Exhibit 10.1

AMENDMENT NO. 1 TO SECURITIES PURCHASE AGREEMENT
AND CONVERTIBLE SUBORDINATED NOTES

THIS AMENDMENT NO. 1 TO SECURITIES PURCHASE AGREEMENT AND CONVERTIBLE
SUBORDINATED NOTES (this “Amendment”), dated as of April 23, 2007, amends (i)
that certain Securities Purchase Agreement, dated January 3, 2007 (the “Purchase
Agreement”), among Liquidmetal Technologies, Inc., a Delaware corporation (the
“Company”), and the investors listed on the Schedule of Buyers attached thereto
(individually, a “Buyer” and collectively, the “Buyers”), and (ii) the
Convertible Subordinated Notes, dated January 3, 2007, issued to the Buyers
pursuant to the Purchase Agreement (the “Notes”).

WHEREAS:

A.            On January 3, 2007, pursuant to the Purchase Agreement, the
Company completed a private placement (the “Private Placement”) of the Notes and
warrants to purchase shares of the Company’s common stock (the “Warrants”).

B.            The parties to this Amendment desire to hereby amend the Purchase
Agreement and Notes to, among other things, modify certain covenants and extend
certain additional rights and benefits to the Buyers.

C.            As required by Section 9(e) of the Purchase Agreement and Section
17 of the Notes, the Buyers who have executed this Amendment represent more than
one-half of the aggregate principal amount of the Notes.

NOW, THEREFORE, the Company and each Buyer hereby agree as follows:

1.             Section 4(i) of the Purchase Agreement is hereby amended by
deleting said section in its entirety and replacing it with the following:

“(i)          Debt Repayment.  The Company will, on or before October 1, 2007
(or such earlier date on which such indebtedness is due), pay off all of its
indebtedness in existence as of January 3, 2007, other than the indebtedness set
forth on Schedule 4(i) and other than trade debt, capital leases, and equipment
financing incurred in the ordinary course of business.”

2.             The Schedule of Buyers attached to the Purchase Agreement is
hereby amended by deleting such schedule in its entirety and replacing it with
the Schedule attached hereto as Exhibit A.

3.             In consideration of the provisions set forth in Sections 1 and 2
of this Amendment, the Company hereby agrees to amend each Note as follows, with
such amendment being effective as of the date of this Amendment:

a.             In Section 3(b)(ii) of the Note, the initial Conversion Price (as
defined in the Note)  is changed to $1.10.

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b.             The following paragraph is hereby added to each Note as new
Section (1)(d):

“(d)         Within two (2) trading days after the closing of one or more
Qualified Transactions resulting in $25,000,000 (Twenty Five Million Dollars) in
aggregate proceeds after transaction expenses and placement agent or broker
commissions or fees, the Company will notify the Holder of said closing (a
“Transaction Notice”).  Upon the closing of the Qualified Transaction, the
Holder may elect to have all or part of the outstanding principal amount of this
Note and all accrued but unpaid interest thereunder redeemed within five (5)
Trading Days of the Company’s receipt of written notice of the Holder’s election
to effect such redemption.  In order to elect such redemption, the Holder must
deliver written notice of redemption to the Company within twenty (20) Trading
Days after its receipt of the Transaction Notice, and such written notice must
be accompanied by the surrender of the originally executed Note, which must be
marked “cancelled” (provided that in lieu of surrendering the Notes (if not
fully redeemed), the Holder may deliver a certification to the Company affirming
that the requisite principal amount of Notes is being forfeited as a result of
such redemption, in which case the change in the Notes will be noted by book
entry by the Company).  For purposes hereof, the term “Qualified Transactions”
means (A) the sale of all or a significant portion of the assets of the
Company’s Liquidmetal Coatings business unit (whether by merger, asset sale, or
stock sale), other than sales in the ordinary course of business, and/or (B) the
sale of Liquidmetal Korea’s manufacturing facility in Pyong-Taek, Republic of
Korea and that the appropriate authorities or banks in the Republic of Korea
approve the transfer of such proceeds from Liquidmetal Korea to the Company
and/or (C) the raising of capital in a debt or equity offering after the date
hereof (subject to any restrictions or limitations thereon set forth in the
Purchase Agreement or the Notes).

4.             In consideration of the provisions set forth in Sections 1 and 2
of this Amendment, the Company also hereby agrees to amend each Warrant as
follows:  In the first paragraph of the Warrant, the Exercise Price (as defined
in the Warrant) is changed to $1.55, and the maximum number of shares of Company
common stock issuable upon the exercise of such Warrant is increased to an
amount that equals fifty percent (50%) of the principal amount of the Note in
connection with which the Warrant was issued divided by $1.10.

5.             Upon surrender of any Note or Warrant to the Company, the Company
will promptly exchange such Note or Warrant for a new Note or Warrant that
incorporates the amendments set forth in Sections 3 and 4 hereof but that shall
otherwise be identical to the original Note or Warrant.

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6.             Buyers acknowledge that the Company plans to pursue a private
placement (the “New Private Placement”) of convertible notes (the “New Notes”)
in the aggregate amount of up to $15,000,000 in order to satisfy certain other
indebtedness of the Company outstanding on the date hereof, and the Company
agrees that it will grant to the Buyers a security interest to secure the Notes
in any assets granted as security for the New Notes, and the Notes will be pari
passu with the New Notes with respect to security and in right of payment in
proportion to the relative principal amounts of the notes held by the holders of
the New Notes and Notes.  In addition, Section 15(a) of each Note is hereby
amended to provide that payments under the Note shall not senior to, and shall
not preclude payments under, the New Notes so long as the form of New Notes is
approved by the holders of a majority or more of the then-outstanding principal
amount of the Notes.

7.             Except as specifically set forth in this Amendment, all of the
terms and provisions of the Purchase Agreement and Notes shall continue to
remain in full force and effect.  Capitalized terms appearing in this Amendment
and not otherwise defined herein shall have the meanings ascribed thereto in the
Purchase Agreement or Notes.

8.             This Amendment may be executed in any number of counterparts,
each of which shall be deemed to be an original, and all of which together shall
constitute one document. This Amendment, together with the Purchase Agreement
and Notes, contains the final, complete, and exclusive expression of the
parties’ understanding and agreement concerning the matters contemplated herein
and supersedes any prior or contemporaneous agreement of representation, oral or
written, among them.  This Amendment shall be governed by, and construed and
enforced in accordance with the laws of the State of New York without reference
to principles of choice of law thereunder.

[signatures follow]

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IN WITNESS WHEREOF, the parties have caused their respective signature page to
this Amendment to be duly executed as of the date first written above.

 

 

COMPANY:

 

 

 

 

 

LIQUIDMETAL TECHNOLOGIES, INC.

 

 

 

 

 

 

 

By:

/s/ Larry E. Buffington

 

 

Name: Larry E. Buffington

 

 

Title: President and Chief Executive Officer

 

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IN WITNESS WHEREOF, each Buyer below has caused its respective signature page to
this Amendment to be duly executed as of the date first written above.

 

 

BUYERS:

 

 

 

 

 

Diamond Opportunity Fund, LLC

 

 

 

 

 

 

 

By:

/s/ Richard Marks

 

 

Name: Richard Marks

 

 

Title: Managing Director

 

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IN WITNESS WHEREOF, each Buyer below has caused its respective signature page to
this Amendment to be duly executed as of the date first written above.

 

 

BUYERS:

 

 

 

 

 

THE TAIL WIND FUND LTD.

 

 

By: TAIL WIND ADVISORY & MANAGEMENT LTD., as investment manager

 

 

 

 

By:

/s/ David Crook

 

 

Name: David Crook

 

 

Title: CEO

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IN WITNESS WHEREOF, each Buyer below has caused its respective signature page to
this Amendment to be duly executed as of the date first written above.

 

 

BUYERS:

 

 

 

 

 

Solomon Strategic Holdings, Inc.

 

 

 

 

 

 

 

By:

/s/ A P MacKellar

 

 

Name: A P MacKellar

 

 

Title: Director

 

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IN WITNESS WHEREOF, each Buyer below has caused its respective signature page to
this Amendment to be duly executed as of the date first written above.

 

 

BUYERS:

 

 

 

 

 

 

 

 

 

 

 

 

 

By:

/s/ Abdi Mahamedi

 

 

Name: Abdi Mahamedi

 

 

Title:

 

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IN WITNESS WHEREOF, each Buyer below has caused its respective signature page to
this Amendment to be duly executed as of the date first written above.

 

 

BUYERS:

 

 

 

 

 

 

 

 

 

 

 

 

 

By:

/s/ Edward Neugeboren

 

 

Name: Edward Neugeboren

 

 

Title:

 

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EXHIBIT A

SCHEDULE OF BUYERS

(1)

 

(2)

 

(3)

 

(4)

 

(5)

 

Buyer

 

Address, Email and Facsimile Number

 

Aggregate
Principal
Amount
of Notes

 

Number of
Warrants**

 

Legal Representative’s
Address and Facsimile Number

 

 

 

 

 

 

 

 

 

 

 

Fort Mason Master, LP

 

4 Embarcadero Center
Suite 2050
San Francisco, CA 94111
Facsimile: 415-288-8113
Email: mjensen@fortmasoncapital.com
klynch@fortmasoncapital.com

 

$2,817,300

 

1,280,591

 

 

 

 

 

 

 

 

 

 

 

 

 

Fort Mason Partners, LP

 

4 Embarcadero Center
Suite 2050
San Francisco, CA 94111
Facsimile: 415-288-8113
Email: mjensen@fortmasoncapital.com
klynch@fortmasoncapital.com

 

$182,700

 

83,046

 

 

 

 

 

 

 

 

 

 

 

 

 

The Tail Wind Fund Ltd.

 

The Tail Wind Fund Ltd.
c/o Tail Wind Advisory and Management Ltd.
Attn: David Crook
77 Long Acre
London WC2E 9LB UK
Facsimile: 44-207-420 3819
Email: dcrook@tailwindam.com

 

$1,250,000

 

568,182

 

Peter J. Weisman, P.C.
52 Venderbilt, 17th Floor
New York, NY 10017
Facsimile: 212-317-8855

 

 

 

 

 

 

 

 

 

 

 

Solomon Strategic Holdings, Inc.

 

c/o A P MacKellar
Greenlands
The Red Gap
Castletown
Isle of Man
IM9 1HB
British Isles
Facsimile: +44 (0) 1624 824191

 

$250,000

 

113,637

 

Peter J. Weisman, P.C.
52 Vanderbilt, 17th Floor
New York, NY 10017
Facsimile: 212-317-8855

 

 

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Whitebox Intermarket Partners, L.P.

 

3033 Excelsior Blvd.
Suite 300
Minneapolis, MN 55416
Facsimile: (612) 253-6100

 

$2,000,000

 

909,091

 

 

 

 

 

 

 

 

 

 

 

 

 

CastleRigg Master Investments Ltd.

 

c/o Sandell Asset Management Corp.
40 W. 57th Street, 26th Floor
New York, NY 10019
Facsimile: 212-603-5710

 

$2,000,000

 

909,091

 

 

 

 

 

 

 

 

 

 

 

 

 

Diamond Opportunity Fund, LLC

 

500 Skokie Blvd.
Suite 300
Northbrook, IL 60062
Facsimile: 847-919-4410
Email: rmarks@diagrp.com

 

$350,000

 

159,091

 

 

 

 

 

 

 

 

 

 

 

 

 

Rockmore Investment Master Fund, Ltd.

 

c/o Rockmore Capital, LLC
150 East 58th Street, 28th Floor
New York, NY 10155
Facsimile: 212-258-2315
Email: as@rockmorecapital.com

 

$1,000,000

 

454,546

 

 

 

 

 

 

 

 

 

 

 

 

 

Abdi Mahamedi

 

c/o Carlyle Development Group
2 Gannett Drive
Suite 201
White Plains, NY 10604
Facsimile: 914-694-6789
Email: carlylegroup@aol.com

 

$500,000

 

227,273

 

 

 

 

 

 

 

 

 

 

 

 

 

BridgePointe Master Fund Ltd.

 

1125 Sanctuary Parkway
Suite 275
Alpharetta, GA 30004
Facsimile: 770-777-5844
Email: BradHathorn@Roswell
CapitalPartners.com

 

$2,000,000

 

909,091

 

P. Bradford Hathorn, Esq.
1125 Sanctuary Parkway
Suite 275
Alpharetta, GA 30004

 

 

 

 

 

 

 

 

 

 

 

Iroquois Master Fund Ltd.

 

641 Lexington Ave., 26th Floor
New York, NY 10022
Facsimile: 212-207-3452
Email: jsilverman@iefund.com

 

$500,000

 

227,273

 

 

 

 

 

 

 

 

 

 

 

 

 

Rodd Friedman

 

93 Hillspoint Road
Westport, CT 06880
Facsimile: 203-663-1303
Email: roddf@optonline.net

 

$148,874

 

67,670

 

 

 

 

11

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Myron Neugeboren

 

P.O. Box 1410
Lakeville, CT 06039
Facsimile: 860-435-2603
Email: neugeboren@sbcglobal.net

 

$28,904

 

13,139

 

 

 

 

 

 

 

 

 

 

 

 

 

Ricardo A. Salas

 

64 Ritz Cove Drive
Monarch Beach, CA 92629
Facsimile: 949-315-3096

 

$330,990

 

150,451

 

 

 

 

 

 

 

 

 

 

 

 

 

Chang Ki Cho

 

Kangnam-Ku Gaepo-Dong 12-2
LG Gaepo Xi Apt # 101-901
Seoul, Korea 135-543
Facsimile: 82-2-749-0574

 

$436,174

 

198,261

 

 

 

 

 

 

 

 

 

 

 

 

 

Eric Brachfeld

 

890 West End Ave., #160
New York, NY 10025
Facsimile: 212-298-9933
Email: eric@indiven.com

 

$54,522

 

24,783

 

 

 

 

 

 

 

 

 

 

 

 

 

Edward Neugeboren

 

282 New Norwalk Road
New Canaan, CT 06840
Email: edward@indigomcg.com

 

$20,095

 

9,135

 

 

 

 

 

 

 

 

 

 

 

 

 

Wynnefield Partners Small Cap Value, LP

 

450 Seventh Ave., Suite 509
New York, NY 10123
Facsimile: 212-760-0824

 

$420,000

 

190,910

 

 

 

 

 

 

 

 

 

 

 

 

 

Wynnefield Partners Small Cap Value, LP I

 

450 Seventh Avenue, Suite 509
New York, NY 10123
Facsimile: 212-760-0824

 

$550,000

 

250,000

 

 

 

 

 

 

 

 

 

 

 

 

 

Wynnefield Small Cap Value Offshore Fund, Ltd.

 

450 Seventh Avenue, Suite 509
New York, NY 10123
Facsimile: 212-760-0824

 

$530,000

 

240,910

 

 

 

 

 

 

 

 

 

 

 

 

 

Kenneth Lisiak

 

8 Haskell Road
Andover, MA 01810
Facsimile: 978-475-7146

 

$167,861

 

76,301

 

 

 

 

 

 

 

 

 

 

 

 

 

Vestal Venture Capital

 

6471 Enclave Way
Boca Raton, FL 33496
Facsimile: 561-912-9979

 

$366,935

 

166,789

 

 

 

 

 

 

 

 

 

 

 

 

 

Charles Jong Won Kim

 

1015 Calle Son Rosa
Glendale, CA 91208

 

$225,806

 

102,640

 

 

 

 

 

 

 

 

 

 

 

 

 

Chunhyong (Charles) Myong

 

Hilltop Treasure 505 B
Hannamdong 1-44, Yong San-Gu
Seoul, Korea
Facsimile: 822-317-5086

 

$169,355

 

76,980

 

 

 

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**             Reflects the changes to the warrant amounts set forth in Section
4 of this Amendment No. 1.

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