----

| Member                         | Additional Capital Contributions | Additional Units                |
|--------------------------------|----------------------------------|---------------------------------|
| Liquidmetal Technologies, Inc. | $1,083,540.77                    | 154,441.98 Class A Common Units |
| C3 Capital Partners, L.P.      | $209,091.29                      | 29,802.73 Class B Common Units  |
| C3 Capital Partners II, L.P.   | $151,410.94                      | 21,581.29 Class B Common Units  |
| TOTAL:                         | $1,444,043.00                    | 205,826.00 Common Units         |

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| 1. | Amendment of Exhibit A.  Exhibit “A” to the Operating Agreement is hereby amended by deleting the table set forth therein in its entirety and replacing it with the table set forth in Exhibit “A” to this Amendment. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Distribution to the Preferred Unit Holders.  Simultaneously herewith, the Company shall make an aggregate distribution of [   ] to the Preferred Unit Holders, which shall be allocated among the Preferred Unit Holders in proportion to their respective remaining Preferential Return Accounts. |   |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

| 3. | Redemption of Preferred Units.  Simultaneously herewith, the Company shall redeem, and the C3 Entities shall each offer for redemption, [ ] Preferred Units from C3 and [ ] Preferred Units from C3II, respectively, for an aggregate redemption price of [   ].  Each of C3 and C3 II shall, simultaneously herewith, deliver to the Company the unit certificates, endorsed by each such C3 Entity, representing the Preferred Units, and the Company shall cancel such certificates and issue to each of the C3 Entities a new unit certificate representing the number of Preferred Units owned by each such C3 Entity following the Redemption, as reflected in Exhibit “A”. |   |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

| 4. | Amendment of Section 3.8(b).  Section 3.8(b) of the Operating Agreement is hereby amended by deleting the first sentence of the second paragraph of said section in its entirety and replacing it with the following: |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 5. | Reaffirmation of Operating Agreement.  Except as modified by this Amendment, the Operating Agreement is hereby reaffirmed in every respect. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | Counterparts, Facsimiles.  This Amendment may be executed in counterparts.  Each executed counterpart of this Amendment will constitute an original document, and all executed counterparts, together, will constitute the same agreement.  Any counterpart evidencing signature by one party that is delivered by telecopy by such party to the other party hereto shall be binding on the sending party when such telecopy is sent, and such sending party shall within the days thereafter deliver to the other parties a hard copy of such executed counterpart containing the original signature of such party or its authorized representative. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | COMPANY:                     |
|--------|------------------------------|
|   |                         |   |   |   |
|   | LIQUIDMETAL COATINGS, LLC    |
|   |                         |   |   |   |
|   | By:                          | /s/ Larry Buffington |   |
|   |                         | Name: | Larry Buffington |
|   |                         | Title: | President and CEO |
|   |                         |   |   |   |
|   | PREFERRED MEMBERS:           |
|   |                         |   |   |   |
|   | C3 CAPITAL PARTNERS, L.P.    |
|   |                         |   |   |   |
|   | By:                          | Its General Partner |
|   |                         |   |   |   |
|   |                         |   | C3 Partners, LLC, a Delaware |
|   |                         |   | limited liability company |
|   |                         |   |   |   |
|   | By:                          | /s/ R. L. SmithJr. |   |
|   | Print Name:        | Robert L. Smith Jr. |
|   | Title:                       | Manager |
|   |                         |   |   |   |
|   | C3 CAPITAL PARTNERS II, L.P. |
|   |                         |   |   |   |
|   | By:                          | Its General Partner |
|   |                         |   |   |   |
|   |                         |   | C3 Partners II, LLC, a Delaware |   |
|   |                         |   |     limited liability company |   |
|   |                         |   |   |   |
|   | By:                          | /s/ R. L. SmithJr. |   |
|   | Print Name:        | Robert L. Smith Jr. |
|   | Title:                       | Manager |

----

|   | COMMON MEMBERS:                           |
|--------|-------------------------------------------|
|   |                                      |   |   |   |
|   | CLASS A HOLDER:                           |
|   | LIQUIDMETAL TECHNOLOGIES, INC.            |
|   |                                      |   |   |   |
|   |                                      | /s/ Thomas Steipp |   |
|   | By:                                       | Thomas Steipp |   |
|   | Title:                                    | CEO |   |
|   |                                      |   |   |   |
|   | CLASS B HOLDERS:                          |
|   | C3 CAPITAL PARTNERS, L.P.                 |
|   |                                      |   |   |   |
|   | By: Its General Partner                   |
|   |                                      |   |   |   |
|   |                                      |   | C3 Partners, LLC, a Delaware |   |
|   |                                      |   | limited liability company |   |
|   |                                      |   |   |   |
|   | By:                                       | /s/ R.L. Smith Jr. |   |
|   | Print Name:                     | Robert Smith Jr. |   |
|   |                                      |   |   |   |
|   | Title:                                    | Manager |   |
|   |                                      |   |   |   |
|   | C3 CAPITAL PARTNERS II, L.P.              |
|   |                                      |   |   |   |
|   | By: Its General Partner                   |
|   |                                      |   |   |   |
|   |                                      |   | C3 Partners II, LLC, a Delaware |   |
|   |                                      |   | limited liability company |   |
|   |                                      |   |   |   |
|   | By:                                       | /s/ R.L. Smith Jr. |   |
|   | Print Name:                     | Robert Smith Jr. |   |
|   | Title:                                    | Manager |   |
|   |                                      |   |   |   |
|   | LARRY BUFFINGTON                          |
|   |                                      |   |   |   |
|   | /s/ Larry Buffington                      |   |
|   | Larry Buffington                          |   |
|   |                                      |   |   |   |
|   | GLOBAL STRATEGY & CAPITAL GROUP, INC. |
|   | D.B.A. CRESO CAPITAL PARTNERS             |
|   |                                      |   |   |   |
|   | By:                                       | /s/ Thomas Papa |   |
|   | Print Name:                     | /s/ Thomas Papa |   |
|   | Title:                                    | Principal |   |

----

|   | CLASS C HOLDERS:                          |
|--------|-------------------------------------------|
|   |                                      |   |   |   |
|   | LARRY BUFFINGTON                          |
|   |                                      |   |   |   |
|   | /s/ Larry Buffington                      |   |
|   | Larry Buffington                          |
|   |                                      |   |   |   |
|   | GLOBAL STRATEGY & CAPITAL GROUP, INC. |
|   | D.B.A. CRESO CAPITAL PARTNERS             |
|   |                                      |   |   |   |
|   | By:                                       | /s/ Thomas Papa |   |
|   | Print Name:                     | /s/ Thomas Papa |   |
|   | Title:                                    | Principal |   |

----

| Members                                                                                                                                                                                    |   | Initial Capital Contribution |   | Additional Capital Contribution1 |   | Number and Class of Units         |   | Percentage Interest |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|--------|----------------------------------|--------|-----------------------------------|--------|---------------------|
|                                                                                                                                                                                       |   |                         |   |                             |   |                              |   |                |
| PREFERRED UNIT HOLDERS                                                                                                                                                                     |   |                         |   |                             |   |                              |   |                |
|                                                                                                                                                                                       |   |                         |   |                             |   |                              |   |                |
| C3 Capital Partners, LP, a Delawarelimited partnership C3 Capital, LLC4520 Main StreetSuite 1600Kansas City, Missouri 64111Attn:  Robert L. SmithFacsimile: 816-756-5552    |   | $1,450,000                   |   | N/A                              |   | 1,106.72 Preferred Units*         |   | NONE**              |
|                                                                                                                                                                                       |   |                         |   |                             |   |                              |   |                |
| C3 Capital Partners II, LP, aDelaware limited partnership C3 Capital, LLC4520 Main StreetSuite 1600Kansas City, Missouri 64111Attn:  Robert L. SmithFacsimile: 816-756-5552 |   | $1,050,000                   |   | N/A                              |   |  801.42 Preferred Units*     |   | NONE**              |
|                                                                                                                                                                                       |   |                         |   |                             |   |                              |   |                |
| TOTALS                                                                                                                                                                                     |   | $2,500,000                   |   |                             |   | 1,908.13 Preferred Units*         |   |                |
|                                                                                                                                                                                       |   |                         |   |                             |   |                              |   |                |
| COMMON UNIT HOLDERS                                                                                                                                                                        |   |                         |   |                             |   |                              |   |                |
|                                                                                                                                                                                       |   |                         |   |                             |   |                              |   |                |
| Liquidmetal Technologies, Inc., aDelaware corporation 30452 EsperanzaRancho Santa Margarita, California 92688Attention:  Legal DepartmentFax No.:  813.314.0270   |   | $4,027,335                   |   | $1,083,540.77                    |   | 201,878.23Class A Common Units*** |   | 72.86%              |

----

| Members                                                                                                                                                                                     |   | Initial Capital Contribution |   | Additional Capital Contribution1 |   | Number and Class of Units                                        |   | Percentage Interest |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|--------|----------------------------------|--------|------------------------------------------------------------------|--------|---------------------|
|                                                                                                                                                                                        |   |                         |   |                             |   |                                                             |   |                |
| C3 Capital Partners, LP, a Delawarelimited partnership C3 Capital, LLC4520 Main StreetSuite 1600Kansas City, Missouri 64111Attn:  Robert L. SmithFacsimile: 816-756-5552     |   | $635,848.00                  |   | $209,091.29                      |   | 38,956.52Class B Common Units****                                |   | 14.06%              |
|                                                                                                                                                                                        |   |                         |   |                             |   |                                                             |   |                |
| C3 Capital Partners II, LP, a Delaware limited partnership C3 Capital, LLC4520 Main StreetSuite 1600Kansas City, Missouri 64111Attn:  Robert L. SmithFacsimile: 816-756-5552 |   | $457,742.00                  |   | $151,410.94                      |   | 28,209.90Class B Common Units****                                |   | 10.18%              |
|                                                                                                                                                                                        |   |                         |   |                             |   |                                                             |   |                |
| Larry Buffington 25422 Vinechase DrivePorter, TX 77365Fax No. (281) 348-0863                                                                                                           |   | $65,000.00                   |   | $0                               |   | 5,850.00Class B Common Units***** 1,000Class C Common Units |   | 2.47%               |
|                                                                                                                                                                                        |   |                         |   |                             |   |                                                             |   |                |
| Global Strategy & Capital Group,Inc. d.b.a. CRESO Capital Partners 660 Newport Center Drive, Suite 800Newport Beach, CA 92660Fax No. (949) 209-5441Attn:  Thomas Papa    |   | $11,375.00                   |   | $0                               |   | 1,023.75Class B Common Units****** 175Class C Common Units  |   | 0.43%               |
|                                                                                                                                                                                        |   |                         |   |                             |   |                                                             |   |                |
| TOTALS                                                                                                                                                                                      |   | $5,197,300.00                |   | $1,444,043.00                    |   | 277,093.40 Common Units                                          |   | 100.00%             |

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