FIRST AMENDMENT TO AMENDED AND RESTATED
CREDIT FACILITY AND SECURITY AGREEMENT
THIS FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT FACILITY AND SECURITY
AGREEMENT (this "FIRST AMENDMENT"), effective as of the 31st day of December, 1998, is entered into
by and between DYNAMIC MATERIALS CORPORATION, a Delaware corporation (the "COMPANY"),
and KEYBANK NATIONAL ASSOCIATION, a national banking association (the "BANK").
R E C I T A L S:
A. On November 30, 1998, the Company and the Bank entered into an Amended and Restated Credit Facility
and Security Agreement (the "Credit Agreement") pursuant to which the Bank agreed to provide reducing,
revolving credit facilities in an aggregate principal amount of up to $14,000,000.
B. The Company desires to restructure the credit facilities provided under the Credit Agreement by reducing the
maximum principal amount of the Acquisition Line from $8,000,000 to $5,700,000 and by adding a new
reducing, revolving credit facility with a maximum principal amount of $2,300,000, and the Bank is willing to do
so on the terms and subject to the conditions set forth herein.
NOW, THEREFORE, in consideration of the foregoing premises and other good and valuable consideration, the
receipt, adequacy and sufficiency of which are hereby acknowledged, the parties hereto covenant and agree as
1. CREDIT AGREEMENT AMENDMENTS. The Credit Agreement is hereby amended as follows:
(A) Section 1.2 of the Credit Agreement is hereby amended by amending the definitions of the terms "Acquisition
Line Credit Limit", "Borrowing Base", "Interest Period", "Note", "Notes" and "Working Capital Line Credit Limit"
contained therein to read in their entirety as follows:
"ACQUISITION LINE CREDIT LIMIT" shall mean $5,700,000 less any permanent reductions to such amount
resulting from (i) principal payments required to be made under Section 2.7(a) hereof and (ii) Free Cash Flow
recapture payments made under Section 2.8(c) hereof.
"BORROWING BASE" shall mean an amount equal to the s