----

----

----

| [*]      = | CERTAIN      CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS      AND AN ASTERISK, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES      AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE      ACT OF 1934, AS AMENDED. |
|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1.     | LMT      Technology                                  | 1      |
|--------|------------------------------------------------------|--------|
|   |                                                 |   |
| 2.     | Transaction      Approvals                           | 5      |
|   |                                                 |   |
| 3.     | LMT-SPE      Formation                               | 6      |
|   |                                                 |   |
| 4.     | LMT      Technology Transfers to LMT-SPE             | 7      |
|   |                                                 |   |
| 5.     | LMT      Patent Prosecution                          | 9      |
|   |                                                 |   |
| 6.     | LMT-SPE      Existence and Separateness              | 13     |
|   |                                                 |   |
| 7.     | Due      Diligence                                   | 16     |
|   |                                                 |   |
| 8.     | LMT      Indebtedness and Liens                      | 17     |
|   |                                                 |   |
| 9.     | LMT-SPE      Licenses                                | 18     |
|   |                                                 |   |
| 10.    | Covenant      Not to Compete                         | 21     |
|   |                                                 |   |
| 11.    | Confidentiality                                      | 23     |
|   |                                                 |   |
| 12.    | Independent      Contractor                          | 24     |
|   |                                                 |   |
| 13.    | Indemnification                                      | 24     |
|   |                                                 |   |
| 14.    | Term,      Termination and Suspension of Performance | 25     |
|   |                                                 |   |
| 15.    | Guaranty                                             | 27     |
|   |                                                 |   |
| 16.    | Miscellaneous                                        | 29     |

|   | Annex      1:  | Permitted      Liens                            |
|--------|----------------|-------------------------------------------------|
|   | Annex      2:  | Approvals                                       |
|   | Annex      3:  | LMC      Assignment Agreement                   |
|   | Annex      4:  | LMT      Contribution Agreement                 |
|   | Annex      5:  | Form      of Payoff Letter                      |
|   | Annex      6:  | Apple      License                              |
|   | Annex      7:  | LMT      License                                |
|   | Annex      8:  | LMC      License                                |
|   | Annex      9:  | Technology      Development Agreement           |
|   | Annex      10: | LMT      Security Agreement                     |
|   | Annex      11: | LMT-SPE      Security Agreement                 |
|   | Annex      12: | Form      of Release                            |
|   | Annex      13: | Patent      Counsel Engagement Letter           |
|   | Annex      14: | Due      Diligence Checklist                    |
|   | Annex      15: | List      of Excluded LMC Patents andTrademarks |

----

| Agreement                                | Introduction |
|------------------------------------------|--------------|
| Apple                                    | Introduction |
| Apple      License Agreement             | 9(a)         |
| Apple-Related      Entities              | 9(f)         |
| Approval                                 | 2(b)(iii)    |
| business      enterprise                 | 6(j)         |
| Caltech                                  | 1(e)         |
| Caltech      License                     | 1(e)         |
| Capture      Period                      | 1(a)(iv)     |
| Closing      Date                        | 1(a)(i)      |
| Consumer      Electronic Products        | 10(a)        |
| Due      Diligence Checklist             | 7(a)         |
| Guaranty                                 | 15(b)        |
| indemnified      party                   | 13(a)        |
| Intellectual      Property               | 1(a)(ii)     |
| Intellectual      Property Rights        | 1(a)(iii)    |
| Lien                                     | 1(b)(i)      |
| LMC                                      | Introduction |
| LMC      License Agreement               | 9(c)         |
| LMT                                      | Introduction |
| LMT      Controlled Patents/Applications | 5(h)         |
| LMT      Fundamental Breach              | 14(e)        |
| LMT      License Agreement               | 9(c)         |
| LMT-SPE      Fundamental Breach          | 14(f)        |
| LMT-Subs                                 | 15(a)        |
| LMT      Technology                      | 1(a)(i)      |
| Patent      Counsel                      | 5(c)         |
| Prosecution      and Maintenance Costs   | 5(b)         |
| Transaction      Documents               | 1(b)(viii)   |

----

| 1. | LMT      Technology. |
|----|----------------------|

|   | (a) | For      purposes of this Agreement: |
|--------|-----|--------------------------------------|

|   | (i) | “LMT Technology”shall mean any and all      Intellectual Property and Intellectual Property Rights that, at any time      during the Capture Period, are: (a) owned or licensed (including, without      limitation, sub-licensed) by LMT or LMC, or that LMT or LMC have a right      to use; or (b) owned or licensed (including without limitation      sub-licensed) by LMT-SPE, or that LMT-SPE has a right to use, after being      transferred to LMT-SPE by LMT or LMC. For the avoidance of doubt, any      Intellectual Property Rights related to or arising from Intellectual      Property first created, conceived, invented, or discovered before the end      of the Capture Period shall be deemed to be within the definition of LMT      Technology. Thus, for example, a patent application or copyright      application filed, or any patent issued or copyright registration issued,      more than five years after the Closing Date, but that is related to an      invention conceived or work created within eighteen (18) months of the      Closing date shall be deemed within the definition of LMT Technology. For      purposes of clarification, however, improvements or derivatives of LMT      Technology first created, conceived, invented, or discovered after the      Capture Period shall not be “LMT Technology” notwithstanding the fact that      such improvements or derivatives are derived from, improve, or otherwise      relate to LMT Teclnology. The LMC patents and all LMC trademarks      identified in Annex 15 hereto are excluded from “LMT Technology.” “Closing      Date” shall mean the date of the license granted to Apple pursuant to      Section 9(a). |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (ii) | “Intellectual      Property”shall mean and includes, but is not limited to, all algorithms,      alloys, application program interfaces, compositions, customer lists,      databases, schemata, equipment design, design documents and analyses,      diagrams, documentation, drawings, formulae, discoveries and inventions      (whether or not patentable), know-how, literary works, copyrightable      works, works of authorship, manufacturing processes, mask works, logos,      marks (including names, logos, slogans, and trade dress), methods,      methodologies, architectures, processes, program listings, programming      tools, proprietary information, protocols, schematics, specifications,      software, software code (in any form including source code and executable      or object code), subroutines, user interfaces, techniques, uniform      resource locators, web sites, and all other forms and types of technology      (whether or not embodied in any tangible form and including all tangible      embodiments of the foregoing such as compilations of information,      instruction manuals, notebooks, prototypes, reports, samples, studies, and      summaries). |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | “Intellectual Property Rights” shall mean and includes,      but      is not limited to, all past, present, and future rights of the following      types, which may exist or be created under the laws of any jurisdiction in      the world: (a) rights associated with works of authorship, including      exclusive exploitation rights, copyrights, moral rights, and mask works;      (b) trademark and trade name rights and similar rights; (c) trade dress      rights; (d) trade secret rights; (e) patents and industrial property      rights; (f) other proprietary rights in Intellectual Property of every      kind and nature; and (g) all registrations, renewals, extensions,      combinations, divisions, continuations, continuations in part,      reexamination certificates, or reissues of, and applications for, any of      the rights referred to in clauses (a) through (f)  above. |
|--|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iv) | “Capture Period”shall mean the period      commencing on      the Closing Date and ending on the eighteen month anniversary of the      Closing Date. |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | LMT      represents and warrants to Apple with respect to the portion of the LMT      Technology existing as of the date of this  Agreement: |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Each      of LMT and LMC has, immediately prior to its transfer, in the case of LMC,      to LMT and, in the case of LMT, to LMT-SPE, good title to the portion of      the LMT Technology which it purports to own and valid licenses and      sublicenses to the portion of the LMT Technology which it purports to      license and sublicense, in each case, free of Liens except for the Liens      listed in Annex 1 and Liens that will be released and terminated on the      Closing Date as a result of the transactions contemplated by this      Agreement. A “Lien”is any security interest,      mortgage, pledge, hypothecation, assignment, deposit arrangement,      encumbrance, bailment, conditional sales or title retention agreement,      lien (statutory or otherwise), charge against or interest in property, in      each case of any kind, to secure payment of a debt or performance of an      obligation. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | All      licenses and sublicenses included in the LMT Technology permit the grant      of the licenses, sublicenses and sub-sublicenses contemplated in the grant      of the licenses that will be executed and delivered pursuant to Section 9      of this Agreement. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Neither      LMT nor LMC is in breach of, nor is there any default under, any license      or sublicense included in the LMT Technology under which LMT or LMC is a      licensee or sublicensee; nor has any licensor or sublicensor asserted any      breach or default thereunder. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | The      LMT Technology has not been specifically asserted against any third party,      in a licensing or other context, in a manner in which the third party      (A) has been accused of infringing or misappropriating the LMT Technology      or (B) has standing to bring a declaratory judgment  action. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | The      LMT Technology has not been, and is not, the subject of any threatened,      pending or past litigation, reexamination, reissue or interference      proceeding, or other interested parties legal proceeding before any      tribunal of competent jurisdiction. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | There      is no pending or, to the knowledge of LMT and LMC, any threatened claim      that the use of the LMT Technology infringes any third party Intellectual      Property Rights and, to the knowledge of LMT and LMC, there is no basis      for any such claim. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | There      is no patent claim in the LMT Technology that has been found to be invalid      or unenforceable, in whole or in part, for any reason, in any      administrative, arbitration or judicial proceeding before a tribunal of      competent jurisdiction, and LMT and LMC have not received notice from any      third party threatening the filing of any such  proceeding. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (viii) | No      litigation or other proceeding has been initiated or, to LMT’s knowledge,      threatened against any of the LMT Technology, LMT or LMC or either the      transactions contemplated under this Agreement or the agreements that are      contemplated to be executed and delivered by such parties pursuant to      Section 9 (collectively, the “Transaction      Documents”or by Apple in      connection with such transactions. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (ix) | The      LMT Technology is not subject to any express or implied licensing      obligations of a standards body or patentpool. |
|--|------|--------------------------------------------------------------------------------------------------------------------------------|

|  | (x) | LMT      and LMC have not contributed computer code patented in the LMT Technology      to an open source computer program or otherwise made any contributed      computer code patented in the LMT Technology subject to the obligations of      an copyright license for computer software that makes the source code      available under terms that allow for modification and redistribution      without having to pay the originalauthor. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (xi) | All      patent applications for the LMT Technology were, have been, and continue      to be duly maintained in accordance with the requirements of the United      States Patent and Trademark Office and any foreign patent offices,      including but not limited to the payment of all maintenance fees,      annuities and other payments owed. |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | The      representations made in Section 1(b) will be repeated as of the Closing      Date (if different from the date of this  Agreement). |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | At      all times during the term of this Agreement, LMT and LMT-SPE, as      applicable, shall notify Apple as soon as possible and in any event within      ten (10) days after LMT or LMT-SPE knows, or has reason to know, of any of      the events described below: |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | That      LMC or LMT has any claim, or any of their respective sublicensees has      notified or otherwise advised LMT or LMC that it may have a claim, that it      reasonably anticipates it may or intends to assert under the LMT      Technology against any third party, in a licensing or other context, in a      manner in which the third party (A) would be accused of infringing or      misappropriating the LMT Technology or (B) would have standing to bring a      declaratory judgment action. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | The      LMT Technology shall be the subject of any threatened litigation,      reexamination, reissue or interference proceeding, or other interested      parties legal proceeding before any tribunal of competent      jurisdiction. |
|--|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | Any      claim that use of the LMT Technology infringes any third party      Intellectual Property Rights shall be threatened or    asserted. |
|--|-------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iv) | Any      patent claim in the LMT Technology shall be found to be invalid or      unenforceable, in whole or in part, for any reason, in any administrative,      arbitration, or judicial proceeding before a tribunal of competent      jurisdiction. |
|--|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (v) | Any      litigation or other proceeding shall have been initiated or threatened      against any of the LMT Technology, LMT, LMT-SPE or LMC or the transactions      contemplated under Transaction Documents or Apple in connection with such      transactions. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (e) | LMT      confirms that Apple has been authorized to have direct communications,      conversations and discussions with California Institute of Technology      (“Caltech”)and its employees for the      purpose of investigating the validity, utility and value of the Amended      and Restated License Agreement dated as of September 1, 2001 (“Caltech License”)between Caltech, as licensor, and LMT, as licensee, and the      continued enforceability of the Caltech License against      Caltech. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Transaction      Approvals. |
|----|-----------------------------|

|  | (a) | Concurrently      with its execution and delivery of this Agreement to Apple, each of LMT      and LMC shall deliver to Apple a certificate of its secretary or managing      member, certifying (i) its certificate of incorporation or formation, as      applicable, (ii) its bylaws or operating agreement, as applicable, (iii)      resolutions adopted by its directors or managing member, as applicable,      and (iv) the incumbency of the officers who have executed this Agreement      and are authorized to execute the other Transaction Documents to which it      will be a party, all in form and substance satisfactory to      Apple. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | LMT      and LMC each represents and warrants to Apple (provided that LMC shall not      be liable for any breach of the following representations and warranties      by LMT): |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | It      is duly incorporated or formed, validly existing and in good standing in      its state of formation and qualified and licensed to do business in, and      in good standing in, any state in which the conduct of its business or its      ownership of property requires that it be  qualified. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | The      execution, delivery and performance of Transaction Documents have been      duly authorized, and do not conflict with its certificate of incorporation      or formation, bylaws, and operating agreement, nor constitute an event of      default under any agreement by which it is  bound. |
|--|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | No      authorization, consent, approval, license, lease, ruling, permit,      certification, exemption, filing for registration by or with any federal,      regional, state, local or regulatory or administrative authority or other      person (“Approval”)is      required for its execution and delivery of this Agreement, which Approval      has not been obtained and a copy of which has been provided to Apple; and      such Approvals are in full force andeffect; |
|--|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iv) | No      Approval is required for the execution and delivery of the other      Transaction Documents, and the performance by each of LMT and LMC of their      obligations under this Agreement and under the Transaction Documents,      except for the Approvals listed on Annex 2 which have been obtained and      are in full force and effect. |
|--|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (v) | It      has duly executed and delivered this Agreement and, when it has executed      and delivered the other Transaction Documents to which it is a party, such      Transaction Documents. Each Transaction Document to which it is a party      constitutes or, when executed and delivered, will constitute the legal,      valid and binding obligations of such party enforceable in accordance with      its respective terms, except as the enforceability hereof or thereof may      be limited by (a) bankruptcy, insolvency, reorganization, or other similar      laws affecting the enforcement of creditors’ rights generally and (b)      general equitable principles (whether considered in a proceeding in equity      or at law). |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | The      representations made in Section 2(b) will be repeated as of the Closing      Date (if different from the date of this  Agreement). |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | On      or before the Closing Date, LMT shall obtain or shall have obtained and      delivered to Apple a copy of each Approval listed on Annex    2. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (e) | On      or prior to the Closing Date, LMT shall deliver or shall have delivered to      Apple an opinion of special Delaware counsel to the effect that the      approval of LMT’s shareholders is not required for the execution and      delivery, and the performance of the obligations under, the Transaction      Documents by LMT, LMC or LMT-SPE, such opinion to be based on assumptions      provided by Apple and to be otherwise in form and substance satisfactory      to Apple. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | LMT-SPE      Formation. |
|----|-------------------------|

|  | (a) | On      or before the Closing Date, LMT-SPE shall deliver or shall have delivered      to Apple a certificate of its secretary, certifying the (i) certificate of      formation of LMT-SPE, (ii) the limited liability company agreement of      LMT-SPE, (iii) resolutions adopted by the directors of LMT-SPE resolving      that it is in the best interests of LMT-SPE to execute and deliver such      agreements, to perform the obligations and consummate the transactions      contemplated herein, approving all agreements to which LMT-SPE shall      become a party pursuant to this Agreement, and authorizing its officers to      execute and deliver such agreements, to perform the obligations and      consummate the transactions contemplated therein, and (iv) the incumbency      of the officers of LMT-SPE who have executed this Agreement and are      authorized to execute the other Transaction Documents to which it will be      a party, all in form and substance satisfactory to  Apple. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | LMT-SPE      represents and warrants to Apple on the date of this      Agreement: |
|--|-----|-----------------------------------------------------------------------------------|

|  | (i) | It      has been duly incorporated and is validly existing and in good standing in      its state of formation and qualified and licensed to do business in, and      in good standing in, any state in which the conduct of its business or its      ownership of property requires that it be  qualified. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | The      execution, delivery and performance of Transaction Documents to which it      will be a party have been duly authorized, and do not conflict with LMT’s,      LMC’s or its certificate of incorporation or formation, bylaws, and      operating agreement, nor constitute an event of default under any      agreement by which LMT, LMC or it isbound. |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (iii) | No      Approval is required for (A) its execution and delivery of this Agreement,      and (B) its execution and delivery of the other Transaction Documents and      its performance of its obligations hereunder and thereunder, except for      the Approvals listed on Annex 2 which have been obtained and are in full      force and effect. |
|--|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iv) | It      has duly executed and delivered this Agreement and, when it has executed      and delivered the other Transaction Documents to which it will be a party,      such Transaction Documents. Each Transaction Document to which it is a      party constitutes or, when executed and delivered, will constitute the      legal, valid and binding obligations of such party enforceable in      accordance with its respective terms, except as the enforceability hereof      or thereof may be limited by (a) bankruptcy, insolvency, reorganization,      or other similar laws affecting the enforcement of creditors’ rights      generally and (b) general equitable principles (whether considered in a      proceeding in equity or at law). |
|--|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (v) | Each      of the representations and warranties in Section 1(b) is true and correct,      except that the references to LMT and LMC therein shall be deemed to be      references to LMT-SPE, mutatis      mutandis. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | The      representations made in Section 3(b) will be repeated as of the Closing      Date (if different from the date of this  Agreement). |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | LMT      Technology Transfers toLMT-SPE. |
|----|------------------------------------------|

|  | (a) | On      the Closing Date, LMC shall, pursuant to an assignment in the form of      Annex 3, absolutely and unconditionally assign to LMT, and LMT shall      accept from LMC, all of LMC’s right, title and interest in and to the LMT      Technology that LMC shall own at that time and that it might subsequently      develop or acquire during the Capture Period. Notwithstanding the      foregoing, LMC shall not be required to transfer to LMT the rights granted      back to LMC under the LMC License or the Amended and Restated License and      Technical Services Agreement of even date herewith between LMT and      LMC. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | On      the Closing Date and after giving effect to the assignment set forth in      Section 4(a) above, LMT shall, pursuant to an assignment in the form of      Annex 4, absolutely and unconditionally assign to LMT-SPE, and LMT-SPE      shall accept from LMT, all of LMT’s right, title and interest in and to      the LMT Technology that LMT shall own at that time and that it might      subsequently develop or acquire during the Capture Period. Notwithstanding      the foregoing, LMT shall not be required to transfer to LMT-SPE the rights      granted back to LMT under the LMT License or the Amended and Restated      License and Technical Services Agreement of even date herewith between LMT      and LMC. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (c) | LMT      and LMC shall cause each employee who contributes or will contribute to      the development of LMT Technology to execute and deliver to LMT-SPE an      assignment agreement, in form and substance satisfactory to Apple, that      recites that all LMT Technology the employees creates, conceives of and      invents prior to and during the Capture Period shall be assigned to      LMT-SPE. LMT shall deliver copies of such assignment agreements to Apple      on the Closing Date. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | No      later than the fifteenth (15th)      day of each month until the end of the Capture Period, LMT shall deliver      to Apple a written report, in form and substance satisfactory to Apple,      describing in reasonable detail each the work of research and development      project and each new Intellectual Property Right that has been created or      acquired, whether as owner, licensee, sublicensee or otherwise, and      whether or not registered or an application for registration has been      made. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (e) | Following      the transfer made pursuant to Section 4(b), LMT shall make all necessary      or appropriate filings with respect to the LMT Technology transferred to      LMT-SPE to ensure that all Intellectual Property and Intellectual Property      Rights included in such LMT Technology that are to be registered with the      applicable governmental or other registration authority have been so      registered. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (f) | Until      the end of the Capture Period, LMT shall, and shall cause each of its      subsidiaries to, maintain records documenting the activities and work      initiated, completed and otherwise performed and all written and      electronic communications by its employees with respect to each of its      research and development projects and each new Intellectual Property Right      that has been created or acquired, whether as owner, licensee, sublicensee      or otherwise, and whether or not registered or an application for      registration has been made, for a period of not less than three years      after the year in which such activities, work and communications      occurred. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (g) | Apple      may, by notice to LMT, request the audit of the books and records of LMT      and its subsidiaries with respect to all aspects relating to Apple’s      exercise of its rights, powers and privileges, the performance by LMT and      its subsidiaries of its and their obligations and the discharge by them of      their liabilities under the Transaction Documents. Following its receipt      of such notice, LMT shall, as determined by Apple, provide copies to Apple      or make available to Apple or any representatives designated by it to      conduct such audit, all books and records which Apple shall determine are      relevant to the scope of the audit. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (h) | Prior      to LMT, LMC or any of their respective sublicensees asserting any claim      against a third party under the LMT Technology or upon request by Apple      (which may be made from time to time), LMT or LMC, or both, shall (i) meet      with and give Apple an opportunity to provide guidance and comments, as      Apple deems appropriate, concerning any claim LMC, LMT or any of their      respective sublicensees may be able to assert against third parties under      the LMT Technology, including, without limitation, any strategy or tactics      any such claimant may be contemplating pursuing to press such claims; and      (ii) not unreasonably ignore, disregard or otherwise reject Apple’s      guidance and comments and shall, as appropriate, modify relevant aspects      of such claims, including the anticipated legal strategy and tactics,      consistent with such guidance or comments unless there is a reasonable      basis for it or them not to do so. The obligations imposed by this Section      4(h) shall be in addition to the obligation to give notice set forth in      Section 1(d). |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5. | LMT-SPE      Patent Prosecution. |
|----|----------------------------------|

|  | (a) | Apple      shall have the sole and exclusive right, in the United States and other      jurisdictions around the world, to control patent prosecution for      inventions, current and future patent applications and patents included      within the LMT Technology. Patent prosecution activities include, without      limitation: |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | soliciting      and receiving invention disclosures from inventors, including employees      and contractors of LMT and LMC; |
|--|-----|------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | determining      whether to file a patent application based on the invention      disclosure; |
|--|------|-----------------------------------------------------------------------------------------------|

|  | (iii) | determining      whether to maintain as a trade secret, instead of filing a patent      application, any invention, technical know-how or other information      contained in an inventiondisclosure; |
|--|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iv) | preparing      a patent application based on the invention  disclosure; |
|--|------|-------------------------------------------------------------------------|

|  | (v) | determining      the type and scope of patent applications that should be filed,      determining the jurisdictions in which the patent applications should be      filed and determining the timing of filing of such patent      applications; |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (vi) | determining      whether and when to file one or more additional patent applications      worldwide based on the filed patent application including, without      limitation, determining whether to file an international application under      the Patent Cooperation Treaty (including designation decisions), a      regional application (e.g., in the European Patent Office, including all      validation decisions), and/or directly in any national patent      office; |
|--|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (vii) | providing      support and assistance to selected patent counsel to prepare and file      foreign patent applications; |
|--|-------|------------------------------------------------------------------------------------------------------------------------|

----

|  | (viii) | determining      whether and how to respond to informality rejections (e.g., Notices to      File Missing Parts) received from the United States Patent and Trademark      Office and other patent offices; |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ix) | responding      to informality rejections; |
|--|------|--------------------------------------------|

|  | (x) | determining      whether and how to respond to substantive communications (e.g., office      actions) received from the United States Patent and Trademark Office and      other patent offices; |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (xi) | responding      to substantive patent officecommunications; |
|--|------|-------------------------------------------------------------|

|  | (xii) | communicating      with LMT or LMC personnel for assistance regarding substantive patent      office communications; |
|--|-------|----------------------------------------------------------------------------------------------------------------------|

|  | (xiii) | determining      whether to abandon patentapplications; |
|--|--------|---------------------------------------------------------|

|  | (xiv) | subject      to Section 5(b) below, determining whether and when to pay publication,      issue, grant, recordation, and registration fees, including, without      limitation, when patent applications are published, accepted, granted, or      otherwise allowed; |
|--|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (xv) | subject      to Section 5(b) below, paying publication, issue, grant, recordation, and      registration fees; |
|--|------|----------------------------------------------------------------------------------------------------------------|

|  | (xvi) | submitting      prior art known by inventors and reported to Apple to the United States      Patent and Trademark Office and foreign patent offices according to the      requirements of the patent offices; |
|--|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (xvii) | determining      whether and when to file divisional, continuation, continuation-in-part,      reexamination, and/or reissue patent applications based on pending patent      applications and issued patents; |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (xviii) | responding      to patent office communications in all patent office proceedings in all      jurisdictions, including without limitation, examination, reexamination,      reissue, and oppositionproceedings; |
|--|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (xix) | communicating      with LMT or LMC personnel for assistance regarding patent office      communications in all patent office proceedings in all jurisdictions,      including without limitation, examination, reexamination, reissue, and      opposition proceedings |
|--|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (xx) | determining      whether to respond to patent office communications relating to any patent      under examination, reexamination, reissue, and opposition      proceedings; |
|--|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (xxi) | determining      whether and when to abandon applications under examination, reexamination,      reissue or opposition proceedings; |
|--|-------|-------------------------------------------------------------------------------------------------------------------------------------|

|  | (xxii) | determining      whether to pay annuity fees for foreign filed patent applications and      foreign patents; |
|--|--------|--------------------------------------------------------------------------------------------------------------|

|  | (xxiii) | subject      to Section 5(b) below, paying annuity fees for foreign filed patent      applications and foreign patents; |
|--|---------|-------------------------------------------------------------------------------------------------------------------------|

|  | (xxiv) | determining      whether and when to pay maintenance fees for United States      patents; |
|--|--------|-------------------------------------------------------------------------------------------|

|  | (xxv) | subject      to Section 5(b) below, paying maintenance fees for United States patents;      and |
|--|-------|-------------------------------------------------------------------------------------------------|

|  | (xxvi) | determining      whether to file requests for certificates of corrections or other      corrective measures for issued patents in the United States and      abroad. |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | Apple      shall bear the cost of all patent prosecution and maintenance for      inventions, current and future patent applications and patents included      within the LMT Technology, including, without limitation, patent counsel      legal fees and patent office fees and maintenance and annuity fees      (collectively “Prosecution and Maintenance Costs”), provided,      however, that that Apple shall not be responsible for any Prosecution and      Maintenance Fees for patentable inventions as to which Apple has elected      not to prosecute pursuant to Section 5(e) or patents or patent      applications as to which Apple has elected not to maintain pursuant to      Section 5(e), provided that Apple shall have first provided no less than      thirty (30) days’ prior written notice of such election to      LMT-SPE. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | LMT-SPE      agrees to utilize legal counsel identified by Apple and approved by      LMT-SPE (“Patent Counsel”), such approval not to      be unreasonably withheld, for patent prosecution of inventions, current      and future patent applications and patents within the LMT Technology to      which LMT-SPE has decided to exercise under Section 5(d). Patent Counsel      will sign and execute an engagement letter in the form of Annex 13, with      appropriate conflict wavers, identifying that Patent Counsel represents      both Apple and LMT-SPE. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (d) | LMT-SPE      and Apple agree that Patent Counsel shall be instructed to prepare and      send to Apple and LMT-SPE a quarterly patent prosecution report that will      include such matters as each of Apple and LMT-SPE shall direct and shall      include, without limitation: (i) information identifying invention      disclosures on which Apple has decided not to file patent applications,      such inventions to be treated as trade secrets, and to file patent      applications; (ii) jurisdictions where Apple has decided to file patent      applications; (iii) which patent applications Apple has decided to let go      abandoned; (iv) any continuations, continuation-in-parts, or divisional      applications Apple has decided to file, and (v) what fees, (including      without limitation, issue fees, publication fees, maintenance fees, grant      fees and annuity fees), Apple intends to pay. Apple shall attempt to      arrange a meeting with LMT-SPE or its representatives in person or      telephonically, at least once each calendar quarter to review the most      recent quarterly report. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (e) | If      with respect to a patentable invention (x) Apple has decided not to      prosecute the application for a patent thereof and not to require that      such invention be treated as a trade secret or (y) Apple has decided to      prosecute the application for a patent thereof but not in all      jurisdictions in which an application for a filing or registration may be      made, as disclosed to LMT-SPE in a quarterly report or by Apple at its      quarterly meeting with LMT-SPE, LMT-SPE may, at its sole cost and expense,      (i) file a patent application on a submitted invention disclosure      described in clause (x); (ii) file foreign patent applications in      jurisdictions not selected to be pursued by Apple or file a Patent      Cooperation Treaty application for an invention described in clause (y);      (iii) take over patent prosecution of any patent application that Apple      has determined is to be abandoned; (iv) file a continuation, divisional or      continuation-in-part application based on a pending patent application if      Apple determines not to file the continuation, divisional or      continuation-in-part application; (v) pay an annuity fee for a foreign      patent application if Apple has determined not to pay the annuity fee; and      (vi) pay a maintenance fee for a United States patent or a foreign patent      for an invention if Apple has determined not to pay the maintenance fee.      In connection with any patent application as to which Apple has decided      not to prosecute, LMT-SPE shall retain intellectual property counsel      reasonably acceptable to Apple |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (f) | Patent      Counsel shall be instructed by LMT-SPE to set up a joint customer number      in the United States Patent Office for Apple and LMT-SPE to allow Apple      and LMT- SPE to monitor prosecution activities for all patent applications      within the United States. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (g) | With      respect with patent preparation, patent prosecution, and patent      maintenance related activities recited in Section 5(a), Apple shall have      no responsibility, no liability, nor any further obligation to LMT, LMC or      LMT-SPE beyond those specifically provided for  herein. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (h) | Should      LMT-SPE decide to exercise any of the rights recited in Section 5(e) and      take control over specific applications or patents (collectively, the      “LMTControlled      Patents/Applications”), LMT-SPE shall consult      with Apple and Patent Counsel, and allow Apple and Patent Counsel to      comment on, any filing of a patent application, any amendment thereto,      whether voluntary or involuntary, any “Reply to Office Action,” any      “Information Disclosure Statement,” or similar filing, participating in an      interview with a patent examiner with respect to such a patent      application, or any similar action, in each case before LMT-SPE or its      counsel shall file such patent application, amendment, or other filing,      participate in such interview or take such other action. LMT-SPE shall      instruct Patent Counsel to ensure that with respect to all patent office      communications in all patent office proceedings in all jurisdictions      concerning the LMT Controlled  Patents/Applications: |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | LMT-SPE      does not take positions in patent office proceedings adverse or      inconsistent with positions taken by Apple and Patent Counsel,      and |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | LMT-SPE      and Apple conform to patent office rules and regulations regarding      submission of prior art. |
|--|------|---------------------------------------------------------------------------------------------------------------|

|  | (i) | LMT      and LMC employees shall provide cooperation and support to Apple (and)      Patent Counsel to support patent prosecution activities for inventions,      current and future patent applications and patents included within the LMT      Technology. This cooperation and support will be provided at no charge to      Apple. The Patent Counsel has the sole discretion to determine when the      cooperation and support is necessary to support the patent prosecution      activities. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (j) | Concurrently      with its delivery of each monthly report pursuant to Section 4(d), LMT,      LMC and LMT-SPE each shall execute and deliver to Apple a release, in the      form of Annex 12, pursuant to which it shall release Apple of all claims      it may have against Apple that it may have in connection with any loss,      liability, damage, action, cause of action or any other matter whatsoever      that may have arisen in relation to the exercise of any right, power or      privilege or the performance or discharge of any obligation under Section      5(a). |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | LMT-SPE      Existence and Separateness. |
|----|------------------------------------------|

|  | (a) | LMT-SPE      shall (i) do or cause to be done all things necessary to preserve and keep      in full force and effect its corporate existence and its rights and      franchises; (ii) conduct its business substantially as conducted      immediately after the transactions contemplated in Sections 4(b) and 9(a)      and (c) are consummated; (iii) at all times maintain, preserve and protect      all of its assets and properties used or useful in the conduct of its      business, including all licenses, permits, charters and registrations; and      (iv) transact business only in the name of Crucible Intellectual Property,      Inc. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | LMT-SPE      shall not (i) engage in any business other than as provided in its      certificate of formation, limited liability company agreement and the      Transaction Documents, (ii) make any change in its capital structure,      including, without limitation, the issuance of any additional membership      interests, warrants or other securities convertible into membership      interests or any revision of the terms of its outstanding membership      interests, (iii) amend, waive or modify any term or provision of its      certificate of formation or limited liability company agreement, (iv) make      any change to its name indicated on the public records of its jurisdiction      of organization or (v) change its jurisdiction of      organization. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (c) | LMT-SPE      shall pay, perform and discharge or cause to be paid, performed and      discharged promptly all charges and claims payable by it, including (i)      all federal, state, provincial, county, city, municipal, local, foreign or      other governmental taxes; (ii) all levies, assessments, charges, or claims      of any governmental entity or any claims of statutory lienholders, the      nonpayment of which could give rise by operation of law to a Lien on the      LMT Technology or any other property of LMT-SPE; and (iii) lawful claims      for labor, materials, supplies and services or otherwise before any      thereof shall become past due. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | LMT-SPE      shall (i) perform each of its obligations under this Agreement and the      other agreements to which it is a party and (ii) comply with all federal,      state and local laws and regulations applicable to it and the LMT      Technology. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (e) | LMT-SPE      shall not sell, transfer, convey, assign or otherwise dispose of, or      assign any right to receive income in respect of, any of its properties or      other assets or any of its stock (whether in a public or a private      offering or otherwise), any LMT Technology or agreement therefore except      as otherwise expressly permitted by this  Agreement. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (f) | LMT-SPE      shall not create, incur, assume or permit to exist any claim of ownership      or Lien on or with respect to the LMT Technology or with respect to its      other properties or assets (whether now owned or hereafter acquired)      except for the Liens in favor ofApple. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (g) | LMT-SPE      shall not become a party to any agreement, note, indenture or instrument      other than (i) the assignments described in Sections 4(b) and (c), (ii)      the licenses described in Sections 9(a) and (c), (iii) any agreements      necessary to establish a bank account in its own name, and (iv) any new      agreements or amendments in furtherance of this Agreement or the other      Transaction Documents. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (h) | LMT-SPE      shall not amend, modify or waive any term or provision of the assignments      described in Section 4(b) or (c) the licenses described in Section 9(c)      without Apple’s prior writtenconsent. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | LMT-SPE      shall not directly or indirectly, by operation of law or otherwise, (i)      form or acquire any equity interests in any partnership, joint venture,      unincorporated organization, trust, association, corporation (including a      business trust), limited liability company, institution, public benefit      corporation, joint stock company, or any other entity of whatever nature,      or (ii) merge with, consolidate with, acquire all or substantially all of      the assets or capital stock of, or otherwise combine with or acquire, any      partnership, corporation, limited liability company, or any other entity      of whatever nature. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (j) | LMT-SPE      shall not make any investment in, or make or accrue loans or advances of      money to, any person, corporation, firm, joint venture, partnership,      limited liability company, association, enterprise, trust or other entity      or organization (“business enterprise”),      including, without limitation, any director or officer or employee      of LMT-SPE, LMT or any direct or indirect subsidiary of LMT, through the      direct or indirect lending of money, holding of securities or      otherwise. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (k) | Except      as required by U.S. generally accepted accounting principles, LMT, LMC and      LMT-SPE shall not make statements or disclosures, prepare any financial      statements or in any other respect account for or treat the transactions      contemplated by the assignments described in Sections 4(b) and (c)(ii)      (including for accounting, tax and reporting purposes) in any manner other      than as an increase in the stated capital of  LMT-SPE. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (I) | LMT-SPE      shall not at any time declare any distributions, repurchase any membership      interest, return any capital, or make any other payment or distribution of      cash or other property or assets in respect of LMT-SPE’s membership      interest, other than from payments received from Apple pursuant to Section      9(b). |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (m) | LMT-SPE      shall not create, incur, assume or permit to exist any indebtedness or      liabilities, except for taxes and trade payables incurred in the ordinary      course of business. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (n) | To      the extent that LMT-SPE has cash, it will maintain its own deposit account      or accounts, separate from those of LMT and its subsidiaries, with      commercial banking institutions and ensure that its funds will not be used      for other than its corporate uses, nor will such funds be commingled with      the funds of any of LMT and its subsidiaries and vice    versa. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (o) | LMT-SPE      will maintain a separate address from the address of LMT and its      subsidiaries and vice versa, or to the extent LMT-SPE may have offices in      the same location as LMT or its Subsidiaries, maintain a fair and      appropriate allocation of additional, incremental overhead costs among      them, with each such entity bearing its fair share of such      expense. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (p) | LMT-SPE      will issue separate financial statements prepared not less frequently than      quarterly and prepared in accordance with generally accepted accounting      principles, consistently applied (except for the omission of certain      footnotes and other presentation items required by the generally accepted      accounting principles, consistently applied, with respect to audited      financial statements), which financial statements need not be separately      audited or reviewed by an independent accounting  firm. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (q) | LMT-SPE      will observe all necessary, appropriate and customary company (or      corporate) formalities, including, but not limited to, holding all regular      and special members’ and board of directors’ meetings appropriate to      authorize all limited liability company action, keeping separate and      accurate minutes of its meetings, passing      all resolutions or consents necessary to authorize actions taken or to be      taken, and maintaining accurate and separate books, records and accounts,      including, but not limited to, payroll and intercompany transaction      accounts, to the extentapplicable. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (r) | LMT-SPE      will use its best efforts to refrain from using the stationery of any of      LMT and its subsidiaries and shall instead make all written communications      in its own name and vice versa; provided that in the      event that any affiliate of LMT conducts business on behalf of LMT-SPG,      such agency relationships shall be fully disclosed to applicable third      parties when acting in suchcapacity. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (s) | LMT-SPE      will conduct all its business in its own name and use its best efforts to      avoid the appearance that it is conducting business on behalf of any other      affiliate of LMT and vice versa, provided that in the      event that either LMT-SPE, on the other hand, or affiliate of LMT conducts      business on behalf of any member of the other Group, such agency      relationship shall be fully disclosed to applicable third parties when      acting in such capacity. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | Due      Diligence. |
|----|---------------------|

|  | (a) | On      or prior to the Closing Date, LMT shall provide or shall have provided      complete and accurate replies to all questions and items requested on the      due diligence checklist Apple provided LMT and attached hereto as Annex 14      (“Due Diligence      Checklist”). Any      information included in the “Notes” column of the Due Diligence Checklist      is provided by LMT solely for purposes of convenience and is not deemed to      be LMT’s exclusive reply or response to the questions and items requested      on the Due Diligence Checklist. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | LMT      hereby represents and warrants to Apple that it has provided all material      information of a nature or type that would influence the decision of a      reasonable person that Apple has requested in the Due Diligence Checklist.      The representation and warranty in this Section 7(b) will be repeated on      and as of the Closing Date (if different from the date of this      Agreement). |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | In      addition to and exclusive of the factual information provided pursuant to      the Due Diligence Checklist, LMT hereby represents and warrants that all      factual information taken as a whole furnished by or on behalf of LMT or      its subsidiaries in writing to Apple for purposes of or in connection with      this Agreement or the other Transaction Documents and all other such      factual information taken as a whole heretofore or hereafter furnished by      or on behalf of LMT or its subsidiaries in writing to Apple, will be, true      and accurate, in all material respects, on the date as of which such      information is dated or certified and not incomplete by omitting to state      any fact necessary to make such information (taken as a whole) not      misleading in any material respect at such time in light of the      circumstances under which such information was provided. The      representation and warranty in this Section 7(c) will be repeated as of      the Closing Date (if different from the date of this      Agreement). |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 8. | LMT      Indebtedness and Liens. |
|----|----------------------------------|

|  | (a) | On      or prior to the Closing Date, LMT and LMC shall identify or shall have      identified to and shall provide or shall have provided Apple copies of all      documents evidencing and otherwise relating all of the      following: |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | all      indebtedness of LMT and LMC for borrowed money or for the deferred      purchase price of property or servicespayment; |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | all      reimbursement and other obligations with respect to letters of credit,      bankers’ acceptances and surety bonds, whether or not    matured; |
|--|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | all      obligations evidenced by notes, bonds, debentures or similar instruments      and all indebtedness created or arising under any conditional sale or      other title retention agreement with respect to property acquired by LMT      and LMC (even though the rights and remedies of the seller or lender under      such agreement in the event of default are limited to repossession or sale      of such property); |
|--|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iv) | all      leases for any property (whether real, personal or mixed) that, in      accordance with generally accepted accounting principles, would be      required to be classified and accounted for as a capital lease on a      balance sheet of LMT or LMC; |
|--|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (v) | all      obligations of LMT and LMC under commodity purchase or option agreements      or other commodity price hedging arrangements, in each case whether      contingent or matured; |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (vi) | all      obligations of LMT and LMC under any foreign exchange contract, currency      swap agreement, interest rate swap, cap or collar agreement or other      similar agreement or arrangement designed to alter the risks of LMT and      LMC arising from fluctuations in currency values or interest rates, in      each case whether contingent ormatured; |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (vii) | all      guaranties for any of theforegoing; |
|--|-------|----------------------------------------------|

|  | (viii) | all      indebtedness referred to in clauses (i) through (vii) above secured by (or      for which the holder of such indebtedness has an existing right,      contingent or otherwise, to be secured by) any Lien upon or in property or      other assets (including accounts and contract rights) owned by LMT or LMC,      even though LMT and LMC has not assumed or become liable for the payment      of such indebtedness; and |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ix) | obligations      of LMT and LMC to trade creditors incurred in the ordinary course of      business that are overdue by more than 120 days or exceed      $25,000. |
|--|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | On      or prior to the Closing Date, LMT and LMC shall provide or shall have      provided copies of Uniform Commercial Code, tax and judgment lien searches      in all jurisdictions in which Apple requests such searches, and shall      identify or shall have identified to Apple all Liens on their respective      assets, including the LMTTechnology. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (c) | On      or prior to the Closing Date, Apple shall identify or shall have      identified those creditors and lien holders of LMT whom shall be paid from      the consideration Apple will pay LMT-SPE pursuant to Section      9(b). |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | On      or prior to the Closing Date, LMT shall obtain or shall have obtained from      each creditor and holder of Liens on its assets identified by Apple a      payoff letter in substantially the form of Annex 5 or a document otherwise      in form and substance satisfactory to Apple, (i) setting forth the amount      owed to such creditor or lien holder, (ii) the account into which such      amount shall be paid, (iii) an acknowledgment that when such creditor or      lien holder has been paid such amount no further amounts will be owed to      it by LMT, and (iv) except for trade creditors, releasing LMT of all      further claims. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (e) | LMT-SPE      shall be deemed to have received and distributed to LMT all payments made      by Apple pursuant to the Apple License Agreement. LMT-SPE and LMT hereby      authorize and direct Apple to pay directly those creditors and holders of      Liens identified by Apple as creditors and lienholders of LMT to be paid      from the proceeds of the payments made by Apple on the Closing Date      pursuant to the Apple License Agreement and from whom payoff letters or      other releases satisfactory to Apple have been obtained. Nothing in this      Section 8(f) shall obligate Apple to pay the consideration other than on      the terms and subject to the conditions specified in the Apple License      Agreement. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (f) | LMT      shall ensure that upon the payments contemplated in Section 8(e) being      made to its creditors and holders of Liens on its assets no Liens, other      than Liens in favor of Apple, shall exist on its  assets. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (g) | LMT      represents and warrants that upon the payments contemplated in Section      8(e) being made, the LMT Technology will be free and clear of all Liens      except for any Liens in favor of Apple. This representation and warranty      will be repeated as of the Closing Date (if different from the date of      this Agreement). |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (h) | From      and after the date on which the payments contemplated in Section 8(e) are      made, LMT shall not, and shall ensure that none of its direct or indirect      subsidiaries shall, create, incur, assume or permit to exist allow any      Lien on the shares or any equity interests of LMT-SPE or any portion of      the LMT Technology in which it might have any right, title or interest,      including, without limitation, inventions, trade secrets, patent      applications and other proprietary rights which LMT and LMC are obligated      hereunder to transfer to LMT-SPE. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9. | LMT-SPE      Licenses. |
|----|------------------------|

|  | (a) | LMT-SPE      shall execute and deliver to Apple a license agreement in the form of      Annex 6 (the “Apple      License Agreement”)upon its      receipt of notice from Apple that the conditions precedent in Section 9(d)      have been satisfied or waived and Apple is prepared to make the Initial      Payment (as defined in the Apple License  Agreement). |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (b) | Upon      its receipt from LMT-SPE of theApple      License Agreement, Apple shall pay the Initial Payment thereunder in      accordance with the Apple License Agreement and the Escrow Agreement of      even date herewith among the parties hereby and US Bank, N.A.Apple shall deduct from the      Final Payment (as defined in the Apple License Agreement) repayment of      $[*]in advances made to LMT      prior to the date of this Agreement. Any further payments by Apple in      consideration for the license granted pursuant to Section 8(a) shall be      made as provided in the Apple LicenseAgreement. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | Also      on the Closing Date, LMT-SPE shall execute and deliver to (i) LMT a      license in the form of Annex 7 (the “LMT License Agreement”)(ii) LMC a      license in the form of Annex 8 (the “LMC License      Agreement”). |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | Apple’s      obligations to accept the Apple License Agreement and to make the Initial      Payment thereunder shall be further subject to the satisfaction or written      waiver, in Apple’s sole discretion of the following conditions      precedent: |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | LMT,      LMC and LMT-SPE shall have performed all their obligations set      forth in Sections 1, 2, 3, 5, 6, 7 and8; |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | All      representations and warranties in Sections 1(b), 2(b), 3(g), 7(b), 7(c),      8(g) and 8(h) shall be true and correct as of the date on which all other      conditions in this Section 9(d) are satisfied or waived by      Apple; |
|--|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | Apple      shall have received and approved an opinion of California counsel to LMT      and LMC as to corporate status (and equivalent for other business      entities); valid existence; good standing; corporate power and action (and      equivalent for other business entities); due authorization, execution and      delivery; no violation of articles and bylaws (and equivalent for other      business entities), material agreements, court orders, applicable law; all      filings, consents and approvals obtained in connection with the      transactions; and to the knowledge of such attorneys no litigation or like      proceedings are pending regarding the Transaction Documents, and that the      Transaction Documents are fullyenforceable; |
|--|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iv) | As      to LMT-SPE, a Delaware limited liability company, Apple shall also have      received, and approved an opinion of Delaware counsel that LMT-SPE as to      its limited liability company status, valid existence, good standing,      limited liability company power and action, due authorization,      enforceability, execution and delivery of all Transaction Documents, no      violation of its articles and bylaws, material agreements, court orders,      compliance with applicable law, all filings, consents and approvals      obtained in connections with the transactions, that the authorized capital      stock of LMT-SPE are duly authorized, validly issued and fully paid and      non-assessable further that LMT-SPE’s assets, in light of the structure of      LMT-SPE, and the restriction on its formation, and future operations will      not be consolidated with LMT’s or LMC’s assets in any bankruptcy      case; |
|--|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| [*]      = | CERTAIN      CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS      AND AN ASTERISK, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES      AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE      ACT OF 1934, AS AMENDED. |
|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (v) | LMT      shall have executed and delivered to Apple a technology development      agreement in the form of Annex 9; |
|--|-----|---------------------------------------------------------------------------------------------------------------------|

|  | (vi) | LMT      shall have delivered to Apple a security agreement in the form of Annex      10, which security agreement shall exclude from the collateral LMT’s      interest in LMC; |
|--|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (vii) | LMT-SPE      shall have delivered to Apple a security agreement in the form of Annex      11; |
|--|-------|-----------------------------------------------------------------------------------------------|

|  | (viii) | Apple,      LMT, LMC and LMT-SPE shall have jointly engaged patent counsel      satisfactory to Apple to represent LMT and its affiliates in connection      with its patent applications andprosecutions; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ix) | Apple      shall have received from LMT, LMC and LMT-SPE such farther agreements and      instruments as Apple reasonably determines are required to give effect to      the agreements and transactions contemplated between the      parties; |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (x) | Apple      shall have concluded its discussions with Caltech concerning the Caltech      License, and with results satisfactory toApple; |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------|

|  | (xi) | Apple      shall have completed all legal, tax, accounting, engineering and      confirmatory business due diligence on the LMT Technology, LMT, LMC and      LMT-SPE, and with results satisfactory to Apple;  and |
|--|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (xii) | Apple      shall not be entitled under Section 14(b)to terminate this      Agreement. |
|--|-------|---------------------------------------------------------------------------------------|

|  | (e) | The      parties agree that the security interest granted to Apple under the      security agreement described in Section 9(d)(vii) shall  be: |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | subordinated      to all of Apple’s rights under the Apple License Agreement, such that in      the event that such security interest shall be enforced in any of the      collateral subject to such security interest any rights acquired as a      result of such enforcement shall be subject to all of, and shall not      entitle the acquirer of any such rights to interfere with or otherwise      disturb, Apple’s rights or its enjoyment of those rights under the Apple      License Agreement; |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | subordinated      to all of LMC’s rights under the LMC License Agreement, such that in the      event that such security interest shall be enforced in any of the      collateral subject to such security interest any rights acquired as a      result of such enforcement shall be subject to all of, and shall not      entitle the acquirer of any such rights to interfere with or otherwise      disturb, LMC’s rights or its enjoyment of those rights under the LMC      License Agreement; and |
|--|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | prior      to all of LMT’s rights under the LMT License Agreement, such that in the      event that such security interest shall be enforced in any of the      collateral subject to such security interest any rights acquired as a      result of such enforcement shall be free and clear of LMT’s right under      the LMT License Agreement, and LMT’s      rights under the LMT License Agreement and, to the extent the rights      acquired as a result of the enforcement of such security interest conflict      with the LMT License Agreement, the LMT License Agreement shall continue      to exist at the sole and absolute discretion of the acquirer of rights as      a result of suchenforcement. |
|--|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (f) | LMT,      on behalf of itself and its respective heirs, executors, successors,      assigns, agents and all other persons and entities associated with either      of them, covenants that it will not at any time, whether now or in the      future, sue, file, assist, or participate in, or cause, assert, or induce      any other person or entity to sue, file, assert, or participate in any      claim or allegation against any of the following for infringement of      Intellectual Property Rights of any of the LMT Technology: (i) Apple and      any of its Subsidiaries; or (ii) their respective past, present and future      owners, shareholders, parents, subsidiaries, successors, assigns,      divisions, units, officers, directors, employees, agents, attorneys, or      representatives, or (iii) their respective past, present and future direct      and indirect vendors, suppliers, manufacturers, distributors, customers,      or end users (collectively, “Apple-Related Entities”)in      connection with any act by a Apple-Related Entity at the direction of or      on behalf of Apple related to or in connection with any Apple-branded or      Apple-licensed product. This covenant not to sue does not inure to the      benefit of any third parties for their conduct that is unrelated to Apple      or any of its Subsidiaries, and this covenant not to sue shall not apply      in any action in which Apple or any other Apple-Related Entity raises as a      defense in an infringement action that LMT is a necessary party in any      such action. For purposes of this paragraph, the grant to a third party of      an exclusive license or sublicense to any Intellectual Property Rights      relating to any LMT Technology in a field other than Consumer Electronic      Products shall not be a violation of this paragraph, even if the third      party is granted, as a part of such exclusive license, the right to sue or      otherwise assert infringement claims with respect to such Intellectual      Property Rights. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (g) | LMT,      LMC and LMT-SPE shall not amend, modify, supplement, amend and restate or      replace the LMT License Agreement or the LMC License Agreement except (i)      with the prior written consent of Apple or (ii) for the addition to the      schedules attached thereto of Intellectual Property Rights created or      acquired during the Capture Period. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10. | Covenant      Not to Compete. |
|-----|-------------------------------|

|  | (a) | LMT      shall not, and shall ensure that its direct and indirect subsidiaries      shall not, directly, or indirectly through or in association with any      person, business enterprise or otherwise, (i) develop, design,      manufacture, sell, offer for sale or otherwise distribute or provide any      (x) Consumer Electronic Products or (y) materials, components,      manufacturing services or technology for use or integration therewith;      (ii) own or acquire any interest in, manage, operate, control or      participate in any business which is engaged in any of the activities      described in preceding subsection (i); or (iii) act as a consultant or      advisor, loan or otherwise provide funds or assistance of any sort, or      sell or license intellectual property to any business enterprise which is      or is attempting to engage in any of the activities listed in subsection      (i) or (ii) hereof. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  |   | “Consumer Electronic Products”means personal computers      (portable and desktop); tablet or slate style computing devices; handheld      electronic and/or communication devices (e.g., smartphones, digital music      players, multi-function devices, etc.); any device whose function includes      the creation, storage or consumption of digital media; any component or      sub-component in any Consumer Electronic Product; and any accessory that      is the same or similar (in Apple’s sole discretion) to an accessory made      or sold by or on behalf of Apple (regardless of when Apple sold or started      to sell such accessory, including after the Closing Date) that is suitable      for use with any Consumer Electronic Product. Notwithstanding the      foregoing, “Consumer Electronic Products” shall not    include: |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | products      (except for any product that is capable of interacting or interfacing with      a Consumer Electronic Product) that are powered by electricity or      batteries but that do not in any way involve the creation, storage,      consumption, use, viewing, transmission, or processing of digital media or      digital information and do not involve the use of wireless communication      networks. Products that fall into this category include, without      limitation, electric-powered and/or battery-powered drills, hand tools and      watches (i.e. a wrist-worn device whose sole function is to display the      time of day); |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | medical      devices and other products that are not the same or similar to any Apple      product (regardless of when Apple sold or started to sell such product,      including after the Closing Date) and that are used exclusively for the      diagnosis and/or treatment of human or animal health conditions;      or |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | products      or components thereof that are not the same as or similar to any Apple      product (regardless of when Apple sold or started to sell such product,      including after the Closing Date) or component of any Apple product and      that are made solely for, and sold solely into, the defense/military,      automotive, medical, or industrialmarkets. |
|--|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | The      parties hereto acknowledge and agree that the value to the parties of the      transactions provided for in this Agreement would be substantially and      materially diminished if either LMT directly or indirectly through or in      association with any person or business enterprise or otherwise, were      hereafter to breach any of the provisions of Section 10(a), and LMT has      therefore offered and agreed to the provisions of Section 10(a) as a      material inducement to Apple to enter into this Agreement, and in      consideration of the promises, representations and covenants made by Apple      under this Agreement. LMT specifically acknowledges and agrees that the      provisions of Section 10(a) are commercially reasonable restraints on it      and are reasonably necessary to protect the interests Apple is acquiring      hereunder and under the Transaction Documents. The parties hereto further      acknowledge and agree that Apple would be irreparably damaged by a breach      of Section 10(a) and would not be adequately compensated by monetary      damages for any such breach. Therefore, in addition to all other remedies,      Apple shall be entitled to injunctive relief from any court having      jurisdiction to restrain any violation (actual or threatened) of Section      10(a) without the necessity of (i) proving monetary damages or the      insufficiency thereof, or (ii) posting any bond in regard to any      injunctive proceeding. Notwithstanding anything in this Agreement to the      contrary, the rights and licenses granted under the License Agreement,      dated March 10, 2009, between LMT and The Swatch Group Ltd., shall not      constitute a violation of Section 10(a) hereof or of any other provision      of the MTA or any Transaction Document, but only to the extent that such      License Agreement is not amended after the date hereof to include any new      provision that would violate Section10(a). |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (c) | If      any court shall in any proceeding refuse to enforce Section 10(a) in whole      or in part because the time limit, geographical scope or any other element      thereof is deemed unreasonable in the jurisdiction of that court, it is      expressly understood and agreed that Section 10(a) shall not be void but,      for the purpose of such proceeding, such time limit, geographical scope or      other element shall be deemed to be reduced to the extent necessary to      permit the enforcement of Section 10(a) to the maximum extent allowable in      that particular jurisdiction. The foregoing, however, is not intended to      and shall not in any way affect, invalidate or limit the remaining      provisions of Section 10(a) or affect, invalidate or limit the validity or      enforceability of Section 10(a) as written in any other jurisdiction at      any time. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | From      time to time, LMT or LMC may request that Apple grant express written      permission to develop, design, manufacture, sell, offer for sale or      otherwise distribute or provide any accessory for a Consumer Electronic      Product or materials, components, manufacturing services or technology for      use or integration therewith. Such requests shall be submitted in writing      to Apple’s Senior Director of Legal Affairs for Hardware Products, and      shall specify in reasonable detail the contemplated activity for which      Apple’s consent is being sought. Apple shall respond within a reasonable      period of time, and Apple shall consider each such request in good faith      taking into account both the business opportunity to LMT or LMC, as well      as any actual or potential impact to Apple’s current or future business      opportunities. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11. | Confidentiality.      The disclosure and      use of all confidential information pursuant to this Agreement and the      other Transaction Documents shall be subject to the terms of the parties’      existing Confidentiality Agreement and Exclusivity Agreement, both dated      April 30, 2010, the terms of which are incorporated by reference herein.      Without limiting the generality of the foregoing, LMT shall ensure that      neither LMT nor any Affiliate of LMT shall orally or in writing refer to      Apple or any Affiliate of Apple in any press conference, publication,      press release, filing, registration, notice or other communication without      providing Apple at least three (3) business days’ prior notice and a copy      of each such proposed reference, allowing Apple an opportunity to review      and comment on the same, and making any changes in each such proposed      reference as requested by Apple, unless the failure by LMT to make such      changes would result in LMT’s failing to comply with applicable      law. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 12. | Independent      Contractor. |
|-----|------------------------------|

|  | (a) | Each      of LMT, LMC and LMT-SPE shall at all times be an independent contractor      under the Transaction Documents and not an employee or agent of Apple.      None of LMT, LMC and LMT-SPE shall have authority to obligate Apple in any      manner whatsoever and shall not make any representations or statements for      or about Apple or any Apple products or  services. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | Each      of LMT, LMC and LMT-SPE shall have full responsibility for all applicable      withholding taxes for all compensation paid to it and for compliance with      all applicable labor and employment requirements with respect to its      employees, including, without limitation, state worker’s compensation      insurance coverage requirements and any immigration or visa requirements.      Each of LMT, LMC and LMT-SPE agrees to indemnify, defend and hold Apple      harmless from any liability for, or assessment of, any claims or penalties      with respect to such withholding taxes, labor, employment or immigration      requirements, including, without limitation, any liability for, or      assessment of, withholding taxes imposed on Apple by the relevant taxing      authorities with respect to any compensation paid to it or its      employees. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13. | Indemnification. |
|-----|------------------|

|  | (a) | LMT      shall defend, indemnify and hold Apple (and its directors, officers,      affiliates, employees, agents, successors and assigns (each, an “indemnified party”))harmless      from and against any and all liability, loss, expense (including, without      limitation, reasonable attorneys’ fees), or claims for injury or damages      (i) incurred by an indemnified party as a result of (A) any inaccuracy in      or breach of the representations, warranties or covenants made by LMT, LMC      or LMT-SPE in any Transaction Document or (B) any act or omission by any      of LMT, LMC or LMT-SPE or its directors, officers or employees that      violates any law or constitutes tortious acts or omissions; or (ii)      incurred by any indemnified party or asserted against any indemnified      party by any third party arising out of, in connection with, or as a      result of (A) the execution or delivery of this Agreement, any other      Transaction Document, the performance by the parties hereto or thereto of      their respective obligations hereunder or thereunder or the consummation      of the transactions contemplated hereby, (B) Apple’s use of the LMT      Technology or rights under the license agreement with LMT-SPE, or (C)      LMT’s performance of the services provided pursuant to the technology      development agreement executed and delivered pursuant to Section 9(d)(iv),      except to the extent due directly to LMT’s following instructions given to      it by Apple in the “Statements of Work” in situations in which Company has      complied with its obligations under section 1(f) of such thereof. In the      event that a claimant obtains a final judgment against Apple expressly      finding that Apple acted with gross negligence, in bad faith or that it      engaged in willful misconduct, then this indemnity and hold harmless      agreement shall not apply, but only to the extent of such      claim. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | If      any party is entitled to indemnification under Section 13(a), Apple will      give written notice to LMT of any matters giving rise to a claim for      indemnification; provided that the failure of any party entitled to      indemnification hereunder to give notice as provided herein shall not      relieve the indemnifying party of its obligations under this Section 13      except to the extent that the indemnifying party is actually prejudiced by      such failure to give notice. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (c) | In      case any action, proceeding or claim is brought against an indemnified      party in respect of which indemnification is sought hereunder, LMT      shall be entitled to participate and, unless in the reasonable judgment of      legal counsel to the indemnified party a conflict of interest between it      and LMT may exist with respect of such action, proceeding or claim, to      assume the defense thereof with counsel reasonably satisfactory to the      indemnified party. In the event that LMT fails, within thirty (30) days of      receipt of any indemnification notice to notify, in writing, such person      of its election to defend, settle or compromise, at its sole cost and      expense, any action, proceeding or claim (or discontinues its defense at      any time after it commences such defense), then the indemnified party may,      at its option, defend, settle or otherwise compromise or pay such action      or claim. In any event, unless and until LMT elects in writing to assume      and does so assume the defense of any such claim, proceeding or action,      the indemnified party’s costs and expenses arising out of the defense,      settlement or compromise of any such action, claim or proceeding shall be      losses subject to indemnification hereunder. The indemnified party shall      cooperate fully with LMT in connection with any negotiation or defense of      any such action or claim by the indemnifying party and shall furnish to      LMT all information reasonably available to the indemnified party which      relates to such action or claim. LMT shall keep the indemnified party      fully apprised at all times as to the status of the defense or any      settlement negotiations with respect thereto. If LMT elects to defend any      such action or claim, then the indemnified party shall be entitled to      participate in such defense with counsel of its choice at its sole cost      and expense. LMT shall not be liable for any settlement of any action,      claim or proceeding effected without its prior written consent.      Notwithstanding anything in this Section 13 to the contrary, LMT shall      not, without the indemnified party’s prior written consent, settle or      compromise any claim or consent to entry of any judgment in respect      thereof which imposes any future obligation on the indemnified party or      which does not include, as an unconditional term thereof, the giving by      the claimant or the plaintiff to the indemnified party of a release from      all liability in respect of suchclaim. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | The      indemnification required by this Section 13 shall be made by periodic      payments of the amount thereof during the course of investigation or      defense, as and when bills are received or expense, loss, damage or      liability is incurred, so long as the indemnified party irrevocably agrees      to refund such moneys if it is ultimately determined by a court of      competent jurisdiction that such party was not entitled to      indemnification. The indemnity agreements contained herein shall be in      addition to (i) any cause of action or similar rights of the indemnified      party against LMT or others, and (ii) any liabilities LMT may be subject      to pursuant to the law. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14. | Term,      Termination and Suspension ofPerformance. |
|-----|------------------------------------------------------|

|  | (a) | The      term of this Agreement shall commence on the date hereof and shall      continue until terminated pursuant to Section  14(b). |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (b) | Prior      to the Closing Date (if different from the date of this Agreement), this      Agreement may only be terminated as provided in this Section      14(b): |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | Apple      or LMT may terminate this Agreement by notice to the other party if, in      the case of Apple, LMT, LMC or LMT-SPE is in material breach, and in the      case of LMT, Apple is in material breach of this Agreement or any other      Transaction Document unless the defaulting party cures such breach and all      effects thereof within five (5) days of its receipt of notice thereof from      the non-defaulting party. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | Apple      may terminate this Agreement by notice to LMT if Apple has reasonably      determined that the conditions set forth in Section 9(d) are unlikely to      be satisfied on or before August 31,2010. |
|--|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | Termination      of this Agreement by Apple pursuant to Section 14(b) shall not relieve      LMT, LMC and LMT-SPE of their liabilities or obligations to Apple incurred      prior to such termination. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (d) | The      non-defaulting parties shall be entitled to exercise all remedies      available at law and in equity, in addition to the remedies set forth in      this Agreement and the other Transaction Documents, for a breach by any      party of this Agreement or another Transaction  Document. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (e) | LMT      acknowledges and agrees that Apple will be unable to quantify all direct,      indirect, consequential and special damages which Apple may incur as a      result of (i) any breach by LMT of Section 1(b), 1(c), 2(b) or 8 of this      Agreement or (ii) any breach of Section 1(d), 4(c), 4(f), 4(h), 8(g),      8(h), 9(f), 10, 11 or 13 of this Agreement, provided that if a breach in      this clause (ii) is capable of cure and LMT has promptly initiated actions      to cure such breach and has vigorously and continuously undertaken to cure      such breach, such breach shall not have been cured within thirty (30) days      of LMT learning thereof and, in the case of a breach listed in clause (i)      or (ii), such breach could reasonably be expected to have a material      adverse effect on Apple’s rights under the Apple License Agreement (any      such breach being a “LMT Fundamental Breach”). |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (f) | LMT-SPE      acknowledges and agrees that Apple will be unable to quantify all direct,      indirect, consequential and special damages which Apple may incur as a      result of (i) any breach by LMT-SPE of Section 3(b) of this Agreement or      (ii) any breach of Section 5(a), 5(c), 5(d) or 6 of this Agreement or      Section 4.3 of the Apple License Agreement, provided that if a breach in      this clause (ii) is capable of cure and LMT has promptly initiated actions      to cure such breach and has vigorously and continuously undertaken to cure      such breach, such breach shall not have been cured within thirty (30) days      of LMT learning thereof and, in the case of a breach listed in clause (i)      or (ii), such breach could reasonably be expected to have a material      adverse effect on Apple’s rights under the Apple License Agreement (any      such breach being a “LMT-SPE Fundamental Breach”). |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | (g) | LMT      and LMT-SPE each agrees that the minimum amount of any such damages to      which Apple shall be entitled, in the case of LMT upon the occurrence of a      LMT Fundamental Breach and, in the case of LMT-SPE, upon the occurrence of      a LMT-SPE Fundamental Breach shall be all amounts paid by Apple to or on      behalf of LMT, LMC and LMT-SPE pursuant to all Transaction Documents plus      interest thereon from the date of such payment until the date on which      Apple recovers payment in full of from the defaulting LMT party all      damages hereunder and under the other Transaction Documents at a rate per      annum equal to the greater of (i) 10% or (ii) “prime rate” as reported in      The Wall Street Journal      in effect from time to time plus two percent. Apple may prove the      minimum amount of damages set forth in this Section 14(f) by entering this      Agreement into evidence in any action brought under this Agreement or the      other Transaction Documents or in connection with the exercise of its      rights under the security agreements delivered pursuant to Section      9(d)(vi) and (vii). |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15. | Guaranty. |
|-----|-----------|

|  | (a) | LMT      does hereby unconditionally guarantee to Apple and its assigns the prompt,      full, and faithful performance and discharge by LMC and LMT-SPE (“LMT-Subs”)of each      and every one of the terms, conditions, agreements, representation,      warranties, guarantees and provisions on the part of the LMT-Subs      contained in this Agreement and the other Transaction      Documents. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | The      guaranty in this Section 15 (“Guaranty”)shall in      all respects be a continuing, absolute, unconditional and irrevocable      guaranty of payment and performance, and shall remain in full force and      effect until all of the underlying obligations have been absolutely,      irrevocably, and unconditionally fulfilled, performed or met, whether by      LMT, or other person. LMT guarantees that the LMT-Subs’ obligations under      the Transaction Documents will be paid and performed strictly in      accordance with the terms hereof and thereof, regardless of any law,      regulation or order now or hereafter in effect in any jurisdiction      affecting any of such terms or the rights of the  Apple. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | LMT      irrevocably waives the following, to the extent permitted by applicable      law: |
|--|-----|--------------------------------------------------------------------------------------------|

|  | (i) | notice      of any changes, amendments or modifications to (x) any agreements between      Apple and the LMT-Subs, including, but not limited to, any Transaction      Document or to (y) any liabilities owing Apple by either      LMT-Sub; |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | notice      of presentment, demand, default, nonpayment or partial payments, protest,      and all other notices or formalities to which an LMT-Sub might otherwise      be entitled; |
|--|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | notice      of prosecution of collection or remedies against an LMT-Sub or against the      makers, endorsers, or other person liable on any such receivables, or      against any security or collateral thereto  appertaining; |
|--|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (iv) | notice      of any contents to the granting of indulgence or extension of time      payment, the taking and releasing indebtedness or liabilities so      guaranteed hereunder, or Apple’s acceptance of partial payments thereon,      or the settling, compromising or compounding in any of the same in such      manner and at such times as Apple may deem advisable, without in any way      impairing or affecting LMT’s liability for the full amount      thereof; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | any      requirement that Apple prosecute collection enforcement or other remedies      against either LMT-Sub or against any person liable on any such      agreements, obligation, indebtedness or liabilities so guaranteed, or      enforce or resort to any security liens, collateral, or other rights or      remedies thereto appertaining, before calling on LMT for payment; nor      shall LMT’s liability in any way be released or affected by reason of any      failure or delay on Apple’s part so todo; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | any      requirement that suit be first instituted against an LMT-Sub, that any      rights or remedies against an LMT-Sub be first exhausted or that an      LMT-Sub be joined in any action brought by Apple against LMT under this      Guaranty before calling on LMT forpayment; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | any      requirement that Apple inquire into the powers of either LMT-Sub, its      officers, directors or agents, acting or purporting to act on such      LMT-Sub’s behalf with respect to the obligations described in this      Guaranty; any such obligations created in reliance upon the professed      exercise of such powers shall be guaranteed  hereunder; |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (viii) | any      claims and other rights that it now has or may hereafter acquire against a      either LMT-Sub or any other guarantor that arise from the existence,      payment, performance or enforcement of LMT’s obligations under this      Guaranty, including any right of subrogation, reimbursement, exoneration,      contribution or indemnification and any right to participate in any claim      or remedy of Apple against an LMT-Sub, any other guarantor or any      collateral that Apple now has or hereafter acquires for the obligations      underlying this Guaranty, whether or not such claim, remedy or right      arises in equity or under contract, statute or common law, including the      right to take or receive from an LMT-Sub, directly or indirectly, in cash      or other property, by setoff or in any other manner, payment or security      on account of any such claim or otherright; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ix) | any      rights and defenses of LMT under Section 580a of the California Code of      Civil Procedure and any other rights and defenses that LMT may have by      reason of protection afforded to an LMT-Sub pursuant to the antideficiency      or other laws of California limiting or discharging an LMT-Sub’s      obligations, including 580a, 580b, 580d and 726 of the California Code of      Civil Procedure; and |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (x) | without      limiting the generality of the foregoing or any other provision hereof,      any rights and benefits that might otherwise be available to LMT under      California Civil Code Section 2809, 2810, 2815, 2819, 2839, 2845, 2848,      2849, 2850, 2899 or 3433. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 16. | Miscellaneous. |
|-----|----------------|

|   | (a) | All      notices from one party to the other required or permitted under this      Agreement shall be in writing, shall refer specifically to this Agreement,      and shall be delivered in person, or sent by electronic or facsimile      transmission for which a confirmation of delivery is obtained, or sent by      registered mail or express courier services providing evidence of      delivery, in each case to the recipient party’s respective address set      forth on the signature page hereof (or to such updated address as may be      specified in writing to the other party from time to time). Such notices      will be deemed effective as of the date so delivered or on the third      business day following mailing. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | None      of LMT, LMC or LMT-SPE shall assign, transfer, subcontract or otherwise      delegate any of its obligations under this Agreement without Apple’s prior      written consent in each instance other than as a part of any merger,      consolidation, or other statutory business combination or as a part of the      sale of all or substantially all of their assets. Any attempted      assignment, transfer, subcontracting or other delegation without such      consent shall be void and shall constitute a breach of this Agreement.      Subject to the foregoing, this Agreement shall inure to the benefit of the      parties’ successors and assigns. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Each      LMT, LMC and LMT-SPE acknowledges that any breach of this Agreement by it      may cause irreparable harm to Apple or its affiliates and that the      remedies for breach may include injunctive relief against such breach, in      addition to damages and other available remedies. The prevailing party      shall be entitled to the award of its reasonable attorneys’ fees in any      action to enforce this Agreement. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | This      Agreement, including the other Transaction Documents and the Nondisclosure      Agreement referenced herein, constitutes the entire agreement between the      parties relating to the subject matter hereof and supersedes and cancels      all other prior agreements and understandings of the parties in connection      with subject matter. The headings or titles in this Agreement are for      purposes of reference only and shall not in any way affect the      interpretation or construction of this  Agreement. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | No      waiver of any of the provisions of this Agreement shall be valid unless in      a written document, signed by the party against whom such a waiver is      sought to be enforced, nor shall failure to enforce any right hereunder      constitute a continuing waiver of the same or a waiver of any other right      hereunder. All amendments of this Agreement shall be made in writing and      signed by both parties, and no oral amendment shall be binding on the      parties. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | This      Agreement shall be governed by and construed in accordance with the laws      of the State of California without giving effect to any conflict of laws      principles to the contrary. The parties hereby consent to jurisdiction and      venue in the appropriate state and Federal courts sitting in the Northern      District of California in any litigation between them arising out of this      Agreement. If any provision of this Agreement is held to be invalid or      unenforceable to any extent in any context, it shall nevertheless be      enforced to the fullest extent allowed by law in that and other contexts,      and the validity and force of the remainder of this Agreement shall not be      affected thereby. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (g) | The      invalidity of any provision in this Agreement shall not affect the      validity of any other provisionherein. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------|

|   | (h) | The      parties have each been represented by counsel in the negotiation of this      Agreement and have jointly prepared this Agreement with counsels’      assistance. In the event of an ambiguity or a question of contract      interpretation arises, no provision of this Agreement shall be construed      based on any particular party having drafted the Agreement or such      provision. Further, neither the history of negotiations between the      parties, nor the fact that provisions of this Agreement (or portions      thereof) have been inserted, deleted or modified in the course of      preparing Agreement drafts, shall be used to construe the meaning of any      provision. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | In      the event of a dispute, either party may commence litigation in the state      or federal courts in Santa Clara County, California. The parties      irrevocably submit to the exclusive jurisdiction of those courts and agree      that final judgment in any action or proceeding brought in such courts      will be conclusive and may be enforced in any other jurisdiction upon      final and conclusive judgment (a certified copy of which will be      conclusive evidence of the judgment) or in any other manner provided by      law. Each party irrevocably waives to the fullest extent permitted by      applicable law (i) any objection it may have to the laying of venue in any      court referred to above; (ii) any claim that any such action or proceeding      has been brought in an inconvenient forum; and (iii) any immunity that it      or its assets may have from any suit, execution, attachment (whether      provisional or final, in aid of execution, before judgment or otherwise)      or other legal process. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (j) | Neither      Apple nor any of LMT, LMC or LMT-SPE will issue press releases or other      publicity regarding this Agreement or its subject matter without the prior      written approval of the otherparties. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| APPLE      INC. | LIQUIDMETAL      TECHNOLOGIES, INC.           |
|-----------------|-----------------------------------------------|
|            |                                          |
|            | /s/      Larry Buffington                     |
| Name:           | /s/      Zadesky                              | Name: | LARRY      BUFFINGTON |
| Title:          | VP      Product Design                        | Title: | PRESIDENT/CEO |
| Date:           | 8/5/10                                        | Date: | 8/10/2010 |
|            |                                          |   |
| Address:        | 1      Infinite Loop                          | Address: | 30452      Esperanza |
|            | Cupertino,      CA 95014                      |   | Rancho      Santa Margarita, CA |
| Attn:           | 92688                                         |
|            | Attn:                                         |
|            |                                          |
|            | LIQUIDMETAL      COATINGS, LLC                |
|            |                                          |
|            | /s/      Larry Buffington                     |
|            | Name:                                         | LARRY      BUFFINGTON |
|            | Title:                                        | PRESIDENT/CEO |
|            | Date:                                         | 8/10/2010 |
|            |                                          |
|            | Address:                                      | 900      Rockmead Drive, Suite 240 |
|            |                                          | Kingwood,      Texas 77339 |
|            | Attn:                                         | Chief      Executive Officer |
|            |                                          |
|            | CRUCIBLE      INTELLECTUAL PROPERTY,      LLC |
|            |                                          |
|            | /s/      Tony Chung                           |
|            | Name:                                         | Tony      Chung |
|            | Title:                                        | Chief      FinancialOfficer |

|   | Date:                                                       | 8/4/10                       |
|--------|-------------------------------------------------------------|------------------------------|
|   |                                                        |                         |
|   | Address:      31441 Santa MargaritaPkwy.,      Suite A #247 |
|   | Rancho      Santa Margarita, CA 92688 92688                 |
|   |                                                        |
|   | Attn:                                                       | Chief      Executive Officer |

----

----

| 1. | Enterprise      Bank |
|----|----------------------|

| 2. | C3      Capital Partners, L.P. |
|----|--------------------------------|

| 3. | C3      Capital Partners II, L.P. |
|----|-----------------------------------|

| 4. | Members      and Board of Managers of LMC |
|----|-------------------------------------------|

| 5. | Board      of Directors of LMT |
|----|--------------------------------|

| 6. | LLPG,      Inc. |
|----|-----------------|

----

----

| 1. | Assignment.      Assignor hereby transfers, conveys and assigns to Assignee, effective as      of close of business on August 5, 2010 (the “Effective      Date”), all of Assignor’s      right, title and interest in, and obligations under the LMT Technology,      whether now existing or hereafter arising until the date falling eighteen      (18) months after the Effective Date (the “LMC Intellectual Property      Assets”), including without limitation the patent applications listed on      Schedule 1 hereto. Also effective as of the Effective Date, Assignee      accepts this assignment of the LMC Intellectual Property Assets. Assignor      hereby assigns, and Assignee hereby assumes, all (i) obligations under      agreements included in the LMC Intellectual Property Assets and (ii)      obligations arising as a matter of law with respect to the LMC      Intellectual Property Assets. The assignment set forth herein shall not      include the assignment of any rights of Assignor that Assignor acquires on      or after the Effective Date under and with respect to: (i) the Exclusive      License Agreement, dated as of the Effective Date, between Assignor and      Crucible, or (ii) the Amended and Restated and Restated License and      Technical Support Agreement, dated as of the Effective Date, between      Assignor and Assignee. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | No Assignment.      This Assignment may not be assigned by any party without the written      consent of the other party (which consent may not be unreasonably      withheld). |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Further      Assurances. Each party to this Assignment shall execute and deliver      to each other party all documents, and shall take all actions, reasonably      required by such other party from time to time to confirm or effect the      matters set forth in this Assignment, or otherwise to carry out the      purposes of this Assignment. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4. | Entire      Agreement. This Assignment, together with the MTA, constitute the      entire agreement between the parties with respect to the assignment of the      LMT Technology to Assignee. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | Successors and      Assigns. This Assignment shall bind, and shall inure to the benefit      of, the successors and assigns of the parties  hereto. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | Counterparts.      This Assignment may be executed in counterparts with the same effect as if      the parties had executed one instrument, and each such counterpart shall      constitute an original of thisAssignment. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | Severability.      No provision of this Assignment that is held to be inoperative,      unenforceable or invalid shall affect the remaining provisions, and to      this end all provisions of this Assignment shall be    severable. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8. | Governing Law.      This Assignment shall be governed by and construed in accordance with the      laws of the State of California without giving effect to any conflict of      laws principles to the contrary. The parties hereby consent to      jurisdiction and venue in the appropriate state and Federal courts sitting      in the Northern District of California in any litigation between them      arising out of this Assignment. If any provision of this Assignment is      held to be invalid or unenforceable to any extent in any context, it shall      nevertheless be enforced to the fullest extent allowed by law in that and      other contexts, and the validity and force of the remainder of this      Assignment shall not be affectedthereby. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9. | Jurisdiction.      In the event of a dispute, either party may commence litigation in the      state or federal courts in Santa Clara County, California. The parties      irrevocably submit to the exclusive jurisdiction of those courts and agree      that final judgment in any action or proceeding brought in such courts      will be conclusive and may be enforced in any other jurisdiction upon      final and conclusive judgment (a certified copy of which will be      conclusive evidence of the judgment) or in any other manner provided by      law. Each party irrevocably waives to the fullest extent permitted by      applicable law (i) any objection it may have to the laying of venue in any      court referred to above; (ii) any claim that any such action or proceeding      has been brought in an inconvenient forum; and (iii) any immunity that it      or its assets may have from any suit, execution, attachment (whether      provisional or final, in aid of execution, before judgment or otherwise)      or other legal process. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10. | Notices. All notices from one      party to the other required or permitted under this Assignment shall be in      writing, shall refer specifically to this Assignment, and shall be      delivered in person, or sent by electronic or facsimile transmission for      which a confirmation of delivery is obtained, or sent by registered mail      or express courier services providing evidence of delivery, in each case      to the recipient party’s respective address set forth on the signature      page to the MTA (or to such updated address as may be specified in writing      to the other party from time to time). Such notices will be deemed      effective as of the date so delivered or on the third business day      following mailing. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | ASSIGNOR:                           |
|--------|-------------------------------------|
|   | LIQUIDMETAL      COATINGS, LLC      |
|   |                                |
|   | By:                                 | /s/      Larry Buffington |
|   | Name:                     | LARRY      BUFFINGTON |
|   | Title:                              | PRESIDENT      / CEO |
|   |                                |
|   | ASSIGNEE:                           |
|   | LIQUIDMETAL      TECHNOLOGIES, INC. |
|   |                                |
|   | By:                                 | /s/      Tony Chung |
|   | Name:                               | Tony      Chung |
|   | Title:                              | Chief      FinancialOfficer |

----

| Grantor                       | Patent                                                                                              | Country | Date Filed | Serial No. | PatentNo./Status | IssueDate |
|-------------------------------|-----------------------------------------------------------------------------------------------------|---------|-----------------|-----------------|------------------|-----------|
| LiquidmetalCoatings,      LLC | Nickel      BasedThermal      SprayPowder                                                           | USA     | 2/1/10          | 61,300,318      | Pending          | —   |
| LiquidmetalCoatings,      LLC | Molybdenum-ContainingFerrous      Alloy forImprovedThermal      SprayDeposition      andHard-Facing | USA     | 4/28/10         | 61,315,661      | Pending          | —   |

----

----

| 1. | Assignment.      Assignor hereby transfers, conveys and assigns to Assignee, effective as      of the close of business on the Effective Date, all of Assignor’s right,      title and interest in the LMT Technology, now existing or hereafter      arising until the date falling eighteen (18) months after the Effective      Date, including, without limitation: all trade secrets and all patent      registrations, patent applications, license agreements, and trademarks      listed on Schedule 1 hereto. Also effective as of the Effective Date,      Assignee accepts this assignment of the LMT Technology. In connection with      the foregoing, Assignor hereby assigns and delegates, and Assignee hereby      assumes, all (i) obligations under agreements included in the LMT      Technology and (ii) obligations arising as a matter of law with respect to      the LMT Technology. It is intended by the parties that the contribution of      the LMT Technology being made by Assignor to Assignee hereunder will      qualify as a tax-exempt transaction pursuant to Section 721 of the      Internal Revenue Code of 1986, asamended. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | No Assignment.      This Agreement may not be assigned by any party without the written      consent of the other party (which consent may not be unreasonably      withheld). |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Further      Assurances. Each party to this Agreement shall execute and deliver      to each other party all documents, and shall take all actions, reasonably      required by such other party from time to time to confirm or effect the      matters set forth in this Agreement, or otherwise to carry out the      purposes of this Agreement. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4. | Entire      Agreement. This Agreement, together with the MTA, constitute the      entire agreement between the parties with respect to the assignment of the      LMT Technology to Assignee. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | Successors and      Assigns. This Agreement shall bind, and shall inure to the benefit      of, the successors and assigns of the parties  hereto. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | Counterparts.      This Agreement may be executed in counterparts with the same effect as if      the parties had executed one instrument, and each such counterpart shall      constitute an original of thisAgreement. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | Severability.      No provision of this Agreement that is held to be inoperative,      unenforceable or invalid shall affect the remaining provisions, and to      this end all provisions of this Agreement shall be    severable. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8. | Governing Law.      This Agreement shall be governed by and construed in accordance with the      laws of the State of California without giving effect to any conflict of      laws principles to the contrary. The parties hereby consent to      jurisdiction and venue in the appropriate state and Federal courts sitting      in the Northern District of California in any litigation between them      arising out of this Agreement. If any provision of this Agreement is held      to be invalid or unenforceable to any extent in any context, it shall      nevertheless be enforced to the fullest extent allowed by law in that and      other contexts, and the validity and force of the remainder of this      Agreement shall not be affectedthereby. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9. | Jurisdiction.      In the event of a dispute, either party may commence litigation in the      state or federal courts in Santa Clara County, California. The parties      irrevocably submit to the exclusive jurisdiction of those courts and agree      that final judgment in any action or proceeding brought in such courts      will be conclusive and may be enforced in any other jurisdiction upon      final and conclusive judgment (a certified copy of which will be      conclusive evidence of the judgment) or in any other manner provided by      law. Each party irrevocably waives to the fullest extent permitted by      applicable law (i) any objection it may have to the laying of venue in any      court referred to above; (ii) any claim that any such action or proceeding      has been brought in an inconvenient forum; and (iii) any immunity that it      or its assets may have from any suit, execution, attachment (whether      provisional or final, in aid of execution, before judgment or otherwise)      or other legal process. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10. | Notices. All      notices from one party to the other required or permitted under this      Agreement shall be in writing, shall refer specifically to this Agreement,      and shall be delivered in person, or sent by electronic or facsimile      transmission for which a confirmation of delivery is obtained, or sent by      registered mail or express courier services providing evidence of      delivery, in each case to the recipient party’s respective address set      forth on the signature page to the MTA (or to such updated address as may      be specified in writing to the other party from time to time). Such      notices will be deemed effective as of the date so delivered or on the      third business day followingmailing. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | ASSIGNOR:                                |
|--------|------------------------------------------|
|   | LIQUIDMETAL      TECHNOLOGIES, INC.      |
|   |                                     |   |
|   | By:                                      | /s/      Larry Buffington |
|   | Name:                          | LARRY      BUFFINGTON |
|   | Title:                                   | PRESIDENT      / CEO |
|   |                                     |   |
|   | ASSIGNEE:                                |
|   | CRUCIBLE      INTELLECTUAL PROPERTY, LLC |
|   |                                     |   |
|   | By:                                      | /s/      Tony Chung |
|   | Name:                                    | Tony      Chung |
|   | Title:                                   | Chief      Financial Officer |

----

| Patent                                                    | Country | DateFiled | Serial No. | PatentNo./Status      | IssueDate |
|-----------------------------------------------------------|---------|-----------|-----------------|-----------------------|-----------|
| Porous      Amorphous Alloy for Catalysts                 | USA     | 09.10.84  | 06/649,070      | 4’608’319 | 08.26.86  |
| Data      Storage Using Amorphous Metallic Storage Medium | USA     | 11.23.87  | 07/123,924      | 4’888’758 | 12.19.89  |
| Joining      Using Bulk Alloys                            | USA     | 06.13.94  | 08/258,766      | 5’482’580 | 01.09.96  |
| Composites      of Bulk Alloy (Method)                    | USA     | 04.06.95  | 08/417,749      | 5      567 251        | 10.22.96  |
| Diamond      Composites of Bulk Alloys                    | USA     | 08.01.94  | 08/284,153      | 5’567’532 | 10.22.96  |
| Die-Casting      of Bulk Alloys                           | USA     | 02.16.96  | 08/602,899      | 5’711’363 | 01.27.98  |
| Torsional      Spring of Bulk Alloys                      | USA     | 08.26.96  | 08/702,918      | 5’772’803 | 06.30.98  |
| Casting      of Zr-base Bulk Alloys                       | USA     | 09.30.96  | 08/720,483      | 5’797’443 | 08.25.98  |
| Composites      of Bulk Alloys                            | USA     | 10.15.96  | 08/732,546      | 5’866’254 | 02.02.99  |
| Die-Forming      (Molding) of Bulk Alloys                 | USA     | 07.17.96  | 08/683,319      | 5’896’642 | 04.27.99  |
| Replication      with Bulk Alloys                         | USA     | 07.18.96  | 08/683,320      | 5’950’704 | 09.14.99  |
| Composite      Kinetic Energy Penetrator                  | USA     | 09.24.97  | 08/937,096      | 6’010’580 | 01.04.00  |
| Vacuum      Die-Casting                                   | USA     | 01.23.98  | 09/012,347      | 6’021’840 | 02.08.00  |
| Shaped-Charge      Projectiles                            | USA     | 02.27.01  | 09/796,736      | 6’446’558 | 09.10.02  |
| Yttrium      Addition                                     | USA     | 10.31.01  | 10/020,386      | 6’682’611 | 01.27.04  |
| Golf      Club Made of Bulk Alloy                         | USA     | 10.28.97  | 08/963,131      | 6’685’577 | 12.04.95  |

----

| Patent                       | Country | DateFiled | Serial No.     | PatentNo./Status      | IssueDate |
|------------------------------|---------|-----------|---------------------|-----------------------|-----------|
| Metal      Frame             | USA     | 06.07.02  | 10/165,466          | 6’771’490 | 08.03.04  |
| Metal      Frame             | UK      | 06.07.02  | 02787184.7          | 1404884               | 07.11.07  |
| Metal      Frame             | Germany | 06.07.02  | 60221127.1          | 60221127              | 07.11.07  |
| Metal      Frame             | China   | 06.07.02  | 028138414           | ZL02813841.4          | 03.01.06  |
| Metal      Frame             | Korea   | 06.07.02  | 2003-7016092        | 10-0908420            | 07.13.09  |
| Metal      Frame             | India   | 06.07.02  | 2091DELNP      2003 | Filed                 | —   |
| Joining      by Casting      | USA     | 07.31.02  | 10/210,398          | 6’818’078 | 11.16.04  |
| Joining      by Casting      | UK      | 07.31.02  | 02761216.7          | 1415010               | 01.07.09  |
| Joining      by Casting      | Germany | 07.31.02  | 02761216.7          | 60230769.4            | 01.07.09  |
| Joining      by Casting      | Italy   | 07.31.02  | 48253BE2009         | 1415010               | 01.07.09  |
| Joining      by Casting      | Japan   | 07.31.02  | 2003-517329         | 4243589               | 12.19.08  |
| Joining      by Casting      | Korea   | 07.31.02  | 2004-7001265        | 0898657               | 05.13.09  |
| Gliding      Boards          | USA     | 03.07.02  | 10/093,229          | 6’843’496 | 01.18.05  |
| Gliding      Boards          | Japan   | 03.07.02  | 2002-570783         | 4216604               | 11.14.08  |
| Gliding      Boards          | EPO     | 03.07.02  | 0270796722122       | Filed                 | —   |
| Forming      Molded Articles | USA     | 09.06.02  | 10/236,792          | 6’875’293 | 04.05.05  |
| Forming      Molded Articles | China   | 09.06.02  | 028198131           | ZL02819813.1          | 01.17.07  |
| Forming      Molded Articles | EPO     | 09.06.02  | 027802842           | Filed                 | —   |
| Forming      Molded Articles | Japan   | 09.06.02  | 2003527141          | Filed                 | —   |
| Forming      Molded Articles | Korea   | 09.06.02  | 20047003388         | Filed                 | —   |
| Cutting      Tools           | USA     | 03.07.02  | 10/093,245          | 6’887’586 | 05.03.05  |
| Cutting      Tools           | Japan   | 03.03,09  | 2009-049448         | Filed                 | —   |

----

| Patent                           | Country | DateFiled | Serial No. | PatentNo./Status      | IssueDate |
|----------------------------------|---------|-----------|-----------------|-----------------------|-----------|
| Cutting      Tools               | China   | 03.07.02  | 028080815       | ZL02808081.5          | 04.23.08  |
| Cutting      Tools               | Korea   | 03.07.02  | 2003-7011684    | 100874694             | 12.11.08  |
| Improving      Bulk Alloys       | USA     | 10.02.02  | 10/263,965      | 7’008’490 | 03.07.06  |
| Improving      Bulk Alloys       | Japan   | 10.02.02  | 2003532717      | Filed                 | —   |
| Improving      Bulk Alloys       | Korea   | 10.02.02  | 20047004988     | Filed                 | —   |
| Improving      Bulk Alloys       | China   | 10.02.02  | 0282185915      | Filed                 | —   |
| Thermoplastic      Casting (TPC) | USA     | 01.31.03  | 10/355,490      | 7’017’645 | 03.28.06  |
| Thermoplastic      Casting (TPC) | EPO     | 01.31.03  | 0373510951215   | EP1499461             | 09.02.09  |
| Thermoplastic      Casting (TPC) | UK      | 01.31.03  | 03735109,51215  | Filed                 | —   |
| Thermoplastic      Casting (TPC) | Germany | 01.31.03  | 03735109.5-1215 | Filed                 | —   |
| Thermoplastic      Casting (TPC) | France  | 01.31.03  | 03735109.5-1215 | Filed                 | —   |
| Thermoplastic      Casting (TPC) | China   | 01.31.03  | 038043971       | ZL03804397.1          | 11.02.07  |
| Thermoplastic      Casting (TPC) | Japan   | 01.31.03  | 20106769        | Filed                 | —   |
| Thermoplastic      Casting (TPC) | Korea   | 01.31.03  | 20047011900     | Filed                 | —   |
| Foamed      Structures           | USA     | 05.20.03  | 10/442,707      | 7’073’560 | 07.11.06  |
| Foamed      Structures           | UK      | 05.20.03  | 03729048.32122  | 1513637               | 05.12.08  |
| Foamed      Structures           | Germany | 05.20.03  | 037290483       | 60319700.0-.08        | 03.12.08  |
| Foamed      Structures           | Korea   | 05.20.03  | 20047018773     | Filed                 | —   |
| Encapsulated      Ceramic Armor  | USA     | 03.11.03  | 10/386,728      | 7,157,158             | 01.02.07  |

----

| Patent                                                                                      | Country | DateFiled | Serial No. | PatentNo./Status      | IssueDate  |
|---------------------------------------------------------------------------------------------|---------|-----------|-----------------|-----------------------|------------|
| Investment      Casting of Bulk-Solidifying Amorphous Alloys                                | USA     | 09.30.03  | 10/529,585      | 7’293’599 | 11.13.07   |
| Retractable      Memory Stick                                                               | USA     | 08.21.06  | 29/264,947      | D563,954              | 03.11.08   |
| Golf      Club Made of Bulk-Solidifying Amorphous Metal                                     | USA     | 11.25.05  | 11/288,492      | 7’357’731 | 04.15.08   |
| Jewelry      Made of Precious Amorphous Alloys and Method of MakingSuch                     | USA     | 10.05.05  | 10/534,375      | 7,412,848             | 08/19/08   |
| Amorphous      Alloy Stents                                                                 | USA     | 11.18.03  | 10/534,374      | 7,500,987             | 03/10/09   |
| Method      of Making In-Situ Composites Comprising Amorphous Alloys                        | USA     | 02.11.04  | 10/545,123      | 7,520,944             | 03/21/09   |
| Method      of Making Dense Composites of Bulk-Solidifying Alloys and Articles      Thereof | USA     | 06.17.03  | 10/521,424      | 7,560,001             | 7/14/2009  |
| Continuous      Casting of Bulk Solidifying Amorphous Alloys                                | USA     | 04.14.04  | 10/552,667      | 7,575,040             | 8/18/2009  |
| Pt-Base      Bulk Solidifying Amorphous Alloys                                              | USA     | 12.22.03  | 10/540,337      | 7,582,172             | 9/1/2009   |
| Continuous      Casting of Foamed Bulk Amorphous Alloys                                     | USA     | 04.14.04  | 10/552,496      | 7,588,071             | 9/15/2009  |
| Continuous      Casting of Foamed Bulk Amorphous Alloys                                     | Korea   | 04.14.04  | 2005-7019638    | Filed                 | —    |
| Encapsulated      Ceramic Armour                                                            | USA     | 12.18.06  | 11/612,328      | 7,604,876             | 10/20/2009 |
| Method      of Manufacturing Amorphous Metallic Foam                                        | USA     | 01.20.04  | 10/542,438      | 7,621,314             | 11/24/2009 |
| Fe-Base      In-Situ Composite Alloys Comprising Amorphous Phase                            | USA     | 10.01.04  | 10/573,148      | 7,618,499             | 11/17/2009 |

----

| Patent                                                                                              | Country     | DateFiled | Serial No. | PatentNo./Status | IssueDate  |
|-----------------------------------------------------------------------------------------------------|-------------|-----------|-----------------|------------------|------------|
| Antenna      Structures Made of Bulk-Solidifying Amorphous Alloys                                   | USA         | 02.17.06  | 11,844431       | Filed            | —    |
| Antenna      Structures Made of Bulk                                                                | UK          | 02.17.06  | 07171812        | 2439852          | 06/10/2009 |
| Antenna      Structures Made of Bulk                                                                | China       | 02.17.06  | 2006-800088016  | Filed            | —    |
| Antenna      Structures Made of Bulk                                                                | India       | 02.17.06  | 6490DELMP2007   | Filed            | —    |
| Bulk-Solidifying      Alloys with Improved Mechanical Properties                                    | USA         | 12.16.05  | 11,303,844      | Filed            | —    |
| High      Durability Structures of Amorphous Alloy with a Method of      Forming                    | USA         | 08.13.04  | 10,565,839      | Filed            | —    |
| Medical      Implants                                                                               | USA         | 08.19.03  | 10,524,954      | Filed            | —    |
| Medical      Implants                                                                               | EPO         | 08.19.03  | 03788672.8      | Filed            | —    |
| Metallic      Dental Prostheses Made of Bulk-Solidifying Amorphous Alloys and Articles      Thereof | USA         | 08.05.03  | 10,523,465      | Filed            | —    |
| Au-Base      Bulk Solidifying Amorphous Alloys                                                      | USA         | 10.17.05  | 11,576,922      | Filed            | —    |
| Au-Base      Amorphous Alloys                                                                       | EPO         | 10.17.05  | 05815431.1      | 1      805 337   | 05.05.10   |
| Au-Base      Amorphous Alloys                                                                       | UK          | 10.17.05  | 05815431.1      | Filed            | —    |
| Au-Base      Amorphous Alloys                                                                       | Germany     | 10.17.05  | 05815431.1      | 60-2005021136.5  | —    |
| Au-Base      Amorphous Alloys                                                                       | France      | 10.17.05  | 05815431.1      | Filed            | —    |
| Au-Base      Amorphous Alloys                                                                       | Switzerland | 10.17.05  | 05815431.1      | Filed            | —    |
| Au-Base      Amorphous Alloys                                                                       | Netherlands | 10.17.05  | 05815431.1      | Filed            | —    |
| Au-Base      Amorphous Alloys                                                                       | Austria     | 10.17.05  | 05815431.1      | Filed            | —    |

----

| Patent                                                                                              | Country | DateFiled | Serial No.     | PatentNo./Status | IssueDate |
|-----------------------------------------------------------------------------------------------------|---------|-----------|---------------------|------------------|-----------|
| All-Base      Amorphous Alloys                                                                      | Spain   | 10.17.05  | 05815431.1          | Filed            | —   |
| Au-Base      Amorphous Alloys                                                                       | Turkey  | 10.17.05  | 05815431.1          | Filed            | —   |
| Current      Collector Plates Made of Bulk-Solidifying Amorphous Alloys                             | USA     | 03.18.04  | 10,548,979          | Filed            | —   |
| Current      Collector Plates Made of Bulk-Solidifying Amorphous Alloys                             | Japan   | 10.18.04  | 2006-507442         | Filed            | —   |
| Amorphous      Alloy Hooks and Methods of Making Such Hooks                                         | USA     | 10.24.05  | 11,577,081          | Filed            | —   |
| Metallic      Mirrors Formed from Amorphous Alloys                                                  | USA     | 10.19.05  | 11,577,052          | Filed            | —   |
| Tin-Addition      to Amorphous Alloy                                                                | USA     | 06.12.09  | 61,354,620          | Filed            | —   |
| Tin-Addition      to Amorphous Alloy                                                                | Korea   | 07.23.09  | 200910-2009-0067226 | Filed            | —   |
| Amorphous      Alloy Armor                                                                          | USA     | 11.09.09  | 12,615,097          | Filed            | —   |
| Hermetic      Seal                                                                                  | USA     | 01.04.10  | 61,335,294          | Filed            | —   |
| Nickel      Based Thermal Spray Powder Imprint Lithograph with Amorphous Metallic      Materials    | USA     | 02.01.10  | 61,300,381          | Filed            | —   |
| Thermoplastic      Forming Methods for Amorphous Alloys                                             | USA     | 02.17.10  | 61,338,138          | Filed            | —   |
| Ni-Free      Beryllium Containing Amorphous Alloy                                                   | USA     | 04.28.10  | 61,329,054          | Filed            | —   |
| Molybdenum-Containing      Ferrous Alloy for Improved Thermal Spray Deposition and Hard      Facing | USA     | 03.19.10  | 61,315,661          | Filed            | —   |

----

| Ref      No.                   | Mark/      Title                   | App.      No./Filing      Date | Reg      No./Issue      Date | Status                               | Inventors/Goods                                                                                                                                                                                                                                                                                                                                                                                                                             | U.S./Foreign |
|--------------------------------|------------------------------------|--------------------------------|------------------------------|--------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|
| LQUID-002T                     | LIQUIDMETAL      (and design)      | 75/389,64811/13/1997           | 2,435,52903/13/2001          | REGISTEREDRENEWAL      DUE03/13/2011 | CLASS      028: GOLF EQUIPMENT, NAMELY, GOLF CLUBS, GOLF BALLS AND GOLF      BAGS                                                                                                                                                                                                                                                                                                                                                           | U            |
| LQUID-003T                     | LIQUIDMETAL      (stylized)        | 75/389,64511/13/1997           | 2,480,24108/21/2001          | REGISTEREDRENEWAL      DUE08/21/2011 | CLASS      028: GOLF EQUIPMENT, NAMELY, GOLF CLUBS, GOLF BALLS AND GOLF      BAGS                                                                                                                                                                                                                                                                                                                                                           | U            |
| LQUID-004T                     | LIQUIDMETAL      (and design)      | 75/358,13409/16/1997           | 2,312,88902/01/2000          | REGISTEREDRENEWAL      DUE02/01/2020 | CLASS      006: AMORPHOUS METALS                                                                                                                                                                                                                                                                                                                                                                                                            | U            |
| LQUID-005T                     | LIQUIDMETAL      GOLF (and design) | 75/351,05909/03/1997           | 2,494,58311/02/2001          | REGISTEREDRENEWAL      DUE10/02/2011 | CLASS      028: TOYS AND SPORTING GOODS, NAMELY, GOLF CLUBS, GOLF BALLS, GOLF CLUB      SHAFTS, GOLF GRIPS, GOLF BAGS, TENNIS RACKETS                                                                                                                                                                                                                                                                                                       | U            |
| LQUID-008T                     | LIQUIDMETAL      GOLF              | 75/498,77806/08/98             | 2,714,78705/13/2003          | REGISTEREDRENEWAL      DUE05/13/2013 | CLASS      025: CLOTHING, NAMELY, HATS, PANTS, SHIRTS, SHORTS, SWEATERS, JACKETS AND      FOOTWEAR                                                                                                                                                                                                                                                                                                                                          | U            |
| LQUID-013JP      (Japan)       | LIQUIDMETAL      (and design)      | 016900/199702/18/1997          | 414919105/22/1998            | REGISTEREDRENEWAL      DUE05/22/2018 | CLASS      006: AMORPHOUS METALS                                                                                                                                                                                                                                                                                                                                                                                                            | F            |
| LQUID-013KS      (South Korea) | LIQUIDMETAL      (and design)      | 97-5705812/10/1997             | 44777705/13/1999             | REGISTEREDRENEWAL      DUE05/13/2019 | CLASS      006: ZIRCONIUM AND TITANIUM BASED ALLOYS                                                                                                                                                                                                                                                                                                                                                                                         | F            |
| LQUID-014HK2      (Hong Kong)  | LIQUIDMETAL      (and design)      | 793/200101/15/2001             | B6279/200205/24/2002         | REGISTEREDRENEWAL      DUE01/15/2018 | CLASS      028: GAMES AND PLAYTHINGS, GYMNASTIC AND SPORTING ARTICLES                                                                                                                                                                                                                                                                                                                                                                       | F            |
| LQUID-014JP      (Japan)       | LIQUIDMETAL      (and design)      | 147446/199708/07/1997          | 449616008/03/2001            | REGISTEREDRENEWAL      DUE08/03/2011 | CLASS      028: SPORTING, ATHLETIC AND GYMNASTIC IMPLEMENTS; GAME MACHINES AND      APPARATUS; GO GAME EQUIPMENT      (JAPANESE BOARD GAME); SHOGI GAME      EQUIPMENT (JAPANESE CHESS); DICE; SUGOROKU GAMES (JAPANESE PARCHEESI);      DICE CUPS; DIAMOND GAMES; CHESS GAMES; CHECKERS; CONJURING APPARATUS;      DOMINOES; MAHJONG EQUIPMENT; BILLIARD APPARATUS; TOYS; DOLLS; TOYS FOR      DOMESTIC PETS; WAX FOR SKIS; FISHING TACKLE | F            |
| LQUID-014KS      (South Korea) | LIQUIDMETAL      (and design)      | 97-5705912/10/1997             | 44624904/14/1999             | REGISTEREDRENEWAL      DUE04/14/2019 | CLASS      028; GOLF CLUBS, GOLF BALLS AND GOLF BAGS                                                                                                                                                                                                                                                                                                                                                                                        | F            |
| LQUID-014SG      (Singapore)   | LIQUIDMETAL      (and design)      | S115181/9712/15/1997           | T97/15181Z12/15/1997         | REGISTEREDRENEWAL      DUE12/15/2017 | CLASS      028: SPORTING GOODS                                                                                                                                                                                                                                                                                                                                                                                                              | F            |

----

| LQUID-014TI      (Taiwan)    | LIQUIDMETAL      (and design)      | 75/184,48210/21/1996   | 85422406/01/1999    | REGISTEREDRENEWAL      DUE05/31/2019   | CLASS      028: SPORTING GOODS, NAMELY BADMINTON RACKETS, GOLF CLUB HEADS, GOLF CLUB      SHAFTS, GOLF CLUBS, GOLF CLUB FACE PLATE INSERTS, FIELD HOCKEY STICKS, ICE      HOCKEY STICKS AND TENNIS RACKETS                                                                                                                                                                                                                                  | F |
|------------------------------|------------------------------------|------------------------|---------------------|----------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---|
| LQUID-015AU      (Australia) | LIQUIDMETAL      (and design)      | 75050412/08/1997       | 75050402/11/2000    | REGISTEREDRENEWAL      DUE12/08/2017   | CLASS      028; SPORTING GOODS                                                                                                                                                                                                                                                                                                                                                                                                              | F |
| LQUID-015CA      (Canada)    | LIQUIDMETAL      (and design)      | 86457112/18/1997       | 517,00809/24/1999   | REGISTEREDRENEWAL      DUE09/24/2014   | CLASS      006: AMORPHOUS METALS CLASS 028: SPORTING GOODS, NAMELY GOLF CLUBS, GOLF      BALLS AND GOLF BAGS                                                                                                                                                                                                                                                                                                                                | F |
| LQUID-015EU      (Europe)    | LIQUIDMETAL      (and design)      | 69897712/08/1997       | 00069897709/01/1999 | REGISTEREDRENEWAL      DUE12/08/2017   | CLASS      006: AMORPHOUS METALS CLASS 028: SPORTING GOODS                                                                                                                                                                                                                                                                                                                                                                                  | F |
| LQUID-018JP      (Japan)     | LIQUIDMETAL      (and design)      | 016901/199702/18/1997  | 414919205/22/1998   | REGISTEREDRENEWAL      DUE05/22/2018   | CLASS      006: AMORPHOUS METALS                                                                                                                                                                                                                                                                                                                                                                                                            | F |
| LQUID-019JP      (Japan)     | LIQUIDMETAL      GOLF (and design) | 0167209/199710/13/1997 | 431478809/10/1999   | REGISTEREDRENEWAL      DUE09/10/2019   | CLASS      028: TOYS; SPORTING, ATHLETIC AND GYMNASTIC IMPLEMENTS                                                                                                                                                                                                                                                                                                                                                                           | F |
| LQUID-020JP      (Japan)     | LIQUIDMETAL      (shaded letters)  | 147447/199708/07/1997  | 447050104/27/2001   | REGISTEREDRENEWAL      DUE04/27/2011   | CLASS      028: SPORTING, ATHLETIC AND GYMNASTIC IMPLEMENTS; GAME MACHINES AND      APPARATUS; GO GAME EQUIPMENT      (JAPANESE BOARD GAME); SHOGI GAME      EQUIPMENT (JAPANESE CHESS); DICE; SUGOROKU GAMES (JAPANESE PARCHEESI);      DICE CUPS; DIAMOND GAMES; CHESS GAMES; CHECKERS; CONJURING APPARATUS;      DOMINOES; MAHJONG EQUIPMENT; BILLIARD APPARATUS; TOYS; DOLLS; TOYS FOR      DOMESTIC PETS; WAX FOR SKIS; FISHING TACKLE | F |
| LQUID-027T                   | LIQUIDMETAL                        | 75/434,84502/17/1998   | 2,435,55803/13/2001 | REGISTEREDRENEWAL      DUE03/13/2011   | GLASS      028: GOLF PRODUCTS, NAMELY GOLF CLUBS, GOLF BALLS AND GOLF      BAGS                                                                                                                                                                                                                                                                                                                                                             | U |
| LQUID-051U                   | LIQUIDMETAL                        |                   | 10755908/03/2001    | CAREGISTEREDRENEWAL      DUE08/23/2011 | GOLF      EQUIPMENT; GOLF PRODUCTS; GOLF CLUBS; TOYS AND SPORTING    GOODS                                                                                                                                                                                                                                                                                                                                                                  | U |
| LQUID-057AU      (Australia) | LIQUIDMETAL                        | 94664903/11/2003       | 94664912/07/2006    | REGISTEREDRENEWAL      DUE03/11/2013   | CLASS      028: SPORTING GOODS, NAMELY TENNIS RACKETS, SKIS, SKI POLES AND SNOW      BOARDS                                                                                                                                                                                                                                                                                                                                                 | F |
| LQUID-057CA      (Canada)    | LIQUIDMETAL                        | 1,186,33108/012003     | 666,05606/14/2006   | REGISTEREDRENEWAL      DUE06/14/2021   | CLASS      006: AMORPHOUS METALS CLASS 025: WEARING APPAREL, NAMELY SHIRTS, T-SHIRTS,      SHORTS, PANTS, SWEATSHIRTS, SWEATPANTS, HATS, VISORS, SHOES AND BELTS      CLASS 028: SPORTING GOODS NAMELY SPORTING KNIVES, TENNIS RACKETS, TENNIS      BAGS AND TENNIS CASES, GOLF CLUBS, GOLF BALLS AND GOLFBAGS                                                                                                                              | F |

----

| LQUID-057EU      (Europe)    | LIQUIDMETAL | 00309150103/11/2003 | 00309150105/31/2005 | REGISTEREDRENEWAL      DUE03/11/2013                                                                              | CLASS      008: SPORTING KNIVES CLASS 025: WEARING APPAREL, INCLUDING SHIRTS,      T-SHIRTS, SHORTS, PANTS, SWEATSHIRTS, SWEATPANTS, HATS, VISORS, SHOES AND      BELTS CLASS 028: SPORTING GOODS, NAMELY, TENNIS RACKETS; AND MATERIALS      USED IN SKIS, SKI POLES AND SNOW BOARDS | F |
|------------------------------|-------------|---------------------|---------------------|-------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---|
| LQUID-057HK      (Hong Kong) | LIQUIDMETAL | 30005771708/24/2004 |                | REGISTEREDRENEWAL      DUE08/04/2013                                                                              | CLASS      028: SPORTING GOODS, NAMELY, TENNIS RACKETS, SKIS, SKI POLES, SNOWBOARDS,      TENNIS BAGS, TENNIS CASES, GOLF CLUBS, GOLF BALLS AND GOLF      BAGS                                                                                                                        | F |
| LQUID-057HU      (Hungary)   | LIQUIDMETAL | M      0303314      | 18303812/13/2005    | REGISTEREDRENEWAL      DUE08/05/2013                                                                              | CLASS      028: SPORTING GOODS, NAMELY, TENNIS RACKETS, TENNIS BAGS, TENNIS CASES,      SPORTING KNIVES, AND MATERIALS USED IN SKIS, SKI POLES AND      SNOWBOARDS                                                                                                                    | F |
| LQUID-057PL      (Poland)    | LIQUIDMETAL | Z-26817808/04/2003  | 17607606/27/2006    | REGISTEREDRENEWAL      DUE08/04/2013                                                                              | CLASS      028: SPORTING GOODS, TENNIS RACKETS, SKIS, SKI POLES, SNOWBOARDS, SPORTING      KNIVES, TENNIS BAGS, TENNIS CASES, GOLF CLUBS, GOLF BALLS AND GOLF      BAGS                                                                                                               | F |
| LQUID-057MX      (Mexico)    | LIQUIDMETAL | 61340208/06/2003    | 84387807/22/2004    | REGISTEREDRENEWAL      DUE08/06/2013                                                                              | CLASS      028: SPORTING GOODS, TENNIS RACKETS, SKIS, SKI POLES, SNOWBOARDS, SPORTING      KNIVES, TENNIS BAGS, TENNIS CASES, GOLF CLUBS, GOLF BALLS AND GOLF      BAGS                                                                                                               | F |
| LQUID-057RC2      (China)    | LIQUIDMETAL | 607947705/30/2007   |                | PENDINGAPPLICATIONREJECTED;FILEDRESPONSE      IN08/2009;      TAKESAPPROX.      18MONTHS      TOGET      DECISION | CLASS      6: AMORPHOUS METALS, METAL CASTINGS AND METAL HINGES FOR CELLULAR      PHONES                                                                                                                                                                                              | F |

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| LQUID-057RC3      (China) | LIQUIDMETAL                     | 607947805/30/2007    |                | PENDINGAPPLICATIONREJECTED;FILEDRESPONSE      IN08/2009;      TAKESAPPROX.      18MONTHS      TOGET      DECISION | CLASS      9: CELLULAR TELEPHONES, PERSONAL DATA ASSISTANTS, MP3 PLAYERS, COMPUTER      MEMORY HARDWARE, PERSONAL DIGITAL ASSISTANTS, PORTABLE LISTENING DEVICES,      CAMCORDERS, CINEMATOGRAPHIC CAMERAS, PHOTOGRAPHIC CAMERAS, COMPACT DISC      PLAYERS, COMPUTERS, PRINTERS FOR USE WITH COMPUTERS, MAGNETIC DISKS,      GAUGES, LOUDSPEAKERS, MEASURING INSTRUMENTS, PORTABLE TELEPHONES,      PROTECTIVE HELMETS, PROTECTIVE HELMETS FOR SPORTS, RADIOS, VEHICLE RADIOS,      AUDIO AND VIDEO RECEIVERS, SOUND RECORDING APPARATUS, SPECTACLE FRAMES,      SPECTACLES/OPTICS, PERSONAL STEREOS, SUNGLASSES, TELEPHONE APPARATUS,      BULLET-PROOF VESTS, VIDEO TELEPHONES, WORKMAN’S PROTECTIVE FACE-SHIELDS,      AND PROTECTION DEVICES AGAINST X-RAYS. | F |
|---------------------------|---------------------------------|----------------------|---------------------|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---|
| LQUID-057RU      (Russia) | LIQUIDMETAL                     | 200371509508/05/2003 | 29744310/31/2005    | REGISTEREDRENEWAL      DUE08/05/2013                                                                              | CLASS      028: SPORTING GOODS, NAMELY, TENNIS RACKETS, SKIS, SKI POLES, SNOWBOARDS,      SPORTING KNIVES, TENNIS BAGS AND TENNIS CASES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | F |
| LQUID-057T                | LIQUIDMETAL                     | 78/224,92503/12/2003 | 3,159,72010/17/2006 | REGISTERED8      & 15 DECL.DUE      10/17/2012                                                                | CLASS      008: SPORTING KNIVES CLASS 028: SPORTING GOODS, NAMELY, TENNIS RACKETS;      AND MATERIALS USED IN SKIS, SKI POLES AND SNOW BOARDS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | U |
| LQUID-058T                | LIQUIDMETAL      (stylized)     | 78/225,71703/14/2003 | 3,230,41704/17/2007 | REGISTERED8      & 15 DECL.DUE      04/17/2013                                                                | CLASS      008: SPORTING KNIVES CLASS 025: WEARING APPAREL, NAMELY, SHIRTS, T-SHIRTS,      SHORTS, PANTS, SWEATSHIRTS, SWEATPANTS, HATS, VISORS, SHOES AND BELTS      CLASS 028: SPORTING GOODS, NAMELY, TENNIS RACKETS; AND MATERIALS USED IN      SKIS, SKI POLES AND SNOW BOARDS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | U |
| LQUID-059T                | PURE      ENERGY, PERFECT POWER | 78/224,93503/12/2003 | 2,955,61305/24/2005 | REGISTERED8      & 15 DECL.DUE      05/24/2011                                                                | CLASS      028: SPORTING GOODS, NAMELY TENNIS RACKETS, SKIS, SKI POLES AND SNOW      BOARDS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | U |

----

| LQUID-064T                | LIQUIDMETAL                 |                 |                | NOT      FILEDAWAITING      CLIENTINSTRUCTIONS     | CLASS      025: CLOTHING FOR MEN; WOMEN; JUNIORS; AND CHILDREN, NAMELY SHIRTS,      INCLUDING T-SHIRTS; POLO SHIRTS; CASUAL; DRESS; TOPS, BLOUSES; HALTER      TOPS; TANK TOPS, SWEATERS, PANTS; INCLUDING CASUAL; SLACKS; AND JEANS,      SUITS, DRESSES, INCLUDING CASUAL AND EVENING GOWNS, SKIRTS, COATS AND      JACKETS, INCLUDING BLAZERS, UNIFORMS, SLEEPWEAR, INCLUDING PAJAMAS AND      NIGHTGOWNS, ROBES, BEACHWEAR AND SWIMWEAR, INCLUDING BATHING SUITS; SWIM      TRUNKS; BIKINIS; AND WRAPS, HATS, LOUNGEWEAR, INCLUDING SWEATS;      SWEATSHIRTS AND THE LIKE; UNDERWEAR; INCLUDING BOXERS; BRIEFS, PANTIES AND      THE LIKE.                                                                                                                                                                                                                               | U |
|---------------------------|-----------------------------|----------------------|---------------------|----------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---|
| LQUID-067T                | LIQUIDMETAL                 | 78/507,70218/28/2004 | 3,610,31404/21/2009 | REGISTERED8      & 15 DECL.DUE      04/21/2015 | CLASS      006: METAL CASTINGS AND METAL HINGES FOR CELLULAR PHONES CLASS 014:      JEWELRY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | U |
| LQUID-069T                | LIQUIDMETAL      (stylized) | 78/911,29606/19/2006 | 3,633,28206/02/2009 | REGISTERED8      & 15 DECL.DUE      06/02/2015 | CLASS      009: CELLULAR TELEPHONES, PERSONAL DATA ASSISTANTS, MPS PLAYERS, AND      COMPUTER MEMORY HARDWARE CLASS 014: WATCHES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | U |
| LQUID-070EU      (Europe) | LIQUIDMETAL                 | 00515735906/23/2006  | 00515735908/29/2007 | REGISTEREDRENEWALDUE:      06/23/2016              | CLASS      009: PERSONAL DIGITAL ASSISTANTS, PORTABLE LISTENING DEVICES, CAMCORDERS,      CINEMATOGRAPHIC CAMERAS, PHOTOGRAPHIC CAMERAS, COMPACT DISC PLAYERS,      COMPUTERS, PRINTERS FOR USE WITH COMPUTERS, MAGNETIC DISKS, GAUGES,      LOUDSPEAKERS, MEASURING INSTRUMENTS, PORTABLE TELEPHONES, PROTECTIVE      HELMETS, PROTECTIVE HELMETS FOR SPORTS, RADIOS, VEHICLE RADIOS, AUDIO AND      VIDEO RECEIVERS, SOUND RECORDING APPARATUS, SPECTACLE FRAMES,      SPECTACLES/OPTICS, PERSONAL STEREOS, SUNGLASSES, TELEPHONE APPARATUS,      BULLET-PROOF VESTS, VIDEO TELEPHONES, WORKMAN’S PROTECTIVE FACE-SHIELDS,      AND PROTECTION DEVICES AGAINST X-RAYS CLASS 010: MEDICAL DEVICES, NAMELY,      HIP JOINT ORTHOPEDIC IMPLANTS AND KNEE BRACES; DENTAL INSTRUMENTS, NAMELY,      PICKS, BURRS AND MIRRORS. CLASS 014: WATCHES, CLOCKS AND      JEWELRY | F |

----

| LQUID-070HK      (Hong Kong) | LIQUIDMETAL | 30121733010/09/2008  |              | PENDINGAPPLICATIONPUBLISHED;AWAITINGCERTIFICATEOFREGISTRATION | CLASS      14: WATCHES, CLOCKS AND JEWELRY | F |
|------------------------------|-------------|----------------------|-------------------|---------------------------------------------------------------|--------------------------------------------|---|
| LQUID-070JP      (Japan)     | LIQUIDMETAL | 2008-8491710/20/2008 | 523366805/22/2009 | REGISTEREDRENEWALDUE:      0/22/2019                          | CLASS      14: WATCHES, CLOCKS AND JEWELRY | F |

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| Liquidmetal      Technologies, Inc. (“LMT”) |   | WC      Collateral Agent LLC       |
|---------------------------------------------------------|--------|------------------------------------|
| 30452      Esperanza                                    |   | 450      Seventh Avenue, Suite 509 |
| Rancho      Santa Margarita, CA 92688                   |   | New      York, NY 10123            |
| Attention:      Tony Chung                              |   | Attention:      Dwight Mamanteo    |
| (“tony.chung@liquidmetal.com)                     |   | (dwight@wynnefieldcapital.com)     |

| Re: | Payoff      of the 8% Senior Secured Convertible Note (the “Note”) dated May 1, 2009      by LMT in favor of ____________(“Creditor”) |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Bank      Name:    |   |   |
|--------------------|--------|--------|
| Bank      Address: |   |   |
| Bank      Phone #: |   |   |
| Account      Name: |   |   |
| Swift      code:   |   |   |
| Routing      #:    |   |   |
| Account      #:    |   |   |

----

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|   | Very      truly yours, |   |
|--------|------------------------|--------|
|   |                   |   |   |
|   |                   |   |
|   |                   |   |   |
|   | By:                    |   |   |
|   | Name:                  |   |   |
|   | Title:                 |   |   |

| ACKNOWLEDGED      AND AGREED TO:    |   |
|-------------------------------------|--------|
|                                |   |   |
| LIQUIDMETAL      TECHNOLOGIES, INC. |   |
|                                |   |   |
| By                                  |   |   |
|                                | Name:  |   |
|                                | Title: |   |

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| Principal |   |
|-----------|--------|
|      |   |
| Interest  |   |
|      |   |
| TOTAL     |   |

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| 1.1. | “Agreement” shall mean      this License Agreement. |
|------|-----------------------------------------------------------------|

| 1.2. | “Subsidiary” with      respect to a Party shall mean any corporation, partnership or other      entity, now or hereafter, (i) greater than fifty percent (50%) of whose      outstanding shares or securities entitled to vote for the election of      directors or similar managing authority is directly or indirectly owned or      controlled by a Party hereto, or (ii) a beneficial interest of greater      than fifty percent (50%) coupled with ownership or control (either direct      or indirect) of greater than fifty percent (50%)of      whatever interest represents the right to make executive and/or      operational decisions for such entity; provided, however, that in each      case such corporation, partnership or other entity shall be deemed to be a      Subsidiary only so long as all requisite conditions of being a Subsidiary      are met. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.3 | “Effective Date” shall      mean the date of this Agreement. |
|-----|--------------------------------------------------------------------------|

| 1.4 | “Licensed Products”      shall mean any product made or sold by or on behalf of Apple Inc.      in the field of use of Consumer Electronic  Products. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.5 | “Licensees” shall mean      and include individually and collectively Apple, and any Subsidiary      thereof |
|-----|--------------------------------------------------------------------------------------------------------------------------|

| 1.6 | “Licensor” shall mean      Crucible. |
|-----|--------------------------------------------------|

----

| 2.1 | Exclusive License Grant.      Licensor grants to Licensee a fully paid-up,      royalty-free,irrevocable, perpetual, worldwide exclusive license and      sublicense, with the right to grant sublicenses, under the LMT Technology      in the exclusive field of use of Consumer Electronic Products, to use,      reproduce, publish, display, distribute, perform, exploit and disclose the      LMT Technology and to make and have made, assemble and have assembled,      use, sell, offer to sell, import and offer to import, license and offer to      license, distribute and offer to distribute, repair, reconstruct,      practice, and maintain Licensed Products, and in connection with its      exercise of the foregoing license, to perform any act or step that      incorporates, utilizes, embodies or reflects the LMT Technology, including      without limitation any such activities that would, absent a license,      subject a person or other legal entity to a claim of direct infringement,      contributory infringement, inducing infringement, or any other type of      infringement. Licensor expressly forfeits the right to use, reproduce,      publish, display, distribute, perform, exploit and disclose the LMT      Technology in the exclusive field of use of Consumer Electronic Products.      Licensee’s exclusive rights in the field of use of Consumer Electronic      Products shall be subject to the rights granted to LMT in Section 2.2 of      the LMT License Agreement. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.2 | Payment Terms. In      consideration of the licenses granted by Licensor hereunder, Apple will      pay to oron behalf of Licensor (a) an      aggregate amount equal to $[*]      (the “Initial Payment”) on the Effective Date      and (b) a final payment in an amount equivalent to $[*] less the Initial      Payment and repayment to Apple of $[*] in advances made to      LMT prior to the date of this Agreement (the “Final Payment”), which shall      be payable ninety (90) days after the Closing Date conditioned on LMT’s      full and complete compliance with its obligations under the Statement of      Work entitled “LMT-Apple Initial Support Period” under Technology      Development Agreement of even date herewith between LMT and Apple. The      Initial Payment will be deemed to be distributed by Licensor to LMT and      will be paid by Licensee directly to selected creditors of LMT and LMT in      accordance with the Escrow Agreement of even date herewith among U.S.      Bank, Licensor, Licensee, and LMT. The Final Payment will be paid directly      by Licensee to LMT and will be deemed to be a distribution by Licensor to      LMT. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| [*]      = | CERTAIN      CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS      AND AN ASTERISK, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES      AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE      ACT OF 1934, AS AMENDED. |
|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2.3 | Enforcement of Rights.      Licensor grants to Licensee the exclusive right for enforcement of      the Intellectual Property Rights of      the LMT Technology in the field of use of Consumer      Electronic Products. Licensee shall pay all fees associated with the      enforcement of Intellectual Property Rights. Licensee may have the right      to take reasonable steps to enforce such Intellectual Property Rights      against any infringement of such Intellectual Property Rights. Licensee      may: (a) bring actions for enforcement in its own name (where allowed by      law), and (b) have unrestricted right to choose strategy and direct any      enforcement action. Licensee has the sole and exclusive right to agree to      settlement of the enforcement action. Licensee shall be entitled to any      monetary recovery from such enforcement action whether from settlement,      judgement or otherwise. Licensor shall assist Licensee in bringing an      enforcement action, including, where necessary, executing whatever      documents are necessary to afford to Licensee the opportunity to bring the      action for enforcement. The Parties shall bear their own costs associated      with any such enforcement action. In the event that Licensee cannot bring      the enforcement action in Licensee’s name, Licensee has the right to      either join the Licensor as a party in the enforcement action or to have      the enforcement action brought in the name of the Licensor. In connection      therewith, Licensee shall: i) have the unestricted right to choose      strategy and direct of the enforcement action; ii) have the sole and      exclusive right to agree to settlement of the enforcement action; and iii)      be entitled to any monetary recovery from such enforcement action whether      from settlement, judgment or otherwise. The Parties shall bear their own      costs associated with such enforcement action, subject to, if the Licensee      receives monetary recovery as a result of the enforcement action, the      Licensee shall reimburse the Licensor for Licensor’s reasonable costs out      of the monetary recovery. In the event that Licensee should decide not to      enforce its rights related to the LMT Technology, then Licensee shall      afford to Licensor the opportunity to bring an action for enforcement at      its own cost and expense, and to choose strategy and direction of such an      action, in which case Licensor shall be entitled to the entire monetary      recovery. Notwithstanding the foregoing, either Party may be represented      by counsel in any enforcement action, and shall bear its costs associated      therewith; however, such costs (including counsel fees) shall not be      reimbursable by the other Party, unless otherwise agreed by the Parties.      In the event that any enforcement action involves products both inside and      outside of the field of Consumer Electronic Products, then Licensor and      Licensee shall cooperate in good faith to allocate the costs and recovery      associated with such action in proportion to the relative value of the      action to the parties. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.4 | Release. Licensor on      behalf of itself and its Affiliates, successors and assigns, hereby      releases, acquits and forever discharges Licensee, its Affiliates, and all      of their respective current and former predecessors, successors, agents,      attorneys, insurers, servants, distributors, retailers, resellers,      manufacturers, suppliers, employees, officers, directors, users, and      customers from any and all claims of infringement and misappropriation of      the LMT Technology, that occurred prior to the Effective    Date. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.5 | Trademark      Usage. In the event that      Licensee desires to utilize the Liquidmetal®      trademark, or any other trademark or service mark included      in the LMT Technology (collectively, the “Trademark”), then Licensee will      comply with the following restrictions with respect to its use of the      Trademark: (i) all stylized use of the Trademark shall be solely in the      original logotype identified by Licensor, except as otherwise agreed in      writing by Licensor, (ii) Licensee agrees not to affix the Trademark to      products other than the Licensed Products, (iii) Licensee will not utilize      the Trademark to refer to any materials other than amorphous metal alloys      or composite materials included within the LMT Technology, (iv) Licensee      agrees not to modify Trademark or change the appearance of any stylized or      logo form of the Trademark, and (v) the “®” icon shall always follow the      Trademark, and (v) Licensee agrees not to take any other action that would      be reasonably expected to undermine the enforceability of the      Trademark. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2.6 | Subordination of Security      Interest. Crucible has granted Apple a security interest in all of      its assets, including, without limitation, the LMT Technology which is      licensed to Apple pursuant to this Agreement. Crucible hereby agrees that      in the event such security interest shall be enforced and, as a result of      such enforcement, any of the LMT Technology shall be transferred to any      person or entity, (a) such person or entity shall acquire or otherwise      receive such LMT Technology subject to all rights, powers and privileges      of Apple under this Agreement, (b) such acquirer may not interfere with or      disturb Apple’s use and enjoyment of such rights, powers and privileges,      and (c) this Agreement shall continue in full force and effect as if such      security interest had not been granted or  enforced. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.1 | The      terms and existence of this Agreement shall be treated as Confidential      Information pursuant to the Apple Inc. Confidentiality Agreement, executed      on April 30, 2010 by Apple Inc. andLMT. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.1 | Term. The term of this      Agreement commences on the Effective Date and shall continue in      perpetuity. |
|-----|--------------------------------------------------------------------------------------------------------------|

| 4.2 | Rejection. Should      Licensor reject this license under section 365(n) of the Bankruptcy Code,      Licensee may treat the license as terminated, in which case licensee shall      have a claim for damages against Licensor equal to all amounts paid by      Apple to or on behalf of LMT, LMC and Crucible pursuant to all Transaction      Documents plus interest thereon from the date of such payment until the      date on which Apple recovers payment in full of from the defaulting LMT      party (or, if LMT is not the defaulting LMT party, LMT pursuant to Section      14 of the MTA) all damages hereunder and under the other Transaction      Documents at a rate per annum equal to the greater of (i) 10% or (ii)      “prime rate” as reported in The Wall Street Journal      in effect from time to time plus two percent. Alternatively,      Licensee may elect, under section 365(n) to continue as licensee under      this Agreement, and shall only be responsible for the payment of the fees      identified in Section 2.2above. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4.3 | Covenant Not to Sue.      Licensor, on behalf of itself and its respective heirs, executors,      successors, assigns, agents and all other persons and entities associated      with either of them, covenants that it will not at any time, whether now      or in the future, sue, file, assist, or participate in, or cause, assert,      or induce any other person or entity to sue, file, assert, or participate      in any claim or allegation against any of the following for infringement      of Intellectual Property Rights of any of the LMT Technology: (i)      Licensee; or (ii) their respective past, present and future owners,      shareholders, parents, subsidiaries, successors, assigns, divisions,      units, officers, directors, employees, agents, attorneys, or      representatives, or (iii) their respective past, present and future direct      and indirect vendors, suppliers, manufacturers, distributors, customers,      or end users (collectively, “Licensee-Related Entities”)in connection with any act by      a Licensee-Related Entity at the direction of or on behalf of Apple      related to or in connection with any Apple-branded or Apple-licensed      product. This covenant not to sue does not inure to the benefit of any      third parties for their conduct that is unrelated to Licensees. For      purposes of this paragraph, the grant to LMT or LMC of an exclusive      license under the LMT Technology in a field other than Consumer Electronic      Products shall not be a violation of this paragraph, even if LMT or LMC is      granted, as a part of such exclusive license, the right to sue or      otherwise assert infringement claims with respect to such Intellectual      Property Rights. Further, Crucible shall not be in breach of this      subsection if Crucible participates as a party in any litigation      proceedings where any of the Intellectual Property Rights included in the      LMT Technology are asserted by another party against Apple, provided that      a court of competent jurisdiction shall have ruled that Crucible’s      participation as a party is necessary to such proceedings and shall have      ordered Crucible to participate as aparty. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.4 | Grant-Back of License.      Crucible has no right to transfer, assign, sell, convey or      otherwise dispose of, any of the LMT Technology and/or the Intellectual      Property related thereto. If for any reason, Crucible transfers, assigns,      sells, conveys or otherwise disposes of, any of the LMT Technology and/or      the Intellectual Property related thereto, Crucible shall grant Apple a      fully paid-up, royalty-free, irrevocable perpetual, worldwide,      nonexclusive license and sublicense, with the right to grant sublicense,      under the LMT Technology to use, reproduce, publish, display, distribute,      perform, exploit and disclose the LMT Technology and to make and have      made, assemble and have assembled, use, sell, offer to sell, import and      offer to import, license and offer to license, distribute and offer to      distribute, repair, reconstruct, practice, and maintain Licensed Products,      and perform any act or step that incorporates, utilizes, embodies or      reflects the LMT Technology, including, without limitation, any such      activities that would, absent a license, subject a person or other legal      entity to a claim of direct infringement, contributory infringement,      inducing infringement, or any other type of infringement. If the      nonexclusive license described herein cannot be granted, the transfer,      assignment, sale, conveyance of disposing of the LMT Technology and/or the      Intellectual Property related thereto by the Crucible shall be void ab    initio. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4.5 | Licensor Obligations.      Crucible shall (a) fully perform all obligations and discharge all      liabilities under any licenses, sublicenses and other agreements included      in the LMT Technology as and when the same are to be performed; (b)      without limiting the generality of the foregoing, pay, prior to      delinquency, all insurance premiums, taxes, charges, liens and assessments      against the LMT Technology and all amounts that become due and payable      under any trade secrets, licenses, sublicenses and other agreements      included in the LMT Technology; (c) promptly provide Apple with copies of      all invoices received with respect to payments described in the preceding      clause (b) and notice of any payments made pursuant to this Section 4.5      upon making such payment, and upon request of Apple, provide copies of      documents as may be reasonably necessary or advisable to confirm that      Crucible has performed the obligations set forth in this Section 4.5; (d)      promptly following receipt thereof, deliver copies of all notices alleging      any breach or default under or asserting any adverse claim in respect of      any trade secrets, licenses, sublicenses and other agreements included in      the LMT Technology; and (e) upon request from Apple, provide Apple with      reasonably detailed reports and copies of documents as may be reasonably      necessary or advisable to confirm that Crucible has performed the      foregoing obligations. Crucible hereby irrevocably appoints Apple its true      attorney in fact to perform any of the following powers, which are coupled      with an interest, until termination of this Agreement and may be exercised      from time to time by Apple’s officers and employees, or any of them to      perform any obligation of Crucible under this Section 4.5, in Crucible’s      name or otherwise. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.1. | All      notices from one party to the other required or permitted under this      Agreement shall be in writing, shall refer specifically to this Agreement,      and shall be delivered in person, or sent by electronic or facsimile      transmission for which a confirmation of delivery is obtained, or sent by      registered mail or express courier services providing evidence of      delivery, in each case to the recipient party’s respective address set      forth on the signature page hereof (or to such updated address as may be      specified in writing to the other party from time to time). Such notices      will be deemed effective as of the date so delivered or on the third      business day following mailing. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2 | Licensor      shall not assign, transfer, subcontract or otherwise delegate any of its      obligations under this Agreement without Apple’s prior written consent in      each instance. Any attempted assignment, transfer, subcontracting or other      delegation without such consent shall be void and shall constitute a      breach of this Agreement. Subject to the foregoing, this Agreement shall      inure to the benefit of the parties’ successors and    assigns. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.3 | Licensor      acknowledges that any breach of this Agreement by it may cause irreparable      harm to Apple or its affiliates and that the remedies for breach may      include injunctive relief against such breach, in addition to damages and      other available remedies. The prevailing party shall be entitled to the      award of its reasonable attorneys’ fees in any action to enforce this      Agreement. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5.4 | This      Agreement, including any recitals, terms, conditions, and provisions      herein, and all exhibits attached hereto and referenced herein,      constitutes the entire agreement between the parties relating to the      subject matter hereof and supersedes and cancels all other prior      agreements and understandings of the parties in connection with subject      matter. The headings or titles in this Agreement are for purposes of      reference only and shall not in any way affect the interpretation or      construction of this Agreement. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.5 | No      waiver of any of the provisions of this Agreement shall be valid unless in      a written document, signed by the party against whom such a waiver is      sought to be enforced, nor shall failure to enforce any right hereunder      constitute a continuing waiver of the same or a waiver of any other right      hereunder. All amendments of this Agreement shall be made in writing and      signed by both parties, and no oral amendment shall be binding on the      parties. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.6 | This      Agreement shall be governed by and construed in accordance with the laws      of the State of California without giving effect to any conflict of laws      principles to the contrary. The parties hereby consent to jurisdiction and      venue in the appropriate state and Federal courts sitting in the Northern      District of California in any litigation between them arising out of this      Agreement. If any provision of this Agreement is held to be invalid or      unenforceable to any extent in any context, it shall nevertheless be      enforced to the fullest extent allowed by law in that and other contexts,      and the validity and force of the remainder of this Agreement shall not be      affected thereby. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.7 | The      Parties have had the opportunity to negotiate the terms of this Agreement,      and no Party shall be deemed the drafter of all or any portion of this      Agreement for purposes of interpretation. The terms of this Agreement      shall be binding and shall be strictly construed in any proceeding      relating or pertaining to this Agreement. Without affecting the      obligations of the Parties otherwise expressed, the term “shall” when used      in connection with any act or obligation to be undertaken means an      affirmative obligation. The term “including” shall mean “including but not      limited to.” All terms shall be construed in the masculine or feminine and      in plural or singular as required by the context in which the term is      used. The definitions of terms in this Agreement are limited to this      Agreement. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.8 | If      any one or more of the provisions of this Agreement is held to be invalid,      illegal, or unenforceable in any respect, the other provisions shall      remain in full force and effect. Any provision deemed invalid, illegal, or      unenforceable because its scope is considered excessive shall be modified      only to the minimum extent necessary to render the provision valid, legal,      and enforceable under Californialaw. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5.9 | Each      Party has had, or has had the opportunity to obtain, the advice of legal,      accounting, and other professional advisers regarding the language in this      Agreement. No Party has relied on legal counsel for another Party, and no      legal counsel or other adviser for a Party shall have any duty or      obligation to another Party. Each Party has read and understands this      Agreement and is executing this Agreement as the Party’s free act and      without duress. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| APPLE:         |                     |   | CRUCIBLE      INTELLECTUAL |
|----------------|--------------------------|--------|----------------------------|
|           |                     |   | PROPERTY,      LLC:        |
|           |                     |   |                       |   |
|           |                     |   |                       |   |
|           |                     |   |                       |   |
| By:            | /s/      Zadesky         |   | By:                        | /s/      Tony Chung |
| Name:          | Zadesky                  |   | Name:                      | Tony Chung |
| Title:         | VP Product Design        |   | Title:                     | Chief Financial Officer |
| Date:          | 8/5/10                   |   | Date:                      | 8/4/10 |
|           |                     |   |                       |   |
| Address:  | MS      301-4GC          |   | Address:              | 31441      Santa Margarita Pkwy. |
|           | 1      Infinite Loop     |   |                       | Suite      A #247 |
|           | Cupertino,      CA 93014 |   |                       | Rancho      Santa Margarita, CA |
| Attn:          | General      Counsel     |   |                       | 92688 |
|           |                     |   | Attn:                      | Chief      ExecutiveOfficer |

----

----

----

----

----

----

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| LIQUIDMETAL      TECHNOLOGIES,INC.: |                            | CRUCIBLE      INTELLECTUALPROPERTY,      LLC: |
|-------------------------------------|---------------------------------|-----------------------------------------------|
|                                |                            |                                          |   |   |
|                                |                            |                                          |   |   |
|                                |                            |                                          |   |   |
| By:                                 | /s/ Larry Buffington            |                                          | By: | /s/ Tony Chung |
| Name:                               | LARRY BUFFINGTON                |                                          | Name: | Tony Chung |
| Title:                              | PRESIDENT / CEO                 |                                          | Title: | Chief Financial Officer |
| Address:                       | 30452      Esperanza            |                                          | Address:  | 31441      Santa Margarita Pkwy., |
|                                | Rancho      Santa Margarita, CA |                                          |   | Suite      A #247 |
|                                | 92688                           |                                          |   | Rancho      Santa Margarita, CA |
| Attn:                               | Chief      Executive Officer    |                                          |   | 92688 |
|                                |                            |                                          | Attn: | Chief      ExecutiveOfficer |

----

----

----

----

----

----

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| CRUCIBLE      INTELLECTUALPROPERTY,      LLC:                               |                         | LIQUIDMETAL      COATINGS, LLC:                                       |
|-----------------------------------------------------------------------------|------------------------------|-----------------------------------------------------------------------|
|                                                                        |                         |                                                                  |   |   |
| By:                                                                         | /s/ Tony Chung               |                                                                  | By: | /s/ Larry Buffington |
| Name:                                                             | Tony      Chung              |                                                                  | Name:   | LARRY      BUFFINGTON |
| Title:                                                                      | Chief      Financial Officer |                                                                  | Title: | PRESIDENT/CEO |
|                                                                        |                         |                                                                  |   |   |
| Address:      31441 Santa Margarita Pkwy.                                   |                         | Address:      900 Rockmead, Suite 240,                                |
|  Suite      A #247                                                     |                         | Kingwood,      TX 77339                                               |
|  Rancho      Santa Margarita, CA 92688                                 |                         | Attn:      Chief      Executive Officer |
| Attn:       Chief      Executive Officer |                         |                                                                  |   |

----

----

| 1) | Scope      and Standards of Work. |
|----|-----------------------------------|

|   | a) | Company      shall provide, at no additional cost to Apple, technical assistance      reasonably requested by Apple to effect i) the transfer by LMT of the      non-patent LMT Technology and ii) the granting of the Exclusive License      and License by LMT-SPE to Apple, for a 90-day period following the Closing      Date (“the Initial Support Period”). Such technical assistance will be      provided with LMT’s existing staff and resources, and LMT will not be      required to hire or engage additional personnel in order to provide such      technical assistance. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | Company      shall provide, at no additional cost to Apple, any technology development      services specified in Statements of Work under this Agreement, agreed to      by Apple and the Company prior to the Closing Date (the “Pre-Closing      Statements of Work” or “Pre-ClosingSOWs”) |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | Company      shall provide, after the Initial Support Period, technical assistance and      consultation to Apple as described in, and in accordance with the time      tables set forth in, Statements of Work under this Agreement (the      “Post-Closing Statements of Work” or “Post-Closing  SOWs”). |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d) | The      technical assistance defined in (a), the technology development services      defined in (b), and technical assistance and consultation defined in (c)      shall be referred to collectively as the “Services”. The Pre-Closing SOWs      and the Post-Closing SOWs shall be referred to collectively as the      “Statements of Work” or “SOWs”. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e) | Company      shall conduct all Services in accordance with all applicable Apple and      generally accepted standards for Services of the type to be performed, as      may be more fully provided in the Statements of Work (the “Applicable      Standards”). Company shall at all times be responsible to remain current      and updated as to all changes in the Applicable  Standards. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | f) | Apple      may request reasonable changes to the Statement of Works prior to      completion. No such proposed changes, including without limitation any      associated changes in the price, payment schedules, and projected      completion dates, shall be effective unless accepted in writing by      authorized representatives of both Company and  Apple. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | g) | Company      warrants that its employees, agents, and approved subcontractors, if any,      involved in performance of the Services shall have the experience and      expertise necessary to perform such Services and will at all times be      bound by appropriate agreements to vest in Company all of their right,      title and interest in any Project Work Product (as defined below) or      inventions, data, improvements, discoveries, ideas, processes, formulas,      techniques, works of authorship, and know-how that are to be property of      Apple or otherwise protected pursuant to Sections 3, 5 and 6      below. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | h) | Company      represents and warrants that Company is not under any obligation in      conflict or in any way inconsistent with the provisions of this Agreement      or its provision of the Services. Company represents and warrants that      Company’s performance of the Services and this Agreement will not breach      any agreement to keep in confidence proprietary information acquired by      Company in confidence or in trust. Company warrants that it shall not, in      the performance of any Services or in preparing to do so, violate any      applicable law or infringe or misappropriate any intellectual properties      of any third party, except to the extent due directly to Company’s      following instructions given to it byApple. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | i) | Company      agrees to notify Apple promptly if Company knows or has reason to believe      that the Statements of Work or any instructions from Apple would, if      followed by Company, violate any applicable law or infringe or      misappropriate any intellectual properties of any third party or be      inconsistent with the ApplicableStandards. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2) | Apple      Materials.      Apple shall provide items and materials as specified in the SOWs      (the “Project Materials”). Company agrees that all such Project Material      shall be and remain the sole and exclusive property of Apple. Project      Material provided by Apple will be used by Company only for the purpose      described in the Statements of Work and will not be transferred to any      third party without first obtaining written authorization from Apple in      each instance. Company agrees that it shall not, without Apple’s express      prior written authorization in each instance, analyze, disassemble,      decompile, or otherwise reverse engineer any Apple Materials, except to      the extent the Statements of Work explicitly directs Company to do so.      Upon completion of the Services, any unused Project Material will be      returned to Apple or destroyed at the sole discretion of      Apple. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 3) | Communication,      Visits, Results, and Reports. |
|----|---------------------------------------------------|

|   | a) | All      results, reports, findings, conclusions, work papers, notebooks,      electronic records, samples, prototypes, deliverables, and any other      information or materials in any form or format arising out of performance      of the Services by or for Company (the “Project Work Product”) will be      the sole property of Apple and shall become part of the Confidential      Information to be protected under this Agreement. Company will retain and      preserve all Project Work Product in accordance with the Applicable      Standards and as set forth in the Statement of Work. No Project Work      Product will be destroyed or otherwise disposed of by Company without      authorization in writing in advance from Apple in each instance. Company      shall, upon Apple’s request from time to time, promptly deliver any and      all Project Work Product and any work-in-process to  Apple. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | Company      shall prepare and provide one or more draft and final report(s) at the      intervals, and upon completion of the Services, as more fully described in      the Statements of Work. All reports shall be formatted and delivered to      Apple in accordance with the Statements ofWork. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | Apple      will be solely responsible, at its discretion in accordance with      applicable law, for any reporting to appropriate government agencies any      Project Work Product generated during performance of the      Services. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d) | Company      shall permit Apple’s representatives to visit Company facilities during      normal working hours and with reasonable frequency to perform quality      assurance audits, observe progress of the Services, to discuss the      Services with appropriate officials and other personnel of Company, and to      inspect records and data relevant to the Services. Facility visits shall      also be permitted during the data retention period specified in the      Statements of Work. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4) | Compensation      for Post-Closing SOWs. Apple will, in      accordance with the payment and milestone schedules set forth in the      Post-Closing SOWs (the “Fees and Payment Schedule”), and as complete      compensation to Company, pay Company the fees set forth in the Fees and      Payment Schedule. Company will be reimbursed only for expenses which are      expressly provided for in the Fees and Payment Schedule or which have been      approved in advance in writing by an authorized Apple representative.      Expense reimbursements will be made within forty-five (45) days of receipt      of Company’s invoice, provided Company has furnished such documentation      for authorized expenses as Apple may reasonably request. Otherwise, and      except for the Apple Materials, if any, Company shall supply without      separate charge all facilities, utilities, equipment, supplies, personnel,      information, rights, and other items required for the timely performance      by Company of the Services. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5) | Confidentiality. The disclosure and use      of all confidential information pursuant to this Agreement, including, but      not limited to, this Agreement, the Project Materials, any technical      information provided by the Company, and all Project Work Product, shall      be subject to the terms of the Parties’ existing Confidentiality      Agreement, dated April 30, 2010, the terms of which are incorporated by      reference herein. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 6) | Intellectual      Properties. |
|----|-------------------------------|

|   | a) | No      right or license to Apple’s intellectual property is granted or implied as      a result of this Agreement or the Services, except to the limited extent      necessary to conduct the Services during the term hereof. The transfer of      Project Material provided herein does not constitute a public      disclosure. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | All      right, title and interest in all Project Work Product and any and all      inventions, data, improvements, discoveries, ideas, processes, formulas,      techniques, works of authorship, and know-how, whether patentable or not,      conceived, reduced to practice, authored, or otherwise created or      developed by or for Company in the course of performing any Services or      otherwise arising therefrom, and all intellectual property covering such      inventions including without limitation rights to patents, patent      applications, patents, and copyrights (“Project IP”), shall be the      property of Apple, and Company hereby transfers and assigns the same to      Apple. Company shall communicate to Apple any of the same promptly and      fully upon their creation or development. Company shall execute all papers      and take all actions that Apple reasonably deems necessary or advisable      for the filing and prosecution of patent applications or copyright or      other registrations and, if appropriate, maintenance of patents or other      rights or properties that may issue therefrom, including without      limitation execution of any assignments or other agreements further      evidencing Apple’s ownership thereof. Inventorship shall be determined      under principles of U.S. patent law and practice. If Company uses in the      Services or incorporates or causes to be incorporated into any Project      Work Product any inventions, works of authorship, developments,      improvements, data, materials, or trade secrets owned or controlled by      Company, or to the extent that any inventions, works of authorship,      developments, improvements, data, materials, or trade secrets owned or      controlled by Company are required for any use or exploitation by Apple of      the Project Work Product, Company hereby grants to Apple a nonexclusive,      royalty-free, irrevocable, perpetual, worldwide license, with the right to      grant sublicenses, to make, have made, copy, modify, make derivative works      of, display, perform, publish, use, sell, offer for sale, import and      otherwise exploit such inventions, works of authorship, developments,      improvements, data, materials, and trade secrets in connection with the      Project Work Product or any improvements, derivatives, or successors to      them. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | Apple      hereby grants to Company a nonexclusive, royalty-free, irrevocable,      perpetual, worldwide license under the Project Work Product and Project      IP, with the right to grant sublicenses, to make, have made, copy, modify,      make derivative works of, display, perform, publish, use, sell, offer for      sale, import and otherwise exploit such inventions, works of authorship,      developments, improvements, data, materials, and trade secrets in      connection with the Project Work Product or Project IP, or any      improvements, derivatives, or successors to them, solely for use outside      of Apple’s exclusive license field of Consumer Electronic      Products. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 7) | Indemnification. Company shall defend,      indemnify and hold Apple harmless in accordance with the provisions of the      MTA. |
|----|----------------------------------------------------------------------------------------------------------------------------------|

| 8) | Term      and Termination.      This Agreement shall have a term of three (3) years      from the Closing Date. This Agreement may be renewed, at Apple’s      sole option, for successive one-year terms. Apple may at any time      terminate this Agreement upon written notice to Company. In event of      termination by Apple following initiation of substantial work by Company      under the Post-Closing Statements of Work, the amounts payable to Company      will be prorated based on actual work performed and costs incurred prior      to the date of Apple’s notice of termination, plus any unavoidable costs      associated with termination of the Services, all such costs to be detailed      in a final invoice delivered to Apple within sixty (60) days after      termination of the Agreement. In no event shall any such post-termination      payment exceed the next installment of the fees and expenses provided for      in the Fees and Payment Schedule. Upon termination Company shall return to      Apple all Apple Materials in its possession, together with completed or      partially completed reports, data and samples, except for copies      maintained for archival purposes to the extent permitted under the      Statements of Work. The provisions of Sections 1(d), 1(e), 1(f), 1(g), 2,      3(a), 4, 5, 6, 7, 8, 9 and 10 of this Agreement shall survive the      expiration or termination of thisAgreement. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9) | Miscellaneous. |
|----|----------------|

|   | a) | All      notices from one party to the other required or permitted under this      Agreement shall be in writing, shall refer specifically to this Agreement,      and shall be delivered in person, or sent by electronic or facsimile      transmission for which a confirmation of delivery is obtained, or sent by      registered mail or express courier services providing evidence of      delivery, in each case to the recipient party’s respective address set      forth on the signature page hereof (or to such updated address as may be      specified in writing to the other party from time to time). Such notices      will be deemed effective as of the date so delivered or on the third      business day following mailing. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | Apple      has entered into this Agreement based on Company’s particular proffered      expertise. Company shall not assign, transfer, subcontract or otherwise      delegate any of its obligations under this Agreement without Apple’s prior      written consent in each instance. Any attempted assignment, transfer,      subcontracting or other delegation without such consent shall be void and      shall constitute a breach of this Agreement. Subject to the foregoing,      this Agreement shall inure to the benefit of the parties’ successors and      assigns. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | Company      acknowledges that any breach of this Agreement by it may cause irreparable      harm to Apple or its affiliates and that the remedies for breach may      include injunctive relief against such breach, in addition to damages and      other available remedies. The prevailing party shall be entitled to the      award of its reasonable attorneys’ fees in any action to enforce this      Agreement. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | d) | This      Agreement, including any SOWs and the Confidentiality Agreement referenced      herein, constitutes the entire agreement between the parties relating to      the subject matter hereof and supersedes and cancels all other prior      agreements and understandings of the parties in connection with subject      matter. The headings or titles in this Agreement are for purposes of      reference only and shall not in any way affect the interpretation or      construction of this Agreement. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e) | No      waiver of any of the provisions of this Agreement shall be valid unless in      a written document, signed by the party against whom such a waiver is      sought to be enforced, nor shall failure to enforce any right hereunder      constitute a continuing waiver of the same or a waiver of any other right      hereunder. All amendments of this Agreement shall be made in writing and      signed by both parties, and no oral amendment shall be binding on the      parties. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | f) | This      Agreement shall be governed by and construed in accordance with the laws      of the State of California without giving effect to any conflict of laws      principles to the contrary. The parties hereby consent to jurisdiction and      venue in the appropriate state and Federal courts sitting in the Northern      District of California in any litigation between them arising out of this      Agreement. If any provision of this Agreement is held to be invalid or      unenforceable to any extent in any context, it shall nevertheless be      enforced to the fullest extent allowed by law in that and other contexts,      and the validity and force of the remainder of this Agreement shall not be      affected thereby. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | g) | In      the event of a dispute, either party may commence litigation in the state      or federal courts in Santa Clara County, California. The Parties      irrevocably submit to the exclusive jurisdiction of those courts and agree      that final judgment in any action or proceeding brought in such courts      will be conclusive and may be enforced in any other jurisdiction upon      final and conclusive judgment (a certified copy of which will be      conclusive evidence of the judgment) or in any other manner provided by      law. Each party irrevocably waives to the fullest extent permitted by      applicable law (i) any objection it may have to the laying of venue in any      court referred to above; (ii) any claim that any such action or proceeding      has been brought in an inconvenient forum; and (iii) any immunity that it      or its assets may have from any suit, execution, attachment (whether      provisional or final, in aid of execution, before judgment or otherwise)      or other legal process. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | h) | Neither      Apple nor Company will issue press releases or other publicity regarding      the Agreement or its subject matter without the prior written approval of      the other |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| APPLE:                         |                           | COMPANY:                       |
|--------------------------------|--------------------------------|--------------------------------|
|       |                           |       |
|                           |                           |                           |   |   |
| By:                            | /s/ Zadesky                    |                           | By: | /s/ Tony Chung |
| Name:                          | Zadesky                        |                           | Name: | Tony Chung |
| Title:                         | VP Product Design              |                           | Title: | Chief Financial Officer |
| Date:                          | 8/5/10                         |                           | Date: | 8/4/10 |
|                           |                           |                           |   |   |
| Address:             | 1 Infinite Loop           |                           | Address:   |       |
|                           | 305-IDR                        |                           |   |       |
|                           | Cupertino, CA 95014            |                           |   |       |
| Attn:                          |       |                           | Attn: |       |

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| LIQUIDMETAL      TECHNOLOGIES, INC. aDelaware      corporation |
|---------------------------------------------------------------------|
|                                                                |
| By                                                                  | /s/ Tony Chung |
| Its                                                       | Chief      Financial Officer |

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| Crucible      Intellectual Property, LLC, a      Delawarelimited      liability company |
|-----------------------------------------------------------------------------------------|
|                                                                                    |
| By                                                                                      | /s/      Tony Chung |
| Its                                                                           | Chief      Financial Officer |

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| RELEASOR:                                |
|------------------------------------------|
|                                     |
| LIQUIDMETAL      TECHNOLOGIES, INC.      |
|                                     |
| By                                       | /s/ Larry Buffington |
|                                     |   |
| Its                            | PRESIDENT / CEO |
|                                     |
| LIQUIDMETAL      COATINGS, INC.          |
|                                     |
| By                                       | /s/ Larry Buffington |
|                                     |   |
| Its                                      | PRESIDENT / CEO |
|                                     |
| CRUCIBLE      INTELLECTUAL PROPERTY, LLC |
|                                     |
| By                                       | /s/ Tony Chung |
|                                     |   |
| Its                                      | Chief Financial  Officer |

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| Re: | Engagement      for legal services to be performed by Pillsbury Winthrop Shaw Pittman      LLP |
|-----|------------------------------------------------------------------------------------------------|

| www.pillsburylaw.com | Patent      Counsel Joint EngagementLettervFINAL |
|----------------------|--------------------------------------------------|

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| www.pillsburylaw.com | Patent      Counsel Joint EngagementLettervFINAL |
|----------------------|--------------------------------------------------|

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| www.pillsburylaw.com | Patent      Counsel Joint EngagementLettervFINAL |
|----------------------|--------------------------------------------------|

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| www.pillsburylaw.com | Patent      Counsel Joint EngagementLettervFINAL |
|----------------------|--------------------------------------------------|

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| www.pillsburylaw.com | Patent      Counsel Joint EngagementLettervFINAL |
|----------------------|--------------------------------------------------|

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| Accepted      and agreed to:              |
|-------------------------------------------|
| CRUCIBLE      INTELLECTUAL PROPERTY, INC. |
|                                      |
| By:                                       | /s/      Tony Chung |
|                                      | Name:   Tony      Chung |
|                                      | Title:     Chief      Financial Officer |
|                                      |   |
| Date:                                     | 8/4/10 |
|                                      |
| Accepted      and agreed to:              |
| APPLE,      INC.                          |
|                                      |
| By                                        | /s/      Zadesky |
|                                      | Name:   Zadesky |
|                                      | Title:     VP      Product Design |
|                                      |   |
| Date:                           | 8/5/10 |

| www.pillsburylaw.com | Patent      Counsel Joint EngagementLettervFINAL |
|----------------------|--------------------------------------------------|

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|   |   |   |
|--------|--------|--------|

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                |   | Notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| I.     | GENERAL CORPORATE MATERIALS                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | A.         List of assumed names, division names or other      names under which the Company is conducting or has conducted      business.                                                                                                                                                                                                                                                                           |   | Schedule I.A (1.19)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | B.         List of all jurisdictions in which the Company (i)      owns, stores, leases or licenses properties or assets, (ii) has employees,      agents or customers, (iii) is qualified to do business or (iv) conducts      business. Provide evidence of qualification to do business where material,      where property interests are held or where the Company’s business is      otherwise conducted. |   | Schedule I.B (1.20)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | C.         List of all present and former subsidiaries of the Company,      including the name and address of such subsidiary’s headquarters      (including entities in which the Company own less than    100%).                                                                                                                                                                                             |   | Schedule I.C (1.3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | D.    A copy of the charter documents      and bylaws with all amendments to date of the Company.                                                                                                                                                                                                                                                                                                                         |   | Delaware Corporate Bylaws(1.1) Delaware Filing (1.2) LMC – Operating Agreement – 2007      (1.8) LMCS – Operating Agreement – 2007      (1.9) LMC – Operating Agreement – First Amendment – 2008      (1.10) LMC – Operating Agreement – Amendment – Oct 2009      (1.21) LMC – Operating Agreement – Amendment Apr 2010      (1.15) LMG – Articles of Incorporation      (1.11) LMG – Bylaws (1.12) |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | E.         List of directors and officers of the      Company.                                                                                                                                                                                                                                                                                                                                                       |   | Schedule I.E.  (1.4)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | Notes                                                                                                                                                                                                                   |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                    |
|   | F.    All      minutes of meetings of directors, committees of directors and stockholders      of the Company since January 1, 2005.                                                                                                                                                                                                                                                                                                                                                 |   | BOD Minutes – 2005 (1.25) BOD Minutes – 2006 (1.24) BOD Minutes – 2007 (1.23) BOD Minutes – 2008 (1.22) BOD Minutes – 2009 (1.13) BOD Minutes – 2010(1.16) |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                    |
|   | G.    Any      due diligence report prepared for the Company or with respect to the      Company, to the extent available.                                                                                                                                                                                                                                                                                                                                                           |   | None                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                    |
|   | H.    Press      releases relating to the Company not otherwise posted on the Company’s      website.                                                                                                                                                                                                                                                                                                                                                                          |   | None                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                    |
|   | I.          All material documentation relating to the Company’s disclosure and      internal controls and procedures, including any related attestations,      reports, correspondence or written materials.                                                                                                                                                                                                                                                                  |   | Foley & Lardner Letter – 2010.04      (1.14)                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                    |
|   | J.    All      charters of committees and subcommittees of the Board (including Audit,      Compensation, Nominating / Corporate Governance, Disclosure and any other      committees).                                                                                                                                                                                                                                                                                              |   | Audit Committee Charter 2007      (1.5) Comp Committee Charter 2007      (1.6) Corp Gov & Nom Comm Charter 2007      (1.7)                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                    |
|   | K.    Company      representation letters to auditors (last two years).                                                                                                                                                                                                                                                                                                                                                                                                              |   | Rep letter – LMT – 2008 YE      (1.17) Rep letter – LMT – 2007 YE      (1.18)                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                    |
| II.    | SECURITY-RELATED MATTERS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                    |
|   | A.    A      capitalization schedule setting forth the number of authorized, issued,      outstanding and treasury shares of each class of securities of the      Company.                                                                                                                                                                                                                                                                                                           |   | Schedule II.A (2.8)                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                    |
|   | B.    Copies      of private placement memoranda or offering circulars relating to sales of      debt or equity securities and any purchase agreements, indentures or other      agreements governing the terms of any indebtedness incurred by the Company      or its subsidiaries (excluding any PPM or offering circular comprised      solely of the Company’s filed SEC reports) for offerings or sales of      equity or debt securities made during the prior 2 years. |   | None                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                    |
|   | C.    Copies      of any agreements relating to the election of directors.                                                                                                                                                                                                                                                                                                                                                                                                           |   | See I.D. – Delaware Filing      (1.2) Certificate of Designation      (2.1)                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                    |
|   | D.    Copies      of all agreements relating to repurchases, redemptions, exchanges,      conversions or similar transactions.                                                                                                                                                                                                                                                                                                                                                       |   | See III.D                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                    |
|   | E.          Copies of all agreements and instruments containing      restrictions on transfer, encumbrances upon, or other restrictions with      respect to, the capital stock of the Company.                                                                                                                                                                                                                                                                                      |   | None                                                                                                                                                                                                                    |

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|   |                                                                                                                                                                                                                                            |   | Notes                                                                                                                                                                                                                                                                                                                                                                                  |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                            |   |                                                                                                                                                                                                                                                                                                                                                                                   |
| III.   | DEBT AGREEMENTS;INVESTMENTS                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                            |   |                                                                                                                                                                                                                                                                                                                                                                                   |
|   | A.    List      of banks or other lenders with which the Company have a financial      relationship and brief description of the nature of relationship, e.g.,      lines of credit, etc.                                   |   | Schedule III.A (3.32) LMC – Enterprise Bank Agreements and 8-K      (3.31) Please note the following are uploaded but are      early drafts of the Enterprise documents above: Credit Agreement –      Liquidmetal Coatings (3.20); Term Note (3.21); Revolving Credit Note      (3.22); Security Agreement – Liquidmetal (Coatings)      (3.23) |
|   |                                                                                                                                                                                                                                            |   |                                                                                                                                                                                                                                                                                                                                                                                   |
|   | B.    Lines      of credit and any other loan agreements, promissory notes or guarantees,      letters of credit, security agreements, pledge agreements, equipment      leases, including any amendments or renewals, etc. |   | Schedules III.A and B (3.32 and      3.33) Toyota Loan (3.18) Hyster Forklift Lease  (3.17)                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                            |   |                                                                                                                                                                                                                                                                                                                                                                                   |
|   | C.    Summary      of all currently outstanding interest rate or foreign currency swaps,      caps, options, forwards or other derivative instruments or arrangements to      which the Company is a party.                 |   | None                                                                                                                                                                                                                                                                                                                                                                                   |

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | D.    All      instruments evidencing debt obligations and all agreements and material      correspondence relating thereto. Any other actual or contingent      indebtedness (e.g., loan      guarantees, letters of credit, mortgages, liens, pledges,      indemnifications, banker’s acceptances, swaps, other derivative agreements      relating to indebtedness, or other encumbrances of any nature whatsoever)      and all agreements and material correspondence relating      thereto. |   | Form of Senior Secured Convertible Note      (3.1) Fort Mason Master Original Notes (3.38 –      3.40) Fort Mason Partners Original Notes (3.41 –      3.43) Tail Wind Fund Original Notes (3.44 –      3.46) Solomon Strategic Holdings Original Notes (3.47 –      3.49) Castlerigg Master Original Notes (3.50 –      3.52) Diamond Opportunity Original Notes (3.53 –      3.55) Rockmore Original Notes (3.56 –      3.58) BridgePointe Original Notes (3.59      –3.61) Rodd Friedman Original Notes (3.65 –      3.67) M Neugeboren Original Notes (3.68 –      3.70) E Neugeboren Original Notes and Lost Affidavit      (3.71 – 3.73) Wynnefield LPl Original Notes (3.74 –      3.76) Wynnefield LP Original Notes (3.77 –      3.79) Wynnefield Offshore Original Notes (3.80 –      3.82) Vestal Lost Affidavits & 5-1-10 Original Note      (3.83) Norden 2010 Original Note      (3.84) R Salas – Lost Affidavit bridge note      (3.85) Security Agreement (3.2) Registration Rights Agreement      (2.5) Form of Common Stock Purchase Warrant for      Noteholders (2.6) Note – 2006.12.01 (Sub Note) (3.5) Debt Schedule 04 30 2010(3.25) Norden – Subordinated Promissory Note      (3.28) Norden – Subscription Agreement      (3.29) Debt Schedule 06 30 2010    (3.34) |

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|   |                                                                                                                                                                                                                                                                                                                                                |   | Notes                                                                                                                                           |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                            |
|   | E.    Any      other agreements relating to financing arrangements by the Company or its      subsidiaries, including any guarantees, sale and leaseback arrangements      and mortgages.                                                                                                                                       |   | LQMT – Series B Terms Sheet      (2.7)                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                            |
|   | F.    All      notices of default or noncompliance from lenders during the last year      relating to such debt instruments (excluding separately dated default      notices for the same default for which at least one notice was provided)      and all compliance reports submitted by the Company or its      accountants. |   | See IV.B                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                            |
|   | G.    Correspondence      with lenders, including waivers, compliance certificates and opinions of      counsel regarding compliance or non-compliance with debt obligations,      other than with respect to correspondence older than June 1, 2008 for      obligations no longer in default.                                 |   | See IV.B   LMC Borrowing Base Certificate 04.26.10      (3.19)                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                            |
|   | H.    All      agreements regarding obligations or liabilities of the Company as a      guarantor. surety, co-signer, endorser, co-maker, indemnitor or otherwise      in respect of the obligation of any other person orentity.                                                                                               |   | See III.A, B and D                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                            |
|   | I.    All      agreements by which the Company is obligated or required to provide, or      under which the Company is currently providing, funds in the form of a      loan, capital contribution or otherwise.                                                                                                                |   | See VI.F for LMCSI Joint Venture Agreement –      2010.05.04 (6.12)                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                            |
|   | J.    All      loan agreements, intercompany notes and guarantees between the Company and      any of its employees or affiliates.                                                                                                                                                                                              |   | Schedule III.J (3.16)                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                            |
|   | K.    Correspondence      relating to any violations, waivers, consents and releases from any      restrictive covenants.                                                                                                                                                                                                       |   | See IV.B                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                            |
|   | L.    Material      correspondence with any current creditor of the Company.                                                                                                                                                                                                                                                    |   | See IV.B   Signed payoff – Hana 7-7-10      (3.35)  C3 Letter – 2010.05.05      (3.30)                |
|   |                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                            |
|   | M.    Compliance      certificates, including borrowing base certificates and covenant      compliance calculations, supplied by the Company to any      creditor.                                                                                                                                                              |   | See III.G                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                            |
|   | N.    Lien      searches or other evidences as to outstanding financing statements or      other notices of liens.                                                                                                                                                                                                              |   | UCC Report (3.3) LMC UCC Term – calif_20100716144119      (3.36) LMC UCC Term – alab_20100716144041      (3.37) |
|   |                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                            |
| IV.    | LITIGATION AND CONTINGENT      LIABILITIES                                                                                                                                                                                                                                                                                                          |   |                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                            |
|   | A.    Summary      of any known contingent liabilities or material commitments of the      Company, excluding any liabilities or commitments that individually      involve an amount less than $10,000.                                                                                                                        |   | None                                                                                                                                            |

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | Notes                                                                                                                                                                                                    |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                     |
|   | B.    List      and description of all concluded, pending or threatened litigation (to the      extent such threatened litigation is known to the Company), governmental      proceedings, investigations, arbitration proceedings, orders, judgments,      or other potential claims, disputes, investigations or proceedings      relating to the Company’s employees, but only to the extent that any such      matters were pending at any time since January 1, 2005.                                                                                              |   | Schedule IV.B (4.7) SanDisk Payoff (4.1) Sandisk release 6-10  (4.4)                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                     |
|   | Provide      the correspondence regarding any pending or threatened suits, actions,      proceedings or governmental actions, proceedings or inquiries; copies of      initial pleadings (complaint, answer, demurrers) and any judgments,      decrees or orders to which the Company is bound or by which any of the      Company’s business practices are restricted. If there are matters you have      previously listed or materials you have already provided in response to      another section that would also fall into this section, you may cross      reference that section. |   | Hana Final Judgment (4.2) Caltech – 2010.04 (4.3) Caltech – Fisher-Adams, Grace – 2010.06.25      (4.5) SanDisk Termination of Lien – Filed 2010.06.14      (4.6) |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                     |
|   | C.    List      and description of all pending or threatened government or other      investigations relating to the Company and provide all reports to, notices      from, or correspondence, from the prior five fiscal years and the current      fiscal year.                                                                                                                                                                                                                                                                                                             |   | None                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                     |
|   | D.    All      attorneys’ letters to accountants relating to pending or threatened      litigation or other contingencies relating to the Company for the past      three years.                                                                                                                                                                                                                                                                                                                                                                                        |   | See IV.B                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                     |
|   | E.    Any      existing opinions of or correspondence with counsel as to pending      litigation involving the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | None                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                     |
|   | F.    All      management letters from the Company’s independent registered public      accounting firm to the Company concerning internal accounting procedures      or controls in connection with the current audit and any other audit      conducted in the past five years.                                                                                                                                                                                                                                                                                       |   | None                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                     |
|   | G.    Correspondence      concerning inquiries from governmental (i) tax authorities, or (ii)      authorities regarding equal opportunities violations, antitrust      violations, or violations of any other law, rule or      regulation.                                                                                                                                                                                                                                                                                                                                  |   | Notice on payroll tax delinquency_LMT      (9.8) Notice on remaining payroll tax due      (9.11)                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                     |
|   | H.    Any      settlement documentation regarding any of the foregoing.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | See IV.B, G  Landlord Rent Settlement    (4.8)                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                     |
| V.     | COMPLIANCE WITH LAWS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                     |
|   | A.    All      inspection or regulatory reports, citations and notices received from      government agencies or self-regulatory organizations relating to the      Company.                                                                                                                                                                                                                                                                                                                                                                                                  |   | None                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                     |
|   | B.    List      of all material governmental permits, franchises, licenses, clearances,      permissions and approvals relating to the Company (collectively,      “Permits”), together with information regarding any such Permits which      have been canceled or terminated, required to carry out the business or      operations of the Company, including such Permits required by foreign,      federal, provincial or local authorities, and any evidence of exemption      from such permit or license requirement. Copies of all      Permits.         |   | None                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                     |
|   | C.    All      correspondence with any third party who has alleged unfair competition by      the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | None                                                                                                                                                                                                     |

----

|   |                                                                                                                                                                                                                                       |   | Notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | D.    List      of all pending or contemplated disputes, proceedings, requests for      information or other actions or activities affecting or relating to any      Permit.                                           |   | None                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | E.    Provide      details of all pending or completed governmental audits, cases, etc. for      the last three years and identify the governing country in each such      case.                                       |   | None                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| VI.    | MATERIAL CONTRACTS                                                                                                                                                                                                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | A.    Copies      of all contracts with customers, suppliers and any other third parties      pursuant to which the Company would expect to receive or pay more than      $100,000      over the life of the contract. |   | LQMT – LLPG, Inc. License Agreement – 2003      (6.10) LQMT – LLPG License Agreement – First Amended      (6.4) LLPG Letter – Final Signed      (6.21) LQMT – GM License Agreement      (6.5) GM Letter – Final Signed(6.23) LQMT – LSI License Agreement      (6.6) LQMT – The Swatch Group License Agreement (made      available at LQMT’s office in RSM, California) LLPG Amendment Letter – 2010.07.29      (6.22) |
|   |                                                                                                                                                                                                                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | B.    Research      and development agreements.                                                                                                                                                                        |   | ENGEL_Machinery_Inc_LiquideMetal_Technologies_Inc_Agreement      – 2010.02.04 (6.1)                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | C.    Technical      cooperation agreements.                                                                                                                                                                           |   | See VI.B                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | D.    Copies      of all outstanding and unfulfilled purchase orders.                                                                                                                                                  |   | See VI.E as examples LMT Outstanding Vendor PO’s – 2010.06.14      (6.18) LMC Outstanding Vendor PO’s – 2010.06.14      (6.19)                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | E.    Samples      of all forms of purchase orders, invoices, etc.                                                                                                                                                     |   | Example of Customer Quotation and PO’s – Asulab      (6.13) Example of Customer Quotation and PO – Biolase      (6.14) Example of Customer Quotation and PO’s – Cochlear      (6.15) Example of Vendor PO – TAFA      (6.16) Example of Vendor PO – Powder Alloy Corp      (6.17)                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | F.          Copies of any joint venture, joint      development, partnership or other type of strategic    agreement.                                                                                                  |   | LSI JV Agreement (6.9) LMCSl Joint Venture Agreement – 2010.05.04      (6.12)                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | G.    Copies      of all agreements with distributors, dealers and sales      representatives.                                                                                                                         |   | None                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | H.    Any      documents relating to current investments in other companies or entities,      acquisitions of companies, assets or disposition ofassets.                                                               |   | See I.D. for LMC documents and      VI.F                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

----

|   |                                                                                                                                                                                                                                                                            |   | Notes                                                                                                                                                                                     |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                      |
|   | I.          Copies of any other contracts, agreements or documents that      the Company believes is material to the business.                                                                                                                              |   | LQMT – Caltech License Agreement      (6.3) Gyeonghi Land lease  (6.20)                                                                                                        |
|   |                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                            |   | See VI.A                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                      |
|   | J.    Copies      of any term sheets, letters of intent, or similar documents relating to      any pending transaction that involves an amount in excess of $10,000.                                                                                        |   | LQMT – WC Heraeus LOI 05.11.10      (6.11)                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                      |
| VII.   | HUMAN RESOURCES –      BACKGROUND                                                                                                                                                                                                                                    |   |                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                      |
|   | A.         Company Workforce                                                                                                                                                                                                                                     |   |                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                      |
|   | 1.    Organizational      chart of the Company, including titles and locations.                                                                                                                                                                             |   | LQMT – Org Charts (7.1)                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                      |
|   | 2.    Current      roster of employees providing services in connection with the conduct of      the Company’s business by location, including job title,      full-time/part-time/temporary status, department and start      date.                  |   | Employee List (7.4) Employee List – Updated – 2010.07.08      (7.7) Employee Resignations and Terminations      (7.5) LMC – Temporary Employees    (7.6) |
|   |                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                      |
|   | 3.    List      of all independent contractors/consultants/agents providing services in      connection with the conduct of the Company’s business and rate of      compensation and other benefits (including option information) and      location. |   | Schedule VII.A.3 (7.3)                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                      |
|   | 4.    Listing      of employees providing services in connection with the conduct of the      Company’s business who require immigration sponsorship by office and      department, current type of work authorization and country of      origin.    |   | Schedule VII.A.4 (7.8)                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                      |
| VIII.  | FINANCIAL STATEMENTS                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                      |
|   | A.    All      financial statements and related reports, including balance sheets, for      the last three years and any interim period prepared for the Company.      [Refer to SEC filings.]                                                              |   | Draft 10-K (8.1) 2009 10-K Updated Draft    (8.10)                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                      |
|   | B.    Description      of any known liability not revealed in the financial statements described      in XII(A) above.                                                                                                                                      |   | None                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                      |
|   | C.    List      of any off balance sheet liabilities not appearing in most recent annual      financial statement (including the notes thereto).                                                                                                            |   | None                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                      |
|   | D.    Accounts      receivable aging report, including customer names, as of the close of the      last calendar month.                                                                                                                                     |   | AR Customer List 4-30-10 (8.3) AR Customer List 6-30-10    (8.2)                                                                                                                     |
|   |                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                      |
|   | E.    Accounts      payable aging report, including vendor or supplier name, as of the close      of last calendar month.                                                                                                                                   |   | AP List 4-30-10 (8.4) AP List 6-30-10 (8.7)                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                      |
|   | F.         Accounts payable and accrued expenses detail by      category.                                                                                                                                                                                        |   | Provided to D&T                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                      |
|   | G.         Schedule of all inventory.                                                                                                                                                                                                                            |   | Inventory 4-30-10 (8.5) Inventory 6-30-10 (8.8)                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                      |
|   | H.    Fixed      Assets ledger identifying asset, date of acquisition, purchase price,      depreciation period/useful life, and book value as of most recent balance      sheet date.                                                                      |   | Fixed asset list 4-30-10 (8.6) Fixed asset list 6-30-10    (8.9)                                                                                                                     |

----

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | Notes                                                   |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                    |
|   | I.          Any applicable U.S. Sarbanes-Oxley Act testing and      compliance materials and documentation.                                                                                                                                                                                                                                                                                                                                                                  |   | None                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                    |
|   | J.          Summary of all accounting policies and      procedures, detailing reserve methodologies and accounting methods. Detail      should include, at a minimum, the following policies: accounts receivable      reserve policy, bonus policy, commission policy, fixed asset      capitalization policy (lives and capitalization limits), inventory reserve      policy, revenue recognition policy, sales returns policy, vacation policy      and warranty policy. |   | Draft 10-K (8.1) 2009 10-K Updated Draft    (8.10) |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                    |
| IX.    | TAX MATERIALS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                    |
|   | A.    For      prior five years, provide the following:                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                    |
|   | 1.    Listing      of all office locations                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | Schedule IX.A.l (9.12)                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                    |
|   | 2.    Bulk      sales returns for any major asset sale                                                                                                                                                                                                                                                                                                                                                                                                                       |   | None                                                    |

----

|   |                                                                                                         |   | Notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------|--------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | B.    For      most recent five years:                                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | 1.    Federal      and state income tax returns                                          |   | LMT Federal Income Tax Return 2004      (9.15) LMT Federal Income Tax Return 2005      (9.14) LMT Federal Income Tax Return 2006      (9.6) LMT Federal Income Tax Return 2007      (9.5) LMT Fed tax 2008 – Final(9.30)(supersedes LMT Federal Income Tax Return 2008 –      draft (9.10)) LMC – Income Tax – 2007      (9.13) LMC – Income Tax – 2008 (9.3)(supersedes LMC – Income Tax – 2008 (draft)      (9.4)) LMC – Income Tax 2009 (9.1) LMT CA Tax – 2007 (9.21) LMT CA Tax – 2006 (9.16) LMT CA Tax – 2005 (9.19) LMT CA Tax – 2004 (9.20) LMT CA Tax – 2003 (9.22) LMT TX Tax 2007 (9.29) LMT TX Tax 2006 (9.28) LMT TX Tax 2005 (9.27) LMT TX Tax 2004 (9.26) LMT TX Tax 2003 (9.25) LMC AL Tax 2007 (9.32) LMC AL Tax 2008 (9.33) LMC AL Tax 2009  (9.34) |
|   |                                                                                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                         |   | LMTK Tax return 2009 (9.17) LMTK Tax return 2008 (9.18) LMTK Tax 2007 (9.23)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | 2.    foreign      income tax returns                                                    |   | LMTK Tax 2006 (9.24) LMTK Tax 2005 (9.31)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | C.    For      prior two years, provide the following:                                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | 1.    List      of all individuals providing services to the Company receiving      W-2s |   | See VII.A.2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | 2.    List      of all 1099 Recipients providing services to the Company                 |   | LMT 1099 Consultants  (9.2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

----

|   |                                                                                                                                                                                                                                                                                                                                                |   | Notes                                                                                                                                                                         |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                          |
|   | D.    Detail      of recent tax notices, including taxing authority, issues status of      resolution.                                                                                                                                                                                                                          |   | Schedule      of Tax Due (9.7) Notice      on payroll tax delinquency_LMT (9.8) Notice      on remaining payroll tax due (9.11) Federal      Tax Receipt (9.9) |
|   |                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                          |
|   | E.         Description of any pending or potential issues with tax authorities      (including a list of all tax examinations currently in process). Copies of      all notices, assessments, deficiencies, or adjustments (proposed or      final), and any agents’ or examiners’ reports received by the      Company. |   | See      IX.D                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                          |
|   | F.    Detail      of audits including taxing authority, issues raised and status. For closed      audits, a copy of closing      agreement.                                                                                                                                                                                     |   | None                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                          |
|   | G.    Any      correspondence with tax authorities regarding disputed amounts or      positions within the last 4      years.                                                                                                                                                                                                   |   | None                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                          |
|   | H.    Deficiency      assessments filed against the Company by federal, state or local tax      authorities and the resolution of such deficiency (if      any).                                                                                                                                                                |   | See      IX.D                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                          |
|   | I.          Any agreements waiving or extending the statute of limitation for      deficiency assessments or in connection with federal, state or local tax      matters.                                                                                                                                                       |   | None                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                          |
|   | J.    Closing      letters and any other material IRS documents and tax assessment documents      including, for example, rulings obtained and accounting method changes      applied for.                                                                                                                                      |   | None                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                          |
|   | K.         Schedule of taxes payable by the      Company.                                                                                                                                                                                                                                                                            |   | Schedule      of Tax Due (9.7)                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                          |
|   | L.    List      of jurisdictions where indirect tax returns are filed and a copy of all      returns filed for the last 12      months.                                                                                                                                                                                         |   | None                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                          |
|   | M.   All      intercompany tax sharing or tax indemnification      agreements.                                                                                                                                                                                                                                                       |   | None                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                          |
|   | N.    Details      on any governmental, public or private entities providing incentives,      assistance or loans programs in which the Company has      participated.                                                                                                                                                          |   | None                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                          |
| X.     | CUSTOMER, MARKETING AND OTHER      BUSINESS      MATTERS                                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                          |
|   | A.    Customer      Matters:                                                                                                                                                                                                                                                                                                    |   | LQMT – List      of Customers (10.1)                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                          |
|   | 1.    List      of all active customers and customers for the previous two      years,.                                                                                                                                                                                                                                         |   | LMC      – Top Material Customers – 2009-10 (10.5)                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                          |
|   | 2.    Copies      of active customer agreements and      commitments.                                                                                                                                                                                                                                                           |   | See      VI.E. as example                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                          |
|   | 3.    Summary      of bad debts, accounts receivable summary detailing account balances and      reserves, accounts receivable      aging.                                                                                                                                                                                      |   | Bad      Debts 4-30-10 (10.11) Bad      Debts 6-30-10(10.13)                                                                                                             |

----

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | Notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | B.          Marketing      Arrangements:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | 1.    All      agreements or arrangements related to the research, development,      manufacturing, testing, marketing, etc. of the Company’s products, such as      joint development agreements, partnership agreements, agency agreements,      manufacturer representation agreements technology exchange agreements,      agreements with suppliers and vendors, agreements with subcontractors and      component parts manufacturers, agreements with testing laboratories,      agreements with foundries or similar      agreements. |   | See      VI.B Liquidmetal      EMI MOU (10.4) HEAD Sports Agreements      (10.2)                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | 2.    Listing      of all co-branding, private label, alliance, joint venture, partnerships,      co-marketing, distribution, content syndication, licensing, equity or debt      relationships, or similar agreements with other companies used by the      Company. Copies of all joint venture, co-branding and joint marketing      agreements (including any side letters or oral      agreements).                                                                                                                                            |   | See      VI.A and F, X.B.1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | 3.    Copies      of all contracts with any municipality, state or federal      government.                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | SBIR      NO4-168 (10.3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | 4.    Copies      of all standard Company sales forms or literature, including price      lists.                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | See      VI.E                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | 5.    List      and general description of commission or other compensation arrangements      with sales      personnel.                                                                                                                                                                                                                                                                                                                                                                                                                            |   | Schedule      X.B.5 (10.14) LMC      Sales Employment Agreement May 2009 (10.7)                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | C.         Other Business      Matters:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | 1.    Copies      of all product warranties and listing of warranty claims, reserves and      expenses.                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | Warranty      Accrual 4.30.10 (10.10) Warranty      Accrual 6.30.10 (10.12)                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | 2.    Any      agreement or arrangement (whether written or unwritten or intended to be      legally enforceable or not) restricting or that may restrict the business      activities or sale of any assets of the Company (including but not limited      to non-competition, exclusive territory, non-solicitation, non-disclosure      or other similar      restrictions).                                                                                                                                                                     |   | See      VI.1 – Specifically the following; LQMT      – LLPG, Inc. License Agreement – 2003 (6.10) LQMT      – LLPG License Agreement – First Amended (6.4) LLPG      Letter – Final Signed (6.21) LQMT      – GM License Agreement (6.5) GM      Letter – Final Signed (6.23) LQMT      – LSI License Agreement (6.6) LQMT      – The Swatch Group License Agreement (made available at LQMT’s office in      RSM, California) |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | 3.    A      list of the Company’s major      suppliers.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Top      Supplier List (10.9)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | 4.    Standard      customer credit terms and any significant variations in      practice.                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | Schedule      X.C.4 (10.6) Standard      Sales Terms(10.8)                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

----

|   |                                                                                                                                                                                                                                                                                                |   | Notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | 5.    License,      sublicense, royalty and franchise agreements involving the      Company.                                                                                                                                                                                    |   | See      VI.1 – Specifically the following: LQMT      – LLPG, Inc. License Agreement – 2003 (6.10) LQMT–      LLPG License Agreement – First Amended (6.4) LLPG      Letter – Final Signed (6.21) LQMT      – GM License Agreement (6.5) GM      Letter – Final Signed (6.23) LQMT      – LSI License Agreement (6.6) LQMT      – The Swatch Group License Agreement (made available at LQMT’s office in      RSM, California)                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | 6.    All      material commitments, contracts and/or agreements, or those currently      under consideration or negotiation (and the status of negotiation)      relating to the      Company.                                                                                 |   | See      VI.l – Specifically the following: LQMT      – LLPG, Inc. License Agreement – 2003 (6.10) LQMT      – LLPG License Agreement – First Amended (6.4) LLPG      Letter – Final Signed (6.21) LQMT      – GM License Agreement (6.5) GM      Letter – Final Signed (6.23) LQMT      – LSI License Agreement (6.6) LQMT      – The Swatch Group License Agreement (made available at LQMT’s      office in RSM, California) LMCSI      Joint Venture Agreement – 2010.05.04 (6.12) LQMT      – WC Heraeus LOI 05.11.10 (6.11) |
|   |                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | 7.    Hold-harmless,      indemnification or similar agreements of the Company (or provisions within      agreements).                                                                                                                                                          |   | See      VI                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | 8.    Any      agreement out of the ordinary course of business to which the Company is a      party or by which it or its properties are bound as it relates to the      conduct of the Company’s      business.                                                         |   | None                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | 9.    A      list of all agreements affected in any manner by a change in control of      the Company or which require consent or notice of a third party to      assignment (please provide copies of such agreements to the extent not      covered by a request      above). |   | LMC      Operating Agreement – 2007 (1.8)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | 10.  Summary      of pending claims for indemnification under any      contract.                                                                                                                                                                                                          |   | None                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | 11.  All      related party agreements, including all documents pertaining to any      receivables from or payables to employees or beneficial owners of more      than 5% of the Company’s      stock.                                                                             |   | Draft      10-K (8.1) 2009      10-K Updated Draft(8.10)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

----

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | Notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | 12.  Any      waiver or agreement of the Company canceling claims or rights of      substantial value other than in the ordinary course of business, including      any document relating to material write-downs or write-offs of notes or      accounts receivable other than in the ordinary course of      business.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | Draft      10-K (8.1) 2009      10-K Updated Draft (8.10)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| XI.    | IP - IP RIGHTS, PATENTS,      TRADEMARKS AND      COPYRIGHTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | Note:      for purposes of these requests, “intellectual property” includes, without      limitation, patents, trade secrets, know-how, trademarks (including      tradenames), and copyrights that are necessary for the conduct of the      Company’s business.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | A.    Complete      list, description and key terms, including minimum payment obligations and      duration, of all licenses, franchises, royalty agreements, marketing      agreements, nondisclosure agreements, use or non-use agreements,      collaboration or joint development agreements, distributorships, sales,      management and other agreements, covenants not to sue, authorizations,      consents or permits relating to the Company’s intellectual property and/or      technology that are necessary for the conduct of the Company’s business,      including without limitation (i) licenses and covenants granted to third      parties by the Company, (ii) licenses and covenants granted by third      parties to the Company and (iii) technical assistance or technology      transfer agreements. Copies of all of the above agreements and (a)      royalty-bearing agreements and (b) agreements in which intellectual      property and/or technology is being licensed or assigned to or by the      Company. |   | Schedule      XI.A (11.110)See      III and VILQMT      – LLPG, Inc. LicenseAgreement      – 2003 (6.10)LQMT      – LLPG License Agreement – First Amended (6.4)LLPG      Letter – Final Signed (6.21)LQMT      – GM License Agreement (6.5)GM      Letter – Final Signed (6.23)LQMT      – LSI License Agreement (6.6)LQMT      – The Swatch Group License Agreement (made available at LQMT’s office in      RSM, California)LMC      – Patent and Trademark Security (BMW). (3.14); see also LMC – BMW UCC      Terminations – 2010.06 (3.24)LMC      – Patent and Trademark Security (C3) (3.15)Olcott      Report – Stating July 1, 2010 (11.107)LQMT      – Patent Information Annuity Status – 2010.06.20  (11.108) |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | B.    Complete      list and copies of all agreements, options or other commitments giving      anyone rights to acquire any right, title or interest in any of the      Company’s intellectual property or      technology.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | Schedule      XI.B (11.71) See      VI USPTO      – Commonwealth and Middlebury Release Filings – 2010.06      (11.109)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | C.    Complete      list and copies of all assignments relating to intellectual property to      which the Company is party, whether assignment to or from the      Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | See      Employee Obligation Agreements, Consulting Agreements and Employment      Agreements Employee      Obligation Agreement Form (7.2) Examples      of Assignments (11.72) Schedule      XI.C (11.98)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | D.    Copies      of all agreements under which the Company acquired, divested or licensed      in any intellectual      property.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | See      VI                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

----

|   |                                                                                                                                                                                                                                                                                                                                                                     |   | Notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | E.    Complete      list of any other material agreements or documents relating to      intellectual property rights of the      Company.                                                                                                                                                                                                            |   | See      III and VI                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | F.    Patents:                                                                                                                                                                                                                                                                                                                                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 1.    Complete      list and copies of all the Company’s issued patents and pending patent      applications which are necessary for the conduct of the Company’s business      (whether filed by the Company or obtained from a third party), prosecution      histories, and the following information for      each:                  |   | LQMT      – Patent Information w Intl – 2010.07.14 (11.149) LQMT      – Caltech License Patent Information w Intl – 2010.07.14      (11.150) (above      patent lists are final; the versions below are superseded by the      above) LQMT      – Patent Information – 2010.05.04 (11.1) LQMT      – Patent Information w Intl – 2010.06.14 (11.103) LQMT      – Patent Information – Assigned Patents – 2010.05.25 (11.104) LQMT      – Patent Information – Licensed – 2010.05.25 (11.105) LQMT      – Patent Information – Licensed #2 – 2010.05.25 (11.106) LQMT      – Patent Information w Intl – 2010.06.30) (11.111) LQMT      – Caltech License Patent Information w Intl – 2010.07.10      (11.148) |
|   |                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | a.    patent      or application numbers by      country;                                                                                                                                                                                                                                                                                            |   | See      XI.F.l                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | b.    status      of pending applications and provide copy of the Company’s file      history;                                                                                                                                                                                                                                                 |   | LQMT      Pending Matters (11.70) Files      made available to Pillsbury at KPPB and CPH                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | c.    name,      and employment status with the Company, of each      inventor;                                                                                                                                                                                                                                                                      |   | See      XI.K.2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | d.    whether      the patent or patent application has been abandoned;      and                                                                                                                                                                                                                                                                     |   | Schedule      IX.F.l.d (11.73)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | e.    whether      the Company has granted any license(s) to the patent or patent application      (and, if so, provide copy of each      license).                                                                                                                                                                                                  |   | See      VI                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 2.    Identify      all opposition, reexamination, interference, reissue, confirmation of      scope, nullity, inter parts and post grant proceedings. Provide      information and      documents.                                                                                                                                                  |   | See      XI.F.l.b                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | 3.    Copies      of any communications (provide details if not written), notices,      correspondence, or complaints, including without limitation filings with      any court or administrative or government agency, received by the Company      which assert or threaten that the Company infringes any third party’s      patent rights. |   | None                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

----

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | Notes                                                                                                                                                                                              |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
|   | G.    Trademarks:                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
|   | 1.         Complete list of all of the Company’s trademarks, trade names and      service marks that are necessary for the conduct of the Company’s business      which are registered, unregistered or applied for, and the following      information for      each:                                                                                                                                                                                |   | Trademark      Matrix July 10 (11.112)                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
|   | a.    registration      or application numbers by      country;                                                                                                                                                                                                                                                                                                                                                                                              |   | See      XI.G.l                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
|   | b.    class(es)      in which the mark is or will be registered and whether the trademark is on      the primary or secondary      register;                                                                                                                                                                                                                                                                                                                 |   | See      XI.G.l                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
|   | c.    status      of pending      applications;                                                                                                                                                                                                                                                                                                                                                                                                              |   | For      India Liquidmetal      Technologies Tradmark Application Nos (11.76) Liquidmetal      Coatings Trademark Application Nos (11.77)                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
|   | d.         date of issue for any      registrations;                                                                                                                                                                                                                                                                                                                                                                                                              |   | See      XI.G.l                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
|   | e.    whether      the trademark has been abandoned;      and                                                                                                                                                                                                                                                                                                                                                                                                |   | None                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
|   | f.          whether the Company has granted any license(s) to the      trademark (and, if so, provide copy of each      license).                                                                                                                                                                                                                                                                                                                            |   | See      III and VI LQMT      – LLPG License Agreement – First Amended (6.4) LQMT      – GM License Agreement (6.5) LQMT      – LSI License Agreement (6.6) |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
|   | 2.         Copies of any communications (provide details if not written),      notices, correspondence, or complaints, including without limitation any      filings with any court or administrative or government agency, received by      the Company which assert or threaten that the Company infringes any third      party’s trademark      rights.                                                                                                  |   | None                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
|   | H.    Domain      Names:                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
|   | 1.    List      of all domain names used by Company during the conduct of the Company’s      business, including the registration status of each, with all contact and      DNS information for each. Identify any domain names which have been      reserved or registered but are not in      use.                                                                                                                                                   |   | Liquidmetal      Domain Status 19 March 2010 (11.69)                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
|   | 2.    Evidence      of ownership or license agreements for all domain names owned or used by      the Company in the conduct of the Company’s      business.                                                                                                                                                                                                                                                                                           |   | None                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
|   | I.          Copyrights:                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
|   | 1.         Complete list of all of the Company’s registered copyrights and any      other significant copyrighted works (even if not registered) that are      necessary for the conduct of the Company’s business including information      related to any proprietary software code developed by the Company and      utilized in connection with the operation of the Company’s business, and      the following information for      each: |   | None                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
|   | a.    registration      number, if      registered;                                                                                                                                                                                                                                                                                                                                                                                                          |   | None                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                               |
|   | b.    date      of issue, if      registered;                                                                                                                                                                                                                                                                                                                                                                                                                |   | None                                                                                                                                                                                               |

----

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | Notes                                                            |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                             |
|   | c.    author;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | None                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                             |
|   | d.    whether      the Company has granted any license(s) to the copyright (and, if so,      provide copy of each      license).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | None                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                             |
|   | 2.    Copies      of any communications (provide details if not written), notices,      correspondence, or complaints, including without limitation filings with      any court or administrative or government agency, received by the Company      which assert or threaten that the Company infringes any third party’s      copyrightrights.                                                                                                                                                                                                                                                                                                                                          |   | None                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                             |
|   | J.    Trade      Secrets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                             |
|   | 1.         Copies of any communications (provide details if not written), notices.      correspondence, or complaints, including without limitation any filings      with any court or administrative or government agency, received by the      Company which assert or threaten that the Company has misappropriated      and/or infringes any third party’s trade      secrets.                                                                                                                                                                                                                                                                                                             |   | None                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                             |
|   | K.    IP      Miscellaneous:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                             |
|   | 1.    Description      of the development of the Company IP including the first conception      date(s) of the idea behind the Company IP and the current status of the      development of the Company IP If Company has or has had multiple product      lines/business units, please answer the remaining question separately for      each product line/business      unit.                                                                                                                                                                                                                                                                                                                 |   | Draft      10-K (8.1) 2009      10-K Updated Draft (8.10)   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                             |
|   | 2.    Describe      the individuals and entities who contributed and contribute to the      development of the Company IP: (i) employees, (ii) non-employee directors,      (iii) board of advisor members, (iv) individual consultants, (v) corporate      consultants, and (vi) Joint development partners. Did all employee      contributors execute the Company’s standard form Invention Assignment      Agreement? Did each contributor sign an agreement assuring confidentiality      and non-disclosure of Company IP and assigning all of the contributor’s      intellectual property rights in the development work performed by the      contributor to      Company? |   | Schedule      XI.K.2 (11.74)                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                             |
|   | 3.    Were      any employee contributors employed by a competitor of the Company prior to      or following their employment with the      Company?                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | None                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                             |
|   | 4.    Description      of any outstanding suits or claims for infringement of any patents,      trademarks, copyrights, domain names or trade secrets owned or used by the      Company that are necessary for the conduct of the Company’s business      (whether by or against the      Company).                                                                                                                                                                                                                                                                                                                                                                                       |   | None                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                             |
|   | 5.    Copies      of any indemnities or standard form of indemnity provided by the Company      to third parties regarding intellectual property rights of the      Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | None                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                             |
|   | 6.    Detail      of research and development funding by third parties or affiliates. Other      than the contributors identified above, did any other individuals or      entities (including government entities) assist Company in the development      or the funding of the Company IP? Please provide      details.                                                                                                                                                                                                                                                                                                                                                                       |   | See      VI – LQMT – Caltech License Agreement (6.3) |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                             |
|   | 7.    Lists      of all proprietary and third-party patents, processes and other      third-party intellectual property employed in the Company’s products and      services.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | See      VI – LQMT – Caltech License Agreement(6.3)  |

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|   |                                                                                                                                                                                                                                                                                                                                                                                      |   | Notes                                                                                |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                 |
|   | 8.    At      any time during their contribution to the development of the Company IP,      were any of the individual contributors students, professors or laboratory      assistants in a university, college or any other educational or research      entity? Please provide      details.                                                                        |   | Schedule      XI.K.8 (11.75)                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                 |
| XII.   | INSURANCE                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                 |
|   | A.    Summary      documentation relating to all insurance arrangements (including business      interruption, earthquake, fidelity insurance, directors and officers      insurance, property damage, third party liability, environmental hazard      and key employee      insurance).                                                                             |   | Navigators      Insurance Company (12.1) Summary      of Insurance 09-10 (12.2) |
|   |                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                 |
| XIII.  | ENVIRONMENTAL      MATTERS                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                 |
|   | A.    Any      information with regard to claims or violations of, or compliance with      environmental laws and regulations relating to the      Company.                                                                                                                                                                                                           |   | None                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                 |
|   | B.    All      environmental audit or inspection reports relating to the Company or any      of its    properties.                                                                                                                                                                                                                                                    |   | None                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                 |
|   | C.    Identify      any history of spillage or leakage of any hazardous      substance.                                                                                                                                                                                                                                                                               |   | None                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                 |
|   | D.    If      applicable, identify the location of the underground tanks and lines      located on property owned or leased, including those no longer used, and      set forth any history of spillage or      leakage.                                                                                                                                              |   | None                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                 |
|   | E.    All      notices and demands by environmental      authorities.                                                                                                                                                                                                                                                                                                 |   | None                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                 |
| XIV.   | MISCELLANEOUS                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                 |
|   | A.    Any      other documents or information which, in the judgment of officers of the      Company, are significant with respect to the Company or its financial      condition of the Company or which should be considered and reviewed in      making disclosure regarding the Company and its financial condition in      connection with the      Transaction. |   | None                                                                                 |

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