Exhibit 10.5
 
CONSENT AGREEMENT
 
THIS CONSENT AGREEMENT (this “Agreement”) is made and entered into as of
November 2, 20101, by and between LIQUIDMETAL TECHNOLOGIES, INC. a Delaware
corporation (“Company”), having its principal office at 30452 Esperanza, Rancho
Santa Margarita, CA 92688 , and the undersigned holders of preferred stock of
the Company (“Holders”).

RECITALS:
 
 
A.
On May 1, 2009, the Company filed with the Delaware Secretary of State a
Certificate of Designations, Preferences and Rights of Series A Preferred Stock
(the “Designation”) designating and setting forth the preferences and rights of
the Company’s Series A-1 Preferred Stock (“Series A-1 Preferred Stock”) and
Series A-2 Preferred Stock (“Series A-2 Preferred Stock”, and together with the
Series A-1 Preferred Stock, the “Series A Preferred Stock”).

 
 
B.
Holders are collectively the owners of (i) more than two-thirds of the total
number of shares of Series A-1 Preferred Stock outstanding as of the date of
this Agreement on both an actual and as-converted basis, (ii) more than
two-thirds of the total number of shares of Series A-2 Preferred Stock
outstanding as of the date of this Agreement on both an actual and as-converted
basis, and (iii) more than two-thirds of the total combined number of shares of
Series A-1 Preferred Stock and Series A-2 Preferred Stock outstanding as of the
date of this Agreement on both an actual and as-converted basis..

 
 
C.
Holders desire to hereby consent to an amendment and restatement of the
Designation upon the terms and conditions set forth herein (the “Amended
Designation”).

 
 
D.
This Agreement constitutes the consent to and approval of the Amended
Designation by the holders of the Series A Preferred Stock as required under
Sections 6 and 7 of the Designation, Article VIII of the Company’s Certificate
of Incorporation, as amended, and Section 242 of the Delaware General
Corporation Law.

 
 
E.
In connection with each Holder’s original purchase of the Series A Preferred
Stock, the Company previously issued to the Holder the common stock purchase
warrants indicated next to the Holder’s name Exhibit A hereto (the “Warrants”)
upon the terms and conditions set forth in one or more Common Stock Purchase
Warrants dated May 1, 2009 (the “Warrant Agreements”).

 
NOW, THEREFORE, in consideration of the premises and covenants contained in this
Agreement, the parties hereto, intending to be legally bound, agree as follows:
 

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1 The agreement will be dated on the date on which the Company receives the last
signature necessary for approval.
 

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1.      Approval of Amended Designation.  In consideration of the agreement by
the Company set forth in Section 2 of this Agreement, each Holder hereby
approves and consents to the Amended Designation, which shall be in
substantially the form attached hereto as Exhibit B.  For purposes of this
Agreement, each Holder hereby represents and warrants to the Company that such
Holder is the record and beneficial owner of the shares of Series A Preferred
Stock set forth next to such Holder’s name on Exhibit A hereto and that such
Holder has the power and authority to enter into this Agreement.
 
2.      Amendment of Warrant Agreements.  In consideration of each Holder’s
consent to, and approval of, the Amended Designation in substantially the form
attached hereto as Exhibit A, the Company hereby agrees that each Holder’s
Warrant Agreements shall, contingent upon and effective as of the date of the
filing and acceptance of the Amended Designation by the Delaware Secretary of
State (the “Effective Date”), be amended as follows:
 
a.      Expiration Date.  The Expiration Date (as defined in the Warrant
Agreements) is hereby extended to July 15, 2015.
 
b.      Certain Anti-Dilution Rights.  Section 9(c) of the Warrant Agreements is
hereby deleted in its entirety and replaced with the following text:   “Section
9(c).   [Intentionally left blank].”
 
Except to the extent modified by the foregoing amendments, the Holder’s Warrant
Agreements shall continue to remain in full force and effect after the Effective
Date in accordance with the terms thereof.
 
3.      Miscellaneous.
 
a.      Confidentiality.  Each Holder acknowledges that, until such time as the
Company files a Form 8-K with the Securities and Exchange Commission disclosing
this Agreement and the Amended Designation and the terms thereof, the existence
of this Agreement and the Amended Designation and the terms thereof are material
nonpublic information relating to the Company, and each Holder will accordingly
(i) refrain from disclosing to third parties the existence of this Agreement and
the Amended Designation and the terms thereof prior to the filing of such Form
8-K and (ii) comply with all applicable securities laws with respect to the
possession of material nonpublic information.
 
b.      Counterparts; Faxed and Scanned Signatures.  This Agreement may be
executed in counterparts, each of which shall be deemed an original of this
Agreement and all of which, when taken together, shall be deemed to constitute
one and the same Agreement.  The parties agree that this Agreement may be
executed by each party signing one original and providing a facsimile (fax)
copy, or scanned copy by .pdf, of the signature page to the other party,
provided that each party agrees to make its document with the original signature
available to the other party upon request, and further provided that the parties
agree that the fax or scanned signature shall be treated as if it were an
original signature, and neither party shall contest the validity of this
Agreement based on the use of fax or scanned signatures.
 
c.      Entire Agreement.  This Agreement constitutes the entire agreement of
the parties with respect to the subject matter hereof.
 
d.      Governing Law.  This Agreement shall be governed by the laws of the
State of Delaware, without giving effect to the principles of conflict of laws
thereof and without regard to where the Agreement is executed or to be
performed.
 
e.      Severability.  In the event any provision of this Agreement is found to
be unenforceable, void, invalid or unreasonable in scope, such provision shall
be modified to the extent necessary to make it enforceable, and as so modified,
this Agreement shall remain in full force and effect.
 
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f.      Successors and Assigns.  The rights and obligations of the parties under
this Agreement shall inure to the benefit of, and shall be binding upon, their
respective heirs, executors, administrators, successors, assigns, subsidiaries,
affiliates, directors, officers, employees, representatives and agents, as
applicable.
 
[signatures to follow]
 
3

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COMPANY SIGNATURE PAGE TO CONSENT AGREEMENT
 
IN WITNESS WHEREOF, the Company has executed this Agreement as of the day and
year first above written.

LIQUIDMETAL TECHNOLOGIES, INC.
 
By:
/s/ Thomas Steipp
       
Name:
Thomas Steipp
       
Title:
Chief Executive Officer
 

 

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HOLDER COUNTERPART SIGNATURE PAGE TO CONSENT AGREEMENT
 
IN WITNESS WHEREOF, the undersigned Holder has executed this Agreement as of the
day and year first above written.

HOLDER
 
Name of Holder:
   

By:
     
Name:
     
Title:
   

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EXHIBIT A
To
Consent Agreement

 
 
Series A-1
Preferred Stock
   
Series A-2
Preferred Stock
   
Number of shares of
Common Stock subject to
 
Name of Holder 
 
Actual
   
Actual
   
Warrants
 
Carlyle Liquid Holdings, LLC
    500,000       888,743       23,060,556  
Carlyle Liquid, LLC
            467,612       5,422,209  
Carlyle Holdings, LLC
            58,108       673,785  
Castlerigg Master Investment Ltd.
            25,000       1,834,949  
Abdi Mahamedi
    10,000       116,215       1,602,672  
Ricardo A. Salas
    50,000       82,333       2,230,206  
Grace Partners, LLC
            108,498       1,258,083  
Ed Neugeboren
            606       7,025  
Atlantic Realty
            58,108       673,785  
Edmond J. Harris
    10,000               255,103  
Tjoa Thian Song
    60,000               1,530,613  
John Kang
    20,000               510,205  
Tony Chung
    10,000               255,103  
Thomas Steipp
    20,000               510,205  

 

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EXHIBIT B TO CONSENT AGREEMENT

FORM OF AMENDED DESIGNATION
 

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