[EMPIRE INTERNATIONAL LETTERHEAD]


January 31, 1995


Michael Beam
108 Briarwood Court
New Hartford, NY  13413

Dear Mike:

It is with great pleasure that Empire International, on behalf of its client,
Dynamic Materials Corporation/Explosive Fabricators, Inc., offers you a new
career situation as Vice-President of Marketing & Sales. We are certain that
this position will afford an exciting professional challenge and opportunity for
personal growth.

The offer of professional employment is as follows:

1.    Salary:  $8,916.67 per month.

2.    Incentive Stock Option on Hire Date: 18,000 ISOs for shares of DMC's
      common stock option price at prevailing market value on the acceptance
      date of this agreement.

3.    Future Incentive Stock Options: The Board of Directors shall annually
      evaluate performance and consider offering additional stock options on
      performance criteria to be determined at these times.

4.    Bonus: A discretionary cash bonus will be paid annually as deemed
      appropriate by the Board of Directors, predicated on achievement of
      performance objectives set by the Corporation. The targeted amount of the
      bonus for the first year of employment is twenty-five percent (25%) of the
      starting salary as above.

5.    Moving Expenses: DMC is hereby stating its intent with respect to the Beam
      family's relocation costs. An amount of $30,000 will be paid for
      relocation costs incurred directly as a result of relocation to Colorado.
      This money will be paid on the following condition: The payment will be
      evidenced as an unsecured Promissory Note payable to DMC three (3) years
      hence. If you choose to leave DMC prior to the note's maturity date,
      monies will be repaid to DMC on a pro-rata basis.

6.    Auto Allowance & Expenses: A company vehicle, fully fueled and insured,
      will be provided by DMC upon employment.

7.    Other Group Benefits:




      (a)   Health insurance, dental insurance, term life insurance coverage,
            and short-term disability insurance consistent with the normal terms
            and conditions as afforded other employees of DMC.

      (b)   Participation in DMC's 401(k) retirement program after six (6)
            months of employment, with a company matching contribution of fifty
            percent (50%) for up to eight percent (8%) of gross earnings.

8.   Payment for the business portion of the use of a cellular telephone.

9.   Discretionary/Executive Benefits:

      (a) Additional supplemental term life insurance policy valued at $200,000.

      (b)   Participation in the Long-Term Disability Insurance Program, based
            on insurance carrier's standard inclusions and exclusions.

      (c)   Three (3) weeks of vacation per year until such time as length of
            service merits additional time in accordance with company policy.

      (d)   Severance: Twenty (20) weeks' salary will be granted for involuntary
            termination without cause.

This offer of employment shall become effective upon commencement of your duties
as Vice-President of Marketing & Sales, which is expected to occur no later than
March 31, 1995.

Please let me know if there is anything Empire International can do to assist
you and your family during this transitional period. Congratulations and good
luck!

Sincerely,


C. Victor Combe, II
President

CVS/mjs
cc:   Paul Lange
      President & Chief Executive Officer
      Dynamic Materials Corporation/Explosive Fabricators, Inc.

Accepted:  /s/ Michael Beam
           --------------------------------
            Michael Beam