeks paid time off
each calendar year during Executive’s employment. Time off shall accrue pursuant to the Company’s policies applicable to all
employees of the Company.

 

5.8             
Indemnification Agreement. DMC will enter into an indemnification agreement with Executive upon the Effective Date
consistent with agreements applicable to all senior executive officers of DMC and substantially in the form attached hereto as Exhibit
B, as such form may be changed from time to time by mutual written agreement of the parties (the “Indemnification Agreement”).
DMC will maintain Directors and Officers insurance with coverage applicable to Executive during the Term and after the Term consistent
with the coverage available to senior executives of DMC generally. The foregoing obligations shall survive the termination of Executive’s
employment with DMC and its subsidiary.

 

5.9             
Withholding. The Company may withhold and deduct, or cause to be withheld or deducted, from Executive’s compensation
and benefits all applicable amounts as required by law or authorized by Executive.

 

5.10         
Reservation of Rights. The Company reserves in its sole discretion the right to modify, suspend or discontinue any
and all of the employee benefit plans, practices, policies and programs referenced in Sections 5.2 through 5.5 at any time
without recourse by Executive, so long as such action is taken with respect to the Company’s executives generally.

 

    -2-

     

    

 

6.                 
Payments Upon Termination of Employment.

 

6.1              Termination
of Employment. Either the Company may terminate Executive’s employment or Executive may resign at any time upon written
notice. The date of Executive’s termination shall be (a) if Executive’s employment is terminated by Executive’s
death, the date of Executive’s death; (b) if written notice is given by either DMC or Executive not to renew the Term, the end
of the then-applicable Term; (c) if Executive’s employment is terminated by the Company, the date stated in the notice of
termination, which shall be at least thirty (30) days after the delivery of written notice; or (d) if Executive’s employment
is terminated by Executive, the date stated in the notice of resignation. For the avoidance of doubt, in no event shall the delivery
of notice not to renew the Term by either DMC or Executive be considered a termination by the Company without Cause or a resignation
by Executive for Good Reason that would entitle Executive to payments under Section 6.3.

 

6.2             
Accrued But Unpaid Salary and Bonus. In the event Executive’s employment with the Company terminates for any
reason, the Company shall pay to Executive (or, in the event of Executive’s death, to Executive’s estate or named beneficiary)
(a) any Base Salary, paid time off, expense reimbursements, and benefits that are accrued but unpaid as of the date of termination and
(b) any earned but unpaid Annual Bonus for any prior calendar year (subsections (a) and (b) collectively, the “Accrued Obligations”).
The Company shall provide that Executive and his eligible dependents may elect to continue health care coverage under COBRA for the relevant
period permitted by COBRA at Executive’s cost. Executive shall not be entitled to any additional payments or consideration in the
event of the termination of Executive’s employment, other than as set forth below.

 

6.3             
Resignation Without Good Reason; Termination for Cause. If Executive resigns from his employment without Good Reason
or the Company terminates Executive for Cause, Executive shall only receive his Accrued Obligations and any other rights to which he is
entitled under the Company’s benefit plans. Executive shall not be entitled to any other form of compensation and all other obligations
of the Company to Executive pursuant to this Agreement shall automatically terminate.

 

6.4             
Severance.

 

(a)              
Upon termination of Executive’s employment with the Company due to death or Disability (defined below), in addition to the
Accrued Obligations, the Company shall pay and provide to Executive the following payments and benefits:

 

(i)                
A prorated Annual Bonus for the calendar year during which the date of termination occurs, the amount of which shall be equal to
the amount of the Annual Bonus that would have been paid to Executive had he remained employed for the entire calendar year based upon
actual performance multiplied by a fraction, the numerator of which is the number of days in such calendar year prior to and including
the date of termination and the denominator of which is the number of days in such calendar year, payable at the same time that annual
bonuses are payable to DMC’s senior executives generally (the “Prorated Bonus”); and

 

(ii)             
To the extent then-outstanding and unvested, any LTIP Awards grants contemplated by Section 5.3 shall vest in full and become
non-forfeitable.

 

    -3-

     

    

 

(b)               Upon
termination of Executive’s employment with the Company by the Company without Cause (defined below) or upon Executive’s
resignation from employment for Good Reason (defined below), in either case absent a Change in Control (defined below), and in each
case contingent upon Executive’s execution, non-revocation, and delivery of a Confidential Severance and Release Agreement in
a form substantially similar to Exhibit C of this Agreement and acceptable to the Company (the “Release
Agreement”), in addition to the Accrued Obligations, Executive shall be entitled to the following payments and benefits:

 

(i)                
A lump sum severance payment in an amount equal to (x) twelve (12) months of Base Salary; and (y) one (1) times the sum of the
average Annual Bonus (if any) paid to Executive for the two (2) years preceding the date of termination (or, if shorter, the Annual Bonus
paid (if any) in the preceding year, or if Executive has not yet completed an Annual Bonus cycle, the Target Bonus), less applicable withholdings
and deductions, payable on the 60th day following the date of termination (or the following business day, if such date is not a business
day);

 

(ii)              
A Prorated Bonus; and

 

(iii)            
To the extent then-outstanding and unvested, any LTIP grants contemplated by Section 5.3 shall vest in full and become non-forfeitable.

 

(c)              
Upon termination of Executive’s employment with the Company by the Company without Cause or upon Executive’s resignation
from employment for Good Reason, in either case within one year following a Change in Control, in each case contingent upon Executive’s
execution, non-revocation, and delivery of the Release Agreement, in addition to the Accrued Obligations, Executive shall be entitled
to the following payments and benefits:

 

(i)                
A lump sum severance payment in an amount equal to (x) twenty-four (24) months of Base Salary; and (y) one (1) times the sum of
the average Annual Bonus (if any) paid to Executive for the two (2) years preceding the date of termination (or, if shorter, the Annual
Bonus paid (if any) in the preceding year, or if Executive has not yet completed an Annual Bonus cycle, the Target Bonus), less applicable
withholdings and deductions, payable on the 60th day following the date of termination (or the following business day, if such date is
not a business day);

 

(ii)             
A Prorated Bonus; and

 

(iii)           
To the extent then-outstanding and unvested, any LTIP grants contemplated by Section 5.3 shall vest in full and become non-forfeitable.

 

(d)               The
Company’s obligations under this Section 6.3 (other than the Accrued Obligations) are subject to the requirements and
time periods set forth in this Section 6.3 and in the Release Agreement. Prior to receiving the payments described in this Section
6.3, Executive shall execute the Release Agreement on or before the date sixty (60) days after the last day of Executive’s
employment and shall not revoke such Release Agreement during any applicable revocation period. If Executive fails to timely execute
and remit the Release Agreement, or revokes such Release Agreement, Executive waives any right to the payments provided under this Section
6.3. The Company will have no further obligations to Executive under this Agreement or otherwise after making payments pursuant
to this Section 6.3, if any. Lump sum cash severance payments under this Section 6.3 shall be made within sixty (60)
days of Executive’s execution and delivery of the Release Agreement; provided, however, that Executive has not and can no
longer revoke the Release Agreement on the date of payment.

 

(e)              
Notwithstanding anything in the Agreement to the contrary, the Company shall have the right to terminate all payments and benefits
owing to Executive pursuant to this Section 6.3 upon Company’s discovery of any material breach by Executive of Executive’s
continuing obligations under this Agreement or Executive’s obligations under the Release Agreement.

 

    -4-

     

    

 

6.5             
Definitions. For purposes of this Agreement, capitalized terms used in this Section
6 but not otherwise defined in this Agreement shall have the meaning hereby assigned to them as follows: 

 

(a)              
“Cause” shall mean Executive’s: (i) theft or embezzlement of Company funds or assets; (ii) conviction of, or
guilty plea or no contest plea, to a felony charge or any misdemeanor involving moral turpitude; (iii) noncompliance with any laws
or regulations, foreign or domestic, that materially and adversely affects the operation of the Company’s business; (iv) violation
of any lawful express direction of, or any material violation of a rule, regulation or policy established by the Company or DMC, so long
as such rule, regulation or policy is consistent with the terms of this Agreement, that materially and adversely affects the operation
of the Company’s business; or (v) material breach of this Agreement or any award agreement for LTIP grants between the Executive
and the Company or DMC, or breach of the Executive’s fiduciary duties, in each case, that materially and adversely affects the operation
of the Company’s business; provided however, that Cause shall not exist for subparagraph (iv) or (v) unless Executive has been given
written notice specifying the act, omission, or circumstances alleged to constitute Cause and, to the extent curable, Executive fails
to cure or remedy such act, omission, or circumstances within thirty (30) days after receipt of such notice, as determined by the Company
reasonably and in good faith.

 

(b)              
“Change in Control” shall mean

 

(i)                
The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”) ) (a “Person”) of beneficial ownership (within the meaning of Rule
13d-3 promulgated under the Exchange Act) of 25% of either (1) the then outstanding shares of common stock of DMC (the “Outstanding
DMC Common Stock”) or (2) the combined voting power of the then outstanding voting securities of DMC entitled to vote generally
in the election of directors (the “Outstanding DMC Voting Securities”); provided, however, that for purposes of this subsection
(i), the following acquisitions shall not constitute a Change in Control: (1) any acquisition directly from DMC, (2) any acquisition by
DMC, including any acquisition which, by reducing the number of shares outstanding, is the sole cause for increasing the percentage of
shares beneficially owned by any such Person to more than the applicable percentage set forth above, or (3) any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by DMC or any corporation controlled by DMC.

 

    -5-

     

    

 

(ii)             
 Individuals who, as of the date hereof, constitute the board of directors of DMC (the “Incumbent Board”) cease for
any reason within any period of 24 months to constitute at least a majority of the Incumbent Board; provided, however, that any individual
becoming a director subsequent to the date hereof whose election, or nomination for election by DMC’s stockholders, was approved
by a vote of at least a majority of the directors then comprising the Incumbent Board, shall be considered as though such individual were
a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result
of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation
of proxies or consents by or on behalf of a Person other than the board of directors of DMC.

 

(iii)           
Consummation by DMC of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the
assets of DMC or the acquisition of assets of another corporation (a “Business Combination”), in each case, unless, following
such Business Combination, (1) more than 50% of, respectively, the then outstanding shares of common stock and the combined voting power
of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation
resulting from such Business Combination (including without limitation, a corporation which as a result of such transaction owns DMC or
all or substantially all of DMC’s assets either directly or through one or more subsidiaries) is represented by Outstanding DMC
Common Stock and Outstanding DMC Voting Securities, respectively, that were outstanding immediately prior to such Business Combination
(or, if applicable, is represented by shares into which such Outstanding DMC Common Stock and Outstanding DMC Voting Securities were converted
pursuant to such Business Combination) and such ownership of common stock and voting power among the holders thereof is in substantially
the same proportions as their ownership, immediately prior to such Business Combination of the Outstanding DMC Common Stock and Outstanding
DMC Voting Securities, as the case may be, (2) no Person (excluding any employee benefit plan (or related trust) of the Company or such
corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 20% or more of, respectively, the then
outstanding shares of the corporation resulting from such Business Combination or the combined voting power of the then outstanding voting
securities of such corporation except to the extent that such ownership existed prior to the Business Combination and (3) at least a majority
of the members of the board of directors of the corporation resulting from such Business Combination were members of the Incumbent Board
at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination.

 

(iv)            
 Approval by the stockholders of DMC of a complete liquidation or dissolution of DMC.

 

(v)              
Consummation by DMC of the sale or other disposition of the Company or all or substantially all of the assets of the Company.

 

(c)              
“Disability” shall mean the inability of Executive to perform Executive’s essential duties and responsibilities
under this Agreement with or without reasonable accommodation for a continuous period exceeding ninety (90) days or for a total of one
hundred eighty (180) days during any period of twelve (12) consecutive months as a result of a physical or mental illness, disease or
personal injury.

 

(d)              
 “Good Reason” shall mean, in the context of a resignation by Executive, a resignation that occurs within sixty (60)
days following the Company’s failure to cure any of the following within sixty (60) days of receiving written notice from Executive
of the existence of any of the following, which written notice must be provided within sixty (60) days of the initial occurrence of such
item and must specify in detail the facts and circumstances giving rise to such item: (i) a material diminution of Executive’s duties
or responsibilities from those reasonably expected in Executive’s role as president of a business unit of DMC, (ii) any reduction
in Executive’s Base Salary (but excluding any reduction due to withholdings set forth in Section 5.9) or nonpayment of Executive’s
Base Salary, (iii) any material change in the primary geographic location at which the Executive must perform services, or (iv) any material
breach of this Agreement by the Company.

 

    -6-

     

    

 

7.                 
Confidential Information.

 

7.1             
For the purposes of this Agreement, “Confidential Information” means all information, data, knowledge, and know-how
relating, directly or indirectly, to DMC, the Company and their businesses, including, without limitation: (a) business plans and
strategies, prospect information, financial information, investment plans, marketing plans and strategies, financial plans and strategies;
(b) confidential personnel or human resources data; (c) customer lists, customer information, pricing information, supplier/vendor
lists, customer and supplier/vendor strategies and plans, contracts, agreements, and leases; (d) any other information having present
or potential commercial value; (e) the whole or any portion or phase of any proprietary information or trade secrets; (f) ideas,
methods, know-how, techniques, systems, processes, software programs, works of authorship, projects, or plans; and (g) confidential
information of any kind in possession of DMC or the Company, whether developed for or by DMC or the Company (including information developed
by Executive), received from a third party in confidence, or belonging to others and licensed or disclosed to the Company in confidence
for use in any aspect of its business. Any Intellectual Property (defined below) that is not publicly available shall also constitute
part of the Confidential Information. The list set forth above is not intended by the Company to be a comprehensive list of Confidential
Information. All Confidential Information shall be treated as Confidential Information regardless of whether it pertains to the Company
or its customers and regardless of whether it is marked or designated as “confidential.” For purposes of this Agreement, Confidential
Information shall not include general industry knowledge, information that is publicly available (other than as a result of a breach of
this Agreement), or information that becomes available to Executive on a non-confidential basis from a source other than the Company;
provided, however, that such source is not bound by a confidentiality agreement or other obligation with respect to confidentiality.

 

7.2             
Executive acknowledges that the success of the Company depends in large part on the protection of the Confidential Information.
Executive further acknowledges that in the course of Executive’s employment with the Company, Executive has or will become familiar
with the Confidential Information. Executive recognizes and acknowledges that the Confidential Information is a valuable, special and
unique asset of DMC and the Company’s businesses, access to and knowledge of which are essential to the performance of Executive’s
duties hereunder. Executive acknowledges that use or disclosure of the Confidential Information outside the performance of Executive’s
job duties for the Company would cause harm and/or damage to the Company.

 

    -7-

     

    

 

7.3             
 Executive agrees that, both during and after the Term, Executive will not, except in the ordinary course of Executive’s
employment with the Company and for the benefit of the Company, disclose any Confidential Information to any person, firm, business, company,
corporation, association, or any other entity for any reason or purpose whatsoever. Executive also agrees that, both during and after
the Term, Executive will not, except in the ordinary course of Executive’s employment with the Company and for the benefit of the
Company, make use of any Confidential Information for Executive’s own purposes or for the benefit of any person, firm, business,
company, corporation, or any other entity for any reason or purpose whatsoever. Executive shall consider and treat as confidential all
Confidential Information in any way relating to the Company’s business and affairs, whether created by Executive or otherwise coming
into Executive’s possession before, during, or after the termination of Executive’s employment. Executive shall secure and
protect the Confidential Information in a manner designed to prevent all access and uses thereof contrary to the terms of this Agreement.
Executive further agrees that Executive shall use Executive’s best efforts to assist the Company in identifying and preventing any
use or disclosure of the Confidential Information contrary to this Agreement.

 

7.4             
18 U.S.C. § 1833(b) provides: “An individual shall not be held criminally or civilly liable under any Federal
or State trade secret law for the disclosure of a trade secret that—(A) is made—(i) in confidence to a Federal, State, or
local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating
a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is
made under seal.” Nothing in this Agreement is intended to conflict with 18 U.S.C. § 1833(b) or create liability for disclosures
of trade secrets that are expressly allowed by 18 U.S.C. § 1833(b). Accordingly, the parties to this Agreement have the right to
disclose in confidence trade secrets to federal, state, and local government officials, or to an attorney, for the sole purpose of reporting
or investigating a suspected violation of law. The parties also have the right to disclose trade secrets in a document filed in a lawsuit
or other proceeding, but only if the filing is made under seal and protected from public disclosure.

 

7.5             
Executive represents and warrants that, upon separation of employment, and without any request by the Company, Executive
will return to the Company any and all property, documents, and files (including all recorded media, such as papers, computer disks, drives,
or other data storage devices, copies, photographs, and maps) that contain Confidential Information or relate in any way to the Company
or its business. Executive agrees, to the extent Executive possesses any files, data, or information relating in any way to DMC or the
Company or their business on any personal computer, device, or account, Executive will first return to the Company such files, data, or
information and then delete those files, data, or information (and will retain no copies in any form). Executive also will return any
Company tools, equipment, calling cards, credit cards, access cards or keys, any keys to any filing cabinets, vehicles, vehicle keys,
and all other Company property in any form prior to the last date of employment. Notwithstanding anything in the foregoing to the contrary,
Executive shall be entitled to retain Executive’s cell phone (including Executive’s phone number to the extent practicable)
and personal rolodex, so long as any Confidential Information or Intellectual Property is deleted from such device on Executive’s
last date of employment.

 

    -8-

     

    

 

8.                 
Intellectual Property.

 

8.1             
 “Intellectual Property” means any and all original works of authorship, developments, concepts, improvements,
designs, discoveries, ideas, trademarks, service marks, or trade secrets, or inventions, whether or not patentable or registrable under
copyright or similar laws, which Executive may solely or jointly conceive or develop or reduce to practice, or cause to be conceived or
developed or reduced to practice, during the period of time Executive is employed by the Company.

 

8.2             
Executive hereby assigns to the Company, or its designee, all of Executive’s right, title, and interest in and to
all Intellectual Property, except where prohibited by law, so that the Company is the exclusive owner of the Intellectual Property.  Executive
further acknowledges that all original works of authorship which are made by Executive (solely or jointly with others) within the scope
of and during the period of Executive’s employment with the Company and which are protectable by copyright are “works made
for hire” as that term is defined in the United States Copyright Act, and that such works made for hire shall constitute part of
the Intellectual Property. Executive shall not use any Intellectual Property except for the exclusive benefit of the Company. Executive
agrees to assist the Company, or its designee, at the Company’s expense, in every proper way to secure or enforce the Company’s
rights in any Intellectual Property.

 

8.3             
Unless otherwise set forth in an attachment to this Agreement, Executive warrants and represents that there are no original
works of authorship, developments, concepts, improvements, designs, discoveries, ideas, trademarks, service marks, or trade secrets, or
inventions which were made or acquired by Executive prior to Executive’s employment by the Company, which are owned in whole or
in part by Executive, which relate to the business, or the Company’s proposed business, and which are not assigned to the Company
under this Agreement.

 

8.4             
Notwithstanding anything herein to the contrary, Executive understands that the assigned Intellectual Property shall not
include any Intellectual Property that qualifies fully for exclusion under the provisions of Section 2870 of the California Labor
Code, which are attached hereto as Exhibit D.

 

9.                 
Non-Solicitation. During Executive’s employment with the Company and for a period of one (1) year (the “Restricted
Period”) following the termination (whether voluntary or involuntary) of Executive’s employment (the “Separation Date”),
Executive shall not directly or indirectly interfere in any way with the relationship between the Company and any employee, agent, or
consultant of the Company who provided services to the Company within the twelve (12) months preceding the Separation Date, including,
without limitation, directly or indirectly soliciting, inducing, enticing, employing, or attempting to solicit, induce, entice, or employ
any such employee, agent, or consultant of the Company.

 

10.              Equitable
Remedies. The services to be rendered by Executive and the Confidential Information entrusted to Executive as a result of
Executive’s employment by the Company are of a unique and special character, and, notwithstanding any other provision in this
Agreement, any breach by Executive of this Agreement, will cause the Company immediate and irreparable injury and damage, for which
monetary relief would be inadequate or difficult to quantify. The Company will be entitled to, in addition to all other remedies
available to it, injunctive relief, specific performance, or any other equitable relief to prevent a breach and to secure the
enforcement of the provisions of this Agreement. It is hereby further agreed that the provisions of Sections 7 through 9
are separate from and independent of the remainder of this Agreement and that these provisions are specifically enforceable by the
Company notwithstanding any claim made by Executive against the Company.

 

    -9-

     

    

 

11.             
Cooperation. After the termination of Executive’s employment, Executive agrees to cooperate and provide reasonable
assistance, at the request of the Company, in the transitioning of Executive’s job duties and responsibilities, and upon receipt
of reasonable notice from the Company, to cooperate with and assist the Company with any investigation, lawsuit, arbitration, or other
proceeding to which the Company is subjected to the extent that such investigation, lawsuit, arbitration or other proceeding relates to
the period of Executive’s employment with the Company. Executive also agrees to be reasonably available to the Company or its representatives
to provide general advice or assistance as requested by the Company, including for preparation for, and attendance of, hearings, proceedings
or trial, including pretrial discovery and trial preparation to the extent that such investigation, lawsuit, arbitration or other proceeding
relates to the period of Executive’s employment with the Company. Executive further agrees to perform all acts and execute any documents
that may be necessary to carry out the provisions of this Section 11. Upon presentation of appropriate documentation, the Company
shall pay or reimburse Executive for all reasonable out-of-pocket expenses, including travel, duplicating and telephonic expenses, incurred
by Executive in complying with this Section 11.

 

12.             
Business Opportunities. Executive shall promptly disclose to the Company all material business ideas, prospects,
proposals, and other opportunities pertaining to any aspect of the Company’s business that are originated by any third parties and
brought to the attention of Executive during the Term.

 

13.             
Representations and Warranties. Executive hereby represents and warrants to the Company as follows:

 

13.1         
Executive acknowledges the success of the Company’s business depends in large part on the protection of the Confidential
Information and trade secrets. Executive acknowledges Executive’s access to the Confidential Information, coupled with the personal
relationships and goodwill between the Company and its customers would enable Executive to compete unfairly against the Company;

 

13.2         
Executive acknowledges this Agreement is intended to protect the Company’s Confidential Information and that, given
the nature of the business in which the Company is engaged, the restrictions in Sections 7 through 9 are reasonable and
necessary to protect the legitimate interests of the Company;

 

13.3         
Executive has full power, authority, and capacity to enter into this Agreement and to perform Executive’s obligations
hereunder. This Agreement has been voluntarily executed by Executive and constitutes a valid and binding agreement of Executive;

 

13.4         
Executive has read this Agreement and has had the opportunity to have this Agreement reviewed by Executive’s legal
counsel;

 

13.5         
Executive acknowledges and agrees that the payments and other consideration set forth above constitute sufficient consideration
for this Agreement;

 

    -10-

     

    

 

13.6         
 To the best of Executive’s knowledge, Executive’s employment with the Company will not (a) conflict with or
result in a breach of any of the provisions of, (b) constitute a default under, (c) result in the violation of, (d) give any third party
the right to terminate or to accelerate any obligation under, or (e) require any authorization, consent, approval, execution, or other
action by or notice to any court or other governmental body under the provisions of any other agreement or instrument to which Executive
is a party;

 

13.7         
Executive has not previously and will not in the future disclose to the Company any proprietary information, trade secrets,
or other confidential information belonging to any previous employer or other third party to whom Executive has an obligation of confidentiality,
and Executive has not previously and will not bring onto the premises of Company or use any unpublished documents or any property belonging
to any former employer or other third party to whom Executive has an obligation of confidentiality, unless consented to in writing by
that former employer or person; and

 

13.8         
Executive will notify business partners and future employers of Executive’s obligations under this Agreement, and
Executive consents to such notification by the Company.

 

14.             
Waivers and Amendments. The respective rights and obligations of the Company and Executive under this Agreement may
be waived (either generally or in a particular instance, either retroactively or prospectively, and either for a specified period of time
or indefinitely) or amended only with the written consent of a duly authorized representative of the Company and Executive. The waiver
by either Party of a breach of any provision of this Agreement by the other Party shall not operate or be construed as a waiver of any
subsequent breach by such other Party. The failure of any Party to insist upon strict performance of any of the terms or conditions of
this Agreement shall not constitute a waiver of any of such Party’s rights hereunder.

 

15.             
Successors and Assigns. The provisions hereof shall inure to the benefit of, and be binding upon and assignable to,
successors of the Company by way of merger, consolidation or sale. Executive may not assign or delegate to any third person Executive’s
obligations under this Agreement. The rights and benefits of Executive under this Agreement are personal to Executive (or, in the event
of Executive’s death or disability, Executive’s personal representative, heirs, or beneficiaries), and no such right or benefit
shall be subject to voluntary or involuntary alienation, assignment or transfer.

 

16.             
Entire Agreement. This Agreement constitutes the full and entire understanding and agreement of the Parties with
regard to the subjects hereof and supersedes in its entirety all other or prior or contemporaneous agreements, whether oral or written,
with respect thereto.

 

    -11-

     

    

 

17.             
Notices. Any notices, consents, or other communication required to be sent or given hereunder by any of the Parties
shall in every case be in writing and shall be deemed properly served if (a) delivered personally, (b) sent by registered or certified
mail, in all such cases with first class postage prepaid, return receipt requested, or (c) delivered by a nationally recognized overnight
courier service to the Parties at the addresses set forth below:

 

	If to DMC or the Company:	 
	 	 
	 	Arcadia Products, LLC
	 	c/o DMC Global Inc.
	 	11800 Ridge Parkway, Suite 300
	 	Broomfield, CO 80021 
	 	Attention: Kevin Longe
	 	Email: [***]
	 	 
	 	With a copy to:
	 	 
	 	DMC Global Inc.
	 	11800 Ridge Parkway, Suite 300
	 	Broomfield, CO 80021 
	 	Attention: Michelle Shepston
	 	Email: [***]

 

If to Executive, to the
address set forth on the signature page of this Agreement or to the current address listed in the Company’s records.

 

18.             
Venue and Applicable Law. This Agreement shall be interpreted and construed in accordance with the laws of the State
of California, without regard to its conflicts of law provisions. Venue and jurisdiction will be in the California state or federal courts.

 

19.             
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.

 

20.             
Section 409A.

 

20.1         
This Agreement is intended to comply with or be exempt from Section 409A of the Internal Revenue Code of 1986, as amended
(the “Code”) (“Section 409A”) and shall be construed accordingly. It is the intention of the Parties that payments
or benefits payable under this Agreement not be subject to the additional tax or interest imposed pursuant to Section 409A. To the extent
such potential payments or benefits are or could become subject to Section 409A, the Parties shall cooperate to amend this Agreement with
the goal of giving Executive the economic benefits described herein in a manner that does not result in such tax or interest being imposed.
However, in no event shall the Company be liable to Executive for any taxes, interest, or penalties due as a result of the application
of Section 409A to any payments or benefits provided hereunder.

 

20.2         
Each payment provided for in this Agreement shall, to the extent permissible under Section 409A, be deemed a separate payment
for purposes of Section 409A.

 

20.3         
Payments or benefits pursuant to this Agreement shall be treated as exempt from Section 409A to the maximum extent possible
under Treasury Regulation Section 1.409A-1(b)(9)(v), and/or under any other exemption that may be applicable, and this Agreement shall
be construed accordingly.

 

    -12-

     

    

 

20.4         
All taxable expenses or other reimbursements or in-kind benefits under this Agreement shall be made on or prior to the last
day of the taxable year following the taxable year in which such expenses were incurred by Executive. Any such taxable reimbursement or
any taxable in-kind benefits provided in one calendar year shall not affect the expenses eligible for reimbursement or in-kind benefits
to be provided in any other taxable year.

 

20.5         
Executive shall have no right to designate the date of any payment hereunder.

 

20.6         
The definition of Good Reason is intended to constitute “good reason” as such term is used in Treas. Reg. §1.409A-1(n)(2)
and shall be interpreted and construed accordingly, and to the maximum extent permitted by Section 409A and guidance thereunder, a termination
for Good Reason shall be an “involuntary separation from service” as such term is used in Treas. Reg. §1.409A-1(n). For
purposes of Section 6 of this Agreement, “termination” (or any similar term) when used in reference to Executive’s
employment shall mean “separation from service” with the Company within the meaning of Section 409A(a)(2)(A)(i) of the Code
and applicable administrative guidance issued thereunder, and Executive shall be considered to have terminated employment with the Company
when, and only when, Executive incurs a “separation from service” with the Company within the meaning of Section 409A(a)(2)(A)(i)
of the Code and applicable administrative guidance issued thereunder.

 

20.7         
Notwithstanding any other provision of this Agreement to the contrary, if (a) on the date of Executive’s separation
from service (as such term is used or defined in Section 409A(a)(2)(A)(i), Treasury Regulation Section 1.409A-1(h), or any successor law
or regulation), any of the Company’s equity is publicly traded on an established securities market or otherwise (within the meaning
of Section 409A(a)(2)(B)(i) of the Code) and (b) as a result of such separation from service, Executive would receive any payment that,
absent the application of this sentence, would be subject to interest and additional tax imposed pursuant to Section 409A as a result
of the application of Section 409A(2)(B)(i), then, to the extent necessary to avoid the imposition of such interest and additional tax,
such payment shall be deferred until the earlier of (i) 6 months after Executive’s separation from service, (ii) Executive’s
death, (iii) of such earlier time as may be permitted under Section 409A.

 

    -13-

     

    

 

21.             
Severability; Titles and Subtitles; Gender; Singular and Plural; Counterparts; Facsimile; Legal Fees.

 

21.1          In
case any provision of this Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions of this Agreement shall not in any way be affected or impaired thereby. In the event any provision is held
illegal, invalid, or unenforceable, such provision shall be limited or revised by a court of competent jurisdiction so as to give
effect to the provision to the fullest extent permitted by applicable law. If any of the covenants in Sections 7 through 9
are held to be unreasonable, arbitrary, or against public policy, such covenants will be considered divisible with respect to scope,
time, and geographic area, and in such lesser scope, time, and geographic area, will be effective, binding and enforceable against
Executive to the greatest extent possible.

 

21.2         
The titles of the sections and subsections of this Agreement are for convenience of reference only and are not to be considered
in construing this Agreement.

 

21.3         
The use of any gender in this Agreement shall be deemed to include the other genders, and the use of the singular in this
Agreement shall be deemed to include the plural (and vice versa), wherever appropriate.

 

21.4         
This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together
constitute one instrument.

 

21.5         
 Counterparts of this Agreement (or applicable signature pages hereof) that are manually signed and delivered
by facsimile, scanned, or electronic transmission shall be deemed to constitute signed original counterparts hereof and shall bind the
Parties signing and delivering in such manner.

 

    -14-

     

    

 

IN
WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date first above specified.

 

 

	DMC:	 	 
	 	 	 
	DMC Global Inc.	 	 
	 	 	 
	By:	/s/ Michael Kuta               	 	 
	Name: Michael Kuta	 	 
	Title: Chief Financial Officer	 	 
	 	 	 
	COMPANY: 	 	EXECUTIVE:
	 	 	 
	Arcadia Products, LLC	 	 
	 	 	 
	By:	/s/ Michelle Shepston	 	/s/ James Schladen
	Name: Michelle Shepston 	 	James Schladen
	Title: Vice President and Secretary	 	 
		 	Address: [***]
		 	[***]

 

Signature Page to

Executive Employment Agreement

 

    -15- 

     

    

 

Exhibit D

 

CALIFORNIA LABOR CODE
2870 NOTICE:

California Labor Code
Section 2870 provides as follows:

Any provision in an employment
agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer
shall not apply to an invention that the employee developed entirely on his or her own time without using the employer’s equipment,
supplies, facilities, or trade secret information except for those inventions that either: (1) relate at the time of conception or
reduction to practice of the invention to the employer’s business, or actual or demonstrably anticipated research or development
of the employer; or (2) result from any work performed by the employee for the employer. To the extent a provision in an employment
agreement purports to require an employee to assign an invention otherwise excluded from being required to be assigned under California
Labor Code Section 2870(a), the provision is against the public policy of this state and is unenforceable.

 

Exempted intellectual
property under California Labor Code Section 2870:

		1.

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