----

| Buyer  |   19.9% |
|--------|-------------------|
| Seller |   80.1% |
| Total  | 100.0%            |

----

----

----

----

----

|              | (a) If, on the Determination Date, the Average Market Price is greater than or equal to One Hundred Ten Percent (110%) of the Base Price, the Redemption Price shall equal One Hundred Ten Percent (110%) of the Base Price; or |
|--------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|               | (b) If, on the Determination Date, the Average Market Price is greater than or equal to the Base Price, but less than One Hundred Ten Percent (110%) of the Base Price, the Redemption Price shall equal the Average Market Price; or  |
|--------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|               | (c) If, on the Determination Date, the Average Market Price is less than the Base Price, then the Buyer may, at its option, redeem the Shares at the Base Price, or the Parties shall proceed as set forth in Section 7 below. |
|--------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

----

----

|   | SELLER:                           |   |
|--------|-----------------------------------|--------|
|   |                              |   |   |
|   | SAGA S.P.A,an Italian corporation |
|   |                              |   |   |
|   | By:                               |   |   |
|   | Name                         |   |   |
|   | Title                        |   |   |

|   | BUYER:                                                |   |
|--------|-------------------------------------------------------|--------|
|   |                                                  |   |   |
|   | LIQUIDMETAL TECHNOLOGIES, INC.,a Delaware corporation |
|   |                                                  |   |   |
|   | By:                                                   |   |   |
|   | Name                                             |   |   |
|   | Title                                            |   |   |

|   | COMPANY:                                                     |   |
|--------|--------------------------------------------------------------|--------|
|   |                                                         |   |   |
|   | LIQUIDMETAL SAGA S.R.L.,an Italian limited liability company |
|   |                                                         |   |   |
|   | By:                                                          |   |   |
|   | Name                                                    |   |   |
|   | Title                                                   |   |   |

----

----

----

| 1)     | Partecipazione nella controllata Liquidmetal Saga Italy S.r.l. e rapporti col partner Liquidmetal Technologies Inc.; |
|--------|----------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                 |
| 2)     | Bilancio al 31.12.2010: fruizione di maggiori termini per I’approvazione;                                      |
|   |                                                                                                                 |
| 3)     | Varie ed eventuali.                                                                                                  |

----

| -      | di approvare ratificando senza riserve I’operato sin qui posto in essere dal Presidente, già precedentemente delegato dal Consiglio per la trattazione della controversia con LQMT e di tutti gli aspetti ad essa connessi ed in particolare:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| -      | di approvare il conferimento alla società di revisione KPMG S.p.A. della stima dell’ammontare dei costi sostenuti da Saga nell’ambito della joint venture con LQMT, nonché del mancato utile su particolari affari inizialmente prospettati da Liquidmetal e non concretizzati, dandogli mandato per definire al meglio il corrispettivo per tale opera;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| -      | di approvare i contenuti tutti dell’accordo raggiunto con la controparte LQMT per la risoluzione della controversia in ordine alla joint venture veicolata tramite la partecipazione in LSI, cosl come esposto dal Presidente al Consiglio;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| -      | di conferire pertanto disgiuntamente ai consiglieri Aronne Meneghetti e Gabriele Calore ogni potere per perfezionare e giungere alla definizione finale del accordo, apportando allo stesso ogni eventuale modifica, correzione o integrazione dovesse ritenere necessaria o solamente utile nell’interesse di Saga S.p.A., compreso I’acquisto delle dotazioni produttive da LSI per il corrispettivo di Euro 700.000,00 per i macchinari e di Euro 200.000,00 per le materie, conferendo conseguentemente agli stessi ogni potere per sottoscrivere tutti i conseguenti atti, anche notarili, documenti, dichiarazioni, necessari al perfezionamento dell’accordo e altresl votando nelle assemblee che dovessero essere convocate da LSI nelle more dell’ufficializzazione del cambio di compagine sociale, secondo le istruzioni che saranno convenute con LQMT, con promessa sin d’ora di rato e valido, senza che ai delegati possa essere opposto difetto di poteri. |

|                                 |                |
|--------------------------------------|---------------------|
| IL SEGRETARIO                        | IL PRESIDENTE       |
| (Silvano Lunardi)                    | (Aronne Meneghetti) |
|        |                     |

----

|               |   |   |
|--------------------|--------|--------|
| Aronne Meneghetti  |        |   |
|               |   |   |
| Gabriele Calore    |        |   |
|               |   |   |
| Augusto Pinton     |        |   |
|               |   |   |
| Silvano Lunardi    |        |   |
|               |   |   |
| Luciano Berzé |        |   |
|               |   |   |
| Giampaolo Ferretto |        |   |
|               |   |   |
| Dante Carolo       |        |   |

----

|   |                                                                                                                 |
|--------|----------------------------------------------------------------------------------------------------------------------|
| 1)     | Partecipazione nella controllata Liquidmetal Saga Italy S.r.l. e rapporti col partner Liquidmetal Technologies Inc.; |
|   |                                                                                                                 |
| 2)     | Varie ed eventuali.                                                                                                  |

|   |                                                                                                                                                                       |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| -      | di approvare e di condividere il contenuto della delibera appena assunta dal Consiglio di Amministrazione della Società,                                              |
|   |                                                                                                                                                                       |
| -      | di approvare e di condividere il conseguente investimento in titoli della Liquidmetal Technologies Inc.,                                                                   |
|   |                                                                                                                                                                       |
| -      | di autorizzare il Consiglio di Amministrazione e le persone dallo stesso delegate a perfezionare I’accordo raggiunto e gli atti accessori ed esecutivi dello stesso, |
|   |                                                                                                                                                                       |
| -      | di dare ampia manleva al consiglio per I’operato svolto in riferimento alla gestione del rapporto con Liquidmetal Technologies Inc..                                 |

|                                 |                |
|--------------------------------------|---------------------|
| II Segretario                        | II Presidente       |
| (Silvano Lunardi)                    | (Aronne Meneghetti) |
|        |                     |

----

|               |   |   |
|--------------------|--------|--------|
| Aronne Meneghetti  |        |   |
|               |   |   |
| Gabriele Calore    |        |   |
|               |   |   |
| Augusto Pinton     |        |   |
|               |   |   |
| Silvano Lunardi    |        |   |
|               |   |   |
| Diego Schiavo      |        |   |
|               |   |   |
| Giancarlo Peruzzo  |        |   |
|               |   |   |
| Manuele Carpanese  |        |   |
|               |   |   |
| Andrea Cardin      |        |   |
|               |   |   |
| Luciano Berzè |        |   |
|               |   |   |
| Giampaolo Ferretto |        |   |
|               |   |   |
| Dante Carolo       |        |   |

----

----

----

|   |               |
|--------|--------------------|
|   | BOARD OF DIRECTORS |
|   |               |
|   |                    |
|   | Abdi Mahamedi      |
|   |               |
|   |               |
|   | Thomas Steipp      |
|   |               |
|   |               |
|   | Robert Biehl       |
|   |               |
|   |               |
|   | Mark S. Hansen     |
|   |               |
|   |               |
|   | Ricardo A. Salas   |

----

|   |               |
|--------|--------------------|
|   | BOARD OF DIRECTORS |
|   |               |
|   |               |
|   | Abdi Mahamedi      |
|   |               |
|   |                    |
|   | Thomas Steipp      |
|   |               |
|   |               |
|   | Robert Biehl       |
|   |               |
|   |               |
|   | Mark S. Hansen     |
|   |               |
|   |               |
|   | Ricardo A. Salas   |

----

|   |               |
|--------|--------------------|
|   | BOARD OF DIRECTORS |
|   |               |
|   |               |
|   | Abdi Mahamedi      |
|   |               |
|   |               |
|   | Thomas Steipp      |
|   |               |
|   |                    |
|   | Robert Biehl       |
|   |               |
|   |               |
|   | Mark S, Hansen     |
|   |               |
|   |               |
|   | Ricardo A. Salas   |

----

----

|   |                                                                                             |
|--------|--------------------------------------------------------------------------------------------------|
| 1.     | Approval of the Agreement with Liquidmetal Technologies Inc.; following resolutions and proxies; |
|   |                                                                                             |
| 2.     | Shareholders’ meeting.                                                                     |

| 1. | Approve the draft of the Agreement with Liquidmetal Technologies Inc.; |
|----|------------------------------------------------------------------------|

----

| 2. | provide full powers to the President, Mr. Aronne Meneghetti to sign that Agreement and any correlated agreement and executor deed. |
|----|------------------------------------------------------------------------------------------------------------------------------------|

|          The Secretary                                                              | The President                                                        |
|---------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------|
|                                                                                                                                  |                                                                      |
|               (Giancarlo Peruzzo)      |          (Aronne Meneghetti) |

----

| 1.     | Esame della bozza di accordo con Liquidmetal Technologies Inc.; deleghe conseguenti. |
|--------|--------------------------------------------------------------------------------------|
|   |                                                                                 |
| 2.     | Convocazione dell’Assemblea dei Soci.                                          |

----

| 1.     | di approvare la bozza di accordo con Liquidmetal Technologies Inc.;                                                                                    |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                   |
| 2.     | di conferire al Presidente Aronne Meneghetti ogni più ampio potere per procedere alla firma di detto accordo e degli atti esecutivi dello stesso. |

| II Segretario  | II Presidente  |
|---------------------|---------------------|
|                |                |
| (Giancarlo Peruzzo) | (Aronne Meneghetti) |
|                |                |
|                     |                |
| John Kang      |                |

----

----

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |           1.1. “Amorphous Alloy” means any one or more amorphous or semi-amorphous alloys (i.e., metal-based alloys have a noncrystalline atomic structure in whole or in part) or bulk metallic glasses (or composite materials containing amorphous alloys or bulk metallic glasses). The term “Amorphous Alloy” includes, but is not limited to, any and all alloys that now or in the future are proprietary to Licensor, including by in-licensing, or marketed or sold under the Liquidmetal® brand (collectively, “Liquidmental Alloys” or “Liquidmetal® Alloys”).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |           1.2. “Confidential Information” shall mean any and all commercial, technical, financial, proprietary, and other information relating to the Discloser, its affiliates, and their respective business operations, including, but not limited to, samples, data, technical information, know-how, formulas, ideas, inventions, discoveries, unpublished Patent applications, business and financial information, applications and designs, and all manifestations or embodiments relating to the foregoing and all improvements made thereto, in whatever form provided, whether oral, written, visual, machine-readable, electronic, or otherwise. For purposes of this Agreement, Licensor’s Confidential Information shall include, but not be limited to, the Licensed Technical Information, and any and all information relating to the composition, processing, properties, and applications of Liquidmetal® Alloys. “Confidential Information” also includes any information described above which the Discloser obtains from a third party and which the Discloser treats as proprietary or designates as confidential, whether or not owned or developed by the Discloser. |

----

|   |           1.3. “Discloser” shall mean the party that is disclosing Confidential Information under this Agreement, regardless of whether such Confidential Information is being provided directly by such party, by a Representative of the party, or by any other person that has an obligation of confidentiality with respect to the Confidential Information being disclosed.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |           1.4. “Field of Use Restrictions” shall mean and refer to the field of use restrictions set forth in Exhibit B.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |           1.5. “Improvements” means all discoveries and/or inventions (whether patented or not) that constitute a modification of the licensed invention or process described in a Licensed Patent, provided such modification, if unlicensed, would infringe one or more claims of the Licensed Patent.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |           1.6. “Intellectual Property” means any and all inventions (whether or not protected or protectable under patent laws), works of authorship, information fixed in any tangible medium of expression (whether or not protected or protectable under copyright laws), moral rights, trade secrets, developments, designs, applications, processes, know-how, discoveries, ideas (whether or not protected or protectable under trade secret laws), and all other subject matter protected or protectable under patent, copyright, moral right, trademark, trade secret, or other laws, including, without limitation, all new or useful art, combinations, formulae, manufacturing techniques, technical developments, applications, data, and research results.                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |           1.7. “Licensed Patents” means the Patents listed in Exhibit A attached hereto plus Licensor’s other Patents in existence as of the Effective Date relating to Liquidmetal Alloys, and all Patents issuing from later filed divisionals, reissues, reexaminations, continuations, continuations-in-part, renewals, extensions, substitutions, and foreign equivalents and counterparts thereof.                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |           1.8. “Licensed Products” means the following products made from Licensor’s proprietary bulk Amorphous Alloys: (i) the products listed on Exhibit D hereto, and (ii) such additional products as may mutually be agreed upon from time to time by Licensor and Licensee, in their sole discretion, through an amendment to Exhibit D hereto signed by both parties.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |           1.9. “Licensed Technical Information” means unpublished research and development information, unpatented inventions, know-how, trade secrets, and technical data now or hereafter in the possession of Licensor that are reasonably necessary for using the Licensed Patents to produce Licensed Products in accordance with this Agreement, provided Licensor has the right to disclose such items to Licensee.                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |           1.10.          “Licensee Affiliate” means any corporation, limited liability company or other legal entity which directly or indirectly controls, is controlled by, or is under common control with Licensee or its successors or assigns, or any successor or assign of such an entity. For the purposes of this Agreement, “control” shall mean the direct or indirect ownership of more than fifty percent (50%) of the outstanding shares on a fully diluted basis or other voting rights of the subject entity to elect directors or managers, or the right to direct or cause the direction of the management and policies of the subject entity whether by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. |

----

|   |           1.11.          “Margin” shall mean and refer to Licensee’s margin on Licensed Products calculated in accordance with Exhibit C.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |           1.12.          “Net Sales” means, for purposes of computing monthly royalties under this Agreement, Licensee’s gross invoice price on the sale of Licensed Products less returns or refunds, but before deduction of any other items, including, but not limited to, freight allowances and cash discounts.                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |           1.13.          “New Amorphous Alloy Technology” means, to the extent developed or acquired after the Effective Date, all new Amorphous Alloys and/or new Intellectual Property relating to the composition, processing, properties, or applications of Amorphous Alloys, and all Patents therefor, including, but not limited to, Improvements to the Licensed Patents.                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |           1.14.          “Patents” means any and all letters patent (including, but not limited to, patents of implementation, improvement, or addition, utility model and appearance design patents, and inventors certificates, as well as all divisionals, reissues, reexaminations, continuations, continuations-in-part, renewals, extensions, substitutions, foreign equivalents and counterparts, and any other forms of patent protection directed to the inventions covered by any of the foregoing), applications for letters patent (including, but not limited to, all foreign counterpart patent applications), and letters patent that may issue on such applications. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |           1.15.          “Recipient” shall mean the party receiving Confidential Information that is protected under this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |           1.16.          “Representatives” shall mean the respective directors, officers, employees, financial advisors, accountants, attorneys, agents, and consultants of a party.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |           1.17.          “Trademark” shall mean the “Liquidmetal®” mark.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |           2.1. Patent License. Licensor hereby grants to Licensee an exclusive, royalty-bearing, non-transferable license under the Licensed Patents to make, offer to sell, sell and export Licensed Products throughout the world, subject to the Field of Use Restrictions. This license shall not include the right to grant sublicenses.                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |           2.2. Trade Secrets,Know How and Technical Information License. Licensor hereby grants to Licensee an exclusive royalty-bearing, non-transferable license under the Licensed Technical Information to make, offer to sell, and export Licensed Products throughout the world, subject to the Field of Use Restrictions. This license shall not include the right to grant sublicenses.                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |           2.3. Reservation of Rights. The parties agree and acknowledge that Licensor shall at all times retain the right to engage in research and technology development activities relating to the Licensed Patents, the Licensed Know-How, and Licensed Products, and Licensor shall have the unlimited right to engage, partner with, or otherwise work with third parties of its choosing in connection with such activities. Additionally, all rights not specifically granted to Licensee by this Agreement are expressly reserved by Licensor. Licensor retains the right to make, offer to sell, sell and export the Licensed Products, but will not authorize any person other than Licensee to do so. |

----

|   |           2.4. Delivery of Materials Relating to Licensed Patents and Technical Information. In connection with the grant of the licenses set forth in Sections 2.1 and 2.2 above, at all reasonable times and upon reasonable request of Licensee, Licensor shall make available to Licensee, in each case within a commercially reasonable time frame, for Licensee’s internal use pursuant to this Agreement and subject to the confidentiality provisions of this Agreement, one copy of all Licensed Technical Information and one copy of all documentation relating to the Licensed Patents, in each case to the extent then already in possession and control of Licensor and reasonably reproducible. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |           2.5. Trademark License. Licensee must at all times market, promote, and sell the Licensed Products under the Trademark and may not use any other trade, brand, or product name without the prior written consent of Licensor. Licensor hereby grants to Licensee an exclusive, worldwide, royalty-free, fully paid up, non-transferable license to use the Trademark in connection with the marketing and sale of Licensed Products, subject to the following terms and conditions:                                                                                                                                                                                                                        |

----

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |           3.1. Royalty Rate. Licensee agrees to pay Licensor a royalty equal to ten percent (10.0%) of the Net Sales of Licensed Products sold to Licensee’s customers. All royalties will be paid in United States Dollars. If the Licensee’s Margin for a product is less than 10% for any particular calendar month, then the parties (Licensor and Licensee) will negotiate in good faith a new royalty amount for that product, and Licensee will not engage in the further manufacture of such Licensed Product until the parties are in agreement on such new royalty amount.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |           3.2. Royalties for Transactions Not at Arm’s Length. In order to assure to Licensor the full royalty payments contemplated by this Agreement, Licensee agrees that in the event any Licensed Products shall be sold (1) to a Licensee Affiliate, or (2) to a corporation, firm, or association with which, or individual with whom, Licensee or its stockholders or affiliates shall have any agreement, understanding or arrangement (such as, among other things, an option to purchase stock, or an arrangement involving a division of profits or special rebates or allowances) without which agreement, understanding or arrangement, prices paid by such corporation, firm, association or individual for the Licensed Products would be higher than the Net Sales Price reported by Licensee, or if such agreement, understanding or arrangement results in extending to such corporation, firm, association or individual lower prices for Licensed Products other than those charged to outside concerns buying similar products in similar amounts and under similar conditions, then, and in any such events, the royalties to be paid hereunder in respect of such Licensed Products shall be computed based on an assumed or deemed Net Sales Price to be determined in a manner mutually agreed upon by Licensor and Licensee. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |           3.3. Monthly Payment. Royalties on Net Sales of Licensed Products shall be paid to Licensor on a monthly basis within twenty (20) days following the end of the month in which Licensee receives payment on its invoices relating to such Net Sales. For purposes of calculating Net Sales, returns received or refunds given by Licensee during any month will be deducted from any gross sales for which Licensee received payment during such month, but if Licensee has not received any such payments during such month (or has not received sufficient payments to offset the returns or refunds), then such returns or refunds will be deducted during the next calendar month in which Licensee receives such payments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |           3.4. Taxes. All payments due hereunder shall be paid without deduction for taxes, assessments, or other charges of any kind or description that may be imposed on Licensor by any government (except the taxes and withholding tax imposed by the government of the country of the Licensee and the federal government of the United States) or any political subdivision of such non-United States government, with respect to any amounts payable to Licensor pursuant to this Agreement, and such taxes, assessments, and other charges shall be paid for and assumed by Licensee.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |           3.5. Early Terminating. In the event Licensor terminates the licenses granted under this Agreement for nonpayment of royalties or other amounts owed by Licensee, in accordance with the terms of this Agreement, all amounts then owing by Licensee shall immediately become due and payable.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

----

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |           4.1. Reports. Licensee shall keep accurate and sufficient records to determine amounts owed to Licensor under this Agreement. Licensee shall make a written report detailing the basis for any computations to Licensor within ten (10) days following each calendar month. Records necessary for the computation of amounts payable by Licensee under this Agreement shall be maintained by Licensee for a period of five (5) years following each accounting report due hereunder. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |           4.2. Audits. Such records of Licensee shall be open to inspection by Licensor or an auditor selected by Licensor during regular business hours of Licensee.                                                                                                                                                                                                                                                                                                                          |

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |           5.1. Representations and Warranties. Licensor represents and warrants that it either owns or licenses the Licensed Patents or otherwise has the full right and power to grant the licenses set forth herein.                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |           5.2. Disclaimer of Warranties. THE WARRANTIES CONTAINED IN THIS ARTICLE ARE THE ONLY WARRANTIES MADE BY LICENSOR. LICENSOR EXPRESSLY DISCLAIMS ALL OTHER REPRESENTATIONS AND WARRANTIES, WHETHER EXPRESS, IMPLIED, STATUTORY, OR ARISING OUT OF CUSTOM OR TRADE USAGE, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT. LICENSOR MAKES NO WARRANTIES WITH RESPECT TO FREEDOM FROM ALLEGED INFRINGEMENT OF THIRD PARTY PATENTS OR FREEDOM FROM THIRD PARTY INFRINGERS. LICENSOR MUST ONLY HOLD LICENSEE HARMLESS AGAINST SUCH ALLEGED INFRINGEMENT OF THIRD PARTIES. |
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|   |           5.3. Licensed Products. Licensor assumes no responsibility whatsoever for the performance, operation, maintenance, or manner of use of the Licensed Products made, used, sold, imported, or otherwise disposed of by Licensee. Licensor shall have no liability with respect to the Licensed Products.                                                                                                                                                                                                                                                                                                                                               |

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|   |           6.1. Permits. Licensee represents and warrants that it has obtained any and all governmental permits, licenses, or other approvals required for the performance of its obligations and the enjoyment of its rights under this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |           6.2. Product and Environmental Liability. Licensee agrees that Licensor shall have no liability to Licensee or to any purchasers or users of Licensed Products made or sold by Licensee for any claims, demands, losses, costs, or damages suffered by Licensee, or purchasers or users of Licensed Products, which relate in any way to the manufacture, use, import, or sale of such Licensed Products, including, but not limited to, personal injury, death, property damage, environmental damage, or any claim of defects in design or workmanship of any kind including in the Licensed Products (hereafter, the “Claims”). Licensee agrees to indemnify and hold Licensor, its officers, directors, employees, agents, representatives, successors and assigns harmless from and against all Claims. |

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
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|   |           7.1. Installation. Licensor will provide an installation team to oversee and assist in the installation of the Equipment at Licensee’s site in accordance with the specifications for the Equipment and in accordance with the site requirements set forth in the Equipment Purchase Agreement. Licensor agrees that the installation team will consist of no less than two qualified individuals selected by Licensor. Licensee agrees to provide sufficient personnel (in terms of number and qualifications) to handle the installation of the Equipment with the assistance and oversight of Licensor’s installation team. All costs and expenses associated with the personnel involved in the installation of the Equipment will be born by their respective parties (this is to include the costs of travel and transportation to and from Licensee’s facility, all living accommodations and all food and beverage needs of the installation team during the installation, testing and commissioning period). Expenses incurred by Licensee and or SAGA SpA, including personnel costs, travel and entertainment expenses, for the installation will be borne by Licensee not to exceed $15,000. Beyond this limit expenses will be borne by Licensor. Licensee further agrees that it will house and operate the Equipment only in Italy at the agreed-upon installation site. Expenses in this Section 7.1 and 7.2 below do not include facility improvements, utility access or other similar items associated with installing and operating the Equipment, all of which will be borne by Licensee. |
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|   |           7.2. Commissioning. Licensor and Licensee will jointly commission the Equipment at the installation site as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

|   |           (i)   Commissioning will follow as soon as reasonably practicable after the installation of the Equipment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |           (ii)  Drawings of a product will be provided by Licensor, with such specifications to be determined by Licensor (the product set forth in such drawings will be referred to as the “Commissioning Product”).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |           (iii) Two used molds suitable for manufacturing the Commissioning Products for use in the commissioning process will be provided by Licensor.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |           (iv) Commissioning will be deemed complete and acceptable when Licensor can demonstrate that one of the molded Commissioning Products can be produced in line with the drawing specifications, to quality standards reasonably agreed upon by the Parties, and continuously for a minimum run time of 4 hours. The date on which commissioning is completed is referred to as the “Commissioning Date.”                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |           (v)  Licensor will provide a team of no less than two qualified Licensor employees to assist and oversee the commissioning process, which two employees will be selected by Licensor and which may or may not be the same individuals who are a part of the Licensor installation team. Licensee will fully cooperate in the commissioning process, including by providing a sufficient number of qualified personnel to undertake the commissioning process with the advice and assistance of the Licensor commissioning team. To enable proper training of the Licensee technicians and operators, the commissioning period will not be less than eight working days. Each Party shall bear its own costs associated with the commissioning process as set forth in this Section 7.2., including the limitation to the $15,000 amount expenses incurred by Licensee and or SAGA SpA pursuant to Section 7.1 above. |

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|   |           (vi) First raw material and consumable shipments shall be split in two different parts: the raw materials and consumables necessary for the commissioning to be paid by Licensor, the raw materials and consumables necessary for the production following the Commissioning Date to be paid by Licensee. |
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|   |           7.3.          Ongoing Support. Licensor shall provide Licensee ongoing support as reasonably necessary after commissioning of the Equipment. As a part of such support, Licensor will advise and consult with Licensee regarding the use, maintenance and operation of the Equipment, including by making available a qualified technician available at Licensee’s facility in Italy. In connection with the provision of such support services, Licensee shall bear all travel, transportation, accommodation, food and beverage and similar costs associated with such services plus a per diem charge to be agreed upon by Licensor and Licensee. As a part of this support, for critical situations where the Equipment is not operational, Licensor will use reasonable commercial efforts to make available a qualified technician upon five (5) business days’ prior notice, at the Licensee’s facility in Italy. |
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|   |           8.1. Licensee Inventions and Improvements. In the course of practicing the Licensed Patents and Licensed Technical Information pursuant to licenses granted by this Agreement, Licensor or Licensee may develop or assist in the development of New Amorphous Alloy Technology. The parties agree that all such New Amorphous Alloy Technology shall be owned solely and exclusively by Licensor. Upon the conception or development of any New Amorphous Alloy Technology by Licensee, whether alone or in conjunction with others, Licensee shall provide written notification to Licensor describing in sufficient detail the nature of the New Amorphous Alloy Technology. Items of New Amorphous Alloy Technology shall become part of the Licensed Patents and/or Licensed Technical Information hereunder, provided that (i) in the case of any New Amorphous Alloy Technology developed by Licensee, such technology shall not become a part of the Licensed Patents and or Licensed Technical Information until such technology is disclosed to Licensor, and (ii) with respect to any New Amorphous Alloy Technology developed or otherwise acquired by Licensor, such technology shall not become a part of the Licensed Patents and/or Licensed Technical Information if the Licensor does not have the right to grant a license to said technology. If the New Amorphous Alloy improvement is essential to the practice of the Licensed Patents and Licensed Technical Information, such technology shall be included in this Agreement. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |           8.2. Assignment. Title to any and all New Amorphous Alloy Technology shall vest solely and exclusively in Licensor, regardless of inventorship. Licensee hereby assigns to Licensor, and will cause its employees, contractors, representatives, successors, assigns, affiliates, parents, subsidiaries, officers and directors to assign to Licensor, all right, title and interest in and to any New Amorphous Alloy Technology in which Licensee or any of them acquire rights. Licensee agrees to cooperate and cause its employees and contractors to cooperate in the preparation and prosecution of Patent applications relating to Licensor’s Intellectual Property, including any New Amorphous Alloy Technology. Notwithstanding the foregoing, in the event that Licensee solely initiates, continuously directs and, largely through, its own efforts, develops any new Improvement or other intellectual property that can be patented, then the Licensor and Licensee shall negotiate in good faith a reasonable compensation for assignment of the intellectual property to Licensor.                                                                                                                                                                                                                                                                                                                                                                                                                                       |

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
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|   |           9.1. Right to Sell Business. At the election by SAGA upon written notice received by Licensor and Licensee at any time following the last day of the eighteenth (18th) calendar month after the Commissioning Date (such last day being referred to as the “Determination Date”), and provided that; (i) Licensor at such time deems that the Equipment is then in good condition and working order; and (ii) Licensee is not then in material breach of this Agreement or any other agreement with Licensor, SAGA may sell to Licensee and Licensor and Licensor shall purchase from Licensee all assets of Licensee (the “Purchased Assets”) relating to the entire business of selling and manufacturing products using Amorphous Alloys (the “Business”), for a purchase price that is equal to the original purchase price of the Equipment (i.e., the purchase price for the Equipment originally paid by Licensee to LLPG and the original purchase price of the other assets relating to the entire business of selling and manufacturing products using Amorphous Alloys) less an amount allocated to depreciation based upon a five year, straight line depreciation method (pro rated on a monthly basis) less capital paid back to Licensee. In connection with any purchase and sale under this paragraph, Licensee shall deliver the Purchased Assets FOB Italy. For purposes of this Agreement, the “Purchased Assets” will include, but not be limited to, the Equipment, all inventory or feedstock then in possession of Licensee or otherwise owned by Licensee, all customer lists, customer contract rights, and other materials related to the Business. All shipping costs and duties shall be paid by and shall be for the account of the Licensor, and Licensor shall have no obligation to consummate the purchase of the Purchased Assets other than pursuant to a customary asset purchase agreement that includes warranties by Licensee as to clear title and the requisite condition of the Equipment specified above. The closing of such purchase and sale and the payment of the required purchase price in U.S. dollars shall be completed on a date selected by SAGA within ninety (90) days after the date of delivery to Licensor and Licensee of the aforementioned notice. This right shall expire upon the first day of the sixtieth (60th) calendar month after the Commissioning Date or upon full repayment of the capital whichever is first. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |           9.2. Right to Purchase Business. At any time beginning on the second (2nd) anniversary of the Commissioning Date for the duration of the term of this License and upon written notice to Licensee, Licensor shall have the right to purchase the Purchased Assets and Business from Licensee upon the same terms set forth in Section 9.1 above provided Licensee has not met the minimum requirements of this Agreement. The said minimum requirements will be the qualification by Licensee to manufacture at least five (5) Licensed Products by the end of one (1) calendar year from the Commissioning of the Equipment set forth in Section 7.2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
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|   |           9.3. Raw Material Availability. During the terms of this Agreement set in Section 10.1, Licensor shall grant Licensee a steady supply of Amorphous Alloy ingots and Licensee shall purchase Amorphous Alloy ingots only from Licensor. Licensor warranties that the Alloy sold is of good quality and is recyclable. It is the duty of Licensor to supply Licensee with adequate quantity and quality of Raw Material and Amorphous Alloy ingots. Licensor will use all commercially reasonable efforts to make Amorphous Alloy ingots available on a thirty (30) day notice basis. In the case set in Sections 10.2.a and 10.2.b and if Licensor cannot fulfill in providing Licensee with adequate quantity and quality of Raw Material and Amorphous Alloy ingots, then Licensee can find different suppliers for these goods so long as these suppliers are approved by the Licensor which approval shall not be unreasonably withheld.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

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|   |           9.4. Raw Material Pricing. Amorphous Alloy ingots prices shall be for the material delivered at Licensee plant. The initial price will be Seventy U.S. Dollars (U.S. $70.00) per kilogram. All prices shall be subject to semi-annual adjustments from the Effective Date and upon thirty days’ prior notice to Licensee. Price adjustments will be based upon the change in an index of metal commodity prices presented by Licensor and will take into consideration significant reductions in processing costs (as stated in Exhibit E). |
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|   |           10.1.         Term. This Agreement shall be in effect from the Effective Date and shall continue for ten (10) years, unless terminated sooner in accordance with the terms of this Agreement. This Agreement shall be automatically renewed for periods of three years, unless terminated by the Parties with a twelve month written notice. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |           10.2.         Early Termination. Notwithstanding any other provision contained herein, this Agreement may be terminated as follows:                                                                                                                                                                                                          |

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|   |           10.3.          Effect of Termination. |

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|   |           11.1.          Terms of Agreement. Each party agrees not to disclose any terms of this Agreement to any third party without the consent of the other party, provided, however, that disclosures may be made as required by securities or other applicable laws; or by either party to its accountants, attorneys, and other professional advisors. Neither party shall release any publicity or information concerning this Agreement without the other party’s prior written approval, which shall not be unreasonably withheld or delayed. |
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|   |           11.2.          Restrictions on Disclosure and Use.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

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|   |           (i)        that becomes publicly known without breach of the Recipient’s or its Representatives’ obligations under this Agreement; |

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|   |           (ii)        that is required to be disclosed by law or by court order or government order, provided that the Recipient (a) promptly notifies the Discloser of any such disclosure requirement so that the Discloser may seek an appropriate protective order (or other appropriate protections), and (b) provides reasonable assistance (at no cost to the Recipient) in obtaining such protective order or other form of protection; or |
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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |           (iii)       as to which and to the extent to which the Recipient has received express written consent from an authorized officer of the Discloser to disclose or use.                                                                                                                                                                                                                                                                         |

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|   |           12.1.          Force Majeure. Excluding payment obligations, neither party shall be liable for, nor shall it be considered in breach of this Agreement due to, any failure to perform its obligations under this Agreement as a result of a cause beyond its control, including any act of God or public enemy, act of any military, civil or regulatory authority, terrorism or threat thereof, change in any law or regulation, fire, flood, earthquake, storm or other like event, disruption or outage of communications, power or other utility, labor problem, unavailability of supplies, or any other cause, whether similar or dissimilar to any of the foregoing, which could not have been prevented by the party with reasonable care. |
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|   |           12.2.          Notices. All notice, requests, demands and other communications hereunder shall be in English and shall be given in writing and shall be: (i) personally delivered; (ii) sent by telecopier, facsimile transmission or other electronic means of transmitting written documents with confirmation of receipt; or (iii) sent to the parties at their respective addresses indicated herein by registered or certified mail, return receipt requested and postage prepaid, or by private overnight mail courier services with confirmation of receipt. The respective addresses to be used for all such notices, demands or requests are as follows:                                                                                  |

|                                                                                                                                             | (a) If to Licensee: |
|--------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|
|                                                                                                                                             |                |
|                                                                                                                                             |                | Liquidmetal Saga Italy, Srl. |
|                                                                                                                                             |                | 35010 Cadoneghe, (PD) |
|                                                                                                                                             |                | via T. Edison 9 |
|                                                                                                                                             |                | ITALY |
|                                                                                                                                             |                | Attention: Chairman |
|                                                                                                                                             |                | Phone No.: 39-049-8888811 |
|                                                                                                                                             |                | Fax No.: 39-049-8888688 |
|                                                                                                                                             |                |   |
|           Or to such other person or address as Licensee shall furnish to Licensor in writing. |

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|                                                                                                                                             | (b) If to Licensor: |
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|                                                                                                                                             |                |   |
|                                                                                                                                             |                | Liquidmetal Technologies, Inc. |
|                                                                                                                                             |                | 25800 Commercentre Drive, Suite 100 |
|                                                                                                                                             |                | Lake Forest, California 92630 |
|                                                                                                                                             |                | Attention: John Kang, Chairman |
|                                                                                                                                             |                | Phone No.: (949) 206-8000 |
|                                                                                                                                             |                | Fax No.: (949) 206-8008 |
|                                                                                                                                             |                |   |
|           Or to such other person or address as Licensor shall furnish to Licensee in writing. |

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|   |           12.3.          Independent Contractors. Inthe performance of this Agreement, Licensor and Licensee are independent contractors. Neither party nor any of its employees or agents shall be considered an employee or agent of the other party. Nor shall any partnership, co-venture or joint-employer relationship be created or implied by virtue of this Agreement or of its performance. The parties intend that this Agreement shall not create a partnership for tax purposes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
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|   |           12.4.          Survival. Articles 3, 4, 5, 6, 8 10, 11 and 12, and Section 10.3, and any other provisions which by their express or implicit terms are intended to survive the expiration or termination of this Agreement, shall survive the expiration or termination of this Agreement and be enforceable in accordance with their terms.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
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|   |           12.5.          Severability. Each provision contained in this Agreement is declared to constitute a separate and distinct covenant and provision and to be severable from all other separate, distinct covenants and provisions. It is agreed that should any clause, condition or term, or any part thereof, contained in this Agreement be unenforceable or prohibited by law or by any present or future legislation then such clause, condition, term or part thereof, shall be amended, and is hereby amended, so as to be in compliance with the said legislation or law but, if such clause, condition or term, or part thereof, cannot be amended so as to be in compliance with the said legislation or law, then such clause, condition, term or part thereof is severable from this Agreement, and all the rest of the clauses, terms and conditions or parts thereof contained in this Agreement shall remain unimpaired and continue in full force and effect. |
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|   |           12.6.          Amendment. This Agreement may not be amended or modified other than by a written agreement executed by the parties hereto or their respective successors and legal representatives.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |           12.7.          Waiver. No waiver of a breach of any provision of this Agreement shall be deemed to be, or shall constitute, a waiver of a breach of any other provision of this Agreement, whether or not similar, nor shall such waiver constitute a continuing waiver of such breach unless otherwise expressly provided in such waiver.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

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|   |           12.8.          Governing Law. This Agreement, the legal relations between the parties, and any action, whether contractual or non-contractual, instituted by any party with respect to matters arising under or growing out of or in connection with or in respect of this Agreement shall be governed by and construed in accordance with the internal laws of the State of California (U.S.A.), excluding any choice of law rules that may direct the application of the laws of another jurisdiction.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
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|   |           12.9.          Resolution of Disputes. The parties irrevocably agree that any legal actions or proceedings brought by or against them with respect to this Agreement shall be brought exclusively in the courts in and for Orange County, California and the United States, and by execution and delivery hereof, the parties irrevocably submit to such jurisdiction and hereby irrevocably waive any and all objections which they may have with respect to venue in any of the above courts. Notwithstanding the foregoing, this paragraph shall not preclude or limit Licensor’s rights to pursue actions in the International Trade Commission, or for either party to pursue an action with respect to a Licensed Patent before a foreign court or governmental agency if neither the federal courts nor the state courts have subject matter jurisdiction over the action. THE PARTIES HEREBY EXPRESSLY WAIVE ANY AND ALL RIGHT TO A TRIAL BY JURY WITH RESPECT TO ANY ACTION, PROCEEDING OR OTHER LITIGATION RESULTING FROM OR INVOLVING THE ENFORCEMENT OF THIS AGREEMENT. |
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|   |           12.10.          Attorneys’ Fees. In any action between the parties for relief based in whole or in part on this Agreement (or the breach thereof), including actions to collect overdue royalty payments, the prevailing party shall be entitled to recover (in addition to any other relief awarded or granted) its reasonable costs and expenses (including attorneys’ fees and expert witness fees) incurred in the proceeding.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |           12.11.          Entire Agreement. This Agreement sets forth the complete agreement of the parties concerning the subject matter hereof. No claimed oral agreement in respect thereto shall be considered as any part hereof. No waiver of or change in any of the terms hereof subsequent to the execution hereof claimed to have been made by any representative of either party shall have any force or effect unless in writing, signed by duly authorized representatives of the parties.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |           12.12.          Assignment. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. Neither party shall assign its rights or duties under this Agreement, in whole or in part, without the prior written consent of the other party, except that without securing such prior consent, either party shall have the right to assign the Agreement to any successor by way of merger or consolidation or the acquisition of substantially all of the entire business and assets of such party relating to the subject matter of this Agreement; provided that such successor shall expressly assume all of the obligations and liabilities of the assigning Party under this Agreement                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |           12.13.          Headings; Recitals. The section and paragraph headings in this Agreement are for convenience only and are not intended to affect the meaning or interpretation of this Agreement. The recitals set forth in the preamble to this Agreement are true and correct and are made a part of this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |           12.14.          Counterparts. This Agreement may be executed simultaneously in counterparts, each of which will be deemed an original, but all of which together will constitute the same Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

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|   |           12.15.          Language. In the event of controversy between the parties respecting the interpretation or application of this Agreement, the English language version of the Agreement shall be controlling.                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |           12.16.          Consent Not to be Unreasonably Withheld. When consent to an action is requested of a party to this Agreement, such consent shall not be arbitrarily or unreasonably withheld.                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |           12.17.          Orders and Inquiries Regarding Licensed Products. If any person within Italy or Licensed Products communicates with Licensor regarding, submits to Licensor an order for, or indicates to Licensor an interest in ordering any Licensed Products, then Licensor shall so advise Licensee and refer such person for such purpose to Licensee.                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |           12.18.          Contract Manufacturing. Upon the mutual agreement of Licensor and Licensee, Licensor may from time to time engage Licensee to serve as a contract manufacturer with respect to Liquidmetal Alloy products that are not Licensed Products (“Contracted Products”). In such event, Licensor and Licensee shall enter into a manufacturing agreement on mutually agreeable terms with respect to such engagement, and such manufacturing agreement shall include provisions with respect to the Contracted Products that are substantially the same as Article 8 and Article 11 of this Agreement (excluding the last sentence of Section 8.2). |

|   |                           |                             |
|--------|--------------------------------|----------------------------------|
|   | LIQUIDMETAL SAGA EUROPE, SRL   |
|   |                           |                             |
|   | By:                            |                             |
|   |                           | Aronne Meneghetti, Sole Director |
|   |                           |
|   | LIQUIDMETAL TECHNOLOGIES, INC. |
|   |                           |                             |
|   | By:                            |                             |
|   |                           | John H. Kang, Chairman           |

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|   |   |       |   |       |   |                                 |   |      |   |      |
|--------|--------|------------|--------|------------|--------|--------------------------------------|--------|-----------|--------|-----------|
|   |   | USPatent # |   | Appl. #    |   | Description                          |   | Filing D. |   | Iss. Date |
|   |   |       |   |       |   |                                 |   |      |   |      |
| 1      |   | 5,288,344  |   | 08/044,814 |   | Be Containing Alloys (Compositon)    |   | 04/07/93  |   | 02/22/94  |
|   |   |       |   |       |   |                                 |   |      |   |      |
| 2      |   | 5,368,659  |   | 08/198,873 |   | Be Containing Alloys (Method)        |   | 02/18/94  |   | 11/29/94  |
|   |   |       |   |       |   |                                 |   |      |   |      |
| 3      |   | 5 482 580  |   | 08/258,766 |   | Joining Using Bulk Alloys            |   | 06/13/94  |   | 01/09/96  |
|   |   |       |   |       |   |                                 |   |      |   |      |
| 4      |   | 5 567 251  |   | 08/417,749 |   | Composites of Bulk Alloy (Method)    |   | 04/06/95  |   | 10/22/96  |
|   |   |       |   |       |   |                                 |   |      |   |      |
| 5      |   | 5 711 363  |   | 08/602,899 |   | Die-Casting of Bulk Alloys           |   | 02/16/96  |   | 01/27/98  |
|   |   |       |   |       |   |                                 |   |      |   |      |
| 6      |   | 5 797 443  |   | 08/720,483 |   | Casting of Zr-base Bulk Alloys       |   | 09/30/96  |   | 08/25/98  |
|   |   |       |   |       |   |                                 |   |      |   |      |
| 7      |   | 5 866 254  |   | 08/732,546 |   | Composites of Bulk Alloy (Article)   |   | 10/15/96  |   | 02/02/99  |
|   |   |       |   |       |   |                                 |   |      |   |      |
| 8      |   | 5 896 642  |   | 08/683,319 |   | Die-Forming (Molding) of Bulk Alloys |   | 07/17/96  |   | 04/27/99  |
|   |   |       |   |       |   |                                 |   |      |   |      |
| 9      |   | 5 950 704  |   | 08/683,320 |   | Replication with Bulk Alloys         |   | 07/18/96  |   | 09/14/99  |
|   |   |       |   |       |   |                                 |   |      |   |      |
| 10     |   | 6,021,840  |   | 09/012,347 |   | Vacuum Die-Casting                   |   | 01/23/98  |   | 02/08/00  |

----

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)    | Licensee may only make Licensed Products through a die-casting process utilizing a casting machine that is purchased from LLPG or Licensor or that is otherwise approved by Licensor in writing.                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (b)    | Licensee must purchase all alloy feedstock necessary for the manufacture of Licensed Products from either Licensor or an authorized supplier of Liquidmetal Alloy feedstock (as selected by Licensee). Licensee may only utilize its Vacuum Induction Melting Machine for re-melting of Liquidmetal Alloys and not for any other use including the melting of “virgin” alloy feedstock. Licensee may not use such feedstock for any purpose other than the exercise of its license under this Agreement.                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (c)    | Licensee must purchase future machines used in the manufacturing of amorphous alloys from either the Licensor or a supplier approved by Licensor. Licensor agrees that Licensee will be able to purchase future machines used in the manufacturing of amorphous alloys at fair market prices. If the Licensor or its approved supplier(s) cannot provide equipment within a reasonable time period or at a fair market price, the Licensee may request that Licensor consent, which consent shall not be unreasonably withheld, to the Licensee’s purchase of equipment from a non-approved supplier. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (d)    | Licensee will provide space to accommodate the manufacturing of the Licensed Products in Italy. The space provided must be acceptable to Licensor and, in particular, must be a protected environment restricted from unauthorized access and viewing. Licenses will manufacture Licensed Products only at its facility in Italy and not at any other location, and any breach of this limitation will constitute a material breach of the Agreement.                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (e)    | Under the direction of Licensor and respecting Licensor’s responsibility to direct and coordinate sales activity, Licensee may pursue customers whose headquarters are located in Italy or whose major operations are in Italy. On a monthly basis or more frequently, Licensee will report, in writing, to Licensor the Licensee’s activities related to Italy-based customers.                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (f)    | Prior to this Agreement, Licensor has discussed with Safilo, SpA, a potential exclusive relationship related to Liquidmetal eyewear. Any fee related to the grant of exclusivity to Safilo will be paid by Safilo directly to Licensor.                                                                                                                                                                                                                                                                                                                                                                     |

----

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|                               |   |              |   |           |
|------------------------------------|--------|-------------------|--------|----------------|
| APPROVED LICENSED PRODUCTS         |
| Market                             |   | ApprovedCustomers |   | Effective Date |
| Eyewear, Finished or Semi-Finished |   | All               |   | Upon Signing   |

| Approved by Licensor: | LIQUIDMETAL TECHNOLOGIES, INC. |
|-----------------------|--------------------------------|
|                  |                           |   |
|                  | By:                            |   |
|                  |                           | John H. Kang, Chairman |

----

|                                 |   |     |    |       |           |               |   |   |          |   |
|--------------------------------------|--------|----------|---------|------------|----------------|--------------------|--------|--------|---------------|--------|
| Raw Material                         |   | % Weight |    | Base Price |           | Base Price$ Per Kg |   |   | Price $Per Kg |   |
| Zirconium                            |   |     | 0,626   |       | $20.00 Per Lb  |               |   | 44,09  |          |   |   | 27,60 |   |
| Titanium                             |   |     | 0,11    |       | $12.00 Per Lb  |               |   | 26,46  |          |   |   | 2,91 |   |
| Copper                               |   |     | 0,132   |       | $6.20 Per Kg   |               |   | 6,20   |          |   |   | 0,82 |   |
| Nickel                               |   |     | 0,098   |       | $16.63 Per Kg  |               |   | 16,63  |          |   |   | 1,63 |   |
| Beryllium                            |   |     | 0,034   |       | $362.18 Per Kg |               |   | 362,18 |          |   |   | 12,31 |   |
| Total Weight and Cost of materials   |   |     | 1,00000 |       |           |               |   |   |          |   |   | 45,27 |   |
|                                 |   |     |    |       |           |               |   |   |          |   |   |   |   |
| Processing costs, Freight and Margin |   |     |    |       |           |               |   |   |          |   |   | 24,73 |   |
|                                 |   |     |    |       |           |               |   |   |          |   |   |   |   |
| Total Cost                           |   |     | 1,00000 |       |           |               |   |   |          |   |   | 70,00 |   |

----

----

|       |                                             |   |   |   |
|------------|--------------------------------------------------|--------|--------|--------|
| LLPG, INC. |                                             |
| By:        |          |   |   |
| Name:      | Jack Chitayat                                    |   |
| Title:     | President                                        |   |

----

| U.S. $[___________] | Original Issue Date: ____________, 2011 |
|--------------------------|-----------------------------------------|

----

|   | MAKER:                         |   |
|--------|--------------------------------|--------|
|   |                           |   |   |
|   | LIQUIDMETAL TECHNOLOGIES, INC. |   |
|   |                           |   |   |
|   | By:                            |   |   |
|   | Name                      |   |   |
|   | Title                     |   |   |

----