Document:

Exhibit
10.1

VIVUS,
Inc

Performance
Incentive Plan Fiscal 2007

The annual corporate
objectives as determined by the Board of Directors and the performance against
those objectives will determine the ultimate payout under the Plan.  Senior management will have the most
influence on the performance of the corporate objectives and should stand to
gain the most if the objectives are met. 
The Chief Executive Officer and the functional Vice Presidents will have
discretion and flexibility in the ultimate determination the amount, if any to
be paid under the Performance Incentive Plan.

Potential cash awards as
a percentage of base salary for 2007 as follows:

	
  Titles

  	
   

  	
   

  	
   

  	
  Grade

  	
   

  	
  Potential award as

  a % of base salary

  	
   

  
	
  Chief Executive Officer

  	
   

  	
  12

  	
   

  	
   

  	
  45

  	
  %

  	
   

  
	
  Sr. VP’s, General
  Manager, CFO

  	
   

  	
  11

  	
   

  	
   

  	
  35

  	
  %

  	
   

  
	
  Vice Presidents

  	
   

  	
  10

  	
   

  	
   

  	
  30

  	
  %

  	
   

  
	
  Sr. Directors

  	
   

  	
  8-9

  	
   

  	
   

  	
  15

  	
  %

  	
   

  
	
  Directors

  	
   

  	
  6-7

  	
   

  	
   

  	
  10

  	
  %

  	
   

  
	
  Managers/Supervisors

  	
   

  	
  4-5

  	
   

  	
   

  	
  5

  	
  %

  	
   

  
	
  Individual contributor

  	
   

  	
  1-3

  	
   

  	
   

  	
  3

  	
  %

  	
   

  

 

The total potential award
will be calculated as shown above for each individual modified by the overall
performance of the corporate objectives as determined by the compensation
committee.  The individual amounts for
officers (grades 10 and 11) will be determined by the CEO based on the
guidelines.  The individual amounts for
all other eligible employee (grades 1 to 9) will be determined by the
functional Vice President, subject to CEO approval, based on the
guidelines.  Functional Vice-Presidents
are encouraged to reward individuals who have contributed to the overall
achievement of the corporate objectives and should not simply revert to a
formula based approach to determine award amounts.  Functional Vice Presidents however cannot
award more bonuses then the potential as calculated for their entire group.  The allocation is discretionary but the total
amount of bonus is fixed.

Eligibility

All non-sales employees,
may be eligible for bonuses under this plan. 
There will be no waiting period for bonus participation but bonus
payouts will be prorated based on employee’s service time during the
performance period.

An employee must be
employed at date of bonus payout to be eligible to receive the bonus payout.

Eligibility requirements
depend on minimum threshold performance. 
Individuals whose performance is currently rated as “Needs Improvements”
or “Fails to Meet Requirements” will not be eligible for the bonus award.  Employees who work less than 32 hours
per may not be eligible for payments under the bonus plan.  Bonus amount are discretionary.

The Compensation
Committee will determine the performance against the annual corporate
objectives.Exhibit
10.1

AMENDMENT NO. 1 TO SECURITIES PURCHASE AGREEMENT

AND CONVERTIBLE SUBORDINATED NOTES

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

WHEREAS:

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

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

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

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

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

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

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

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

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

 

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

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

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

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

 2
 

 

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

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

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

[signatures follow]

 3
 

 

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

	
   

  	
   

  	
  COMPANY:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LIQUIDMETAL
  TECHNOLOGIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Larry E.
  Buffington

  
	
   

  	
   

  	
  Name: Larry E.
  Buffington

  
	
   

  	
   

  	
  Title: President
  and Chief Executive Officer

  

 

 4
 

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

	
   

  	
   

  	
  BUYERS:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Diamond
  Opportunity Fund, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard
  Marks

  
	
   

  	
   

  	
  Name: Richard
  Marks

  
	
   

  	
   

  	
  Title: Managing Director

  

 

 5
 

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

	
   

  	
   

  	
  BUYERS:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THE
  TAIL WIND FUND LTD.

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Crook

  
	
   

  	
   

  	
  Name: David
  Crook

  
	
   

  	
   

  	
  Title: CEO

  

 6
 

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

	
   

  	
   

  	
  BUYERS:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Solomon
  Strategic Holdings, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ A P
  MacKellar

  
	
   

  	
   

  	
  Name: A P
  MacKellar

  
	
   

  	
   

  	
  Title: Director

  

 

 7
 

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

	
   

  	
   

  	
  BUYERS:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Abdi
  Mahamedi

  
	
   

  	
   

  	
  Name: Abdi
  Mahamedi

  
	
   

  	
   

  	
  Title: 

  

 

 8
 

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

	
   

  	
   

  	
  BUYERS:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edward
  Neugeboren

  
	
   

  	
   

  	
  Name: Edward
  Neugeboren

  
	
   

  	
   

  	
  Title: 

  

 

 9
 

 

EXHIBIT A

SCHEDULE OF BUYERS

	
  (1)

  	
   

  	
  (2)

  	
   

  	
  (3)

  	
   

  	
  (4)

  	
   

  	
  (5)

  	
   

  
	
  Buyer

  	
   

  	
  Address, Email and Facsimile Number

  	
   

  	
  Aggregate

  Principal

  Amount

  of Notes

  	
   

  	
  Number of

  Warrants**

  	
   

  	
  Legal Representative’s

  Address and Facsimile Number

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fort Mason
  Master, LP

  	
   

  	
  4 Embarcadero Center

  Suite 2050

  San Francisco, CA 94111

  Facsimile: 415-288-8113

  Email: mjensen@fortmasoncapital.com

  klynch@fortmasoncapital.com

  	
   

  	
  $2,817,300

  	
   

  	
  1,280,591

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fort Mason
  Partners, LP

  	
   

  	
  4 Embarcadero Center

  Suite 2050

  San Francisco, CA 94111

  Facsimile: 415-288-8113

  Email: mjensen@fortmasoncapital.com

  klynch@fortmasoncapital.com

  	
   

  	
  $182,700

  	
   

  	
  83,046

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The Tail Wind
  Fund Ltd.

  	
   

  	
  The Tail Wind Fund Ltd.

  c/o Tail Wind Advisory and Management Ltd.

  Attn: David Crook

  77 Long Acre

  London WC2E 9LB UK

  Facsimile: 44-207-420 3819

  Email: dcrook@tailwindam.com

  	
   

  	
  $1,250,000

  	
   

  	
  568,182

  	
   

  	
  Peter J. Weisman, P.C.

  52 Venderbilt, 17th Floor

  New York, NY 10017

  Facsimile: 212-317-8855

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Solomon
  Strategic Holdings, Inc.

  	
   

  	
  c/o A P MacKellar

  Greenlands

  The Red Gap

  Castletown

  Isle of Man

  IM9 1HB

  British Isles

  Facsimile: +44 (0) 1624 824191

  	
   

  	
  $250,000

  	
   

  	
  113,637

  	
   

  	
  Peter J. Weisman, P.C.

  52 Vanderbilt, 17th Floor

  New York, NY 10017

  Facsimile: 212-317-8855

  	
   

  

 

 10
 

 

	
  Whitebox Intermarket
  Partners, L.P.

  	
   

  	
  3033 Excelsior Blvd.

  Suite 300

  Minneapolis, MN 55416

  Facsimile: (612) 253-6100

  	
   

  	
  $2,000,000

  	
   

  	
  909,091

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CastleRigg
  Master Investments Ltd.

  	
   

  	
  c/o Sandell Asset
  Management Corp.

  40 W. 57th Street, 26th Floor

  New York, NY 10019

  Facsimile: 212-603-5710

  	
   

  	
  $2,000,000

  	
   

  	
  909,091

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Diamond
  Opportunity Fund, LLC

  	
   

  	
  500 Skokie Blvd.

  Suite 300

  Northbrook, IL 60062

  Facsimile: 847-919-4410

  Email: rmarks@diagrp.com

  	
   

  	
  $350,000

  	
   

  	
  159,091

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Rockmore
  Investment Master Fund, Ltd.

  	
   

  	
  c/o Rockmore Capital,
  LLC

  150 East 58th Street, 28th Floor

  New York, NY 10155

  Facsimile: 212-258-2315

  Email: as@rockmorecapital.com

  	
   

  	
  $1,000,000

  	
   

  	
  454,546

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Abdi Mahamedi

  	
   

  	
  c/o Carlyle Development
  Group

  2 Gannett Drive

  Suite 201

  White Plains, NY 10604

  Facsimile: 914-694-6789

  Email: carlylegroup@aol.com

  	
   

  	
  $500,000

  	
   

  	
  227,273

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BridgePointe
  Master Fund Ltd.

  	
   

  	
  1125 Sanctuary Parkway

  Suite 275

  Alpharetta, GA 30004

  Facsimile: 770-777-5844

  Email: BradHathorn@Roswell

  CapitalPartners.com

  	
   

  	
  $2,000,000

  	
   

  	
  909,091

  	
   

  	
  P. Bradford Hathorn,
  Esq.

  1125 Sanctuary Parkway

  Suite 275

  Alpharetta, GA 30004

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Iroquois Master
  Fund Ltd.

  	
   

  	
  641 Lexington Ave., 26th Floor

  New York, NY 10022

  Facsimile: 212-207-3452

  Email: jsilverman@iefund.com

  	
   

  	
  $500,000

  	
   

  	
  227,273

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Rodd Friedman

  	
   

  	
  93 Hillspoint Road

  Westport, CT 06880

  Facsimile: 203-663-1303

  Email: roddf@optonline.net

  	
   

  	
  $148,874

  	
   

  	
  67,670

  	
   

  	
   

  	
   

  

 

 11
 

 

	
  Myron Neugeboren

  	
   

  	
  P.O. Box 1410

  Lakeville, CT 06039

  Facsimile: 860-435-2603

  Email: neugeboren@sbcglobal.net

  	
   

  	
  $28,904

  	
   

  	
  13,139

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ricardo A. Salas

  	
   

  	
  64 Ritz Cove Drive

  Monarch Beach, CA 92629

  Facsimile: 949-315-3096

  	
   

  	
  $330,990

  	
   

  	
  150,451

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Chang Ki Cho

  	
   

  	
  Kangnam-Ku Gaepo-Dong
  12-2

  LG Gaepo Xi Apt # 101-901

  Seoul, Korea 135-543

  Facsimile: 82-2-749-0574

  	
   

  	
  $436,174

  	
   

  	
  198,261

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Eric Brachfeld

  	
   

  	
  890 West End Ave., #160

  New York, NY 10025

  Facsimile: 212-298-9933

  Email: eric@indiven.com

  	
   

  	
  $54,522

  	
   

  	
  24,783

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Edward
  Neugeboren

  	
   

  	
  282 New Norwalk Road

  New Canaan, CT 06840

  Email: edward@indigomcg.com

  	
   

  	
  $20,095

  	
   

  	
  9,135

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Wynnefield
  Partners Small Cap Value, LP

  	
   

  	
  450 Seventh Ave., Suite
  509

  New York, NY 10123

  Facsimile: 212-760-0824

  	
   

  	
  $420,000

  	
   

  	
  190,910

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Wynnefield
  Partners Small Cap Value, LP I

  	
   

  	
  450 Seventh Avenue,
  Suite 509

  New York, NY 10123

  Facsimile: 212-760-0824

  	
   

  	
  $550,000

  	
   

  	
  250,000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Wynnefield Small
  Cap Value Offshore Fund, Ltd.

  	
   

  	
  450 Seventh Avenue, Suite 509

  New York, NY 10123

  Facsimile: 212-760-0824

  	
   

  	
  $530,000

  	
   

  	
  240,910

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Kenneth Lisiak

  	
   

  	
  8 Haskell Road

  Andover, MA 01810

  Facsimile: 978-475-7146

  	
   

  	
  $167,861

  	
   

  	
  76,301

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Vestal Venture
  Capital

  	
   

  	
  6471 Enclave Way

  Boca Raton, FL 33496

  Facsimile: 561-912-9979

  	
   

  	
  $366,935

  	
   

  	
  166,789

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Charles Jong Won
  Kim

  	
   

  	
  1015 Calle Son Rosa

  Glendale, CA 91208

  	
   

  	
  $225,806

  	
   

  	
  102,640

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Chunhyong
  (Charles) Myong

  	
   

  	
  Hilltop Treasure 505 B

  Hannamdong 1-44, Yong San-Gu

  Seoul, Korea

  Facsimile: 822-317-5086

  	
   

  	
  $169,355

  	
   

  	
  76,980

  	
   

  	
   

  	
   

  

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

 12

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