Document:

Exhibit 10.1

 

INDEMNIFICATION
AGREEMENT

 

THIS
AGREEMENT is made and entered into this           
day of April 2008 by and between Dynamic Materials Corporation, a Delaware
corporation (the “Corporation”), and                                       
(“Agent”).

 

RECITALS

 

WHEREAS, Agent
performs a valuable service to the Corporation in his capacity as [Director][Officer
Tile] of the Corporation;

 

WHEREAS, the
stockholders of the Corporation have adopted bylaws (the “Bylaws”) providing
for the indemnification of the directors, officers, employees and other agents
of the Corporation, including persons serving at the request of the Corporation
in such capacities with other corporations or enterprises, as authorized by the
Delaware General Corporation Law, as amended (the “Code”);

 

WHEREAS, the Bylaws
and the Code, by their non-exclusive nature, permit contracts between the
Corporation and its agents, officers, employees and other agents with respect
to indemnification of such persons; and

 

WHEREAS, in order to
induce Agent to continue to serve as [Director][Officer Title] of the
Corporation, the Corporation has determined and agreed to enter into this
Agreement with Agent.

 

NOW,
THEREFORE, in consideration of Agent’s continued service as [Director][Officer
Title] after the date hereof, the parties hereto agree as follows:

 

AGREEMENT

 

1.                                      Services to the Corporation.  Agent will serve, at the will of the
Corporation or under separate contract, if any such contract exists, as [Director][Officer
Title] of the Corporation or as a director, officer or other fiduciary of an
affiliate of the Corporation (including any employee benefit plan of the
Corporation) faithfully and to the best of his ability so long as he is duly
elected and qualified in accordance with the provisions of the Bylaws or other
applicable charter documents of the Corporation or such affiliate; provided, however, that Agent may at any
time and for any reason resign from such position (subject to any contractual
obligation that Agent may have assumed apart from this Agreement) and that the
Corporation or any affiliate shall have no obligation under this Agreement to
continue Agent in any such position.

 

2.                                      Right to Indemnification.  To the fullest extent permitted by the Code:

 

(a)                                  The Corporation shall indemnify
Agent if Agent was or is a party or is threatened to be made a party to any
threatened, pending or completed proceeding (including any investigations) by
reason of the fact that Agent is or was or has agreed to serve at the request
of the Corporation as a director, officer, employee or agent (which for
purposes hereof, shall 

 

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include a trustee, partner or manager or similar capacity) of the Corporation,
or while serving as a director or officer of the Corporation, is or was serving
or has agreed to serve at the request of the Corporation as a director,
officer, employee or agent (which, for purposes hereof, shall include a
trustee, partner or manager or similar capacity) of another corporation, partnership,
joint venture, trust, employee benefit plan or other enterprise, or by reason
of any action alleged to have been taken or omitted in such capacity.  For the avoidance of doubt, the foregoing
indemnification obligation includes, without limitation, claims for monetary
damages against Agent in respect of an alleged breach of fiduciary duties, to
the fullest extent permitted under Section 102(b)(7) of the Code as
in existence on the date hereof.

 

(b)                                 The indemnification provided
by this Section 2 shall be from and against expenses (including attorneys’
fees), judgments, fines and amounts paid in settlement actually and reasonably
incurred by Agent or on Agent’s behalf in connection with such proceeding and
any appeal therefrom, but shall only be provided if Agent acted in good faith
and in a manner Agent reasonably believed to be in or not opposed to the best
interests of the Corporation, and, with respect to any criminal proceeding, had
no reasonable cause to believe Agent’s conduct was unlawful.

 

(c)                                  Notwithstanding
the foregoing provisions of this Section 2, in the case of any threatened,
pending or completed action or suit by or in the right of the Corporation to
procure a judgment in its favor by reason of the fact that Agent is or was a
director, officer, employee or agent of the Corporation, or while serving as a
director or officer of the Corporation, is or was serving or has agreed to
serve at the request of the Corporation as a director, officer, employee or
agent of another corporation, partnership, joint venture, trust, employee
benefit plan or other enterprise, Agent shall be entitled to the rights of
indemnification provided for herein in connection with such action or suit if
the Agent acted in good faith and in a manner the Agent reasonably believed to
be in or not opposed to the best interests of the Corporation; provided,
however, if applicable law so provides, no indemnification shall be made in
respect of any such claim, issue or matter as to which Agent shall have been
finally adjudged to be liable to the Corporation unless, and only to the extent
that, the Delaware Court of Chancery or the court in which such action or suit
was brought shall determine upon application that, despite the adjudication of
liability but in view of all the circumstances of the case, Agent is fairly and
reasonably entitled to indemnity for such expenses which the Delaware Court of
Chancery or such other court shall deem proper.

 

(d)                                 The termination
of any proceeding by judgment, order, settlement, conviction, or upon a plea of
nolo contendere or its
equivalent, shall not create a presumption that Agent did not act in good faith
and in a manner which Agent reasonably believed to be in or not opposed to the
best interests of the Corporation, and, with respect to any criminal action or
proceeding, had reasonable cause to believe that Agent’s conduct was unlawful.

 

(e)                                  The
indemnification and contribution provided for herein will remain in full force
and effect regardless of any investigation made by or on behalf of Agent or any
officer, director, employee, agent or controlling person of Agent.

 

3.                                                                                      Determination That Indemnification Is Proper.  Any indemnification hereunder shall (unless
otherwise ordered by a court) be made by the Corporation unless a 

 

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determination is made that indemnification of
such person is not proper in the circumstances because he or she has not met
the applicable standard of conduct set forth in Section 2(b) hereof.  Any such determination shall be made:

 

(a)                                  by a majority
vote of the directors who are not parties to the proceeding in question (“disinterested
directors”), even if less than a quorum;

 

(b)                                 by a majority
vote of a committee of disinterested directors designated by majority vote of disinterested
directors, even if less than a quorum;

 

(c)                                  by a majority
vote of a quorum of the outstanding shares of stock of all classes entitled to
vote on the matter, voting as a single class, which quorum shall consist of
stockholders who are not at that time parties to the proceeding in question;

 

(d)                                 by independent
legal counsel; or

 

(e)                                  by a court of
competent jurisdiction.

 

4.                                      Limitations on Additional Indemnity.  Notwithstanding any other provision herein to
the contrary, no indemnity pursuant to Section 2 hereof shall be paid by
the Corporation:

 

(a)                                  on account of any proceeding
with respect to which final judgment is rendered against Agent for an
accounting of profits made from the purchase or sale by Agent of securities of
the Corporation pursuant to the provisions of Section 16(b) of the
Securities Exchange Act of 1934 and amendments thereto or similar provisions of
any federal, state or local statutory law;

 

(b)                                 for which payment is
actually made to Agent under a valid and collectible insurance policy or under
a valid and enforceable indemnity clause, bylaw or agreement, except in respect
of any excess beyond payment under such insurance, clause, bylaw or agreement;

 

(c)                                  if indemnification is not
lawful (and, in this respect, both the Corporation and the Agent have been
advised that the Securities and Exchange Commission believes that
indemnification for liabilities arising under the federal securities laws is
against public policy and is, therefore, unenforceable and that claims for
indemnification should be submitted to appropriate courts for adjudication); or

 

(d)                                 in connection with any
proceeding (or part thereof) initiated by Agent, or any proceeding by Agent
against the Corporation or its directors, officers, employees or other agents,
unless (i) such indemnification is expressly required to be made by law, (ii) the
proceeding was authorized by the Board of Directors of the Corporation, (iii) such
indemnification is provided by the Corporation, in its sole discretion,
pursuant to the powers vested in the Corporation under the Code, or (iv) the
proceeding is initiated pursuant to Section 10 hereof.

 

5.                                      Continuation of Indemnity.  All agreements and obligations of the
Corporation contained herein shall continue during the period Agent is a director,
officer, employee or other 

 

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agent of the Corporation (or is or was serving at the request of the
Corporation as a director, officer, employee or other agent of another
corporation, partnership, joint venture, trust, employee benefit plan or other
enterprise) and shall continue thereafter so long as Agent shall be subject to
any possible claim or threatened, pending or completed action, suit or
proceeding, whether civil, criminal, arbitration, administrative or
investigative, by reason of the fact that Agent was serving in the capacity
referred to herein.

 

6.                                      Successful Defense; Partial Indemnification.

 

(a)                                  To the extent that Agent has
been successful on the merits or otherwise in defense of any proceeding
referred to in Section 2 hereof or in defense of any claim, issue or
matter therein, Agent shall be indemnified against expenses (including
attorneys’ fees) actually and reasonably incurred in connection therewith.  For purposes of this Agreement and without
limiting the foregoing, if any proceeding is disposed of, on the merits or
otherwise (including a disposition without prejudice), without:

 

(i)                                   the disposition
being adverse to Agent;

 

(ii)                                an adjudication
that Agent was liable to the Corporation;

 

(iii)                             a plea of
guilty or nolo contendere by Agent;

 

(iv)                            an adjudication
that Agent did not act in good faith and in a manner Agent reasonably believed
to be in or not opposed to the best interests of the Corporation; and

 

(v)                               with respect to
any criminal proceeding, an adjudication that Agent had reasonable cause to
believe Agent’s conduct was unlawful,

 

Agent shall be considered for the purposes hereof to
have been wholly successful with respect thereto.

 

(b)                                 If Agent is entitled under
any provision of this Agreement to indemnification by the Corporation for a
portion of the expenses (including attorneys’ fees), witness fees, damages,
judgments, fines and amounts paid in settlement and any other amounts that
Agent becomes legally obligated to pay in connection with any action, suit or
proceeding referred to in Section 2 hereof even if not entitled hereunder
to indemnification for the total amount thereof, and the Corporation shall
indemnify Agent for the portion thereof to which Agent is entitled.

 

7.                                      Notification and Defense of Claim.  Not later than thirty (30) days after receipt
by Agent of notice of the commencement of any action, suit or proceeding, Agent
will, if a claim in respect thereof is to be made against the Corporation under
this Agreement, notify the Corporation of the commencement thereof; but the
omission so to notify the Corporation will not relieve the Corporation from any
liability which it may have to Agent hereunder, except to the extent the
Corporation is prejudiced in its defense of such proceeding as a result of such
failure.  With respect to any such
action, suit or proceeding as to which Agent notifies the Corporation of the
commencement thereof:

 

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(a)                                  the Corporation will be
entitled to participate therein at its own expense;

 

(b)                                 except as otherwise provided
below, the Corporation may, at its option and jointly with any other
indemnifying party similarly notified and electing to assume such defense,
assume the defense thereof, with counsel reasonably satisfactory to Agent.  After notice from the Corporation to Agent of
its election to assume the defense thereof, the Corporation will not be liable
to Agent under this Agreement for any legal or other expenses subsequently
incurred by Agent in connection with the defense thereof except for reasonable
costs of investigation or otherwise as provided below.  Agent shall have the right to employ separate
counsel in such action, suit or proceeding but the fees and expenses of such
counsel incurred after notice from the Corporation of its assumption of the
defense thereof shall be at the expense of Agent unless (i) the employment
of counsel by Agent has been authorized by the Corporation, (ii) counsel
to the Corporation or Agent shall have reasonably concluded that there may be a
conflict of interest between the Corporation and Agent in the conduct of the
defense of such action or (iii) the Corporation shall not in fact have
employed counsel to assume the defense of such action, in each of which cases
the fees and expenses of Agent’s separate counsel shall be at the expense of
the Corporation.  The Corporation shall
not be entitled to assume the defense of any action, suit or proceeding brought
by or on behalf of the Corporation or as to which counsel for the Corporation
or Agent shall have made the conclusion provided for in clause (ii) above;
and

 

(c)                                  the Corporation shall not be
liable to indemnify Agent under this Agreement for any amounts paid in
settlement of any action or claim effected without its written consent, which
shall not be unreasonably withheld.  The
Corporation shall be permitted to settle any action except that it shall not
settle any action or claim in any manner which would impose any penalty or
limitation on Agent without Agent’s written consent, which may be given or
withheld in Agent’s sole discretion.

 

8.                                      Procedure for Indemnification.

 

(a)                                  To obtain
indemnification, Agent shall promptly submit to the Corporation a written
request, including therein or therewith such documentation and information as
is reasonably available to Agent and is reasonably necessary to determine
whether and to what extent Agent is entitled to indemnification.  The Corporation shall, promptly upon receipt
of such a request for indemnification, advise the Board of Directors in writing
that Agent has requested indemnification.

 

(b)                                 The Corporation’s
determination whether to grant Agent’s indemnification request shall be made
promptly, and in any event within 45 days following receipt of a request for indemnification
pursuant to Section 8(a).

 

(c)                                  The Agent shall
be presumed to be entitled to indemnification under this Agreement upon
submission of a request for indemnification pursuant to this Section 8,
and the Corporation shall have the burden of proof in overcoming that
presumption in reaching a determination contrary to that presumption.  Such presumption shall be used as a basis for
a determination of entitlement to indemnification unless the Corporation
overcomes such presumption by clear and convincing evidence.

 

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9.                                      Expenses.  The
Corporation shall advance, prior to the full disposition of any proceeding,
promptly following request therefor, all expenses incurred by Agent in
connection with such proceeding upon receipt of an undertaking by or on behalf
of Agent to repay said amounts if it shall be determined ultimately that Agent
is not entitled to be indemnified under the provisions of this Agreement, the
Bylaws, the Code or otherwise.

 

10.                               Enforcement.  Any right to
indemnification or advances granted by this Agreement to Agent shall be
enforceable by or on behalf of Agent in any court of competent jurisdiction if (i) the
claim for indemnification or advances is denied by the Corporation, in whole or
in part, or (ii) no disposition of such claim is made within ninety (90)
days of request therefor.  The Agent’s
expenses (including attorneys’ fees) incurred in connection with successfully
establishing Agent’s right to indemnification, in whole or in part, in any such
proceeding or otherwise shall also be indemnified by the Corporation.  It shall be a defense to any action for which
a claim for indemnification is made under Section 2 hereof (other than an
action brought to enforce a claim for expenses pursuant to Section 9
hereof, provided that the
required undertaking has been tendered to the Corporation) that Agent has not
met the standard of conduct set forth in Section 2 hereof or is not
entitled to indemnification because of the limitations set forth in Section 4
hereof but the burden of proving such defense by clear and convincing evidence
shall be on the Corporation.  Neither the
failure of the Corporation (including its Board of Directors, independent legal
counsel or its stockholders) to have made a determination prior to the
commencement of such enforcement action that indemnification of Agent is proper
in the circumstances, nor an actual determination by the Corporation (including
its Board of Directors, independent legal counsel or its stockholders) that
such indemnification is improper shall be a defense to the action or create a
presumption that Agent is not entitled to indemnification under this Agreement
or otherwise.

 

11.                               Insurance and Subrogation.

 

(a)                                  The Corporation
shall purchase and maintain insurance in reasonable amounts from established
and reputable insurers on behalf of Agent (which shall include so called “tail”
coverage) who is or was or has agreed to serve at the request of the Corporation
as a director or officer of the Corporation, or is or was serving at the
request of the Corporation as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust, employee benefit plan or other
enterprise against any liability asserted against, and incurred by, Agent or on
Indemnitee’s behalf in any such capacity, or arising out of Agent’s status as
such, whether or not the Corporation would have the power to indemnify Agent
against such liability under the provisions of this Agreement.  If the Corporation has such insurance in
effect at the time the Corporation receives from Agent any notice of the
commencement of a proceeding, the Corporation shall give prompt notice of the
commencement of such proceeding to the insurers in accordance with the
procedures set forth in the policy.  The Corporation
shall thereafter take all necessary or desirable action to cause such insurers
to pay, on behalf of the Agent, all amounts payable as a result of such
proceeding in accordance with the terms of such policy.

 

(b)                                 In the event of payment by
the Corporation under this Agreement, the Corporation shall be subrogated to
the extent of such payment to all of the rights of recovery of Agent with
respect to any insurance policy, who shall execute all documents required and
shall 

 

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do all acts that may be necessary to secure such rights and to enable
the Corporation effectively to bring suit to enforce such rights in accordance
with the terms of such insurance policy.

 

12.                               Non-Exclusivity of Rights.  The rights conferred on Agent by this
Agreement shall not be exclusive of any other right which Agent may have or
hereafter acquire under any statute, provision of the Corporation’s Certificate
of Incorporation or Bylaws, agreement, vote of stockholders or directors, or
otherwise, both as to action in his official capacity and as to action in
another capacity while holding office.

 

13.                               Survival of Rights.

 

(a)                                  The rights conferred on
Agent by this Agreement shall continue after Agent has ceased to be a director,
officer, employee or other agent of the Corporation or to serve at the request
of the Corporation as a director, officer, employee or other agent of another
corporation, partnership, joint venture, trust, employee benefit plan or other
enterprise and shall inure to the benefit of Agent’s heirs, executors and
administrators.

 

(b)                                 The Corporation shall
require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business or
assets of the Corporation, expressly to assume and agree to perform this
Agreement in the same manner and to the same extent that the Corporation would
be required to perform if no such succession had taken place.

 

14.                               Separability.  Each of the
provisions of this Agreement is a separate and distinct agreement and
independent of the others, so that if any provision hereof shall be held to be
invalid for any reason, such invalidity or unenforceability shall not affect
the validity or enforceability of the other provisions hereof.  Furthermore, if this Agreement shall be
invalidated in its entirety on any ground, then the Corporation shall
nevertheless indemnify Agent to the fullest extent provided by the Bylaws, the
Code or any other applicable law.

 

15.                               Governing Law.  This
Agreement shall be interpreted and enforced in accordance with the laws of the
State of Delaware.

 

16.                               Amendment and Termination.  No amendment, notification, termination or
cancellation of this Agreement shall be effective unless in writing signed by
both parties hereto.

 

17.                               Identical Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall for all purposes be deemed to be an original
but all of which together shall constitute but one and the same Agreement.  Only one such counterpart need be produced to
evidence the existence of this Agreement.

 

18.                               Headings.  The headings
of the sections of this Agreement are inserted for convenience only and shall
not be deemed to constitute part of this Agreement or to affect the
construction hereof.

 

19.                               Notices.  All notices,
requests, demands and other communications hereunder shall be in writing and
shall be deemed to have been duly given (i) upon delivery if delivered by
hand to the party to whom such communication was directed or (ii) upon the
third business day 

 

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after the date on which such communication was mailed if mailed by
certified or registered mail with postage prepaid:

 

(a)                                  If to Agent, at the address
indicated on the signature page hereof.

 

(b)                                 If to the Corporation, to:

 

Dynamic
Materials Corporation

5405 Spine Road

Boulder, Colorado  80301

Attn:  Secretary

 

or to such other address as may have been
furnished to Agent by the Corporation.

 

[Signature Page Follows]

 

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

 

	
  DYNAMIC
  MATERIALS CORPORATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
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  Agent
  Print Name and Address

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
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  Address

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SignatureExhibit 10.2

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement and
its Exhibits (this “Agreement”), entered into the 23rd day of
April, 2008, effective as of January 1, 2008, is by and between Dynamic
Materials Corporation, a Delaware corporation (the “Company”), and Yvon
Cariou, a resident of the State of Colorado (“Executive”) (together, the
“parties”).

 

Recitals

 

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

 

B.                                    The
Company desires to secure the continued services of Executive subject to the
terms and conditions hereinafter set forth.

 

C.                                    This
agreement replaces, in its entirety, that certain Employment Agreement between
the Company and Executive dated March 3, 2005.

 

Agreement

 

In consideration of the
foregoing and the mutual covenants and promises contained herein, and for other
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows:

 

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

 

2.                                      Full-time Best Efforts.  Executive shall devote his full and
exclusive professional time and attention to the performance of his obligations
under this Agreement, and will at all times faithfully, industriously and to
the best of his ability, experience and talent, perform all of this obligations
hereunder.  Executive shall not, without
the express written consent of the Company, directly or indirectly, engage,
alone or with others, in any other enterprises or business concerns, nor render
professional services to, own, control, manage, consult with, be employed by,
or otherwise have an interest in, any such enterprises or concerns, during the
term of his continued employment with the Company.  Without limiting the generality of any other
provision herein, transactions in securities of publicly traded companies and
other passive investment activities shall not be considered prohibited by the
foregoing sentence, except as such transactions and activities may violate the
Company’s conflict of interest policy, if any, in place from time to time.

 

3.                                      Term of Agreement.  This agreement shall be effective on January 1,
2008 (the “Effective Date”) and shall continue until December 31,
2008 (the “Term”), unless otherwise terminated by either party pursuant
to Section 5 below.

 

 

4.                                      Compensation Reimbursement.

 

(a)                                  Salary. 
During the term of this Agreement, the Company shall pay Executive an
annual salary (“Salary”) of $440,000 payable in accordance with the
Company’s standard payroll practices for similarly situated employees. 
The compensation committee of the Company’s board of directors (the “Compensation
Committee”) will review Executive’s Salary at least annually and may
increase (but not reduce) Executive’s Salary in its sole discretion.  All compensation paid to Executive hereunder
is subject to all deductions required by law.

 

(b)                                 Bonus. 
Executive shall be eligible to receive a non-discretionary annual bonus equal
to 2.5% of the Company’s 2008 net income. 
Executive shall also be eligible to receive a discretionary annual bonus
in an amount up to 25% of Executive’s Salary. 
The discretionary bonus will be determined based on performance goals
and rules established by the Compensation Committee.  The bonus and discretionary bonus, if any,
will be payable before March 15, 2009. 
Executive is not guaranteed any bonus payment.

 

(c)                                  Stock Incentives.  Executive shall be eligible to receive restricted
shares of the common stock of the Company under the Company’s 2006 Stock
Incentive Plan (the “Incentive Plan”) subject to the terms and
conditions of such plan and as granted by the Compensation Committee.  If
the Company terminates Executive’s employment for any reason other than Cause
pursuant to Section 5(b), all restricted stock held by Executive shall
immediately vest, subject to the terms and conditions of the Incentive Plan.

 

(d)                                 Benefits. 
Executive shall receive the following Company benefits:

 

(i)                                    term
life insurance coverage in the amount of $750,000 which is in addition to the
standard term life insurance provided in the Company’s standard benefit plan;

 

(ii)                                participation
in the Company’s executive long-term disability plan, subject to any waiting periods
or exclusions required by the insurance provider;

 

(iii)                            five
weeks of vacation per year until such time as Executive’s length of service
entitles Executive to additional vacation;

 

(iv)                               participation
in the Company’s standard benefit programs including health and dental
insurance, term life insurance, accidental death and dismemberment insurance,
short and long term disability, paid holidays and certain other standard
benefits provided by the Company;

 

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

 

(vi)                               reimbursement
of up to $5,000 of professional service fees for a financial planning and/or
tax consultant to advise Executive.

 

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

 

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5.                                      Termination.

 

(a)                                  The
Company may terminate Executive’s employment at any time for Cause (as
hereinafter defined), effective immediately upon written notice to Executive.
Such notice shall specify that a termination is being made for Cause and shall
state the basis therefor. Any termination under this subparagraph shall serve
to relieve Executive of all his duties and authority on behalf of the Company
as of the date such notice states the termination is to take effect.  All obligations of the Company to Executive
hereunder shall terminate as of the effective date of any such termination,
except for obligations accrued prior to such effective date.  For purposes of this Agreement, termination
for “Cause” shall include any of the following that detrimentally affect the
Company:

 

(i)                          a
willful and substantial breach by Executive of the terms of this Agreement or
any written agreement between Executive and the Company that has a materially
adverse effect on the business and affairs of the Company;

 

(ii)                      the
failure by Executive to substantially perform, or the gross negligence in the
performance of, his duties hereunder for a period of fifteen days after the
Board of the Company has made a written demand for performance which specifically
identities the manner in which he believes that Executive has not substantially
performed his duties;

 

(iii)                  the
commission by Executive of a willful act or failure to act of misconduct which
is injurious to the Company, including, but not limited to, material violations
of any Company policy (such as the Code of Ethics);

 

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

 

(v)                         an
act of failure to act constituting fraud or dishonesty that compromises
Executive’s ability to act effectively as a high-level executive of the Company.

 

(b)                                 The
Company may terminate Executive’s employment for any reason other than Cause at
any time upon the payment to Executive of (i) an amount equal to one year’s
Salary, which amount shall be payable in twelve monthly payments (the “Termination
Payments”), plus (ii) a bonus for such period, based on the average
bonus (if any) paid to Executive for the two years preceding the termination;
provided, that Executive shall execute a release, prepared by the Company,
releasing the Company from all claims as a condition of receiving the Salary
and bonus (if any) pursuant to this Agreement. 
Such amounts received under this provision shall be reduced to the
extent that Executive accepts other employment prior to the receipt of the
final Termination Payment.  Any
termination under this subparagraph shall serve to relieve Executive of all his
duties and authority on behalf of the Company as of the date such notice states
the termination is to take effect.  All
obligations of the Company to Executive under this Agreement shall terminate as
of the effective date of any such termination, except for obligations accrued
prior to such effective date.

 

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(c)                                  Upon
the termination of Executive’s employment hereunder, neither Executive nor
Executive’s beneficiary or estate shall have any further rights or claims
against the Company under this Agreement except the right to receive:

 

(i)                                    the
unpaid portion of the earned Salary computed on a pro rata basis to the date of
termination;

 

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

 

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

 

(d)                                 Notwithstanding
any other provision of this Section 5, Executive shall have the right to
terminate his employment at any time upon sixty days’ written notice to the
Company (or upon such shorter notice as the Company may agree in writing in
connection with such termination). Any such termination by Executive shall be
deemed effective upon receipt by the Company of such notice.  Any termination under this subparagraph shall
be effective as of the date stated in the notice and shall serve to relieve
both parties from all their duties and obligations to one another hereunder
after such date, except for obligations accrued prior to such effective date.

 

(e)                                  If
Executive dies during the term of his employment hereunder, this Agreement
shall automatically terminate as of the date of his death and the parties shall
be relieved from their respective duties and obligations to one another as of
the effective date of any such termination.  Executive’s estate or designated beneficiaries
shall receive any accrued but unpaid portion of Executive’s Salary and the
bonus, if any, he would have received in respect of the portion of the fiscal
year prior to his termination, payable at the same time as bonuses are paid to
other executives and any other amounts owing to Executive under Section 5(c).
 If Executive is unable to fully and
satisfactorily perform any of the essential functions of his position by reason
of disability, with or without reasonable accommodation as may be required
under law, for a period of at least ninety consecutive calendar days, this
Agreement and Executive’s employment hereunder may be terminated at the
election of the Company, effective upon sixty days’ written notice given at any
time after such consecutive ninety day period of continuous disability elapses,
provided Executive continues to be suffering from such disability at the time
notice of such termination is given by the Company.  In the event of termination under the
previous sentence, the parties shall be relieved from their respective duties
and obligations to one another from and after the date such termination takes
effect.  Executive shall receive any
accrued but unpaid portion of Executive’s Salary and the bonus, if any, he
would have received in respect of the portion of the fiscal year prior to his
termination, payable at the same time as bonuses are paid to other executives
and any other amounts owing to Executive under Section 5(c).  Should Executive’s disability, if any, be of
an intermittent nature, the disability shall nonetheless be considered to be
continuing during any period of time that the disability abates for seven or
less consecutive calendar days, but any such intermittent periods during which the
disability has abated for seven or less consecutive calendar days shall not be
counted for purposes of determining the consecutive ninety day period of “continuous”
disability following which the Company may elect to give notice of termination.

 

4

 

For purposes of this
subparagraph (e), “disability” shall mean that Executive is unable, by
reason of physical or mental sickness or illness, injury, or incapacity, to
perform any of the essential functions of his regular employment by the Company.  Executive shall be considered to be suffering
from a disability if he is determined to be disabled by any disability insurer
insuring Executive on the date the condition of disability commenced.  In the event there is no disability
determination made by a relevant insurer, Executive shall be considered to be
suffering from a disability if, in the opinion of a qualified physician
selected by mutual agreement of Executive and the Company, Executive is
determined to be unable to perform any of the essential functions of his
regular employment by the Company by reason of any physical or mental sickness,
injury, or incapacity.  In the event Executive
and the Company cannot agree upon the selection of a qualified physician, each
party shall appoint a qualified physician of his or its choice and the two
physicians so appointed shall mutually select a qualified physician to render
the subject opinion as to whether or not Executive is suffering from a
disability as defined above.  A “qualified
physician” shall mean a person who is licensed to practice medicine and
prescribe and administer prescription drugs and/or to perform surgery in the
state of Executive’s residence at the time of the commencement of the believed
disability (or is so licensed in such other state as the parties shall
reasonably agree is a convenient place in which to examine Executive and/or
review his medical records) and who is acting within the scope of his/her
medical license and qualified by his/her licensure, certification, training or
experience to render the subject opinion.

 

(f)                                    In the event of any
termination of this Agreement in connection with which Executive is entitled by
law or is allowed by the Company to continue his coverage under the Company’s
health, dental, eye and other medical insurance policies, Executive shall be
responsible for paying the cost of all insurance premiums and charges necessary
to keep such coverage in force during any period of time that such coverage is
so continued following termination.

 

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

 

7.                                      Miscellaneous.

 

(a)                                  Judicial Limitation.  In the event that any provision of this
Agreement is more restrictive than permitted by the law of the jurisdiction in
which the Company seeks enforcement thereof, the provisions of this Agreement
shall be limited only to that extent that a judicial determination finds the
same to be unreasonable or otherwise enforceable. Such invalidity or
unenforceability shall not affect any other terms herein, but such term shall
be deemed deleted, and such deletion shall not affect the validity of the other
terms thereof. In addition, if any one or more of the terms contained in this
Agreement shall for any reason be held to be excessively broad or of an overly
long duration, that term shall be construed in a manner to enable it to be
enforced to the extent compatible with applicable law. Moreover,
notwithstanding any judicial determination that any provision of this Agreement
is not specifically enforceable the parties intend that the Company shall
nonetheless be entitled to recover monetary damages as a result of any breach
hereof.

 

5

 

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

 

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

 

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

 

(e)                                  Binding Effect.  This Agreement shall be binding upon the
parties, their successors, executors and heirs.

 

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

 

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

 

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

 

(i)                                     Amendments. 
This agreement may not be amended, altered or modified other than by
a written agreement between the parties hereto.

 

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

 

6

 

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

 

If to Executive:

 

Yvon Cariou

[Home Address]

 

If to the Company:

 

Dynamic Materials Corporation

Attention: Chief Financial Officer

5405 Spine Road

Boulder, CO 80301

Facsimile:  (303) 604-1897

 

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

 

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

 

[Signature Page Follows]

 

7

 

Acknowledgment

 

Each
party’s signature below acknowledges that the party has read this document
fully, that the party fully understands and agrees to its contents and effect,
that the party understands that it is a legally binding document, that the
party is mentally and physically competent and capable of reading,
understanding and signing this Agreement, and that the party has signed this
document voluntarily and of its own free will, and not as a result of any
pressure or coercion.  Each party’s
signature below further acknowledges that the party has had the opportunity to
consult with an attorney about the meaning and effect of the terms of this
Agreement and that each party has in fact consulted with an attorney of the
party’s own choosing about this Agreement.

 

This Agreement is executed as of
the date first set above:

 

 

	
   

  	
  DYNAMIC MATERIALS CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard A. Santa

  
	
   

  	
   

  	
      Richard
  A Santa

  
	
   

  	
   

  	
      Senior
  Vice President and Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Yvon
  Cariou                                                              
  

  
	
   

  	
  Yvon
  Cariou

  

 

 

[Signature Page to Cariou
Employment Agreement]

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