FIRST AMENDMENT TO LOAN DOCUMENTS
THIS FIRST AMENDMENT TO LOAN DOCUMENTS (this "FIRST AMENDMENT"), executed this 18th
day of March, 1998, is by and between DYNAMIC MATERIALS CORPORATION, a Delaware corporation
("COMPANY"), and KEYBANK NATIONAL ASSOCIATION, a national banking association ("BANK").
R E C I T A L S:
A. On July 19, 1996, the Company and the Bank entered into that certain Credit Facility and Security
Agreement (the "Prior Credit Agreement") pursuant to which the Bank agreed to make Loans to the Company,
on a revolving basis, in a maximum principal amount not to exceed $7,500,000.
B. The Company desires to reduce the maximum principal amount of the Loans which may be borrowed under
the Prior Credit Agreement, and modify certain other terms and conditions of the Prior Credit Agreement, and
the Bank is willing to agree to such reduction and modification, on the terms and 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. CREDITAGREEMENT AMENDMENTS. The Prior Credit Agreement is hereby amended as follows:
(a) REDUCTION IN MAXIMUM PRINCIPAL AMOUNT OF LOANS. The first sentence of Section 2.1(a)
(i) is hereby deleted and shall be replaced with the following:
"The Bank will make one or more revolving Credit Loans to the Company from time to time on and after the date
of this Agreement through and including the Termination Date, in an aggregate principal amount not to exceed the
lesser of (i) Five Million Dollars ($5,000,000) or (ii) the Loan Base as calculated from time to time."
(b) INCREASE IN MAXIMUM AMOUNT OF CAPITAL EXPENDITURES. Section 8.19 is hereby
amended as set forth in such Section of the Credit Facility and Security Agreement between Company and Bank
dated March 18, 1998 (the "New Credit Agreement"). Further, the Company is hereby granted a waiver to
exceed the for