Document:

Exhibit 10.14

 

PAXMEDICA, INC.

 

CONVERTIBLE NOTE SUBSCRIPTION AGREEMENT

 

This CONVERTIBLE NOTE
SUBSCRIPTION AGREEMENT (this “Agreement”) is entered into as of ____, 2020 (the “Effective Date”),
by and between PaxMedica, Inc., a Delaware corporation (the “Company”), and ______ (the “Investor”).

 

WHEREAS, on the terms
and conditions set forth herein, Investor is willing to purchase from the Company convertible promissory notes in the aggregate
principal amount of up to $_______.

 

NOW, THEREFORE, in
consideration of the foregoing and the mutual promises and covenants set forth in this Agreement, the parties agree as follows:

 

1.            Definitions.
In addition to any terms defined elsewhere in this Agreement, the following terms have the meanings indicated for purposes of this
Agreement:

 

1.1            “Conversion
Shares” means the capital stock into which the Notes may be converted pursuant to the terms of the Notes.

 

2.            The
Loan Commitment.

 

2.1            Loan
Commitment. Subject to the terms and conditions of this Agreement, the Investor agrees to make a loan (the “Loan”)
to the Company in the aggregate principal amount of up to $____. The proceeds of the Loan shall be used by the Company for general
working capital.

 

2.2            Notes.
The Loan made by the Investor shall be evidenced by one or more promissory notes (collectively, the “Notes”)
of the Company in substantially the form attached hereto as Exhibit A.

 

2.3            Closing.
The purchase and sale of the Notes (each a “Closing”) shall take place by electronic exchange of documents and
signatures, at such time or times as the Investor makes a Loan pursuant to Section 2.1 above, provided that the maximum aggregate
principal amount of Notes sold under this Agreement shall not exceed $___. Any such sale shall be upon the same terms and conditions
as those contained herein, and such persons or entities shall become parties to this Agreement and such persons or entities shall
have the rights and obligations of an Investor hereunder. The Company the Investor shall hold an initial Closing on the Effective
Date (the “Initial Closing”).

 

2.4            Delivery.
Within a reasonable time following each Closing, the Company shall deliver to Investor a Note evidencing the Loan.

 

     

     

    

 

3.            Representations
and Warranties of the Company. The Company hereby represents and warrants to each Investor that, as of the Initial Closing:

 

3.1            Organization;
Good Standing; Qualification. The Company is a corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware and has all requisite corporate power and authority to own and operate its properties and assets
and to carry on its business as presently conducted, to execute and deliver this Agreement and the Notes (collectively, the “Transaction
Documents”), to issue and sell the Notes and to perform its obligations under the Transaction Documents. The Company
has not failed to qualify to transact business as a foreign corporation in any jurisdiction where the failure to be so qualified
would have a material adverse effect on its business, properties or financial condition (a “Material Adverse Effect”).

 

3.2            Authorization
and Enforceability. All corporate action on the part of the Company and its officers, directors and stockholders necessary
for the authorization, execution and delivery of the Transaction Documents and the performance of all obligations of the Company
thereunder has been taken or will be taken prior to the Initial Closing, and the Transaction Documents constitute valid and legally
binding obligations of the Company, enforceable in accordance with their respective terms except (a) as limited by applicable
bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’
rights generally, and (b) as limited by laws relating to the availability of specific performance, injunctive relief or other
equitable remedies.

 

3.3            Governmental
Consents. No consent, approval, qualification, order or authorization of, or filing with, any governmental authority is required
on the part of the Company in connection with the Company’s valid execution, delivery or performance of this Agreement or
the offer, sale or issuance of the Notes, other than (a) such filings as shall have been made prior to the applicable Closing,
and (b) any notices of sale required to be filed with the Securities and Exchange Commission pursuant to Regulation D under
the Securities Act of 1933, as amended (the “Securities Act”), or post-closing filings required to be filed
under applicable state securities laws, which shall be timely filed within the applicable periods.

 

3.4            Permits.
The Company has all franchises, permits, licenses and any similar authority necessary for the conduct of its business as now being
conducted by it, the lack of which would have a Material Adverse Effect, and the Company is not in default in any material respect
under any of such franchises, permits, licenses or other authority.

 

3.5            Compliance
with Other Instruments. The Company is not in violation or default of any provision of its Certificate of Incorporation
or Bylaws, any provision of any material mortgage, agreement, instrument or contract to which it is a party or by which it is
bound or, to the Company’s knowledge, any federal or state judgment, order, writ, decree, statute, rule or
regulation applicable to the Company other than any such violation or default that would not have a Material Adverse Effect.
The execution, delivery and performance by the Company of the Transaction Documents and the consummation of the transactions
contemplated thereby will not, with or without the passage of time or the giving of notice, result in any such violation or
default, the creation of any material lien, charge or encumbrance upon any assets of the Company, or the suspension,
revocation, impairment, forfeiture or nonrenewal of any material permit, license, authorization or approval applicable to the
Company.

 

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3.6            Litigation.
There is no action, suit, proceeding or investigation pending or, to the Company’s knowledge, currently threatened in writing
against the Company that questions the validity of the Transaction Documents or the right of the Company to enter into the Transaction
Documents, or to consummate the transactions contemplated thereby, or that might result, if determined adversely to the Company,
in a Material Adverse Effect, or in any material change in the current equity ownership of the Company.

 

3.7            No
 “Bad Actor” Disqualification. The Company has exercised reasonable care to determine whether any Covered Person
(as defined below) is subject to any of the “bad actor” disqualifications described in Rule 506(d)(1)(i) to
(viii) under the Securities Act (“Disqualification Events”). To the Company’s knowledge, no Covered
Person is subject to a Disqualification Event, except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3) under
the Securities Act. The Company has complied, to the extent applicable, with any disclosure obligations under Rule 506(e) under
the Securities Act. “Covered Persons” are those persons specified in Rule 506(d)(1) under the Securities
Act, including the Company; any predecessor or affiliate of the Company; any director, executive officer or other officer participating
in the sale of the Notes; any beneficial owner of 20% or more of the Company’s outstanding voting equity securities, calculated
on the basis of voting power; any promoter (as defined in Rule 405 under the Securities Act) connected with the Company in
any capacity at the time of the sale of the Notes; and any person that has been or will be paid (directly or indirectly) remuneration
for solicitation of purchasers in connection with the sale of the Notes (a “Solicitor”), any general partner
or managing member of any Solicitor, and any director, executive officer or other officer participating in the sale of the Notes
of any Solicitor or general partner or managing member of any Solicitor.

 

4.            Representations
and Warranties of the Investors. The Investor hereby represents and warrants that:

 

4.1            Authorization.
Such Investor has full power and authority to enter into the Transaction Documents, and the Transaction Documents constitute valid
and legally binding obligations of such Investor, enforceable in accordance with their respective terms, except (a) as limited
by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of
creditors’ rights generally, and (b) as limited by laws relating to the availability of specific performance, injunctive
relief or other equitable remedies.

 

4.2            Purchase
Entirely for Own Account. This Agreement is made with such Investor in reliance upon such Investor’s representation
to the Company, which by such Investor’s execution of this Agreement such Investor hereby confirms, that the Notes and
any capital stock issuable upon conversion of the Notes (collectively, the “Securities”) will be acquired
for investment for such Investor’s own account, not as a nominee or agent, and not with a view to the resale or
distribution of any part thereof, and that such Investor has no present intention of selling, granting any participation in,
or otherwise distributing the same. Such Investor does not have any contract, undertaking, agreement or arrangement
with any person to sell, transfer or grant participation in any of the Securities to any third person.

 

4.3            Reliance
upon Investors’ Representations. Such Investor understands that the Notes are not, and any capital stock acquired on
conversion or exercise thereof at the time of issuance may not be, registered under the Securities Act on the ground that the
sale provided for in this Agreement and the issuance of securities hereunder is exempt from registration under the Securities
Act and that the Company’s reliance on such exemption is based on the Investors’ representations set forth herein.
Such Investor realizes that the basis for such exemption may not be present if, notwithstanding such representations, such Investor
has in mind merely acquiring the Securities for a fixed or determinable period in the future, or for a market rise, or for sale
if the market does not rise. Such Investor has no such intention.

 

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4.4            Receipt
of Information. Such Investor believes it has received all the information it considers necessary or appropriate for deciding
whether to purchase the Securities. Such Investor further represents that it has had an opportunity to ask questions and receive
answers from the Company regarding the terms and conditions of the offering of the Securities, and the business, properties, prospects
and financial condition of the Company and to obtain additional information (to the extent the Company possessed such information
or could acquire it without unreasonable effort or expense) necessary to verify the accuracy of any information furnished to it
or to which it had access. The foregoing, however, does not limit or modify the representations and warranties of the Company in
Section 3 of this Agreement or the right of the Investors to rely thereon.

 

4.5            Investment
Experience. Such Investor is experienced in evaluating and investing in securities of companies in the development stage and
is able to fend for itself, can bear the economic risk of its investment, and has such knowledge and experience in financial and
business matters that it is capable of evaluating the merits and risks of the investment in the Securities and is able, without
impairing such Investor’s financial condition, to hold the Securities for an indefinite period of time and to suffer a complete
loss of such Investor’s investment. If other than an individual, such Investor also represents it has not been organized
for the purpose of acquiring the Securities.

 

4.6            Accredited
Investor. Such Investor is an “accredited investor,” as such term is defined in Rule 501(a) of Regulation
D under the Securities Act.

 

4.7            Restricted
Securities. Such Investor understands that the Securities may not be sold, transferred or otherwise disposed of without registration
under the Securities Act or an exemption therefrom and that, in the absence of an effective registration statement covering the
Securities or an available exemption from registration under the Securities Act, the Securities must be held indefinitely. In particular,
such Investor is aware that the Securities may not be sold pursuant to Rule 144 promulgated under the Securities Act unless
all of the conditions of that Rule are met.

 

4.8            Legends.
Each of the Investors understands and agrees that the Securities shall be endorsed with the legend set forth below, and such
Investor covenants that, except to the extent such restrictions are waived by the Company, such Investor shall not
transfer the Securities represented by any such certificate without complying with the restrictions on transfer described in
such legend (except that the Company shall not require an opinion of counsel in connection with a transfer to an affiliated
entity or pursuant to Rule 144):

 

“THESE SECURITIES HAVE NOT
BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE, AND MAY BE OFFERED AND
SOLD ONLY IF REGISTERED AND QUALIFIED PURSUANT TO THE RELEVANT PROVISIONS OF FEDERAL AND STATE SECURITIES LAWS OR IF THE COMPANY
IS PROVIDED AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION AND QUALIFICATION UNDER FEDERAL AND STATE SECURITIES
LAWS IS NOT REQUIRED.”

 

4.9            Foreign
Investor. If such Investor is not a United States person (as defined by Section 7701(a)(30) of the Internal Revenue Code
of 1986, as amended), such Investor hereby represents that it has satisfied itself as to the full observance of the laws of its
jurisdiction in connection with the purchase of the Securities and this Agreement, including (a) any foreign exchange restrictions
applicable to such purchase, (b) any governmental or other consents that may be required, and (c) any tax consequences
that may be relevant to the purchase, holding, redemption, sale or transfer of the Securities. Such Investor’s subscription
and payment for and continued beneficial ownership of the Securities will not violate any applicable securities or other laws of
such Investor’s jurisdiction.

 

5.            Pari
Passu with All Notes. Each Note shall rank equally without preference or priority of any kind with each of the Notes issued
by the Company. All payments of principal and interest with respect to the Notes shall be applied ratably and proportionately on
each such Note on the basis of the original principal amount of outstanding indebtedness represented by such Note.

 

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6.            Non-Reliance.

 

6.1            In
making an investment decision, the Investor understands that it must rely on its own examination of the Company and the terms of
the Notes, including the merits and risks involved, and is aware that the Investor is required to bear the financial risks of this
investment for an indefinite period of time;

 

6.2            The
Investor is not relying on the Company with respect to the legal, tax, economic and related considerations of an investment in
the Notes, and the Investor relied on the advice of, or has consulted with, only its own advisors;

 

6.3            In
evaluating the suitability of an investment in the Notes and the Company, the Investor has not relied upon any representation or
information (oral or written) other than as stated in this Agreement or the corporate overview presentation delivered by the Company
(the “PaxMedica Overview”);

 

6.4            The
Investor understands and acknowledges that (a) there are substantial doubts about the Company’s ability to continue
as a going concern; (b) the Company will have broad discretion with respect to the application of the remaining funds received
by the Company in the offering of the Notes and the Company may not use the proceeds effectively;

 

6.5            The
Investor acknowledges that any estimates or forward-looking statements or projections (including projections of future expenses,
pricing, or clinical developments) included in any materials provided by the Company to the Investor in connection with the offering
of the Notes were prepared by the Company in good faith but that the attainment of any such projections, estimates or forward-looking
statements cannot be guaranteed by the Company and should not be relied upon. IN PARTICULAR, THE INVESTOR ACKNOWLEDGES AND AGREES
THAT:

 

6.5.1            THE
PAXMEDICA OVERVIEW FURNISHED TO THE INVESTOR IN CONNECTION WITH THE OFFERING CONTAINS “FORWARD-LOOKING STATEMENTS”
AS THAT TERM IS DEFINED IN SECTION 27A OF THE SECURITIES ACT, AND SECTION 21E OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED;

 

6.5.2            SUCH
FORWARD LOOKING STATEMENTS ARE BASED ON THE CURRENT INTENTIONS, EXPECTATIONS, ESTIMATES AND PROJECTIONS OF THE COMPANY’S
MANAGEMENT REGARDING THE COMPANY’S PROPOSED BUSINESS PLANS, ITS ABILITY TO EXECUTE SUCH BUSINESS PLANS, AND EXPECTATIONS
REGARDING THE PRICING OF OTHER COMPETITIVE PRODUCTS, AND THAT BECAUSE SUCH STATEMENTS INVOLVE RISKS AND UNCERTAINTIES, THE ACTUAL
RESULTS AND PERFORMANCE OF THE COMPANY MAY DIFFER MATERIALLY FROM THE RESULTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING
STATEMENTS;

 

6.5.3            AS
SUCH, THE COMPANY HAS NOT MADE AND IS NOT MAKING ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO ANY PROJECTIONS,
ESTIMATES, FORECASTS OR BUDGETS HERETOFORE DELIVERED TO OR MADE AVAILABLE TO THE INVESTOR OF FUTURE REVENUES, EVENTS, EXPENSES,
EXPENDITURES, FUTURE RESULTS OF OPERATIONS, EXPECTED RETURNS, THE PRICING OF OTHER COMPETITIVE PRODUCTS OR SIMILAR INFORMATION
INCLUDING, BUT NOT LIMITED TO, ANY OF FOREGOING SET FORTH WITHIN THE PAXMEDICA OVERVIEW;

 

6.5.4            ACCORDINGLY, IN
MAKING ITS INVESTMENT DECISION, THE INVESTOR HAS NOT RELIED ON ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, FROM THE COMPANY
WITH RESPECT TO THE FORWARD LOOKING STATEMENTS SET FORTH WITHIN THE PAXMEDICA OVERVIEW; AND

 

6.5.5            THEREFORE
THE INVESTOR WAIVES ANY RIGHT HE, SHE OR IT MAY HAVE AGAINST THE COMPANY FOR ANY LOSS OR DAMAGE RESULTING FROM
THE USE OF OR RELIANCE UPON ANY SUCH FORWARD LOOKING STATEMENTS SET FORTH WITHIN THE PAXMEDICA OVERVIEW.

 

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7.            Miscellaneous.

 

7.1            Entire
Agreement. This Agreement and the documents referred to herein constitute the entire agreement among the parties with respect
to the subject matter hereof and thereof and no party shall be liable or bound to any other party in any manner by any warranties,
representations or covenants except as specifically set forth herein or therein.

 

7.2            Successors
and Assigns. Except as otherwise provided herein, the terms and conditions of this Agreement shall inure to the benefit of
and be binding upon the respective successors and assigns of the parties. Nothing in this Agreement, express or implied, is intended
to confer upon any party other than the parties hereto or their respective successors and assigns, any rights, remedies, obligations
or liabilities under this Agreement, except as expressly provided in this Agreement.

 

7.3            Governing
Law. This Agreement shall be governed by and construed under the internal laws of the State of Delaware, without regard to
conflict of law principles that would result in the application of any law other than the law of the State of Delaware.

 

7.4            Counterparts;
Electronic Signatures. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument. This Agreement may be executed and delivered by facsimile,
electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, Uniform Electronic
Transactions Act or other applicable law) or other transmission method and upon such delivery any such signature shall be deemed
to have the same effect as if the original signature had been delivered to the other party.

 

7.5            Titles
and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

 

7.6            Notices.
Unless otherwise provided, any notice required or permitted under this Agreement shall be given in writing, addressed (a) if
to an Investor, as indicated on the signature page hereto, or at such other address as such Investor shall have furnished
to the Company in writing at least five (5) days prior to any notice to be given hereunder, or (b) if to the Company,
at its principal office, Attention: Chief Financial Officer, or at such other address as the Company shall furnish to each Investor
in writing at least five (5) days prior to any notice to be given hereunder. All such notices and other written communications
shall be deemed effectively given upon personal delivery to the party to be notified (or upon the date of attempted delivery where
delivery is refused) or, if sent by facsimile, upon receipt of appropriate written confirmation of receipt, or five (5) days
after deposit with the United States Postal Service, by registered or certified mail, or one (1) day after deposit with next
day air courier, with postage and fees prepaid and addressed to the party entitled to such notice, or, if sent by electronic mail,
when directed to any electronic mail address set forth on the Schedule of Investors attached hereto as Exhibit A.

 

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7.7            Finders’
Fees. Each party represents that it neither is nor will be obligated for any finders’ fee or commission in connection
with this transaction. Each Investor agrees to indemnify and to hold harmless the Company and each other Investor from any liability
for any commission or compensation in the nature of a finder’s fee (and the costs and expenses of defending against such
liability or asserted liability) for which such Investor is responsible. The Company agrees to indemnify and hold harmless each
Investor from any liability for any commission or compensation in the nature of a finder’s fee (and the costs and expenses
of defending against such liability or asserted liability) for which the Company or any of its officers, employees or representatives
is responsible.

 

7.8            Attorneys’
Fees. Each party is responsible for its own legal fees and expenses related to this transaction.

 

7.9            Amendments
and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or prospectively) only with the written consent of the Company and
the Investor. Any amendment or waiver so effected shall be binding upon each holder of any securities purchased under this Agreement
at the time outstanding (including securities into which such securities have been converted), each future holder of all such securities
and the Company. The Investor acknowledges that by the operation of this Section 6.9 the Investor will have the right and
power to diminish or eliminate all rights of such Investor under this Agreement.

 

7.10            Delays
or Omissions. No delay or omission to exercise any right, power or remedy accruing to any party to this Agreement, upon any
breach or default of any other party under this Agreement shall impair any such right, power or remedy of such non-defaulting party,
nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach
or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or
default therefore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any
party of any breach or default under this Agreement or any waiver on the part of any party of any provisions or conditions of this
Agreement must be made in writing and shall be effective only to the extent specifically set forth in such writing. All remedies,
either under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

 

7.11            Severability.
If any provision of this Agreement is held to be illegal or unenforceable under applicable law, such provision shall be excluded
from this Agreement and the balance of the Agreement shall be interpreted as if such provision were so excluded and shall be enforceable
in accordance with its terms.

 

7.12            California
Corporate Securities Law. THE SALE OF THE SECURITIES WHICH ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED WITH
THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA AND THE ISSUANCE OF SUCH SECURITIES OR THE PAYMENT OR RECEIPT OF
ANY PART OF THE CONSIDERATION FOR SUCH SECURITIES PRIOR TO SUCH QUALIFICATION IS UNLAWFUL, UNLESS THE SALE OF
SECURITIES IS EXEMPT FROM QUALIFICATION BY SECTION 25100, 25102 OR 25105 OF THE CALIFORNIA CORPORATIONS CODE. THE RIGHTS
OF ALL PARTIES TO THIS AGREEMENT ARE EXPRESSLY CONDITIONED UPON SUCH QUALIFICATION BEING OBTAINED, UNLESS THE SALE IS SO
EXEMPT.

 

[Remainder of this
page intentionally left blank.]

 

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IN WITNESS WHEREOF,
the parties have executed this Agreement as of the date first above written.

 

	 	COMPANY:
	 	 	 
	 	PAXMEDICA, INC.
	 	 	 
	 	By:	 
	 	Name:	Joseph Lucchese
	 	Title:	Chief Financial Officer
	 	Address:	50 Tice Blvd, Suite A26 Woodcliff Lake, NJ 07677

 

PaxMedica,
Inc.

Convertible
Note Subscription Agreement

Signature
Page

 

     

     

    

 

 

	 	INVESTOR:
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	Address:	 

 

PaxMedica,
Inc.

Convertible
Note Subscription Agreement

Signature
Page

 

     

     

    

 

EXHIBIT A

 

FORM OF CONVERTIBLE PROMISSORY NOTE

 

    B-1Document

Exhibit 10.1
Certain identified information has been excluded from this exhibit because it both (i) is not material and (ii) would be competitively harmful if publicly disclosed.

FIRST AMENDMENT AGREEMENT
This FIRST AMENDMENT AGREEMENT (this “Amendment”) is made as of the 26th day of March, 2020 among:
        (a) DMC GLOBAL INC., a Delaware corporation (“DMC Global”);

        (b) each Domestic Subsidiary Borrower, as defined in the Credit Agreement, as hereinafter defined (each such Domestic Subsidiary Borrower, together with DMC Global, collectively, the “US Borrowers” and, individually, each a “US Borrower”);

        (c) each Foreign Borrower, as defined in the Credit Agreement (each such Foreign Borrower, together with each US Borrower, collectively, the “Borrowers” and, individually, each a “Borrower”);

(d) the Lenders, as defined in the Credit Agreement; and

        (e) KEYBANK NATIONAL ASSOCIATION, a national banking association, as administrative agent for the Lenders under the Credit Agreement (the “Administrative Agent”).

        WHEREAS, the Borrowers, the Administrative Agent and the Lenders are parties to that certain Credit and Security Agreement, dated as of March 8, 2018 (as the same may from time to time be amended, restated or otherwise modified, the “Credit Agreement”);

        WHEREAS, the Borrowers, the Administrative Agent and the Lenders desire to amend the Credit Agreement to modify certain provisions thereof and add certain provisions thereto; 

        WHEREAS, each capitalized term used herein and defined in the Credit Agreement, but not otherwise defined herein, shall have the meaning given such term in the Credit Agreement; and

        WHEREAS, unless otherwise specifically provided herein, the provisions of the Credit Agreement revised herein are amended effective as of the date of this Amendment;

        NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein and for other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Borrowers, the Administrative Agent and the Lenders agree as follows:

        1. Additions to Definitions in the Credit Agreement.  Section 1.1 of the Credit Agreement is hereby amended to add the following new definitions thereto:

“Benchmark Replacement” means the sum of: (a) the alternate benchmark rate (which may include Term SOFR) that has been selected by the Administrative Agent and the Borrowers giving due consideration to (i) any selection or recommendation of a replacement rate or the mechanism for determining such a rate by the Relevant Governmental Body, or (ii) any evolving or then-prevailing market convention for determining a rate of interest as a replacement to the Eurodollar Rate for Dollar-denominated syndicated credit facilities at such time, and (b) the Benchmark Replacement Adjustment; provided that, if the Benchmark Replacement as so determined would be less than zero, the Benchmark Replacement will be deemed to be zero for the purposes of this Agreement.

“Benchmark Replacement Adjustment” means, with respect to any replacement of the Eurodollar Rate with an Unadjusted Benchmark Replacement for each applicable Interest Period, the spread adjustment, or method for calculating or determining such spread adjustment (which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Borrowers giving due consideration to (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of the Eurodollar Rate with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body, or (b) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of the Eurodollar Rate with the applicable Unadjusted Benchmark Replacement for Dollar-denominated syndicated credit facilities at such time.

“Benchmark Replacement Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of “Base Rate,” the definition of “Interest Period,” timing and frequency of determining rates and making payments of interest and other administrative matters) that the Administrative Agent decides may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines that no market practice for the administration of the Benchmark Replacement exists, in such other manner of administration as the Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement).  

“Benchmark Replacement Date” means the earlier to occur of the following events with respect to the Eurodollar Rate:

(a)  in the case of clause (a) or (b) of the definition of “Benchmark Transition Event,” the later of (i) the date of the public statement or publication of 
2

information referenced therein, and (ii) the date on which the administrator of the Eurodollar Rate permanently or indefinitely ceases to provide the Eurodollar Rate; or

(b)  in the case of clause (c) of the definition of “Benchmark Transition Event,” the date of the public statement or publication of information referenced therein.

“Benchmark Transition Event” means the occurrence of one or more of the following events with respect to the Eurodollar Rate:

(a)  a public statement or publication of information by or on behalf of the administrator of the Eurodollar Rate announcing that such administrator has ceased or will cease to provide the Eurodollar Rate, permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Eurodollar Rate;

(b)  a public statement or publication of information by the regulatory supervisor for the administrator of the Eurodollar Rate, the United States Federal Reserve System, an insolvency official with jurisdiction over the administrator for the Eurodollar Rate, a resolution authority with jurisdiction over the administrator for the Eurodollar Rate or a court or an entity with similar insolvency or resolution authority over the administrator for the Eurodollar Rate, which states that the administrator of the Eurodollar Rate has ceased or will cease to provide the Eurodollar Rate permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Eurodollar Rate; or

(c) a public statement or publication of information by the regulatory supervisor for the administrator of the Eurodollar Rate or a Relevant Governmental Body announcing that the Eurodollar Rate is no longer representative.

“Benchmark Transition Start Date” means (a) in the case of a Benchmark Transition Event, the earlier of (i) the applicable Benchmark Replacement Date, and (ii) if such Benchmark Transition Event is a public statement or publication of information of a prospective event, the ninetieth (90th) day prior to the expected date of such event as of such public statement or publication of information (or if the expected date of such prospective event is fewer than ninety (90) days after such statement or publication, the date of such statement or publication), and (b) in the case of an Early Opt-in Election, the date specified by the Administrative Agent or the Required Lenders, as applicable, by notice to the Borrowers, the Administrative Agent (in the case of such notice by the Required Lenders) and the Lenders.

3

“Benchmark Unavailability Period” means, if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to the Eurodollar Rate and solely to the extent that the Eurodollar Rate has not been replaced with a Benchmark Replacement, the period (a) beginning at the time that such Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced the Eurodollar Rate for all purposes hereunder in accordance with Section 3.8 hereof, and (b) ending at the time that a Benchmark Replacement has replaced the Eurodollar Rate for all purposes hereunder pursuant to Section 3.8 hereof.

“Beneficial Ownership Certification” means a certification regarding beneficial ownership required by the Beneficial Ownership Regulation.

“Beneficial Ownership Regulation” means 31 C.F.R. § 1010.230.

“Citibank Factoring Agreement” means that certain Supplier Agreement between Citibank, N.A. and DYNAenergetics US, whereby accounts receivable arising out of contracts or orders from [***] (and its affiliated entities) are sold to Citibank, N.A. by DYNAenergetics US, as amended, restated, supplemented or otherwise modified from time to time.

“DYNAenergetics US” means DYNAenergetics US, Inc., a Colorado corporation.

         “Early Opt-in Election” means the occurrence of:

(a) a determination by the Administrative Agent that Dollar-denominated syndicated credit facilities being executed at such time, or that include language similar to that contained in Section 3.8 hereof are being executed or amended, as applicable, to incorporate or adopt a new benchmark interest rate to replace the Eurodollar Rate, and  
(b) the election by the Administrative Agent to declare that an Early Opt-in Election has occurred and the provision by the Administrative Agent of written notice of such election to the Borrowers and the Lenders.

“Federal Reserve Bank of New York’s Website” means the website of the Federal Reserve Bank of New York at http://www.newyorkfed.org, or any successor source.

        “Relevant Governmental Body” means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto, including without limitation the Alternative Reference Rates Committee.

“SOFR” with respect to any day means the secured overnight financing rate published for such day by the Federal Reserve Bank of New York, as the administrator of 
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the benchmark, (or a successor administrator) on the Federal Reserve Bank of New York’s Website.

        “Term SOFR” means the forward-looking term rate based on SOFR that has been selected or recommended by the Relevant Governmental Body.

        “Unadjusted Benchmark Replacement” means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.

2.  Addition to Article I of the Credit Agreement.  Article I of the Credit Agreement is hereby amended to add the following new Section 1.4 at the end thereof:

Section 1.4.  Divisions.  For all purposes under the Loan Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction’s laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders of its Equity Interests at such time. 

3. Amendments to Additional Provisions Relating to Eurodollar Loans; Increased Capital; Taxes.  Article III of the Credit Agreement is hereby amended to (a) delete subsection (c) of Section 3.5 therefrom in its entirety, and (b) add the following new Section 3.8 at the end thereof: 

Section 3.8.  Effect of Benchmark Transition Event. 

(a) Benchmark Replacement.  Notwithstanding anything to the contrary herein or in any other Loan Document, (i) upon the determination of the Administrative Agent (which shall be conclusive absent manifest error) that a Benchmark Transition Event has occurred, or (ii) upon the occurrence of an Early Opt-in Election, as applicable, the Administrative Agent and the Borrowers may amend this Agreement to replace the Eurodollar Rate with a Benchmark Replacement, by a written document executed by the Borrowers and the Administrative Agent, subject to the requirements of this Section 3.8.  Notwithstanding the requirements of Section 12.3 hereof or anything else to the contrary herein or in any other Loan Document, any such amendment with respect to a Benchmark Transition Event will become effective and binding upon the Administrative Agent, the Borrowers and the Lenders at 5:00 p.m. on the fifth (5th) Business Day after the Administrative Agent has posted such proposed amendment to all Lenders and the Borrowers so long as the Administrative Agent has not received, by such time, written notice of objection to such amendment from Lenders comprising the Required Lenders, and any such amendment with respect to an Early Opt-in Election will become effective 
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and binding upon the Administrative Agent, the Borrowers and the Lenders on the date that Lenders comprising the Required Lenders have delivered to the Administrative Agent written notice that such Required Lenders accept such amendment.  No replacement of the Eurodollar Rate with a Benchmark Replacement pursuant to this Section 3.8 will occur prior to the applicable Benchmark Transition Start Date.  

(b) Benchmark Replacement Conforming Changes.  In connection with the implementation of a Benchmark Replacement, the Administrative Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement.

(c) Notices; Standards for Decisions and Determinations.  The Administrative Agent will promptly notify the Borrowers and the Lenders in writing of (i) any occurrence of a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date and Benchmark Transition Start Date, (ii) the implementation of any Benchmark Replacement, (iii) the effectiveness of any Benchmark Replacement Conforming Changes, and (iv) the commencement or conclusion of any Benchmark Unavailability Period.  Any determination, decision or election that may be made by the Administrative Agent or Lenders pursuant to this Section 3.8, including, without limitation, any determination with respect to a tenor, comparable replacement rate or adjustment, or implementation of any Benchmark Replacement Rate Conforming Changes, or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action, will be conclusive and binding on all parties hereto absent manifest error and may be made in its or their sole discretion and without consent from any other party hereto, except, in each case, as expressly required pursuant to this Section 3.8 and shall not be a basis of any claim of liability of any kind or nature by any party hereto, all such claims being hereby waived individually be each party hereto.

(d) Benchmark Unavailability Period.  Upon the Borrowers’ receipt of notice of the commencement of a Benchmark Unavailability Period, the Borrowers may revoke any request for a borrowing of, conversion to or continuation of Eurodollar Loans to be made, converted or continued during any Benchmark Unavailability Period and, failing that, the Borrowers will be deemed to have converted any such request into a request for a borrowing of or conversion to Base Rate Loans.  During any Benchmark Unavailability Period, the components of Base Rate based upon LIBOR will not be used in any determination of Base Rate.  

(e) Eurodollar Rate Notification.  The interest rate on Eurodollar Loans is determined by reference to LIBOR, which is derived from the London interbank offered rate.  The London interbank offered rate is intended to represent the rate at which contributing banks may obtain short-term borrowings from each other in the London 
6

interbank market.  In July 2017, the U.K. Financial Conduct Authority announced that, after the end of 2021, it would no longer persuade or compel contributing banks to make rate submissions to the ICE Benchmark Administration (together with any successor to the ICE Benchmark Administrator, the “IBA”) for purposes of the IBA setting the London interbank offered rate.  As a result, it is possible that commencing in 2022, the London interbank offered rate may no longer be available or may no longer be deemed an appropriate reference rate upon which to determine the interest rate on Eurodollar Loans.  In light of this eventuality, public and private sector industry initiatives are currently underway to identify new or alternative reference rates to be used in place of the London interbank offered rate. In the event that the London interbank offered rate is no longer available or in certain other circumstances as set forth in this Section 3.8, this Section 3.8 provides a mechanism for determining an alternative rate of interest. The Administrative Agent will notify the Borrowers, pursuant to this Section 3.8, in advance of any change to the reference rate upon which the interest rate on Eurodollar Loans is based.  However, the Administrative Agent does not warrant or accept any responsibility for, and shall not have any liability with respect to, the administration, submission or any other matter related to the London interbank offered rate or other rates in the definition of “Eurodollar Rate”, or with respect to any alternative or successor rate thereto, or replacement rate therefor or thereof, including, without limitation, whether the composition or characteristics of any such alternative, successor or replacement reference rate, as it may or may not be adjusted pursuant to this Section 3.8, will be similar to, or produce the same value or economic equivalence of, the Eurodollar Rate or has the same volume or liquidity as did the London interbank offered rate prior to its discontinuance or unavailability.

4. Addition to Liens Covenant Provisions.  Section 5.9 of the Credit Agreement is hereby amended to add the following new subsection (p) immediately after subsection (o) therein: 

(p) Liens incurred pursuant to the Citibank Factoring Agreement, so long as there is no credit recourse to any Company with respect to such accounts receivable after such sale.

        5. Addition to Merger and Sale of Assets Covenant Provisions.  Section 5.12 of the Credit Agreement is hereby amended to add the following new subsection (j) at the end thereof:

(j) the Companies may sell accounts receivable pursuant to the Citibank Factoring Agreement, so long as there is no credit recourse to any Company with respect to such accounts receivable after such sale, except in the case of a breach by a Company of any Asset Representation (as defined in the Citibank Factoring Agreement) with respect to any such receivable.

        6. Addition to Covenants Provisions.  Article V of the Credit Agreement is hereby amended to add the following new Section 5.31 at the end thereof:

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Section 5.31.  Beneficial Ownership.  Promptly following any request therefor, the Borrowers shall provide information and documentation reasonably requested by the Administrative Agent or any Lender for purposes of compliance with applicable “know your customer” and anti-money-laundering rules and regulations, including, without limitation, the PATRIOT Act and the Beneficial Ownership Regulation.
        
        7. Addition to Representations and Warranties Provisions.  Article VI of the Credit Agreement is hereby amended to add the following new Section 6.23 at the end thereof:

Section 6.23.  Beneficial Ownership.  The information included in each Beneficial Ownership Certification most recently delivered to each Lender (if any) is true and correct in all respects.

        8.  Amendment to Amendments, Waivers and Consents Provisions.  Section 12.3 of the Credit Agreement is hereby amended to delete subpart (a) therefrom and to insert in place thereof the following:

(a) General Rule.  Except as set forth in Section 3.8 hereof, no amendment, modification, termination, or waiver of any provision of any Loan Document nor consent to any variance therefrom, shall be effective unless the same shall be in writing and signed by the Required Lenders and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

        9. Closing Deliveries.  Concurrently with the execution of this Amendment, the Borrowers shall:

(a) cause each Guarantor of Payment to execute the attached Guarantor Acknowledgement and Agreement; 

(b) have provided to the Administrative Agent the documentation and other information so requested in connection with applicable “know your customer” and antimoneylaundering rules and regulations, including the PATRIOT Act; and

(c) pay all legal fees expenses of the Administrative Agent in connection with this Amendment and any other Loan Documents.  

        10. Representations and Warranties.  The Borrowers hereby represent and warrant to the Administrative Agent and the Lenders that (a) the Borrowers have the legal power and authority to execute and deliver this Amendment; (b) the officers executing this Amendment have been duly authorized to execute and deliver the same and bind the Borrowers with respect to the provisions hereof; (c) the execution and delivery hereof by the Borrowers and the performance and observance by the Borrowers of the provisions hereof do not violate or conflict with the Organizational Documents of the Borrowers or any law applicable to Borrowers or result in a breach of any provision of or constitute a default under any Material Agreement binding upon or enforceable against the Borrowers; (d) no Default or Event of Default exists, nor 
8

will any occur immediately after the execution and delivery of this Amendment or by the performance or observance of any provision hereof; (e) each of the representations and warranties contained in the Loan Documents is true and correct in all material respects as of the date hereof as if made on the date hereof, except to the extent that any such representation or warranty expressly states that it relates to an earlier date (in which case such representation or warranty is true and correct in all material respects as of such earlier date); (f) the Borrowers are not aware of any claim or offset against, or defense or counterclaim to, the Borrowers’ obligations or liabilities under the Credit Agreement or any other Related Writing; and (g) this Amendment constitutes a valid and binding obligation of the Borrowers in every respect, enforceable in accordance with its terms, subject to the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or other Laws affecting creditors’ rights and remedies generally and to the effect of general principles of equity (regardless of whether enforcement is considered in a proceeding at Law or in equity).

        11. Waiver and Release.  The Borrowers, by signing below, hereby waive and release the Administrative Agent, and each of the Lenders, and their respective directors, officers, employees, attorneys, affiliates and subsidiaries, from any and all claims, offsets, defenses and counterclaims arising on or prior to the date hereof in connection with the Loan Documents or the transactions contemplated thereby, such waiver and release being with full knowledge and understanding of the circumstances and effect thereof and after having consulted legal counsel with respect thereto.  

        12.  References to Credit Agreement and Ratification.  Each reference to the Credit Agreement that is made in the Credit Agreement or any other Related Writing shall hereafter be construed as a reference to the Credit Agreement as amended hereby.  Except as otherwise specifically provided herein, all terms and provisions of the Credit Agreement and each other Loan Document are confirmed and ratified and shall remain in full force and effect and be unaffected hereby. This Amendment is a Loan Document.

        13. Counterparts.  This Amendment may be executed in any number of counterparts, by different parties hereto in separate counterparts and by facsimile or other electronic signature, each of which, when so executed and delivered, shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement.

        14. Headings.  The headings, captions and arrangements used in this Amendment are for convenience only and shall not affect the interpretation of this Amendment.

        15. Severability.  Any provision of this Amendment that shall be prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.

        16. Governing Law.  The rights and obligations of all parties hereto shall be governed by the laws of the State of New York.

9

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10

JURY TRIAL WAIVER.  THE BORROWERS, THE ADMINISTRATIVE AGENT AND THE LENDERS, TO THE EXTENT PERMITTED BY LAW, EACH HEREBY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG THE BORROWERS, THE ADMINISTRATIVE AGENT AND THE LENDERS, OR ANY THEREOF, ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS AMENDMENT OR ANY NOTE OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO.  

IN WITNESS WHEREOF, the parties have executed and delivered this Amendment as of the date first set forth above.

						
		DMC GLOBAL INC.
	By:	/s/ Michael Kuta
		Michael Kuta
		Chief Financial Officer
		
		DMC KOREA, INC.
	By:	/s/ Michelle Shepston
		Michelle Shepston
		Secretary
		
		DYNAENERGETICS US, INC.

	By:	/s/ Michelle Shepston
		Michelle Shepston
		Vice President
		

Signature Page to
First Amendment Agreement

						
		NOBELCLAD EUROPE GMBH
(f/k/a/ DynaEnergetics Holding GmbH)

	By:	/s/ Ian Grieves

		Ian Grieves
		Managing Director

Signature Page to
First Amendment Agreement

						
		DYNAENERGETICS EUROPE GMBH
(f/k/a DynaEnergetics Beteiligungs- GmbH)

	By:	/s/ Ian Grieves
		Ian Grieves
		Managing Director

Signature Page to
First Amendment Agreement

						
		KEYBANK NATIONAL ASSOCIATION
   as the Administrative Agent and as a Lender

	By:	/s/ Suzannah Valdivia
		Suzannah Valdivia
		Senior Vice President

Signature Page to
First Amendment Agreement

						
		BOKF, NA DBA BOK FINANCIAL (F/K/A COLORADO STATE BANK AND TRUST)

	By:	/s/ Matthew J. Mason
		Matthew J. Mason
		SVP

Signature Page to
First Amendment Agreement

						
		U.S. BANK NATIONAL ASSOCIATION

	By:	/s/ Courtney A. Boltz
		Courtney A. Boltz
		Vice President

Signature Page to
First Amendment Agreement

GUARANTOR ACKNOWLEDGMENT AND AGREEMENT

        The undersigned consent and agree to and acknowledge the terms of the foregoing First Amendment Agreement dated as of March 26, 2020 (the “Amendment”).  The undersigned further agree that the obligations of the undersigned pursuant to the Guaranty of Payment executed by the undersigned in connection with the Credit Agreement (as defined in the Amendment) is hereby ratified and shall remain in full force and effect and be unaffected hereby.

        The undersigned hereby waive and release the Administrative Agent and the Lenders and their respective directors, officers, employees, attorneys, affiliates and subsidiaries from any and all claims, offsets, defenses and counterclaims in connection with the Loan Documents or the transactions contemplated thereby, of any kind or nature, absolute and contingent, of which the undersigned are aware or should be aware as of the date hereof, such waiver and release being with full knowledge and understanding of the circumstances and effect thereof and after having consulted legal counsel with respect thereto.

        JURY TRIAL WAIVER.  THE UNDERSIGNED, TO THE EXTENT PERMITTED BY LAW, HEREBY WAIVE ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG THE BORROWERS, THE ADMINISTRATIVE AGENT, THE LENDERS AND THE UNDERSIGNED, OR ANY THEREOF, ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS GUARANTOR ACKNOWLEDGMENT AND AGREEMENT, THE AMENDMENT OR ANY NOTE OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO.  

												
		DYNAENERGETICS CANADA INC.
		DYNAMIC MATERIALS CORPORATION (HK) LIMITED

	By:	/s/ Michael Kuta	By:	/s/ Michael Kuta
		Michael Kuta		Michael Kuta
		Director		Director
				
		Dynamic Materials Corporation (Shanghai) Trading Co. LTD.
		NobelClad Europe SAS

	By:	/s/ Michael Kuta	By:	/s/ Michael Kuta
		Michael Kuta		DMC Global Inc., as President of  Nobelclad Europe SAS,  

		Director		by its legal representative Michael Kuta
				
				NobelClad Europe Holding GmbH

			By:	/s/ Antoine Nobili
				Antoine Nobili
				Managing Director
				

Guarantor Acknowledgment and Agreement

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