Document:

<PDF>
begin 644 exhibit10ac2.pdf
M)5!$1BTQ+C0-)>+CS],-"CD@,"!O8FH\/"](6S<Q-B`Q.#-=+TQI;F5A<FEZ
M960@,2]%(#$P,3(W+TP@,34S-#4O3B`R+T\@,3(O5"`Q-3$Q.3X^#65N9&]B
M:@T@("`@("`@("`@("`@("`@("`@("`@#0IX<F5F#0HY(#(Q#0HP,#`P,#`P
M,#$V(#`P,#`P(&X-"C`P,#`P,#`X.3D@,#`P,#`@;@T*,#`P,#`P,#<Q-B`P
M,#`P,"!N#0HP,#`P,#`P.3<V(#`P,#`P(&X-"C`P,#`P,#$Q,#0@,#`P,#`@
M;@T*,#`P,#`P,3(W,2`P,#`P,"!N#0HP,#`P,#`Q-CDT(#`P,#`P(&X-"C`P
M,#`P,#(R,C4@,#`P,#`@;@T*,#`P,#`P,C8R,2`P,#`P,"!N#0HP,#`P,#`R
M-C4U(#`P,#`P(&X-"C`P,#`P,#(Y,#`@,#`P,#`@;@T*,#`P,#`P,S$S.2`P
M,#`P,"!N#0HP,#`P,#`S,C$U(#`P,#`P(&X-"C`P,#`P,#8P,C,@,#`P,#`@
M;@T*,#`P,#`P-C$W-B`P,#`P,"!N#0HP,#`P,#`V,S(T(#`P,#`P(&X-"C`P
M,#`P,#8T.3,@,#`P,#`@;@T*,#`P,#`P.3$V,B`P,#`P,"!N#0HP,#`P,#`Y
M-#$W(#`P,#`P(&X-"C`P,#`P,#DV-#0@,#`P,#`@;@T*,#`P,#`P.3@V-2`P
M,#`P,"!N#0IT<F%I;&5R#0H\/"]3:7IE(#,P+U!R978@,34Q,#DO4F]O="`Q
M,"`P(%(O26YF;R`X(#`@4B])1%L\,V8R8F)D-#%C,35C8C<P9F8U83@P8S@S
M93<S9F4W93(^/#,P,#!A.#DQ86-D,C@U-#<Y-6$R9C(V,#-E9C@X-3AF/ET^
M/@T*<W1A<G1X<F5F#0HP#0HE)45/1@T*("`@("`@("`@("`@("`@#0HQ,2`P
M(&]B:CP\+TQE;F=T:"`Q,#,O1FEL=&5R+T9L871E1&5C;V1E+TP@,3$X+U,@
M-C0^/G-T<F5A;0T*>-IB8&!@!B))!A8&!I9K#+P,",`+%`-!C@_?/1@8MH/%
M6).*>X$42U@#`P,'2!@)"$$Q`X,2`P_K@U:)P(]B"QAX#<XRK;K&7E#$4>7-
M>^$@]X8G$-5`^[37`6DF(+8`"#``-*H3_`T*96YD<W1R96%M#65N9&]B:@TQ
M,"`P(&]B:CP\+U!A9V5S(#8@,"!2+U1Y<&4O0V%T86QO9R]086=E3&%B96QS
M(#0@,"!2+TUE=&%D871A(#<@,"!2/CX-96YD;V)J#3$R(#`@;V)J/#PO0V]N
M=&5N=',@,C$@,"!2+U1Y<&4O4&%G92]087)E;G0@-B`P(%(O4F]T871E(#`O
M365D:6%";WA;,"`P(#8Q,B`W.3)=+T-R;W!";WA;,"`P(#8Q,B`W.3)=+U)E
M<V]U<F-E<R`Q,R`P(%(^/@UE;F1O8FH-,3,@,"!O8FH\/"]#;VQO<E-P86-E
M/#PO0W,V(#$W(#`@4CX^+T9O;G0\/"]45#(@,30@,"!2+U14-"`Q-2`P(%(O
M5%0V(#$V(#`@4B]45#@@,C(@,"!2+U14,3`@,C,@,"!2+U14,3(@,C0@,"!2
M/CXO4')O8U-E=%LO4$1&+U1E>'1=+T5X=$=3=&%T93P\+T=3,2`R,"`P(%(^
M/CX^#65N9&]B:@TQ-"`P(&]B:CP\+U1Y<&4O1F]N="]%;F-O9&EN9R]7:6Y!
M;G-I16YC;V1I;F<O0F%S949O;G0O5&EM97-.97=2;VUA;E!3+4)O;&1-5"]&
M:7)S=$-H87(@,S(O3&%S=$-H87(@,3(P+U-U8G1Y<&4O5')U951Y<&4O1F]N
M=$1E<V-R:7!T;W(@,3@@,"!2+U=I9'1H<ULR-3`@,"`P(#`@,"`P(#`@,"`S
M,S,@,S,S(#`@,"`R-3`@,"`R-3`@,"`U,#`@-3`P(#4P,"`P(#`@,"`P(#`@
M,"`P(#`@,"`P(#`@,"`P(#`@-S(R(#`@-S(R(#<R,B`V-C<@-C$Q(#<W."`W
M-S@@,S@Y(#`@,"`V-C<@.30T(#<R,B`W-S@@-C$Q(#`@-S(R(#4U-B`V-C<@
M-S(R(#<R,B`Q,#`P(#`@-S(R(#`@,"`P(#`@,"`P(#`@,"`U-38@-#0T(#4U
M-B`T-#0@,S,S(#`@-34V(#(W."`P(#`@,"`X,S,@-34V(#4P,"`P(#`@,"`S
M.#D@,S,S(#`@-3`P(#`@-3`P73X^#65N9&]B:@TQ-2`P(&]B:CP\+U1Y<&4O
M1F]N="]%;F-O9&EN9R]7:6Y!;G-I16YC;V1I;F<O0F%S949O;G0O5&EM97-.
M97=2;VUA;E!3350O1FER<W1#:&%R(#,R+TQA<W1#:&%R(#$T."]3=6)T>7!E
M+U1R=654>7!E+T9O;G1$97-C<FEP=&]R(#$Y(#`@4B]7:61T:'-;,C4P(#`@
M,"`P(#`@,"`W-S@@,"`S,S,@,S,S(#`@,"`R-3`@,S,S(#(U,"`R-S@@-3`P
M(#4P,"`U,#`@-3`P(#4P,"`U,#`@,"`U,#`@-3`P(#4P,"`R-S@@,"`P(#`@
M,"`P(#`@-S(R(#8V-R`V-C<@-S(R(#8Q,2`U-38@-S(R(#<R,B`S,S,@,S@Y
M(#`@-C$Q(#@X.2`W,C(@-S(R(#4U-B`P(#8V-R`U-38@-C$Q(#<R,B`P(#DT
M-"`P(#<R,B`P(#,S,R`R-S@@,S,S(#`@,"`P(#0T-"`U,#`@-#0T(#4P,"`T
M-#0@,S,S(#4P,"`U,#`@,C<X(#(W."`U,#`@,C<X(#<W."`U,#`@-3`P(#4P
M,"`P(#,S,R`S.#D@,C<X(#4P,"`U,#`@-S(R(#4P,"`U,#`@-#0T(#`@,"`P
M(#4T,2`P(#`@,"`P(#`@,"`P(#`@,"`P(#`@,"`P(#`@,"`P(#`@,"`P(#,S
M,R`T-#0@-#0T73X^#65N9&]B:@TQ-B`P(&]B:CP\+U1Y<&4O1F]N="]%;F-O
M9&EN9R]7:6Y!;G-I16YC;V1I;F<O0F%S949O;G0O5&EM97-.97=2;VUA;E!3
M+4ET86QI8TU4+T9I<G-T0VAA<B`S,B],87-T0VAA<B`Q,C`O4W5B='EP92]4
M<G5E5'EP92]&;VYT1&5S8W)I<'1O<B`R-B`P(%(O5VED=&AS6S(U,"`P(#`@
M,"`P(#`@,"`P(#`@,"`P(#`@,"`P(#(U,"`P(#`@,"`U,#`@,"`P(#`@,"`P
M(#`@,"`P(#`@,"`P(#`@,"`P(#8Q,2`P(#`@-S(R(#8Q,2`P(#`@,"`P(#`@
M,"`P(#`@-C8W(#`@-C$Q(#`@,"`U,#`@,"`P(#`@,"`P(#`@,"`P(#`@,"`P
M(#`@,"`U,#`@-3`P(#0T-"`U,#`@-#0T(#(W."`U,#`@-3`P(#(W."`P(#`@
M,C<X(#<R,B`U,#`@-3`P(#`@,"`S.#D@,S@Y(#(W."`U,#`@-#0T(#`@-#0T
M73X^#65N9&]B:@TQ-R`P(&]B:ELO24-#0F%S960@,C4@,"!270UE;F1O8FH-
M,3@@,"!O8FH\/"]4>7!E+T9O;G1$97-C<FEP=&]R+T9O;G1"0F]X6RTU-3@@
M+3,P-R`R,#`P(#$P,C9=+T9O;G1.86UE+U1I;65S3F5W4F]M86Y04RU";VQD
M350O1FQA9W,@,S0O4W1E;58@,3,V+T-A<$AE:6=H="`V-38O6$AE:6=H="`P
M+T%S8V5N="`X.3$O1&5S8V5N="`M,C$V+TET86QI8T%N9VQE(#`O1F]N=$9A
M;6EL>2A4:6UE<R!.97<@4F]M86XI+T9O;G13=')E=&-H+TYO<FUA;"]&;VYT
M5V5I9VAT(#<P,#X^#65N9&]B:@TQ.2`P(&]B:CP\+U1Y<&4O1F]N=$1E<V-R
M:7!T;W(O1F]N=$)";WA;+34V."`M,S`W(#(P,#`@,3`P-UTO1F]N=$YA;64O
M5&EM97-.97=2;VUA;E!3350O1FQA9W,@,S0O4W1E;58@.#(O0V%P2&5I9VAT
M(#8U-B]82&5I9VAT(#`O07-C96YT(#@Y,2]$97-C96YT("TR,38O271A;&EC
M06YG;&4@,"]&;VYT1F%M:6QY*%1I;65S($YE=R!2;VUA;BDO1F]N=%-T<F5T
M8V@O3F]R;6%L+T9O;G1796EG:'0@-#`P/CX-96YD;V)J#3(P(#`@;V)J/#PO
M5'EP92]%>'1'4W1A=&4O4T$@9F%L<V4O3U`@9F%L<V4O4TT@,"XP,B]O<"!F
M86QS92]/4$T@,3X^#65N9&]B:@TR,2`P(&]B:CP\+TQE;F=T:"`R-S,X+T9I
M;'1E<B]&;&%T941E8V]D93X^<W1R96%M#0I(B:Q7VW+;R!%]UU?,4PK8(F',
MX)XW6F*\VI(EE<6M5,K:!X@<4=BE`!4`6M)^QB8?G-,],R!X<?P2RQ(O`'JZ
M3W>?/OWATYT4Z^[LX^+LPV*AA!2+QS,I@R++(A'B1RH1QUF0IB*+PB".Q>+Y
M[,-YEXIEQ]=#T2WKLS`(0XEGEV=3>ANF8O%ZYLW?GJJ'JA<RO/=FY_?^O:?N
M?>$O?C^;R@RV<BFF42`3L;A@"V%$%MA63@:^>K//\^N+S_XT"S)O?KT0US>!
M4&)Q(_S?%K^<T<-Y*J9R;"/?>1$9([>_?CG_>7;G3^-`>G,QN[X0=[,KO/GT
M9>[#1N+-/Y-QM@D48H,"':KBE%V,CUQ4B3+6%S]?W@GXZ4\3#[[NO!3W7O]4
M=>+?SFYJT8V#/$3HX6"S<#9C@]OL6=<K_/;BNH$E`FSG5A;(`D&'^P'3T\IZ
M]!^`W#>B?]+"AFZ")A@3CT(G*!+/@JB2()0JWH=1&J,R+EPF`!;#-!&KLM<K
M47:B>12_E/6V;-^%RB="A6%LHM;"3X#U8>1*!2K.U''D.*:PN=JVRZ>RTZ*L
M5^*NW&@Q6[=:/_LI*@"('.1(JB")\WQG447.8IX,:$S$PSL,Q!ZL\NO*U4\<
M9$52'(1N8P\+DXZOWH/N7[6NQ:UNV_=OU09>S6O=KM_%;=GV>-=-$&_JB:O@
M*C@/)J)$,02%)S;5LT^85P38IBH?JDW5OXME8[Y^\<-`>67]3OG`[4V[+NOJ
M3P(7T>NWJNNK>FU\7?QDG%,V/IG;;&_KE6XYV9ORE7/"^-,S18`J31PX4A86
MDKL>&:0[+S2>*5N-I!WF*@^23(Y29<ZUSVL_\8`"_K8'"5%!%($DAL=&_J:C
M?%!\\[IG#*^:;=7Y,?"K?&K&LBXGXK)>$HZ`JGUIVK*OFAH01T/-PF("!$XF
M3F9YQGWT'3SW$:/NDFD09F$R<CMUI@H+LP-VP([=KN#L"?!0EDKEZJA)V2M7
MXNU^7X.<,E6,7'`>9-$(./"):6.JH-A#H4EO9;K%EK0*X@R8C)"1G#TRH0ER
MP%'5X`?;P-M:BRBTW6N:]R@<P%/LP>,8J\@M/<P?'_72IRKNJV_\JL4%D#HH
MCP34EYY@/M?^B#$0XKQ\J?IRPYF#PQ1JY'744YDGMAV^?4(852T>MKVHF]X5
MA0SR(DU.$EF8*WM$@PC;UPH4L]*/50UCK^AH\51^TYS@5G<O>HDHM#`8:]10
MO>[X#!P1YV$V0B)S]B-K'[@2$!E:`U.H\*H'%&[N42C$R>;#LY^#'Y$'P])4
M$7RAI&<0J^,_-K31NP#Y]/T`DU%G6K+,"/^Z#X:1IH9$%AG&Q%0%5.$7=DYR
MCW[UOLS/+Q=F-,S`3*EW93[<$?+2.YJ/,@J*E/!6HP'I.B?,'0'/X,94ID6$
M^.XTT0;U>LL1WC*O;W$:\.*NL!=WE>I3UAUTF`'"]0_?.9X3?)WCSREZY+5_
MLNGD>_M!-81A<HBBFZ*)LCQE)VA7LL,Y3N*7FB9?5ZUK2J'B<YI'7%&X`67D
MWKM`<Z_]JR,G?1X([(`L@BS*XF.V"9/8GHV#9WP*QV1!6(L9K'OTBSF"YNK^
MPEO15NNG?@(@D:*^Z@%%R>'6W.<64-VYZ-WI^ZK)#>+0S?NJGE#!$KP[OKQM
MF]_1&S3M8F]'.BB$7(Z'A>.N,+<!+77;EZCV%]8%Z`P)IYH7?%MIAH=`U7U'
M+XVSF>;AP(=P++.F*/(5VR&?6DUI-A^;L7587:*Q(4[\7?5.%3JZ4/(@^=&@
M&64R9*#5?<,8W+)FH"*-;9&VHC&=:]DI\TP0W?;A=^-]1HPS3O%.'#N9!B"=
M3%LV]:JB&=<9-_,@BI.1JADY&/$T`$/TXK%I4>"]X<+`Z&I(K%@ITY-'Q2TS
M:8[^:%HR35&JHTHU+3F,)RYD<ZGVB<I&PV/FRM]5="ZS,;%G[L3$'KDB$HEX
M;$D6<E-P.<E;.6C5(^EG4Z:"7"'L_90I1S-A>D!]*3>EIH'$+&[FW.?R7628
M<D1IN4>S#L>:VYET<^\//<2BU"@6XC8^*LOM)!:5/TTY&+C&(5GF3@FBJMR(
MYV95/5;+TN34!HBQ)N9O'V[^]ID>'TK2'7A"RXR6*21MNUHCZV7?E\LG(\#+
M&O]K_48GW-&76Z`&,S.G5D[(:11SX:U9>5K`$@:,G7'4J$Y!G<6VF\^Y?+(T
M0D-<PH4E5-JJ-`)MJ0WOWA'ZZ!(_H^[#1BGWI"F"EDD:G>#`+/[!)L#D/C$,
MVUIJS;Q=L<AT7Q=*>;!;M)C\7075RQ5@4Q=[?U!I8-R;3Z)<F99$-JOGT6TV
MPRX*%:7)89O3H9'-V@\J0=BL]D]ES^+.E03;'<+8*X3O5H!/_;PTLN.'Q<`W
ME^;F';BV&H+OEX-K;=,8W'GGYSZ&:NK=^!*/?[FXI/HNO.M/5_^:\,DOI2%Z
MHBK'[H5,C_:$J3O`#F"Z_^%=E&LN+3A((3\VFTWSZF>D""DA?S]4.5-G?;^,
M.36>JTL`8_5W[O1W*H=-<J?6A;W+*:@@*O;(@9G9FSWK>O5,M+:GZ9-@K.A#
M5FJ>96JT1$00[CN96'#CU!;MXJA<>-5<LT#CPN'/IGK&E6%PQAI7A.J$XH[M
MG#])(7Z<`U@9V"TRS?-1JD+'!TEH"^!$B5FE)0.5QX?4'9GG51R[@C[H<!JH
M1$E5-U0`X6OW.-(R9>_D>!:E8^&1.]N1Y6H>6**"M(!%-#V/L_[=:`Z&BY69
M^7[%8TZ8V3^`N%N$INY`"BC>153L]`-#XLW?GJJ'J@?;(M7SQ5FFA(J@RD6<
M!+0`(2OXAU#.'L\^+D85@ZHH:.,+\8.>D"0D4CQ+,X)DU?.HDDR!8E\ZJ%$X
MDB6GRW_$(Z-.4/^/3C"5919!FKNU[KK#;DC2)/E>/Z!2,ZGVG5:FN^Z]\MZW
MMF3HCH?BE",G!_\<DE@&H_1P4YNZMZ:W4&$SLXM1_]HW/>L2);HG4O0/&EH"
MU2$]\]>I"E[-.A0,"4]SB5M@?N+F"TC6X&#[&.)D<.^]AU,AIIGZWR%&>7(\
M0P&,/(C0QC>*#IJSP[JPM1M"1TS"E`$ZB>(!.$Q/IU=M!QDZ3KWQICFQ\A>*
MOM.8KFX:PW(B#U>M:-AV;(\2S"]MU6":[Q%`MUL_T/*0R/6Z$T"J@;YX;2O+
M`=1,.WI*G$CI=<V/-VVYN?<GR&/_JG4]A(G0DF)''</>MS^M0`,L9VSNJ+..
MI*@;B%%D.778.;&X"K>Z`GO>#X8+IMQ*HXM[3@/65S[5UA-:>_ZVU"\]49&Y
M_O8"X]WFG3>IG'8=8JR&/WSS2<96Q),\:&.W.N;>9,3.IG`/9?;BIU$)F3TE
MV1/6IG9,3[1Z)(B(7FOQN,7WV$B6QK`=\Y`!178T?@P+V3PQ7S#(S;9G11YY
M(\TDJ"HV$%W\R351'"0)FON$,)FZ$86F^GIW^>EZMOCURUS<SC[-Q3]NKJYN
M_GGW&[<1B+6(XE$J#YCNOP,&B`94H:69B06X1`8R+12`_C$UTP,6D-#"V`A<
MC`%;Q58Q,<!8U`7EC5Q-4$&N4:`)=*&11DQ,L5Y>?DEJL:E>2F))8DQ,G:61
MJ9&!`;A58Z27DI\,JV<,H86K!=`B<-/!0,%2P=#"$MBI0[(4:UF`6G$868*,
M0',HN.+6T#7458!62P!CSY@:"@T*96YD<W1R96%M#65N9&]B:@TR,B`P(&]B
M:CP\+U1Y<&4O1F]N="]%;F-O9&EN9R]7:6Y!;G-I16YC;V1I;F<O0F%S949O
M;G0O07)I86PM0F]L9$U4+T9I<G-T0VAA<B`S,B],87-T0VAA<B`S,B]3=6)T
M>7!E+U1R=654>7!E+T9O;G1$97-C<FEP=&]R(#(W(#`@4B]7:61T:'-;,C<X
M73X^#65N9&]B:@TR,R`P(&]B:CP\+U1Y<&4O1F]N="]%;F-O9&EN9R]7:6Y!
M;G-I16YC;V1I;F<O0F%S949O;G0O07)I86Q-5"]&:7)S=$-H87(@,S(O3&%S
M=$-H87(@,S(O4W5B='EP92]4<G5E5'EP92]&;VYT1&5S8W)I<'1O<B`R."`P
M(%(O5VED=&AS6S(W.%T^/@UE;F1O8FH-,C0@,"!O8FH\/"]4>7!E+T9O;G0O
M16YC;V1I;F<O5VEN06YS:45N8V]D:6YG+T)A<V5&;VYT+U1I;65S3F5W4F]M
M86Y04RU";VQD271A;&EC350O1FER<W1#:&%R(#,R+TQA<W1#:&%R(#,R+U-U
M8G1Y<&4O5')U951Y<&4O1F]N=$1E<V-R:7!T;W(@,CD@,"!2+U=I9'1H<ULR
M-3!=/CX-96YD;V)J#3(U(#`@;V)J/#PO3&5N9W1H(#(U-S4O1FEL=&5R+T9L
M871E1&5C;V1E+TX@,R]!;'1E<FYA=&4O1&5V:6-E4D="/CYS=')E86T-"DB)
MG)9Y5%-W%L=_;\F>D)6PPV,-6X"P!I`U;&&1'011"$D(`1)"2-@%040%%$5$
MA*J5,M9M=$9/19TNKF.M#M9]ZM(#]3#JZ#BT%M>.G1<X1YU.9Z;3[Q_O]SGW
M=^_OW=^]]YWS`*`GI:JUU3`+`(W6H,]*C,46%11BI`D``PH@`A$`,GFM+BT[
M(0?@DL9+L%K<"?R+GEX'D&F](DS*P##P_XDMU^D-`$`9.`<HE+5RG#MQKJHW
MZ$SV&9QYI94FAE$3Z_$$<;8TL6J>O>=\YCG:Q`J-5H&S*6>=0J,P\6F<5]<9
ME3@CJ3AWU:F5]3A?Q=FERJA1X_S<%*M1RFH!0.DFNT$I+\?9#V>Z/B=+@O,"
M`,ATU3M<^@X;E`T&TZ4DU;I&O5I5;L#<Y1Z8*#14C"4IZZN4!H,P0R:OE.D5
MF*1:HY-I&P&8O_.<.*;:8GB1@T6AP<%"?Q_1.X7ZKYN_4*;>SM.3S+F>0?P+
M;VT_YU<]"H!X%J_-^K>VTBT`C*\$P/+F6YO+^P`P\;X=OOC.??BF>2DW&'1A
MOK[U]?4^:J7<QU30-_J?#K]`[[S/QW3<F_)@<<HRF;'*@)GJ)J^NJC;JL5J=
M3*[$A#\=XE\=^/-Y>&<IRY1ZI1:/R,.G3*U5X>W6*M0&=;464VO_4Q-_9=A/
M-#_7N+ACKP&OV`>P+O(`\K<+`.72`%*T#=^!WO0ME9(',O`UW^'>_-S/"?KW
M4^$^TZ-6K9J+DV3E8'*COFY^S_19`@*@`B;@`2M@#YR!.Q`"?Q`"PD$TB`?)
M(!WD@`*P%,A!.=``/:@'+:`==($>L!YL`L-@.Q@#N\%^<!",@X_!"?!'<!Y\
M":Z!6V`23(.'8`8\!:\@"")!#(@+64$.D"OD!?E#8B@2BH=2H2RH`"J!5)`6
M,D(MT`JH!^J'AJ$=T&[H]]!1Z`1T#KH$?05-00^@[Z"7,`+381YL![O!OK`8
MCH%3X!QX":R":^`FN!->!P_!H_`^^#!\`CX/7X,GX8?P+`(0&L)''!$A(D8D
M2#I2B)0A>J05Z48&D5%D/W(,.8M<02:11\@+E(AR40P5HN%H$IJ+RM$:M!7M
M18?17>AA]#1Z!9U"9]#7!`;!EN!%""-("8L(*D(]H8LP2-A)^(APAG"-,$UX
M2B02^40!,8281"P@5A";B;W$K<0#Q./$2\2[Q%D2B61%\B)%D-)),I*!U$7:
M0MI'^HQTF31->DZFD1W(_N0$<B%92^X@#Y+WD#\E7R;?([^BL"BNE#!*.D5!
M::3T4<8HQR@7*=.45U0V54"-H.90*ZCMU"'J?NH9ZFWJ$QJ-YD0+I672U+3E
MM"':[VB?TZ9H+^@<NB==0B^B&^GKZ!_2C]._HC]A,!ANC&A&(</`6,?8S3C%
M^)KQW(QKYF,F-5.8M9F-F!TVNVSVF$EANC)CF$N93<Q!YB'F1>8C%H7EQI*P
M9*Q6U@CK*.L&:Y;-98O8Z6P-NY>]AWV.?9]#XKAQXCD*3B?G`\XISETNPG7F
M2KAR[@KN&/<,=YI'Y`EX4EX%KX?W6]X$;\:<8QYHGF?>8#YB_HGY)!_AN_&E
M_"I^'_\@_SK_I86=18R%TF*-Q7Z+RQ;/+&TLHRV5EMV6!RRO6;ZTPJSBK2JM
M-EB-6]VQ1JT]K3.MZZVW69^Q?F3#LPFWD=MTVQRTN6D+VWK:9MDVVWY@>\%V
MUL[>+M%.9[?%[I3=(WN^?;1]A?V`_:?V#QRX#I$.:H<!A\\<_HJ98S%8%3:$
MG<9F'&T=DQR-CCL<)QQ?.0F<<ITZG`XXW7&F.HN=RYP'G$\ZS[@XN*2YM+CL
M=;GI2G$5NY:[;G8]Z_K,3>"6[[;*;=SMOL!2(!4T"?8*;KLSW*/<:]Q'W:]Z
M$#W$'I4>6SV^](0]@SS+/4<\+WK!7L%>:J^M7I>\"=ZAWEKO4>\;0KHP1E@G
MW"N<\N'[I/IT^(S[//9U\2WTW>![UO>U7Y!?E=^8WRT11Y0LZA`=$WWG[^DO
M]Q_QOQK`"$@(:`LX$O!MH%>@,G!;X)^#N$%I0:N"3@;](S@D6!^\/_A!B$M(
M2<A[(3?$/'&&N%?\>2@A-#:T+?3CT!=AP6&&L(-A?P\7AE>&[PF_OT"P0+E@
M;,'="*<(6<2.B,E(++(D\OW(R2C'*%G4:-0WT<[1BNB=T?=B/&(J8O;%/([U
MB]7'?A3[3!(F628Y'H?$)<9UQTW$<^)SXX?COTYP2E`E[$V820Q*;$X\GD1(
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MX0%LH'O@^TW%F\X-!@YNWTS=;-P\.93Z3P"D`5O^F+B9))F0F?R::)K5FT*;
MKYP<G(F<]YUDG=*>0)ZNGQV?BY_ZH&F@V*%'H;:B)J*6HP:C=J/FI%:DQZ4X
MI:FF&J:+IOVG;J?@J%*HQ*DWJ:FJ'*J/JP*K=:OIK%RLT*U$K;BN+:ZAKQ:O
MB[``L'6PZK%@L=:R2[+"LSBSKK0EM)RU$[6*M@&V>;;PMVBWX+A9N-&Y2KG"
MNCNZM;LNNZ>\(;R;O16]C[X*OH2^_[]ZO_7`<,#LP6?!X\)?PMO#6,/4Q%'$
MSL5+Q<C&1L;#QT''O\@]R+S).LFYRCC*M\LVR[;,-<RUS37-M<XVSK;/-\^X
MT#G0NM$\T;[2/]+!TT33QM1)U,O53M71UE76V-=<U^#89-CHV6S9\=IVVOO;
M@-P%W(K=$-V6WAS>HM\IWZ_@-N"]X43AS.)3XMOC8^/KY'/D_.6$Y@WFEN<?
MYZGH,NB\Z4;IT.I;ZN7K<.O[[(;M$>V<[BCNM.]`[\SP6/#E\7+Q__*,\QGS
MI_0T],+U4/7>]FWV^_>*^!GXJ/DX^<?Z5_KG^W?\!_R8_2G]NOY+_MS_;?__
M`@P`]X3S^PH-"F5N9'-T<F5A;0UE;F1O8FH-,C8@,"!O8FH\/"]4>7!E+T9O
M;G1$97-C<FEP=&]R+T9O;G1"0F]X6RTT.3@@+3,P-R`Q,3(P(#$P,C-=+T9O
M;G1.86UE+U1I;65S3F5W4F]M86Y04RU)=&%L:6--5"]&;&%G<R`Y."]3=&5M
M5B`W,2XW-#(P,#0O0V%P2&5I9VAT(#8U-B]82&5I9VAT(#`O07-C96YT(#@Y
M,2]$97-C96YT("TR,38O271A;&EC06YG;&4@+3$U+T9O;G1&86UI;'DH5&EM
M97,@3F5W(%)O;6%N*2]&;VYT4W1R971C:"].;W)M86PO1F]N=%=E:6=H="`T
M,#`^/@UE;F1O8FH-,C<@,"!O8FH\/"]4>7!E+T9O;G1$97-C<FEP=&]R+T9O
M;G1"0F]X6RTV,C@@+3,W-B`R,#`P(#$P,3!=+T9O;G1.86UE+T%R:6%L+4)O
M;&1-5"]&;&%G<R`S,B]3=&5M5B`Q,S@O0V%P2&5I9VAT(#<Q."]82&5I9VAT
M(#4Q-2]!<V-E;G0@.3`U+T1E<V-E;G0@+3(Q,2])=&%L:6-!;F=L92`P+T9O
M;G1&86UI;'DH07)I86PI+T9O;G13=')E=&-H+TYO<FUA;"]&;VYT5V5I9VAT
M(#<P,#X^#65N9&]B:@TR."`P(&]B:CP\+U1Y<&4O1F]N=$1E<V-R:7!T;W(O
M1F]N=$)";WA;+38V-2`M,S(U(#(P,#`@,3`P-ETO1F]N=$YA;64O07)I86Q-
M5"]&;&%G<R`S,B]3=&5M5B`X."]#87!(96EG:'0@-S$X+UA(96EG:'0@-3$U
M+T%S8V5N="`Y,#4O1&5S8V5N="`M,C$Q+TET86QI8T%N9VQE(#`O1F]N=$9A
M;6EL>2A!<FEA;"DO1F]N=%-T<F5T8V@O3F]R;6%L+T9O;G1796EG:'0@-#`P
M/CX-96YD;V)J#3(Y(#`@;V)J/#PO5'EP92]&;VYT1&5S8W)I<'1O<B]&;VYT
M0D)O>%LM-30W("TS,#<@,3(P-B`Q,#,R72]&;VYT3F%M92]4:6UE<TYE=U)O
M;6%N4%,M0F]L9$ET86QI8TU4+T9L86=S(#DX+U-T96U6(#$Q-BXX-C<P,#0O
M0V%P2&5I9VAT(#8U-B]82&5I9VAT(#0V."]!<V-E;G0@.#DQ+T1E<V-E;G0@
M+3(Q-B])=&%L:6-!;F=L92`M,34O1F]N=$9A;6EL>2A4:6UE<R!.97<@4F]M
M86XI+T9O;G13=')E=&-H+TYO<FUA;"]&;VYT5V5I9VAT(#<P,#X^#65N9&]B
M:@TQ(#`@;V)J/#PO0V]N=&5N=',@,R`P(%(O5'EP92]086=E+U!A<F5N="`V
M(#`@4B]2;W1A=&4@,"]-961I84)O>%LP(#`@-C$R(#<Y,ETO0W)O<$)O>%LP
M(#`@-C$R(#<Y,ETO4F5S;W5R8V5S(#(@,"!2/CX-96YD;V)J#3(@,"!O8FH\
M/"]#;VQO<E-P86-E/#PO0W,V(#$W(#`@4CX^+T9O;G0\/"]45#(@,30@,"!2
M+U14-"`Q-2`P(%(^/B]0<F]C4V5T6R]01$8O5&5X=%TO17AT1U-T871E/#PO
M1U,Q(#(P(#`@4CX^/CX-96YD;V)J#3,@,"!O8FH\/"],96YG=&@@.3(U+T9I
M;'1E<B]&;&%T941E8V]D93X^<W1R96%M#0I(B8Q537/;-A"]ZU?L$>R($$$"
M))&;(K.).JKL$=EF,ID<8`FRV*$I#4DE57]]%P#UQ7&:VAX9)%;O[=M]6$P^
MY`Q>VM'[8C0I"@X,BNV(,2J3)((`?UD("?YQ3F4,Q>MH,FMC6+=V+X!V78\"
M*-;FX_N(@%?\A4M?I%0BTL.(21JFB0D@8#>1)'0D$0T"D8`0?6B`STAFL&@0
M26X`OY#Y$C[-BV66Y_#I8[;*'G_UOA:_W>?*)4LQES-&>L$('<88NIV&@VJZ
M4K>PTXWV.$U)MP=/4$%VZIN&M3JV>H//DF!TV<+TU4MI2'2].2\Z6.XIA(#?
M>]9@T_`91_9$@,\H$Y<,N,G`MTOI4M!_Z_6QTQMX/IEDR@8VQ^H$ZF@SZ';[
MIOP'=QM]L"\:#P&1L[4L+*:,"7$C,;P2)#U!W:FN_(;Z5`O[K56<;;=ZC2\1
M,B(:'E2G*:X3`N<:]JW`=K,T!C^Z$1&<6Q%$L:-XRE:KSW_./3^FG"P6&63+
M;/7A,SQ-5]B@53Z&!5U0SS=L,SIH4XA(<725$(BK:\;6&7X?\J-2ALREH>!!
M5^J[:C14Y:N78"=+4]FJ5,^V>*4I7D2JLCO!>N\B#EZ`.ZH^.>EH47[+<B$)
M4D?R'@/]-(K1#I-V`I`K@\/)$7$8T15\I##;J:;J]C7,YW/XR8]ES8I1A*1"
M,IIR",.(2O0M%5+B_T:/MN84#LZ>B%(3)61$$WO^AJ?-E$T*GMS7+4BODB(G
M"06%^(#%6"K3PY`826@RY[5W1F3__OB&0*N@^,6BW]A/#,&+LJNT)PS>[ZI6
MN'K1S=!P6/^0LOA2_YL&]&;+EH6'?@Q)YF&UB/'9XO&/>3Z?+J=CF"]G=`P#
MBP6V!/P"&EU`(UL"=,YB?RS;$M-"8S2'?8-'!N7U0^O6$2:-<T9L8(G862*C
ML-*UTC#;UY4^_<P!;WN!)]QY@=.(HQ=BR_=#+T@3Q9/XO[R0\G1PAJY>8&]X
MH1]O'@88%PQDN8EX;KX[B'<@_-)SLWH'3PU.+8%0I9NF9FZJ>H-F*EW(%C]#
M`IF=B#BQX''K7I4F!4G69[O<MF0@%%/Y_XN`ID%L1W0JQ;WE2.XS5SF68A\"
M/$48'5TH'0"J85*ZK2O`U2&L=\@7CY,<[9J0\J56W1$GU,'.6V64<3P(YNXP
M%TM_K=Q?*D_'9KU3K:E23&S-<E5IF+XT6O?!7Y&AOWG.23$:R+=*A`;[5X`!
M`,!MTET*#0IE;F1S=')E86T-96YD;V)J#30@,"!O8FH\/"].=6US6S`@-2`P
M(%)=/CX-96YD;V)J#34@,"!O8FH\/"]3+T0^/@UE;F1O8FH--B`P(&]B:CP\
M+T-O=6YT(#(O2VED<ULQ,B`P(%(@,2`P(%)=+U1Y<&4O4&%G97,^/@UE;F1O
M8FH--R`P(&]B:CP\+TQE;F=T:"`S,S,R+U1Y<&4O365T861A=&$O4W5B='EP
M92]834P^/G-T<F5A;0T*/#]X<&%C:V5T(&)E9VEN/2?ON[\G(&ED/2=7-4TP
M37!#96AI2'IR95-Z3E1C>FMC.60G/SX*/#]A9&]B92UX87`M9FEL=&5R<R!E
M<V,](D-23$8B/SX-"CQX.GAM<&UE=&$@>&UL;G,Z>#TG861O8F4Z;G,Z;65T
M82\G('@Z>&UP=&L])UA-4"!T;V]L:VET(#(N.2XQ+3$S+"!F<F%M97=O<FL@
M,2XV)SX-"CQR9&8Z4D1&('AM;&YS.G)D9CTG:'1T<#HO+W=W=RYW,RYO<F<O
M,3DY.2\P,B\R,BUR9&8M<WEN=&%X+6YS(R<@>&UL;G,Z:5@])VAT='`Z+R]N
M<RYA9&]B92YC;VTO:5@O,2XP+R<^#0H\<F1F.D1E<V-R:7!T:6]N(')D9CIA
M8F]U=#TG=75I9#IB9C1D8S@U-2TS-V(W+30S.&,M8C!A8RUA-6(W83<V,S,R
M,S<G('AM;&YS.G!D9CTG:'1T<#HO+VYS+F%D;V)E+F-O;2]P9&8O,2XS+R<@
M<&1F.E!R;V1U8V5R/2=!8W)O8F%T($1I<W1I;&QE<B`V+C`@*%=I;F1O=W,I
M)SX\+W)D9CI$97-C<FEP=&EO;CX-"CQR9&8Z1&5S8W)I<'1I;VX@<F1F.F%B
M;W5T/2=U=6ED.F)F-&1C.#4U+3,W8C<M-#,X8RUB,&%C+6$U8C=A-S8S,S(S
M-R<@>&UL;G,Z>&%P/2=H='1P.B\O;G,N861O8F4N8V]M+WAA<"\Q+C`O)R!X
M87`Z0W)E871E1&%T93TG,C`P-2TP,RTR.%0Q,3HS,SHR."TP-CHP,"<@>&%P
M.D-R96%T;W)4;V]L/2=04V-R:7!T-2YD;&P@5F5R<VEO;B`U+C(G('AA<#I-
M;V1I9GE$871E/2<R,#`U+3`S+3(X5#$Q.C,S.C(X+3`V.C`P)SX\+W)D9CI$
M97-C<FEP=&EO;CX-"CQR9&8Z1&5S8W)I<'1I;VX@<F1F.F%B;W5T/2=U=6ED
M.F)F-&1C.#4U+3,W8C<M-#,X8RUB,&%C+6$U8C=A-S8S,S(S-R<@>&UL;G,Z
M>&%P34T])VAT='`Z+R]N<RYA9&]B92YC;VTO>&%P+S$N,"]M;2\G('AA<$U-
M.D1O8W5M96YT240])W5U:60Z,6,S8C1B,68M9F(V,"TT,V%D+6$P-64M9#(U
M-#5C96)C-S`X)R\^#0H\<F1F.D1E<V-R:7!T:6]N(')D9CIA8F]U=#TG=75I
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M4D1&/@T*/"]X.GAM<&UE=&$^#0H@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@"B`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`*("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@(`H@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@"B`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`*("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@(`H@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@"B`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`*("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@(`H@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@"B`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`*("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@(`H@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@"B`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`*("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@(`H@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@"B`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`*("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@(`H@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@"B`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@("`@
M("`@("`@("`@("`@("`*("`@("`@("`@("`@("`@("`@("`@("`@("`@"CP_
M>'!A8VME="!E;F0])W<G/SX-"F5N9'-T<F5A;0UE;F1O8FH-."`P(&]B:CP\
M+TUO9$1A=&4H1#HR,#`U,#,R.#$Q,S,R."TP-B<P,"<I+T-R96%T:6]N1&%T
M92A$.C(P,#4P,S(X,3$S,S(X+3`V)S`P)RDO5&ET;&4H36EC<F]S;V9T(%=O
M<F0@+2!E>&AI8FET,3!A8S(N9&]C*2]#<F5A=&]R*%!38W)I<'0U+F1L;"!6
M97)S:6]N(#4N,BDO4')O9'5C97(H06-R;V)A="!$:7-T:6QL97(@-BXP(%PH
M5VEN9&]W<UPI*2]!=71H;W(H0S4Q.30I/CX-96YD;V)J#7AR968-"C`@.0T*
M,#`P,#`P,#`P,"`V-34S-2!F#0HP,#`P,#$P,3(W(#`P,#`P(&X-"C`P,#`P
M,3`R-3(@,#`P,#`@;@T*,#`P,#`Q,#,W,B`P,#`P,"!N#0HP,#`P,#$Q,S8U
M(#`P,#`P(&X-"C`P,#`P,3$S.3@@,#`P,#`@;@T*,#`P,#`Q,30R,2`P,#`P
M,"!N#0HP,#`P,#$Q-#<X(#`P,#`P(&X-"C`P,#`P,30X.#8@,#`P,#`@;@T*
M=')A:6QE<@T*/#PO4VEZ92`Y/CX-"G-T87)T>')E9@T*,3$V#0HE)45/1@T*
`
end
</PDF>EXHIBIT
10.47

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (this “Agreement”)
is made and entered into effective as of January 1, 2005, or the date
immediately following the filing of the quarterly reports (10-Qs) for 2004,
whichever date is latest, (the “Effective Date”), by and between LIQUIDMETAL TECHNOLOGIES,
Inc., a Delaware corporation (the “Company”), and John K. Thorne (the “Employee”).

 

RECITALS

 

WHEREAS, the Employee desires to
be employed by the Company upon the terms and conditions set forth in this
Agreement; and

 

WHEREAS, the Company desires to
assure itself of the Employee’s continued employment in the capacities set
forth herein.

 

NOW, THEREFORE, in consideration
of the foregoing recitals and for other good and valuable consideration, the
parties hereto covenant and agree as follows:

 

1.             Employment.  The
Company hereby employs Employee, and the Employee hereby accepts such
employment, upon the terms and conditions set forth in this Agreement.

 

2.             Term. Subject to the terms and conditions of this
Agreement, including, but not limited to, the provisions for termination set
forth in Section 6 hereof, the employment of the Employee under this Agreement
shall commence on the Effective Date and shall continue through the close of
business on April 30, 2005 (the “Initial Term”).  Upon the expiration of the Initial Term, the
Employee’s employment with the Company may continue on a month to month basis,
at the same salary, if mutually agreed in writing by the Company and the
Employee at least two weeks prior to
each extension. Notwithstanding the expiration of the Initial Term of this
Agreement, the provisions of this Agreement other than those of Sections 2, 4,
and 6, Term, Compensation, and Termination, respectively, shall remain in full
force and effect.  All other provisions
of this Agreement, including but without limitation, Sections 1, 7, and 8,
entitled Employment, Nonsolicitation and Nondisclosure Covenants, and Employee
Inventions, respectively, shall survive the expiration of the Initial Term.  Notwithstanding the expiration of this
Agreement or the termination of employment by any means by any party, Sections
2, 7, and 8, entitled Term, Nonsolicitation and Nondisclosure Covenants, and
Employee Inventions, respectively, shall survive and remain fully enforceable.

 

3.             Duties.  Employee
will serve as Interim Chief Executive Officer and President of the
Company.  The Board of Directors may, at
any time, decide to discontinue to use of the title Interim Chief Executive
Officer and President but will continue to compensate the Employee at the same
salary level for the balance of the term of the contract.  In the event such a decision is made, the
Company will assign a title and duties commensurate with the Employee’s
experience and abilities. The Employee will devote Employee’s entire business
time, attention, skill, and energy exclusively to the business of the Company,
will use the 

 

 

Employee’s best efforts to promote the success of the Company’s business,
and will cooperate fully with the Board of Directors in the advancement of the
best interests of the Company.  The
Employee will report directly to the Board of Directors of the Company.  Furthermore, the Employee shall assume and
competently perform such reasonable responsibilities and duties as may be
assigned to the Employee from time to time by the Board of Directors or their
designee.  To the extent that the Company
shall have any parent company, subsidiaries, affiliated corporations,
partnerships, or joint ventures (collectively “Related Entities”), the Employee
shall perform such duties to promote these entities and to promote and protect
their respective interests to the same extent as the interests of the Company
without additional compensation. At all times, the Employee agrees that the
Employee has read and will abide by, and prospectively will read and abide by,
any employee handbook, policy, or practice that the Company or Related Entities
has or hereafter adopts with respect to its employees generally.

 

4.             Compensation.

 

(a)           Salary.
 As compensation for Employee’s services
and in consideration for the Employee’s covenants contained in this Agreement,
the Company shall pay the Employee, for the period from January 1, 2005 through
April 30, 2005, a monthly base salary of $20,834.  Additionally, 10,000
nonqualified stock options in Liquidmetal Technologies common stock shall be
granted to the Employee on the effective date of this Employment Agreement with
a vesting schedule wherein all the options vest upon the last day of the
Initial Term, so long as Employee is still employed by the Company under this
Agreement on such date.   Such options
will be exercisable at any time during a 12 month period subsequent to vesting.
The exercise price for the options will be equal to the “Fair Market Value” of
the Company’s common stock on the grant date, as determined under the Company’s
2002 Equity Incentive Plan.  In all other
respects, the option will have the terms and conditions applicable to options
regularly granted under the Company’s Equity Incentive Plan.  The base salary shall be payable in equal or
as nearly equal as practicable installments in accordance with the policy then
prevailing for the Company’s salaried employees generally, and the monthly base
salary shall be subject to any tax and other withholdings or deductions
required by applicable laws and regulations.

 

Employee shall be offered participation in all benefit
programs, including but not limited to, health, life, and disability insurance,
as generally available to the Company’s salaried employees and in accordance
with the standard terms and conditions for participation in such programs.
Employee may elect not to participate in those programs he considers
unnecessary or uneconomic under his particular circumstances. The Company shall
pay all payroll taxes (excluding income taxes, Medicaid/Medicare, and other
taxes customarily paid by employees) as generally required for all salaried
employees.

 

The Company shall arrange and pay for a Residence Inn
, or equivalent, proximate to the Lake Forest, CA Company offices for use by
the Employee and his spouse throughout the Initial Term and any extensions of
this Agreement.  Amenities shall include
reasonable living and sleeping accommodations, telephone, TV, cooking, and a
washer and dryer, or as otherwise agreed upon. 
In the event the cost of such accommodations is attributable to the
Employee as 

 

2

 

earned income, the Company shall “gross up” such
earned income such that there will be no cost to the employee a post-tax basis.

 

(b)           Reimbursement
of Expenses.  The Employee shall be
reimbursed for all reasonable and customary travel and other business expenses
incurred by Employee in the performance of Employee’s duties hereunder,
provided that such reimbursement shall be subject to, and in accordance with,
any expense reimbursement policies and/or expense documentation requirements of
the Company that may be in effect from time to time.

 

5.             Employee’s
Protection Against Liability. 
Employee and the Company acknowledge that Employee is undertaking
interim employment with the Company because certain allegations and issues have
arisen concerning the Company’s financial affairs, including issues related to
the Company’s audit(s) and certain stock transactions.  The Company acknowledges that Employee had no
involvement in the Company’s financial affairs prior to the Effective Date of
this Agreement.  The Company further
acknowledges that Employee is only willing to undertake interim employment with
an express understanding that he will receive full and complete protection
against any and all claims made in connection with or arising out of the
performance of his duties up to the maximum extent allowable by law, and the
Company hereby promises Employee such protection.  All benefits conferred upon Employee pursuant
to this Section 5 shall inure to the benefit of Employee’s spouse, estate,
heirs, personal representatives, executors, administrators and trustees.  Without limiting the generality of the
foregoing, the parties hereby agree to the following additional terms:

 

(a)           Directors
and Officers’ Liability Insurance. 
The Company shall maintain, entirely at its expense and with no cost to
Employee, a directors and officers’ liability insurance policy that provides a
minimum of $25 million in coverage and applies to all acts taken, or omissions
made, by Employee on behalf of the Company throughout the course of his
employment with the Company, whether during the Initial Term or any extension
of the Initial Term (the “D&O Policy”). 
The D&O Policy shall be in place as of the Effective Date of this
Agreement and shall continue in place following termination of Employee’s
employment with the Company, regardless of the reason for such termination,
until such time as the Company’s regular outside counsel shall inform the
Company, in writing, that all applicable statutes of limitation have expired
for the time period during which Employee was employed by the Company and there
no longer is any need for the Company to maintain the D&O Policy to cover
acts or omissions occurring during that time period.  Employee shall have the right to review and
copy the D&O Policy at any time. 
Should the Company fail to maintain the D&O Policy or provide
Employee with a copy upon request, Employee may resign his employment
immediately and shall then be entitled to receive all compensation that would
have been due had his employment continued through the end of the Initial Term
or any extension thereof, as may be applicable under the circumstances.  In addition, Employee may pursue such legal
or equitable remedies as may be available to him including, without limitation,
the filing of a claim for specific performance of this Section 5.

 

3

 

(b)           Indemnification
and Duty to Defend.  If any claim is
made against Employee related to or in any way arising out of the performance
of Employee’s duties under this Agreement, and for any reason the D&O
Policy referenced above fails to provide Employee with legal counsel at no cost
to Employee or fails to cover all or any portion of any potential liability
(including, without limitation, any deductible that might apply under the
D&O Policy) that might one day be imposed on Employee for Employee’s acts
or omissions, the Company shall, as necessary to insure that Employee has no
financial responsibility or exposure in connection with any such claim, (1)
provide Employee with legal counsel of Employee’s choosing at no cost to
Employee by paying such legal counsel directly and as may be required by such
counsel, and (2) indemnify Employee against any and all liability arising out
of any such claim.  Employee agrees to
consult with the Company regarding settlement issues that may arise in the
course of any legal action covered by this provision, but in the end all
settlement decisions with respect to any claim made against Employee
individually will be made by Employee in his sole and exclusive discretion, and
the vesting of this exclusive discretion with the Employee shall not dilute or
affect the Company’s economic responsibilities as set forth herein.

 

6.             Termination.

 

(a)           Death.  The Employee’s employment under this
Agreement shall terminate immediately upon Employee’s death.  In the event of a termination pursuant to
this Section 6(a), the “Thorne Family Trust dated January 28, 1998, John K.
Thorne and Shirley A. Thorne, Trustees” shall be entitled to receive any unpaid
base salary owing to Employee up through and including the date of the Employee’s
death.

 

(b)           Disability.  If, during the term of the Employee’s
employment hereunder, the Employee becomes physically or mentally disabled in
the determination of a physician appointed or selected by the Company, or, if
due to any physical or mental condition, the Employee becomes unable for a
period of more than sixty (60) days during the four-month period to perform
Employee’s duties hereunder on substantially a full-time basis as determined by
a physician selected by the Company, the Company may, at its option, terminate
the Employee’s employment upon not less than thirty (30) days written notice.
In the event of a termination pursuant to this Section 6(b), the Employee shall
be entitled to receive any unpaid base salary owing to Employee up through and
including the effective date of Termination.

 

(c)           Termination
By Company Without Cause.  In
addition to the other termination provisions of this Agreement, the Company may
terminate the Employee’s employment at any time without cause (a “Termination
Without Cause”).  In the event of a
Termination Without Cause, the Employee shall continue to receive the Employee’s
base salary (as then in effect) during the three (3) month period immediately
following the effective date of the Termination Without Cause (the “Severance
Period”).  In addition to the severance
pay described in the preceding sentence, the Employee shall continue to
receive, during the Severance Period, all employee health and welfare benefits
that Employee would have received 

 

4

 

during the
Severance Period in the absence of such termination.  Employee agrees and acknowledges, however,
that Employee will forfeit the right to receive base salary and benefits during
the Severance Period immediately upon the Employee’s breach of any covenant set
forth in Section 6 of this Agreement. 
The Employee will also forfeit the right to salary and benefits during
the Severance Period upon accepting employment with another employer with comparable
salary and benefits hereunder shall be forfeited and shall cease upon the
Employee becoming eligible for benefits from the Employee’s new employer.  Notwithstanding the foregoing, the
termination of the Employee’s employment pursuant to the second sentence of
Section 2 of this Agreement shall not constitute a Termination Without Cause
and shall not give rise to any severance payment or other benefits pursuant to
this Section 6(c).

 

(d)           Termination
By Company With Cause.  The Company
may terminate the Employee’s employment at any time with Cause.  As used in this Agreement, “Cause” shall
include the following: (1) the Employee’s failure or inability to perform
Employee’s duties under this Agreement, excepting death or disability as per
6(a) and 6(b) above; (2) dishonesty or other serious misconduct, (3) the
commission of an unlawful act material to Employee’s employment, (4) a material
violation of the Company’s policies or practices which reasonably justifies
immediate termination; (5) committing, pleading guilty, nolo contendre or no
contest (or their equivalent) to, entering into a pretrial intervention or
diversion program regarding, or conviction of, a felony or any crime or act
involving moral turpitude, fraud, dishonesty, or misrepresentation; (6) the
commission by the Employee of any act which could reasonably affect or impact
to a material degree the interests of the Company or Related Entities or in
some manner injure the reputation, business, or business relationships of the
Company or Related Entities; (7) the Employee’s inability to perform an
essential function of Employee’s position; or (8) any material breach by
Employee of this Agreement.  The Company
may terminate this Agreement for Cause at any time without notice.  In the event of a termination for Cause, the
Company shall be relieved of all its obligations to the Employee provided for
by this Agreement as of the effective date of termination, and all payments to
the Employee hereunder shall immediately cease and terminate as of such date,
except that Employee shall be entitled to the annual base salary hereunder up
to and including the effective date of termination, provided, however, that the
Employee’s obligations under Sections 7 and 8 shall survive such a Termination
for Cause and any liabilities or obligations which have accrued and are owed by
the Employee to the Company shall not be extinguished or released thereby.

 

(e)           Treatment
of Stock Options in Event of Termination. 
In the event of termination of employment for causes 6(a), 6(b), or 6(c)
above, stock options granted the employee per 4(a) on the Effective Date of the
Agreement will vest immediately in an amount pro-rated to the number of
calendar days of employment subsequent to the Effective Date relative to the
number of days of the Initial Term and be exercisable 12 months subsequent to
such vesting.

 

5

 

7.             Nonsolicitation and Nondisclosure Covenants.

 

(a)           Rationale
for Restrictions.  Employee
acknowledges that Employee’s services hereunder are of a special, unique, and
extraordinary character, and Employee’s position with the Company places
Employee in a position of confidence and trust with customers, suppliers, and
other persons and entities with whom the Company and its Related Entities have
a business relationship.   The Employee
further acknowledges that the rendering of services under this Agreement will
likely require the disclosure to Employee of Confidential Information (as
defined below) including Trade Secrets of the Company relating to the Company
and/or Related Entities.  As a
consequence, the Employee agrees that it is reasonable and necessary for the
protection of the goodwill and legitimate business interests of the Company and
Related Entities that the Employee make the covenants contained in this Section
7, that such covenants are a material inducement for the Company to employ the
Employee and to enter into this Agreement, and that the covenants are given as
an integral part of and incident to this Agreement.

 

(b)           Nonsolicitation
Covenants.  As used herein, the term “Restrictive
Period” means the time period commencing on the Effective Date of this
Agreement and ending on the second (2nd) anniversary of the date on which the
Employee’s employment by the Company (or any Related Entity) expires or is
terminated for any reason, including both a termination by the Company for
Cause and Not for Cause.  In addition,
the term “Covered Business” means any business which is the same as, or
similar to, any business conducted by the Company or any of the Related
Entities at any time during the Restrictive Period.  The Employee agrees that the Employee will
not engage in any of the following acts anywhere in the world during the
Restrictive Period:

 

(i)            directly
or indirectly assist, promote or encourage any existing or potential employees,
customers, clients, or vendors of the Company or any Related Entity, as well as
any other parties which have a business relationship with the Company or a
Related Entity, to terminate, discontinue, or reduce the extent of their
relationship with the Company or a Related Entity;

 

(ii)           directly
or indirectly solicit business of the same or similar type as a Covered
Business, from any person or entity known by the Employee to be a customer or
client of the Company, whether or not the Employee had contact with such person
or entity during the Employee’s employment with the Company;

 

(iii)          disparage
the Company, any Related Entities, and/or any shareholder, director, officer,
employee, or agent of the Company or any Related Entity; and/or

 

(iv)          engage in
any practice the purpose of which is to evade the provisions of this Section 7
or commit any act which adversely affects the Company, any Related Entity, or
their respective businesses.

 

6

 

Employee acknowledges
that Employee’s services hereunder are of a special, unique, and extraordinary
character, and Employee’s position with the Company places Employee in a
position of confidence and trust with customers, suppliers, and other persons
and entities with whom the Company and its Related Entities have a business
relationship.   The Employee further
acknowledges that the rendering of services under this Agreement will likely
require the disclosure to Employee of Confidential Information (as defined
below) and Trade Secrets (as defined below) of the Company relating to the
Company and/or Related Entities.  As a
consequence, the Employee agrees that it is reasonable and necessary for the
protection of the goodwill and legitimate business interests of the Company and
Related Entities that the Employee make the covenants contained in this Section
7, that such covenants are a material inducement for the Company to employ the
Employee and to enter into this Agreement, and that the covenants are given as
an integral part of and incident to this Agreement.  Accordingly, the Employee agrees that the
geographic scope of the above covenants is a reasonable means of protecting the
Company’s (and the Related Entities’) legitimate business interests.  Notwithstanding the foregoing covenants,
nothing set forth in this Agreement shall prohibit the Employee from owning the
securities of (i) corporations which are listed on a national securities
exchange or traded in the national over-the-counter market in an amount which
shall not exceed 5% of the outstanding shares of any such corporation or (ii)
any corporation, partnership, firm or other form of business organization which
does not compete with, is not engaged in, and does not carry on any aspect of,
either directly or indirectly through a subsidiary or otherwise, any Covered
Business.

 

(c)           Disclosure
of Confidential Information.  The
Employee acknowledges that the inventions, innovations, software, Trade
Secrets, business plans, financial strategies, finances, and all other
confidential or proprietary information with respect to the business and
operations of the Company and Related Entities are valuable, special, and
unique assets of the Company.  Accordingly,
the Employee agrees not to, at any time whatsoever either during or after the
Employee’s term of employment with the Company, disclose, directly or
indirectly, to any person or entity, or use or authorize any person or entity
to use, any confidential or proprietary information with respect to the Company
or Related Entities without the prior written consent of the Company,
including, without limitation, information as to the financial condition,
results of operations, identities of clients or prospective clients, products
under development, acquisition strategies or acquisitions under consideration,
pricing or cost information, marketing strategies, passwords or codes or any
other information relating to the Company or any of the Related Entities which
could be reasonably regarded as confidential (collectively referred to as “Confidential
Information”).  However, the term “Confidential
Information” does not include any information which is or shall become
generally available to the public other than as a result of disclosure by the
Employee or by any person or entity which the Employee knows (or which the
Employee reasonably should know) has a duty of confidentiality to the Company
or a Related Entity with respect to such information.  In addition to the foregoing, Company will be
fully entitled to all of the protections and benefits afforded by the
California Uniform Trade Secrets Acts and any other applicable law.  Trade Secret shall mean information,
including a formula, pattern, compilation, program, device, method technique,
or process that derives independent economic value, actual or potential, from
being not generally known to, and not being readily ascertainable by proper
means by, other persons who can derive economic value from its disclosure or
use, including but not 

 

7

 

limited to the
patented information and processes as well as the unpatented information and
processes comprising, underlying, arising from, and associated with Liquidmetal
Alloy and Liquidmetal Coatings used by the Company.

 

(d)           Prevention
of Premature Disclosure of Confidential Information and Trade Secrets.  The Employee agrees and acknowledges that,
because the success of the Company is heavily dependent upon maintaining the
secrecy of the Company’s Confidential Information and Trade Secrets and
preventing the premature public disclosure of the Company’s proprietary
information and technology including its Confidential Information and Trade
Secrets, the Employee agrees to use the Employee’s best efforts and his or her
highest degree of care, diligence, and prudence to ensure that no Confidential
Information or Trade Secret prematurely leaks or otherwise prematurely makes
its way into the public domain or any public forum, including, without
limitation, into any trade publications, internet chat rooms, or other similar
forums.  In the event that the Employee
becomes aware of any premature leak of Confidential Information or Trade Secret
or becomes aware of any circumstances creating a risk of such a leak, the
Employee shall immediately inform the Board of Directors, the Chief Executive
Officer, or the Employee’s supervisor of such leak or of such circumstances.

 

(e)           Removal
and Return of Proprietary Items.  The
Employee will not remove from the Company’s premises (except to the extent such
removal is for purposes of the performance of the Employee’s duties at home or
while traveling, and under such conditions and restrictions as are specifically
authorized and/or required by the Company) or transmit by any means, electronic
or otherwise, any document, record, notebook, plan, model, component, device,
computer software or code, or Confidential Information or Trade Secret whether
embodied in a disk or in any other form, including electronic form
(collectively, the “Proprietary Items”). 
The Employee recognizes that, as between the Company and the Employee,
all of the Proprietary Items, whether or not developed by the Employee, are the
exclusive property of the Company.  Upon
termination of Employee’s employment with the Company by either party
(regardless of the reason for termination), or upon the request of the Company
during the term of employment, the Employee will return to the Company all of
the Proprietary Items in the Employee’s possession or subject to the Employee’s
control, and the Employee shall not retain any copies, abstracts, sketches, or
other physical embodiment of any of the Proprietary Items, Confidential
Information, Trade Secret or any part thereof.

 

(f)            Enforcement
and Remedies.  In the event of any
breach of any of the covenants set forth in this Section 7, the Employee
recognizes that the remedies at law will be inadequate and that in addition to
any relief at law which may be available to the Company for such violation or
breach and regardless of any other provision contained in this Agreement, the
Company shall be entitled to equitable remedies (including an injunction) and
such other relief as a court may grant after considering the intent of this
Section 7.  Additionally, the period of
time applicable to any covenant set forth in this Section 7 will be extended by
the duration of any violation by Employee of such covenant.  In the event a court of competent
jurisdiction determines that any of the covenants set forth in this Section 7
are excessively broad as to duration, geographic scope, prohibited activities
or otherwise, the parties agree 

 

8

 

that this covenant
shall be reduced or curtailed to the extent, but only to the extent, necessary
to render it enforceable.

 

8.             Employee
Inventions.

 

(a)           Definition.
For purposes of this Agreement, “Employee Invention” means any idea,
invention, technique, modification, process, or improvement (whether patentable
or not), any industrial design (whether registerable or not), any mask work,
however fixed or encoded, that is suitable to be fixed, embedded or programmed
in a semiconductor product (whether recordable or not), and any work of
authorship (whether or not copyright protection may be obtained for it)
created, conceived, or developed by the Employee, either solely or in
conjunction with others, during the Employee’s employment with the Company or
during the twenty four (24) month period following such employment, that
relates in any way to, or is useful in any manner in, the businesses then being
conducted or proposed to be conducted by the Company or any Related Entity.

 

(b)           Ownership
of Employee Inventions.  Employee
agrees and acknowledges that all Employee Inventions will belong exclusively to
the Company and that all Employee Inventions are works made for hire and the
property of the Company, including any copyrights, patents, semiconductor mask
protection, or other intellectual property rights pertaining thereto.  If it is determined that any such works are
not works made for hire, the Employee hereby assigns to the Company all of the
Company’s right, title, and interest, including all rights of copyright,
patent, semiconductor mask protection, and other intellectual property rights,
to or in such Employee Inventions. The Employee covenants that the Employee
will promptly:

 

(i)                                     disclose
to the Company in writing any Employee Invention;

 

(ii)           assign to
the Company or to a party designated by the Company, at the Company’s request
and without additional compensation, all of the Employee’s right to the
Employee Invention for the United States and all foreign jurisdictions;

 

(iii)          execute
and deliver to the Company such applications, assignments, and other documents
as the Company may request in order to apply for and obtain patents or other
registrations with respect to any Employee Invention in the United States and
any foreign jurisdictions;

 

(iv)                              sign
all other papers necessary to carry out the above obligations; and

 

(v)           give
testimony and render any other assistance in support of the Company’s rights to
any Employee Invention.

 

9.             Essential and Independent
Covenants.  The Employee’s covenants in Sections 7 and 8
of this Agreement are independent covenants, and the existence of any claim by
the Employee against the Company under this Agreement or otherwise will not
excuse the Employee’s breach of any covenant in Section 7 or 8.  The covenants of Sections 7 and 8 shall 

 

9

 

survive the termination, extinguishment, or lapse of this Agreement under
any circumstances, even if this Agreement is terminated by either party,
whether for Cause or Not for Cause.

 

10.           Representations and Warranties by The Employee. The Employee represents and warrants to the
Company that the execution and delivery by the Employee of this Agreement do
not, and the performance by the Employee of the Employee’s obligations
hereunder will not, with or without the giving of notice or the passage of
time, or both: (a) violate any judgment, writ, injunction, or order of any
court, arbitrator, or governmental agency applicable to the Employee, or
(b) conflict with, result in the breach of any provisions of or the
termination of, or constitute a default under, any agreement to which the
Employee is a party or by which the Employee is or may be bound, including,
without limitation, any noncompetition agreement or similar agreement.  Employee further represents and warrants that
he fully and completely understands this Agreement and that he has engaged in
negotiations with the Company and has either consulted with an attorney of his
choice or has had ample opportunity to do so and is fully satisfied with the
opportunity he has had.

 

11.           Notices.  For
purposes of this Agreement, notices and all other communications provided for
herein shall be in writing and shall be deemed to have been duly given when
hand-delivered, sent by facsimile transmission (as long as receipt is
acknowledged), or mailed by United States certified or registered mail, return
receipt requested, postage prepaid, addressed to the address or facsimile
number for each party set forth on the signature page hereto, or to such other
address or facsimile number as either party may have furnished to the other in
writing in accordance herewith, except that a notice of change of address shall
be effective only upon receipt.

 

12.           Miscellaneous.  No
provision of this Agreement may be modified or waived unless such waiver or
modification is agreed to in writing signed by both of the parties hereto.  No waiver by any party hereto of any breach
by any other party hereto shall be deemed a waiver of any similar or dissimilar
term or condition at the same or at any prior or subsequent time.  This Agreement is the entire agreement
between the parties hereto with respect to the Employee’s employment by the
Company, and there are no agreements or representations, oral or otherwise,
expressed or implied, with respect to or related to the employment of the
Employee which are not set forth in this Agreement.  This Agreement shall be binding upon, and
inure to the benefit of, the Company, its respective successors and assigns,
and the Employee and Employee’s heirs, executors, administrators and legal
representatives.  The duties and
covenants of the Employee under this Agreement, being personal, may not be
delegated or assigned by the Employee without the prior written consent of the
Company, and any attempted delegation or assignment without such prior written
consent shall be null and void and without legal effect.  The parties agree that if any provision of
this Agreement shall under any circumstances be deemed invalid or inoperative,
the Agreement shall be construed with the invalid or inoperative provision
deleted and the rights and obligations of the parties shall be construed and
enforced accordingly.  This Agreement may
be assigned by the Company without the consent of the Employee, provided,
however, that the Employee is given notice of the assignment.

 

10

 

13.           Governing Law; Resolution of
Disputes.  The validity, interpretation, construction,
and performance of this Agreement shall be governed by the laws of the State of
California without regard to principles of choice of law or conflicts of law
thereunder.  Any action or proceeding
seeking to enforce any provision of, or based on any right arising out of, this
Agreement may be brought against either of the parties in the courts of the
State of California, County of Orange, or, if it has or can acquire
jurisdiction, in the federal courts located in, Orange County, California, and
each of the parties consents to the jurisdiction of such courts (and of the
appropriate appellate courts) in any such action or proceeding and waives any
objection to venue laid therein. Process in any action or proceeding referred
to in the preceding sentence may be served on either party anywhere in the
world.  The parties hereto agree that
having venue and jurisdiction solely in California is reasonable in that the
headquarters for the Company is in Orange County, California and that site for
litigation is the most central for such matters.  THE PARTIES HEREBY WAIVE A JURY TRIAL IN ANY
LITIGATION ARISING UNDER OR RELATING TO THIS AGREEMENT OR THE EMPLOYMENT OF THE
EMPLOYEE WITH THE COMPANY.  This
Agreement shall not be construed against either party but shall be construed
without regard to the participation of either party in the drafting of this
Agreement or any part thereof.

 

14.           Counterparts; Facsimile
Signatures.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.  This Agreement may be effective upon the
execution and delivery by any party hereto of facsimile copies of signature
pages hereto duly executed by such party; provided, however, that
any party delivering a facsimile signature page covenants and agrees to deliver
promptly after the date hereof two (2) original copies to the other party
hereto.

 

15.           Modification By The Court.   In the
event that any provision or Section of this Agreement violates any law of the
state of California or is for some other reason unenforceable as written in the
state of California, the Employee and the Company agree that the unenforceable
provision or Section should not cause the entire Agreement to become
unenforceable unless it is caused to fail in its essential purpose.  In the event that any provision or Section of
this Agreement violates any law of the state of California or is for some other
reason unenforceable as written in the state of California, the Employee agrees
that the provision should be reduced in scope or length or otherwise modified
by the Court, if possible under the law, to cause the provision or Section of
the Agreement to be legal and enforceable but to still provide to the Company
the maximum protection available to it under the law.

 

11

 

IN
WITNESS WHEREOF, the parties have executed this Agreement as
of the day and year first above written.

 

	
   

  	
  LIQUIDMETAL
  TECHNOLOGIES, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Kang

  	
   

  
	
   

  	
   

  	
  John Kang,
  Chairman of the Board

  
	
   

  	
   

  
	
   

  	
  Liquidmetal
  Technologies

  	
   

  
	
   

  	
  25800
  Commercentre Drive

  	
   

  
	
   

  	
  Suite 100

  	
   

  
	
   

  	
  Lake Forest, CA

  	
   

  
	
   

  	
  92630

  	
   

  
	
   

  	
  Facsimile
  Number: 949.206.8008

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EMPLOYEE

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John K.
  Thorne

  	
   

  
	
   

  	
   

  
	
   

  	
  Printed Name: 

  	
  John K. Thorne

  	
   

  
	
   

  	
   

  
	
   

  	
  Date: 

  	
  January 14, 2005

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address and
  Facsimile Number:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
								

 

12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}]]