Document:

Exhibit 10.64

[*]=                          CERTAIN CONFIDENTIAL
INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

THERMAL SPRAY:
AMENDED AND RESTATED ASSET PURCHASE & SALE

PRINCIPLES OF AGREEMENT

THIS AMENDED AND RESTATED AGREEMENT is made as of the 1st day of June,
2007 by and between LIQUIDMETAL TECHNOLOGIES, INC., a California corporation having its principal office
at 30452 Esperanza, Santa Margarita, California, 92688 (“LQMT”) and FOSTER WHEELER ENERGY SERVICES, INC.,
a California corporation having its principal office at Perryville Corporate
Park, Clinton, New Jersey 08809-4000 (“FWESI”).

RECITALS

A.                                   FWESI owns and operates a business unit known
as “Thermal Spray”, which has offices and/or physical assets in Dothan,
Alabama, San Diego, California and Vancouver, British Columbia, Canada.

B.                                     LQMT is knowledgeable of and experienced in
thermal coatings for industrial applications and is interested in purchasing
the Thermal Spray assets from FWESI.

C.                                     FWESI and LQMT (the “Parties” or,
individually, a “Party”) now wish to confirm their agreement for the purchase
and sale of FWESI’s Thermal Spray assets and to set forth the specific terms
and conditions for such transaction as they mutually agree.

NOW, THEREFORE, in
consideration of the foregoing premises and the covenants and promises
hereinafter set forth,

IT IS AGREED:

1.               FWESI agrees to sell to LQMT, and LQMT agrees
to purchase from FWESI, all of the equipment, inventory and such other physical
assets used by FWESI for its Thermal Spray business and located at the Thermal
Spray facilities mentioned above (collectively referred to as “the Assets”), as
more specifically described in Appendix A, attached hereto and by this
reference made a part of this Agreement. The Parties mutually agree that the
effective date of sale of the Assets shall be 1 June 2007 (“Effective Date”). Accordingly,
Appendix A will be revised and updated by FWESI prior to the Effective Date to
include a complete and accurate list of all Assets to be sold by FWESI and
purchased by LQMT pursuant to this Agreement. FWESI shall present the revised
and updated list to LQMT not less than three (3) days prior to the Effective
Date for LQMT’s review and approval, which approval shall not be unreasonably
withheld or delayed. The Parties mutually understand and agree that the
quantities and measurements contained in Appendix A may be approximate.

2.                 The Parties mutually agree that the total
purchase price for the Assets is Seven Hundred             Fifty
Thousand U.S. Dollars (US$750,000.00), payable in accordance with the payment
schedule set forth in Appendix B, attached hereto and by this reference made a
part of this Agreement. The prices herein are exclusive of any present
or future federal, state, or municipal sales, use, excise, property or other
similar taxes with respect to the Inventory and Equipment.  LQMT shall pay
any and all applicable taxes including but not limited to Federal, State,
Local, Canadian (GST/PST) tax as required by applicable Law or Regulation to
Seller to collect any such taxes on the Inventory, Assets and Equipment herein,
as required by Laws and within the time frames of the Taxing jurisdiction and
paid to FWESI upon invoice which shall be in accordance to the requirements of
the tax laws of the jurisdiction in which the Inventory, Assets and Equipment
are located.

3.               The Parties mutually understand and agree
that the Assets are sold on an “as is, where is” basis and that FWESI makes no
warranties or guarantees whatsoever, express or implied, with respect to any or
all of the Assets, their utility, merchantability, or fitness for any
particular purpose, or of the Thermal Spray business or of any business
opportunities, goodwill or other benefits associated therewith. Title to and
risk of loss for the Assets shall transfer from FWESI to LQMT at 12:01AM (PDT)
on the Effective Date.

4.               FWESI covenants and agrees that it will
indemnify, defend and hold harmless LQMT, its agents, affiliates, successors,
and assigns, and their respective officers, directors and employees, from and
against any and all third party claims arising from or in any manner related to
the Assets prior to the Effective Date. LQMT covenants and agrees that it will
indemnify, defend and hold harmless FWESI, its agents, affiliates, successors,
and assigns, and their respective officers, directors and employees, from and
against any and all third party claims arising from or in any manner related to
the Assets on and after the Effective Date.

5.               FWESI agrees that it will either terminate or
assign the facility lease it currently holds as lessee for the Thermal Spray
business premises in Dothan, Alabama and will assist LQMT to secure leasehold
rights in its own name, either by assignment or execution of a new lease
agreement, for that facility.

6.               LQMT shall be responsible for the removal of
all Assets currently located at FWESI’s Rio Bravo plant site in Fresno,
California and storage site in Vancouver, British Columbia, Canada within a
reasonable time not to exceed thirty (30) days following the Effective Date. FWESI
will be responsible for any lease, rental or storage charges up to and including
thirty (30) days following the Effective Date; thereafter, LQMT will be
responsible for any lease, rental or storage charges with respect to any of the
Assets.

7.               FWESI further agrees that, on and after the
Effective Date and continuing until December 31, 2009, it will engage LQMT
exclusively as its subcontractor to perform work (including warranty work) on
such projects that FWESI now has or may have under contract which require use
of the Assets including, but not limited to the projects listed in Appendix C,
attached hereto and by this reference made a part of this Agreement; provided,
however, that the price, terms and conditions for each such subcontract are, in
FWESI’s reasonable opinion, competitive with then available market conditions
for comparable goods and services. For those projects that FWESI currently has
under contract as of the Effective Date and which will be subcontracted to
LQMT, FWESI shall

 2
 

present
to LQMT a written summary of the salient terms and conditions (e.g., schedule,
warranty, liability, indemnity) of each such contract that will apply to any
subcontract work.

8.               For and in consideration of FWESI’s agreement
to engage LQMT as its subcontractor as set forth in Article 7, above, LQMT
covenants and agrees that it will work with FWESI on an exclusive basis for any
such projects identified to it by FWESI (including, but not limited to,
Appendix C) for the specified term.         As used in both Article 7 and this Article 8,
the term “FWESI” shall also include any of FWESI’s affiliated North American companies.

9.               Within thirty (30) days following the
Effective Date, the Parties agree to negotiate and finalize a standard form
subcontract agreement that they will use as a baseline document for their work
together pursuant to Articles 7 and 8, above. Such document will then become an
amendment to this Agreement and added as Appendix D, attached hereto and by
this reference made a part of this Agreement.

10.         LQMT has expressed an interest in retaining
the services of three (3) current FWESI employees located at the Dothan,
Alabama facility and one (1) current FWESI employee located at Vancouver, B.C.,
Canada. Subject to the consent and approval of each of these key employees, as
identified in Appendix E, attached hereto and by this reference made a part of
this Agreement, FWESI agrees to release the designated employees from their
current employment status and to indemnify LQMT against any claims that any of
them may have arising from their employment with FWESI in order to enable each
of them, at his/her sole election, to work as an employee of LQMT (or such
other entity as the parties may mutually agree).

11.         This Agreement contains the entire
understanding of the Parties with respect to the subject matter hereof and
supersedes any and all prior and contemporaneous agreements, representations,
proposals, negotiations, and understandings, whether written or oral,
pertaining to all or any part of the subject matter of this Agreement. Any
modifications, amendments or other changes to any of the terms and conditions
of this Agreement shall only be valid and effective if in writing and signed by
all Parties.

12.         All notices, requests, consents and
demands hereunder shall be in writing and telecopied or delivered by an
overnight carrier or certified return receipt mail to the intended recipient at
its “Address for Notices” specified in the Security Agreement and shall be
deemed to have been given at the times received by the other party.

13.         No failure on the part of
FWESI to exercise, and no course of dealing with respect to, and no delay in
exercising, any right, power or remedy hereunder shall operate as a waiver
thereof; nor shall any single or partial exercise by FWESI of any right, power
or remedy hereunder preclude any other or further exercise thereof or the
exercise of any other right, power or remedy. The remedies herein are
cumulative and are not exclusive of any remedies provided by law.

 3
 

14.         This Agreement shall be
binding upon and inure to the benefit of FWESI’s successors and assigns. This Agreement
may be executed in any number of counterparts, all of which taken together
shall constitute one and the same instrument and any of the parties hereto may
execute this Agreement by signing any such counterpart. Any assignment by LQMT,
except to a wholley owned subsidiary where written notice is provided to FWESI
must be approved in writing by FWESI which such approval will not be
unreasonably be withheld.

15.         If any provision hereof
is invalid and unenforceable in any jurisdiction, then, to the fullest extent
permitted by law, (a) the other provisions hereof shall remain in full
force and effect in such jurisdiction and shall be liberally construed in order
to carry out the intentions of the parties hereto as nearly as may be possible
and (b) the invalidity or unenforceability of any provision hereof in any
jurisdiction shall not affect the validity or enforceability of such provision
in any other jurisdiction.

16.         LQMT hereby irrevocably
and unconditionally submits, for itself and its property, to the exclusive
jurisdiction of the Superior Court of the State of New Jersey and of the United
States District Court of the State of New Jersey, and any appellate court from
any thereof, in any action or proceeding arising out of or relating to this
Agreement and each of the parties hereto hereby irrevocably and unconditionally
agrees that all claims in respect of any such action or proceeding may be heard
and determined in such New Jersey State or, to the extent permitted by law, in
such Federal court. Each of the parties hereto agrees that a final judgment in
any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law. Nothing
in this Agreement shall affect any right that FWESI may otherwise have to bring
any action or proceeding relating to this Agreement against LQMT or its
properties in the courts of any jurisdiction.

17.         Upon
the execution and delivery by LQMT of this Agreement and the Security Agreement
(collectively, the “LQMT’s Closing Documents”), the LQMT’s Closing Documents
will constitute the legal, valid, and binding obligations of LQMT, enforceable
against LQMT in accordance with their respective terms. LQMT has the right,
power, and authority to execute and deliver this Agreement and the LQMT’s
Closing Documents and to perform its obligations under this Agreement and the
Buyer’s Closing Documents.

18.         This Agreement shall be governed by and
construed in accordance with the laws of the State of New Jersey, excluding
only those provisions regarding conflicts of law.

IN WITNESS WHEREOF, the
Parties hereto have caused this Agreement to be signed by their authorized
representatives, each intending to be legally bound hereby.

	
  LIQUIDMETAL TECHNOLOGIES INC.

  	
  FOSTER WHEELER ENERGY

  
	
   

  	
  SERVICES,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/

  	
  Larry Buffington

  	
   

  	
  By:

  	
  /s/

  	
  Edward C. Dean

  
	
   

  	
   

  	
  Larry Buffington

  	
   

  	
   

  	
   

  	
  Edward C. Dean

  
	
  Title:

  	
  CEO/President

  	
   

  	
  Title:

  	
  Vice President

  	
   

  
									

                                                

 4

APPENDIX A

ASSETS TO BE SOLD

	
  FRESNO MATERIAL

  	
   

  	
  Thermal
  Spray

  	
   

  	
   

  
	
   

  	
   

  	
  Physical

  	
   

  	
   

  
	
   

  	
   

  	
  Inventory

  	
   

  	
   

  
	
   

  	
   

  	
  5/31/2007

  	
   

  	
   

  

 

	
  MATERIAL

  	
   

  	
  COST CODE

  	
   

  	
  SAN DIEGO -1721

  
	
   

  	
   

  	
   

  	
   

  	
  LBS

  
	
  Armacor M Wire

  	
   

  	
  0

  	
   

  	
  300

  
	
  Armacor CW Wire

  	
   

  	
  1

  	
   

  	
  25

  
	
  Armacor 16 Wire

  	
   

  	
  2

  	
   

  	
  122

  
	
  75B

  	
   

  	
  3

  	
   

  	
  155

  
	
  Duplex SS Wire

  	
   

  	
  4

  	
   

  	
  200

  
	
  Hastalloy C Wire

  	
   

  	
  5

  	
   

  	
  0

  
	
  13610 Wire

  	
   

  	
  6

  	
   

  	
  0

  
	
  5050 Ni Cr Wire

  	
   

  	
  7

  	
   

  	
  480

  
	
  310 SS Wire

  	
   

  	
  8

  	
   

  	
  148

  
	
  HR 160 Wire

  	
   

  	
  9

  	
   

  	
  20

  
	
  Inconel 65 Wire

  	
   

  	
  10

  	
   

  	
  0

  
	
  Ultimet Wire

  	
   

  	
  11

  	
   

  	
  26

  
	
  Fabtuf

  	
   

  	
  12

  	
   

  	
  204

  
	
  26 CA Wire

  	
   

  	
  13

  	
   

  	
  0

  
	
  60T Wire

  	
   

  	
  14

  	
   

  	
  0

  
	
  Armacor M Plasma Powder

  	
   

  	
  15

  	
   

  	
  0

  
	
  Armacor M HVOF Powder

  	
   

  	
  16

  	
   

  	
  90

  
	
  Stellite 31 Powder

  	
   

  	
  18

  	
   

  	
  0

  
	
  JK135 Powder

  	
   

  	
  19

  	
   

  	
  0

  
	
  Ultimet Plasma Powder

  	
   

  	
  21

  	
   

  	
  0

  
	
  Moly Disulfide

  	
   

  	
  23

  	
   

  	
  0

  
	
  1/8” Aluminum Wire

  	
   

  	
  25

  	
   

  	
  0

  
	
  #33 Aluminum

  	
   

  	
  26

  	
   

  	
  0

  
	
  Inconel 625 Wire

  	
   

  	
  27

  	
   

  	
  310

  
	
  Tafa 85T

  	
   

  	
  28

  	
   

  	
  0

  
	
  Nickel Wire

  	
   

  	
  50

  	
   

  	
  680

  
	
  Cormet 1547

  	
   

  	
  51

  	
   

  	
  0

  
	
  Chrome Carb

  	
   

  	
  52

  	
   

  	
  675

  
	
  Duocor

  	
   

  	
  53

  	
   

  	
  654

  
	
  NiCrMo Pow

  	
   

  	
  54

  	
   

  	
  500

  

 

 

	
  45 CT

  	
   

  	
  55

  	
   

  	
  930

  
	
  1260 5050 pow

  	
   

  	
  64

  	
   

  	
  10

  
	
  1265 625 pow

  	
   

  	
  65

  	
   

  	
  0

  
	
  1350v WC

  	
   

  	
  66

  	
   

  	
  0

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16 Grit

  	
   

  	
  29

  	
   

  	
  0

  
	
  Starblast

  	
   

  	
  0

  	
   

  	
   

  
	
  Black Beauty (in Tons)

  	
   

  	
  32

  	
   

  	
   

  

 

 

	
  FRESNO EQUIPMENT

  
	
   

  	
   

  
	
  Tafa-kd398664

  	
   

  
	
  Tafa-ka874995

  	
   

  
	
  Tafa-ka850112

  	
   

  
	
  Tafa-jk678941

  	
   

  
	
  Miller-kj068382

  	
   

  
	
   

  	
   

  
	
  Blastpots

  	
   

  
	
  1-73014

  	
   

  
	
  2-k5287

  	
   

  
	
  3-73020

  	
   

  
	
  4-fw-2

  	
   

  
	
   

  	
   

  
	
  Breathing box

  	
   

  
	
  fwbb-1

  	
   

  
	
   

  	
   

  
	
  Air Header

  	
   

  
	
  sn-n/a

  	
   

  
	
   

  	
   

  
	
  Two Stage Filter

  	
   

  
	
  sn-n/a

  	
   

  
	
  Transformer

  	
   

  
	
  n0009lp314745

  	
   

  
	
   

  	
   

  
	
  Pallet Jack

  	
   

  
	
   

  	
  274848

  
	
   

  	
   

  
	
  Air Dryer

  	
   

  
	
  vxl548

  	
   

  

 

 

	
  VANCOUVER MATERIAL

  	
   

  	
  Thermal
  Spray

  	
   

  	
   

  
	
   

  	
   

  	
  Physical
  

  	
   

  	
   

  
	
   

  	
   

  	
  Inventory

  	
   

  	
   

  
	
   

  	
   

  	
  As of
  5/31/07

  	
   

  	
   

  

 

	
  MATERIAL

  	
   

  	
  COST CODE

  	
   

  	
  VANCOUVER -1725

  
	
   

  	
   

  	
   

  	
   

  	
  LBS

  
	
  Armacor M Wire

  	
   

  	
  0

  	
   

  	
  0

  
	
  Armacor CW Wire

  	
   

  	
  1

  	
   

  	
  0

  
	
  Armacor 16 Wire

  	
   

  	
  2

  	
   

  	
  0

  
	
  75B

  	
   

  	
  3

  	
   

  	
  0

  
	
  Duplex SS Wire

  	
   

  	
  4

  	
   

  	
  0

  
	
  Hastalloy C Wire

  	
   

  	
  5

  	
   

  	
  0

  
	
  13610 Wire

  	
   

  	
  6

  	
   

  	
  0

  
	
  5050 Ni Cr Wire

  	
   

  	
  7

  	
   

  	
  0

  
	
  310 SS Wire

  	
   

  	
  8

  	
   

  	
  0

  
	
  HR 160 Wire

  	
   

  	
  9

  	
   

  	
  0

  
	
  Inconel 65 Wire

  	
   

  	
  10

  	
   

  	
  0

  
	
  Ultimet Wire

  	
   

  	
  11

  	
   

  	
  0

  
	
  Fabtuf

  	
   

  	
  12

  	
   

  	
  0

  
	
  26 CA Wire

  	
   

  	
  13

  	
   

  	
  0

  
	
  60T Wire

  	
   

  	
  14

  	
   

  	
  0

  
	
  Armacor M Plasma Powder

  	
   

  	
  15

  	
   

  	
  0

  
	
  Armacor M HVOF Powder

  	
   

  	
  16

  	
   

  	
  0

  
	
  Stellite 31 Powder

  	
   

  	
  18

  	
   

  	
  0

  
	
  JK135 Powder

  	
   

  	
  19

  	
   

  	
  0

  
	
  Ultimet Plasma Powder

  	
   

  	
  21

  	
   

  	
  0

  
	
  Moly Disulfide

  	
   

  	
  23

  	
   

  	
  0

  
	
  1/8” Aluminum Wire

  	
   

  	
  25

  	
   

  	
  0

  
	
  #33 Aluminum

  	
   

  	
  26

  	
   

  	
  0

  
	
  Inconel 625 Wire

  	
   

  	
  27

  	
   

  	
  150

  
	
  Tafa 85T

  	
   

  	
  28

  	
   

  	
  0

  
	
  Nickel Wire

  	
   

  	
  50

  	
   

  	
  390

  
	
  Cormet 1547

  	
   

  	
  51

  	
   

  	
  0

  
	
  Chrome Carb

  	
   

  	
  52

  	
   

  	
  0

  
	
  Duocor

  	
   

  	
  53

  	
   

  	
  0

  
	
  NiCrMo Pow

  	
   

  	
  54

  	
   

  	
  1,500

  
	
  45 CT

  	
   

  	
  55

  	
   

  	
  875

  
	
  1260 5050 pow

  	
   

  	
  64

  	
   

  	
  0

  
	
  1265 625 pow

  	
   

  	
  65

  	
   

  	
  0

  
	
  1350v WC

  	
   

  	
  66

  	
   

  	
  0

  

 

 

	
  16 Grit

  	
   

  	
  29

  	
   

  	
  1,500

  
	
  Starblast

  	
   

  	
   

  	
   

  	
   

  
	
  Black Beauty (in Tons)

  	
   

  	
  32

  	
   

  	
  0

  

 

 

	
  VANCOUVER EQUIPMENT INVENTORY

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  arc machine  FSI-008

  	
   

  	
   

  	
   

  	
   

  
	
  arc machine RF95885

  	
   

  	
   

  	
   

  	
   

  
	
  arc machine KF817562

  	
   

  	
   

  	
   

  	
   

  
	
  arc machine FSI-010

  	
   

  	
   

  	
   

  	
   

  
	
  blast pot FW  100

  	
   

  	
   

  	
   

  	
   

  
	
  blast pot FW  200

  	
   

  	
   

  	
   

  	
   

  
	
  blast pot

  	
   

  	
   

  	
   

  	
   

  
	
  blast pot

  	
   

  	
   

  	
   

  	
   

  
	
  1 transformer

  	
   

  	
   

  	
   

  	
   

  
	
  1 stepdown transformer

  	
   

  	
   

  	
   

  	
   

  
	
  1 1600cfm air dryer

  	
   

  	
   

  	
   

  	
   

  
	
  1 two stage dryer

  	
   

  	
   

  	
   

  	
   

  
	
  4 arc guns

  	
   

  	
   

  	
   

  	
   

  
	
  4 sets wire boxes

  	
   

  	
   

  	
   

  	
   

  
	
  1 gang box

  	
   

  	
   

  	
   

  	
   

  
	
  1 air header

  	
   

  	
   

  	
   

  	
   

  

 

	
  DOTHAN MATERIAL

  	
   

  	
  Thermal
  Spray

  	
   

  	
   

  
	
   

  	
   

  	
  Physical

  	
   

  	
   

  
	
   

  	
   

  	
  Inventory

  	
   

  	
   

  
	
   

  	
   

  	
  As of 5/31/2007

  	
   

  	
   

  

 

	
  MATERIAL

  	
   

  	
  COST CODE

  	
   

  	
  DOTHAN - 1723

  
	
   

  	
   

  	
   

  	
   

  	
  LBS

  
	
  Armacor M Wire

  	
   

  	
  0

  	
   

  	
  2,775

  
	
  Armacor CW Wire

  	
   

  	
  1

  	
   

  	
  50

  
	
  Armacor 16 Wire

  	
   

  	
  2

  	
   

  	
  1,220

  
	
  75B

  	
   

  	
  3

  	
   

  	
  235

  
	
  Duplex SS Wire

  	
   

  	
  4

  	
   

  	
  0

  
	
  Hastalloy C Wire

  	
   

  	
  5

  	
   

  	
  0

  
	
  13610 Wire

  	
   

  	
  6

  	
   

  	
  487

  
	
  5050 Ni Cr Wire

  	
   

  	
  7

  	
   

  	
  900

  
	
  310 SS Wire

  	
   

  	
  8

  	
   

  	
  0

  
	
  HR 160 Wire

  	
   

  	
  9

  	
   

  	
  0

  
	
  Inconel 65 Wire

  	
   

  	
  10

  	
   

  	
  0

  

 

 

	
  Ultimet Wire

  	
   

  	
  11

  	
   

  	
  0

  
	
  Fabtuf

  	
   

  	
  12

  	
   

  	
  0

  
	
  26 CA Wire

  	
   

  	
  13

  	
   

  	
  20

  
	
  60T Wire

  	
   

  	
  14

  	
   

  	
  305

  
	
  Armacor M Plasma Powder

  	
   

  	
  15

  	
   

  	
  0

  
	
  Armacor M HVOF Powder

  	
   

  	
  16

  	
   

  	
  300

  
	
  Stellite 31 Powder

  	
   

  	
  18

  	
   

  	
  0

  
	
  JK135 Powder

  	
   

  	
  19

  	
   

  	
  0

  
	
  Ultimet Plasma Powder

  	
   

  	
  21

  	
   

  	
  0

  
	
  Moly Disulfide

  	
   

  	
  23

  	
   

  	
  0

  
	
  1/8” Aluminum Wire

  	
   

  	
  25

  	
   

  	
  375

  
	
  #33 Aluminum

  	
   

  	
  26

  	
   

  	
  75

  
	
  Inconel 625 Wire

  	
   

  	
  27

  	
   

  	
  7,150

  
	
  Tafa 85T

  	
   

  	
  28

  	
   

  	
  40

  
	
  Nickel Wire

  	
   

  	
  50

  	
   

  	
  997

  
	
  Cormet 1547

  	
   

  	
  51

  	
   

  	
  1,050

  
	
  Chrome Carb

  	
   

  	
  52

  	
   

  	
  36

  
	
  Duocor

  	
   

  	
  53

  	
   

  	
  10,300

  
	
  NiCrMo Pow

  	
   

  	
  54

  	
   

  	
  297

  
	
  45 CT

  	
   

  	
  55

  	
   

  	
  2,370

  
	
  1260 5050 pow

  	
   

  	
  64

  	
   

  	
  900

  
	
  1265 625 pow

  	
   

  	
  65

  	
   

  	
  670

  
	
  1350v WC

  	
   

  	
  66

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16 Grit

  	
   

  	
  29

  	
   

  	
  10,000

  
	
  Starblast

  	
   

  	
   

  	
   

  	
  34,000

  
	
  Black Beauty (in Tons)

  	
   

  	
  32

  	
   

  	
  800

  

 

DOTHAN EQUIPMENT

1)    K-72787 KTA

2)    NO NUMBER

3). Box Trucks – Quantity 2

4). X-Y Digester/boiler Automation
(Frame & Motors) – Quantity 1

5). Arc Jet Attachments –
Quantity 4

APPENDIX B

PURCHASE PRICE AND PAYMENT SCHEDULE

PURCHASE PRICE:

SEVEN HUNDRED FIFTY THOUSAND
DOLLARS ($750,000.00)

PAYMENT SCHEDULE:

1) DUE ON EFFECTIVE DATE:             THREE HUNDRED THOUSAND DOLLARS ($300,000.00)

2) DUE SIX (6) MONTHS AFTER
EFFECTIVE DATE (1 DEC 2007): ONE HUNDRED THOUSAND DOLLARS ($100,000.00)

3) DUE NINE (9) MONTHS AFTER
EFFECTIVE DATE (1 MAR 2008): ONE HUNDRED THOUSAND DOLLARS ($100,000.00)

4) DUE TWELVE (12) MONTHS AFTER
EFFECTIVE DATE (1 JUN 2008): ONE HUNDRED THOUSAND DOLLARS ($100,000.00)

5) DUE TWENTY-FOUR (24) MONTHS
AFTER EFFECTIVE DATE (1 JUN 2009): ONE HUNDRED FIFTY THOUSAND DOLLARS
($150,000.00)

SUBJECT TO SECURITY AGREEMENT ATTACHED AS EXHIBIT A AND TAX PROVISION

 1
 

APPENDIX C

PROJECT SUBCONTRACTS

West Region

[*] (AL) – Nov ‘07 shop RH & economizer (In progress – Partially
Billed)

Northeast Region

1.               [*] (PA) – Sept ‘07
outage

2.               [*] (WV) – Nov ‘07
warranty

3.               [*] (WV) - Sept ‘07
(LTM)

Central Region

1.               [*] (IA) – Oct ‘07
warranty

2.               [*] (IL) – Sept ‘07

Southeast Region

[*] (SC) — Nov ‘07 outage

 

 2
 

APPENDIX D

STANDARD TERMS AND CONDITIONS OF SUBCONTRACT

 3
 

APPENDIX E

KEY EMPLOYEES

	
  Name

  	
   

  	
  Position

  	
   

  	
  Location

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Melanie Clifton

  	
   

  	
  Administrative Assistant

  	
   

  	
  Dothan, AL

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  David Cole

  	
   

  	
  Operations Manager

  	
   

  	
  Dothan, AL

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ricky Cole

  	
   

  	
  Foreman

  	
   

  	
  Dothan, AL

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Brien Juriga

  	
   

  	
  Superintendent

  	
   

  	
  Vancouver, BC

  

 

 4

SECURITY AGREEMENT

THIS SECURITY AGREEMENT (this “Agreement”)
dated as of June 1, 2007, between the Debtor LIQUIDMETAL TECHNOLOGIES, INC.,
a California corporation having its principal office at 30452 Esperanza, Rancho
Santa Margarita, California 92688 (“LQMT”) identified on the signature page hereto (the “Debtor”) and FOSTER WHEELER ENERGY SERVICES,
INC., a California Corporation having an address at, Perryville
Corporate Park, Clinton, New Jersey 08809-4000 (the “Secured Party”).

W I T N E S S E T H:

WHEREAS, the Secured Party owns
assets in facilities located in Alabama, California and Canada and the Debtor
has purchased such assets pursuant to an Asset Purchase and Sale Agreement;

WHEREAS, concurrently herewith
the Debtor is executing and delivering to and in favor of the Creditor, an
Amended and Restated Asset Purchase and Sale Agreement in the principal amount
of $750,000 to evidence Debtor’s obligation to pay for the Assets on a schedule
provided for in the Asset Purchase and Sale Agreement;

WHEREAS, as a further inducement
for the Secured Party, the Debtor has agreed to execute and deliver this
Agreement, granting the Secured Party a lien on and security interest in the
assets described below subordinated in right to any specified Senior Credit or
Senior Debt Agreement of the Debtor;

NOW, THEREFORE, in consideration
of the foregoing and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

1.             Grant of Security Interest.  As
security for the prompt and complete payment and performance when due of all of
the obligations (whether now existing or hereafter arising) of the Debtor to
the Secured Party hereunder and under the Asset Purchase and Sale Agreement,
the Debtor hereby grants to the Secured Party a security interest in and lien
on those assets described on Schedule A attached hereto, together with
all replacements, substitutions, renewals, proceeds and products thereof
(collectively, the “Collateral”) until such time that the Debtor has paid all
funds due to the Creditor pursuant to the Asset Purchase and Sale Agreement.

2.             Collateral as Security for all Obligations.  All
Collateral heretofore, herein or hereafter granted to the Secured Party by the
Debtor shall secure payment of all of the Obligations whether now existing or
hereafter arising.  The Secured Party
shall be under no obligation to proceed against any or all of the Collateral
before proceeding directly against the Debtor.

 5

3.                                       Events of Default.  Each of
the following shall constitute an “Event of Default” hereunder:

(a)                                  If the Debtor shall fail to pay when due any
Obligations under the Note or any other document evidencing or securing the
Obligations.

4.                                       Remedies.  Upon the occurrence of an
Event of Default, and in addition to any and all other rights and remedies
granted to the Secured Party, at law or in equity (all of which shall be
cumulative and non-exclusive):

(a)                                  The Secured Party may declare all of the
Obligations to be due and payable, whereupon the same shall immediately become
due and payable without presentment, demand, protest or other notice of any
kind, all of which are hereby expressly waived by the Debtor.

(b)                                 All payments received by the Debtor under or in
connection with any of the Collateral shall be held by the Debtor in trust for
the Secured Party, shall be segregated from other funds of the Debtor and shall
forthwith upon receipt by the Debtor be turned over to the Secured Party, in
the same form as received by the Debtor (duly endorsed by the Debtor to the
Secured Party, if required).

(c)                                  (i)                                     The Secured Party may exercise all rights and
remedies of a secured party under the Uniform Commercial Code in effect in the
state in which the Collateral is located (the “UCC”).  Without limiting the generality of the
foregoing, the Secured Party may, without any requirement of notice, setoff any
and all amounts owing by the Debtor to it against any monies or other property
of the Debtor which may now or hereafter be in the Secured Party’s possession
or control, and such right of setoff shall be deemed to have been exercised
immediately upon such Event of Default even if not noted on the Secured Party’s
records until a later time.

(ii)                                  Without limiting the generality of the foregoing,
the Debtor expressly agrees that in any such event, the Secured Party, without
demand of performance or other demand, advertisement or notice of any kind
(except any notice provisions otherwise contained in this Agreement and the
notice specified below of time and place of public or private sale) to or upon
the Debtor or any other person (all and each of which demands, advertisements
and/or notices are hereby expressly waived), may forthwith collect, receive,
appropriate and realize upon the Collateral, or any part thereof, and/or may
forthwith sell, lease, assign, give option or options to purchase, or sell or
otherwise dispose of and deliver the Collateral (or contract to do so), or any
part thereof, in one or more parcels at public or private sale or sales, at any
exchange, brokers’ board or at any of the Secured Party’s offices or elsewhere
at such prices as the Secured Party may deem best, for cash or on credit or for
future delivery without assumption of any credit risk.  The Secured Party shall have the right upon
any such public sale or sales and, to the extent permitted by law, upon any
such private sale or sales, to purchase the whole or any part of the Collateral
so sold, free of any right or equity of redemption in the Debtor which is
hereby waived and released.

(iii)                               The Debtor further agrees, at the Secured Party’s
request, to assemble the Collateral and make it available to the Secured Party
at places which the Secured Party shall reasonably select, whether at the
Debtor’s premises or elsewhere.

 6
 

(iv)                              The Secured Party shall apply the net proceeds of
any realization on the Collateral, after deducting all reasonable costs and
expenses of every kind incurred therein or incidental to the care, safekeeping
or otherwise of any or all of the Collateral or in any way relating to the
rights of the Secured Party hereunder, including reasonable attorney’s fees and
legal expenses, to the payment in whole or in part of the Obligations, in such
order as the Secured Party shall determine in its sole discretion, and only
after paying over such net proceeds and after the payment by the Secured Party
of any other amount required by any provision of law, need the Secured Party
account for the surplus, if any, to the Debtor.

(v)                                 To the extent permitted by applicable law, the
Debtor waives all claims, damages and demands against the Secured Party arising
out of the collection, realization, repossession, retention or sale of the
Collateral.  It is expressly agreed by
the Debtor that, anything herein to the contrary notwithstanding, the Debtor
shall remain liable under each contract, instrument, undertaking, document or
other agreement with respect to or constituting a part of the Collateral in or
under which the Debtor may now or hereafter have any right, title or interest
(each, a “Contract”), to observe and perform all the conditions and obligations
to be observed and performed by it thereunder, all in accordance with and
pursuant to the terms and provisions of each such Contract.  The Secured Party shall not have any
obligation or liability under any Contract by reason of or arising out of this
Agreement or the receipt by the Secured Party of any payment relating to any
Contract pursuant hereto, nor shall the Secured Party be required or obligated
in any manner to perform or fulfill any of the obligations of the Debtor under
or pursuant to any Contract, or to make any payment, or to make any inquiry as
to the nature or the sufficiency of any payment received by it or the
sufficiency of any performance by any party under any Contract, or to present
or file any claim, or to take any action or collect or enforce any performance
or the payment of any amounts which may have been assigned to it or to which it
may be entitled at any time or times.

(vi)                              The Debtor agrees that the Secured Party need not
give more than ten days’ notice of the time and place of any public sale or of
the time after which a private sale may take place and that such notice is
reasonable notification of such matters.

(vii)                           The Debtor shall remain liable for any deficiency
if the proceeds of any collection, realization, sale or disposition of the
Collateral are insufficient to pay all amounts to which the Secured Party is
entitled, the Debtor also being liable for the reasonable fees of any attorneys
employed by the Secured Party to collect such deficiency.

(d)                                 The Secured Party may, to the full extent
permitted by applicable law (i) take immediate possession of the Collateral,
either personally or by means of a receiver appointed by a court of competent
jurisdiction; (ii) at the Secured Party’s option, use, operate, manage and
control the Collateral in any lawful manner; (iii) collect and receive all
rents, income, revenues, earnings, issues and profits therefrom and/or direct
(or require the Debtor to direct) any person from whom the Debtor is entitled
to collect and receive the same to make all payments thereof directly to the
Secured Party or to any other person selected by the Secured Party, and (iv)
maintain, repair, renovate, alter or remove the Collateral as the Secured Party
may determine in its sole discretion.

5.                                       UCC Financing Statements; Further Assurances.  The
Debtor shall execute any UCC financing or continuation statement(s) necessary
or, in the opinion of the Secured Party, advisable to perfect the security
interest created by this Agreement.  The
Debtor hereby authorizes the Secured Party to file any such financing or
continuation statement without the Debtor’s signature to the extent

 7
 

permitted by applicable
law.  From time to time, at the sole
expense of the Debtor, the Debtor shall promptly execute and deliver all
further instruments and documents, and take all further action, that may be
necessary or that the Secured Party may reasonably request in order to perfect
and protect any security interest granted hereby or to enable the Secured Party
to exercise and enforce its rights and remedies hereunder with respect to any
Collateral.  The Debtor hereby appoints
the Secured Party as the Debtor’s attorney-in-fact for the purpose of carrying
out the provisions of this Agreement and taking any action and executing any
instrument (including any UCC financing or continuation statement) which it may
deem necessary or advisable to accomplish the purposes hereof, which
appointment is coupled with an interest and irrevocable.

(a)                                  Governing Law.  This Agreement shall be
governed by and construed in accordance with the internal laws of the State of
New Jersey.

(b)                                 Notices.  All notices hereunder shall be
in writing and hand delivered or sent by certified mail, return receipt
requested, or by a reputable overnight courier providing a receipt against
delivery, to the parties at the addresses set forth herein or such other
address as a party may designate by like notice.  All notices required hereunder shall be
effective upon receipt, if hand delivered; three business days after being sent
by certified mail; or one business day after being sent by overnight courier.

(c)                                  Severability.  In the event that any
provision of this Agreement becomes or is declared by a court of competent
jurisdiction to be illegal, unenforceable or void, the parties agree that this
Agreement shall continue in full force and effect without said provision and
further agree to substitute therefor a valid provision that most closely
approximates the economic effect and intent evidenced by the invalid provision;
provided, that no such severability or substitution shall be effective
if it materially changes the economic benefit of this Agreement to any party.

(d)                                 Counterparts.  This Agreement may be executed
in two or more counterparts, each of which shall be deemed an original, but all
of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the parties
hereto have caused this Agreement to be duly executed as of the date first
above written.

	
  DEBTOR:

  	
   

  	
  SECURED PARTY:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  LIQUIDMETAL
  TECHNOLOGIES, INC.

  	
   

  	
  FOSTER WHEELER ENERGY SERVICES, INC.

  
	
  (Print Name)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Larry
  Buffington

  	
   

  	
  By:

  	
  /s/ Edward C. Dean

  	
   

  
	
   

  	
  Name: Larry Buffington

  	
   

  	
   

  	
   Name: Edward C. Dean

  
	
   

  	
  Title: CEO/President

  	
   

  	
   

  	
   Title: Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
  Address for Notices

  	
  :

  	
   

  	
   

  
	
  Liquidmetal Technologies

  	
   

  	
   

  	
   

  
	
  30452 Esperanza

  	
   

  	
   

  	
   

  
	
  Rancho Santa Margarita, CA 92688

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Attn: Larry Buffington

  	
   

  	
   

  	
   

  
											

 

 8

Schedule
A

Description
of Collateral

All of the Debtor’s right, title and interest in and to
the following, whether now owned or hereinafter acquired, wherever located (in
each case as such terms are defined in the Uniform Commercial Code of Alabama
and California):

(a)           Any and
all tangible and intangible assets and property of the Debtor, limited to all
those assets, inventory and other assets as described in the Amended and
Restated Asset Purchase Agreement between the parties dated June 1, 2007:

(1)           All “Equipment”:

(2)           All “Inventory”;
and

(3)           All
other assets .

(b)           All
replacements, substitutions, renewals, “Proceeds” and “Products” of any of the
foregoing.

 A-1Exhibit
10.65

[*]=                          CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS
BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED.

LIQUIDMETAL LICENSE AGREEMENT

THIS
LICENSE  AGREEMENT (this
“Agreement”) is made and entered into as of the 
1st day of June 1, 2007 (the “Effective Date”), by and between LIQUIDMETAL TECHNOLOGIES, INC., a Delaware corporation
having its principal place of business at 25800 Commercentre Drive, Suite 100,
Lake Forest, CA  92629, USA (“Licensor”),
and GRACE METAL, a Korean
corporation having its principal place of business at Balan Industrial Complex
6-9, Gumunchunri, Hyangnam, Hwasung, Kyungkido, Republic of Korea (“Licensee”).

RECITALS:

A.            Licensor is engaged in
the business of developing, manufacturing, and marketing products made from
Amorphous Alloys (as defined herein).

B.            Licensor has certain
patents, trade secrets, know how and technical information pertaining to the
composition, processing, properties, and applications of Amorphous Alloys.

C.            Licensee desires to
license from Licensor certain patents, trade secrets, know how and technical
information for the limited purpose of producing certain licensed products within
a specified field of use, subject to the terms and conditions of this
Agreement.

D.            On the date hereof,
the parties have entered into an Equipment Purchase Agreement (the “Equipment
Purchase Agreement”) pursuant to which Licensor agrees to sell to Licensee and
Licensee agrees to purchase from Licensor certain manufacturing equipment as
described in the Equipment Purchase Agreement.

AGREEMENTS:

NOW,
THEREFORE, in consideration of the foregoing recitals and the
mutual covenants and agreements set forth herein, Licensor and Licensee agree
as follows:

ARTICLE 1

DEFINITIONS

For purposes of
this Agreement and except as otherwise specifically set forth herein, the
following capitalized terms shall have the following meanings:

1.1.  “Amorphous Alloy” means any one or
more amorphous or semi-amorphous alloys (i.e., metal-based alloys having 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

 1
 

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” shall mean the sale of Licensed Products to companies whose principal
headquarters are located in Korea or whose major operations are located in the
Republic of Korea.

1.5.  
“Field of Use Restrictions”
shall mean and refer to the field of use restrictions set forth in Exhibit B.

1.6.   “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.

1.7.  “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.

1.8.   “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.

1.9.  “Licensed Products” means (i) any
products made from Licensor’s proprietary bulk Amorphous Alloys, except for luxury
goods, certain sporting goods and eyewear (as defined in the agreements entered
into by Licensor prior to the date of this Agreement pursuant to which licenses
to these categories have been granted); 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 this Section 1.8 as listed on Exhibit
D hereto signed by both parties.

1.10.              “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.

 2
 

1.11.              “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.

1.12.              “Margin” shall mean and refer to
Licensee’s margin on Licensed Products calculated in accordance with Exhibit
C.

1.13.              “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.

1.14.              “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.

1.15.              “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.

1.16.              “Recipient” shall mean the party
receiving Confidential Information that is protected under this Agreement.

1.17.              “Representatives” shall mean the
respective directors, officers, employees, financial advisors, accountants,
attorneys, agents, and consultants of a party.

1.18.              “Trademark” shall mean the “Liquidmetal®” mark.

ARTICLE 2

LICENSE GRANT

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
within the Field of Use and 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 in the Field of Use and subject to the Field of Use
Restrictions.  This license shall not
include the right to grant sublicenses.

 3
 

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.

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 a 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:

(a)   Except as otherwise agreed to
by Licensor in writing, all use of the Trademark by Licensee is subject to
Licensor’s standard trademark usage policy in effect from time to time
(provided that Licensor delivers a copy of such policy to Licensee).

(b)   All stylized use of the Trademark shall be solely in the original
logotype identified by Licensor, except as otherwise agreed in writing by
Licensor.

(c)   Licensee
agrees not to affix the Trademark to products other than the Licensed
Products.  Furthermore, Licensee agrees
not to attach any additional trademarks, logos, or designations to the Licensed
Products without the prior written consent of Licensor (which consent will not be
unreasonably withheld.  The “®” icon
shall always follow the Trademark.

(d)   Licensee shall not challenge the validity of Licensor’s rights in and
to the Trademark or the validity of the Trademark or any registration(s)
thereof.  Licensee agrees that it shall
not register or attempt to register the Trademark or any other trademark or
trade name of Licensor, or use or register any other trademark or trade name
which may be confusingly similar to the Trademark or any other trademark or
trade name of Licensor.

(e)   Licensee shall promptly, upon receipt of notice thereof, fully inform
Licensor as to any actual or proposed action, by any governmental agency,
consumer or environmental group, media or other organization, directed toward
removing from the market any Licensed Product based on alleged injury or death,
alleged potential for harm, product defect, alleged contamination, tampering or
similar occurrence, actual or alleged violation of law in connection with
production, labeling, packaging, storage, shipment, advertising or sale, or for
any other reason whatsoever.  Licensee
shall likewise promptly inform Licensor as to any proposal to remove from the
market any such Licensed Product as described above on account of suspected
nonconformity with applicable product quality or safety standards, improper
labeling, possibility of consumer harm, and/or violation of any law or
regulation.  Licensee shall not issue any
public statement stating or implying that Licensor has any responsibility for
the manufacture, packaging, labeling, shipping, advertising or any other
activity related to the sale of Licensed Products, without first reviewing the
same with and seeking the input on the same from Licensor.

 4
 

2.6.  Additional Retained Rights.

(a)   Notwithstanding
the exclusivity set forth in Sections 2.1 and 2.2 above, Licensor shall retain
the right, along with Licensee, to manufacture Licensed Products within the
Field of Use and otherwise within the scope of the licenses granted herein
until the Equipment Completion Date for a period of time thereafter as shall be
necessary to fulfill all customer orders received or solicited prior to the
Equipment Completion Date.  For purposes
hereof, the “Equipment Completion Date” shall mean the date on which the last
piece of purchased equipment under the Equipment Purchase Agreement is
delivered, installed and commissioned by Licensee.  The Licensee shall have the right to utilize
its equipment capacity first as it pertains to the Licensed Products.

(b)   In the event
that Licensee fails during the second Contract Year or any Contract Year
thereafter to generate Net Sales of Licensed Products sufficient to result in
royalties of Five Hundred Thousand U.S. Dollars (U.S. $500,000) hereunder, then
Licensor shall have the right, upon written notice to Licensee at any time
thereafter, to convert the exclusive licenses in Sections 2.1 and 2.2 hereof to
non-exclusive licenses.

ARTICLE 3

LICENSE FEES AND ROYALTIES

3.1.  Royalty Rate.  Licensee agrees to pay Licensor a royalty
equal to ten percent (10%) 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 20% 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.

 5
 

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 Termination.  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.  In the event Licensee terminates this
Agreement for nonpayment of contract manufacturing invoices owed by Licensor
under Section 12, in accordance with the terms of this Agreement, Licensee may
offset royalty payments as described in Section 9.3.

ARTICLE 4

REPORTS AND AUDITS

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.

ARTICLE 5

LICENSOR REPRESENTATIONS AND WARRANTIES

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.

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.

 6
 

ARTICLE 6

LICENSEE WARRANTIES AND INDEMNIFICATION

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, and Licensee agrees that it will at all times hereafter
comply with all laws and regulations (whether national, state, provincial,
local, or international) applicable to the exercise of its licenses hereunder
and the manufacture, sale, and export of Licensed Products.

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.

ARTICLE 7

INTELLECTUAL PROPERTY

7.1.  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
in case Licensor has not 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.

7.2.  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

 7
 

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.

ARTICLE 8

ADDITIONAL MATTERS

8.1.  Alloy Ingots and Raw Material Availability. 
During the term of this Agreement set forth in Section 10.1, Licensor
shall use commercially reasonable efforts to supply Licensee a steady inventory
of Amorphous Alloy ingots and/or raw materials for the exercise of Licensee’s
license hereunder, and Licensee shall purchase Amorphous Alloy ingots and/or
raw materials only from Licensor or any alternative supplier designated by
Licensor.  Licensee shall have the right
to alloy the raw materials and cast the alloy purchased from Licensor or
suppliers approved by Licensor in accordance with the terms of this
Agreement.  Byproduct material which
results from the production process that can be recycled (as determined by
agreement between Licensor and Licensee) may, in Licensor’s sole discretion, be
repurchased by Licensor from Licensee at the same price at which it was
originally sold by Licensor to Licensee. It is the duty of Licensor to use
reasonable commercial efforts to supply Licensee with adequate quantity and
quality of Amorphous Alloy ingots and raw materials upon the pricing and terms
set forth in Section 8.2 below and elsewhere in this Agreement, and Licensor
will use all commercially reasonable efforts to make Amorphous Alloy ingots and
raw materials available on a thirty (30) day notice basis.  If Licensor cannot fulfill in providing
Licensee with adequate quantity and quality of Amorphous Alloy ingots and raw
materials, 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.

8.2.  Amorphous Alloy Ingots and Raw Material Pricing. 
Amorphous Alloy ingots and raw material prices shall be for the material
delivered at Licensee plant and shall be FOB from the Licensor’s facility.  All prices for Amorphous Alloy ingots shall
be subject to quarterly adjustments (based on calendar quarters) upon thirty
days’ prior notice to Licensee and shall be competitive with any other party
purchasing in similar volumes.  Price
adjustments for Amorphous Alloy ingots 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 (an example of an
index of metal commodity prices is set forth in Exhibit E).  Raw materials pricing will be at market rates
at the time of purchase.

ARTICLE 9

TERM AND TERMINATION

9.1.  Term. 
This Agreement shall be in effect from the Effective Date and shall
continue for ten (10) years, unless sooner terminated in accordance with the
terms of this Agreement.  At the end of
the first ten (10) years Term, this Agreement shall be automatically renewed for periods of additional three
years, unless terminated by the Parties with twelve months written notices.

 8
 

9.2.  Early Termination.  Notwithstanding any other provision contained
herein, this Agreement may be terminated as follows:

(a)   Material Breach. 
This Agreement shall terminate on the thirtieth (30th) day after
either party gives the other party written notice of a material breach by the
other party of any term or condition of this Agreement, unless the breach is
cured before that day to the reasonable satisfaction of the non-breaching
party.  The right of a party to terminate
this Agreement shall be in addition to and not in lieu of any other right or
remedy that the terminating party may have at law or in equity.  The failure to timely pay any sales-based
royalties or earned royalties hereunder shall be deemed to be a material breach
under this Agreement. Notwithstanding the foregoing, any breach by Licensee of
any provision of Article 10 hereof shall constitute a material breach entitling
Licensor to immediately terminate this Agreement upon written notice to
Licensee without an opportunity to cure.

(b)   Bankruptcy.  This
Agreement may be terminated immediately by a party in the event the other party
becomes insolvent, files or has filed against it a petition under any chapter
of the United States Bankruptcy Code (or any similar petition under the
insolvency law of an applicable jurisdiction) and such petition is not
dismissed within thirty (30) days, proposes any dissolution, liquidation,
financial reorganization, or re-capitalization with creditors, or makes
an assignment or trust mortgage for the benefit of creditors, or if a receiver,
trustee, custodian, or similar agent is appointed or takes possession of any
property or business of such other party. 
If Licensor shall file a petition of insolvency, Licensee may continue
to exercise its rights under this Agreement so long as the Licensee is not in breach
itself of any terms or conditions of this Agreement.

(c)   Misappropriation. 
This Agreement may be terminated immediately without liability by
Licensor in the event that Licensor has reasonable grounds to believe that
unauthorized use of the Licensed Patents, Licensed Technical Information, or
other Confidential Information of Licensor has been made by Licensee or a
person or party within its control.

9.3.  Effect of Termination.

(a)   Licensee’s Rights Upon Termination.  Upon termination of this Agreement, the
licenses and all other rights granted to Licensee under this Agreement shall
immediately terminate.  If Licensee
terminates this Agreement due to nonpayment for contract manufacturing under
Section 12 and such breach has not been cured within sixty (60) days of written
notice by Licensee to Licensor, then Licensee may offset the Licensor’s unpaid
amount against royalties due to Licensor until such unpaid amounts are fully
recovered by Licensee through this offset.

(b)   Return of Confidential Materials.  Within fifteen (15) days after termination
of this Agreement, Licensee shall return to Licensor all Licensed Technical
Information and other Confidential Information of Licensor then in its
possession, custody or control.

(c)   No Obligation to Refund. 
After termination of this Agreement, Licensor shall have no obligation
to refund any money paid to Licensor under this Agreement. Licensee will be
free to use all its assets relating to the entire business of selling and
manufacturing products using Amorphous Alloys for other purposes than selling
and manufacturing products using Amorphous Alloys. Licensor will re-purchase
all inventory or feedstock then in possession of Licensee or otherwise owned by
Licensee.

(d)   Continuation of Obligations.  After termination of this Agreement, the
provisions of this Agreement concerning the parties’ obligations and
responsibilities under Article 10 (Confidentiality) shall continue in full
force and effect for an additional period of ten (10) years, and
indefinitely for trade secrets; and Licensee’s payment and other obligations
under Section 3 (License Fees and Royalties) shall

 9
 

continue in effect until paid.  In the event Licensor terminates the licenses
granted under this Agreement in accordance with the terms hereof for nonpayment
of royalties or other breach by Licensee, all amounts then owing by Licensee
shall immediately become due and payable.

(e)   No Damages for Termination; No Effect on Other Rights and Remedies.  Neither party shall be liable for damages of
any kind as a result of properly exercising its respective right to terminate
this Agreement according to the terms and conditions of this Agreement, and
termination will not affect any other right or remedy of either party.

ARTICLE 10

CONFIDENTIALITY

10.1.          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.

10.2.          Restrictions on Disclosure and Use.

(a)   Restrictions and Covenants.  Except as otherwise provided herein, each
party agrees that, in its capacity as the Recipient of Confidential
Information, it will (i) hold the Discloser’s Confidential Information in
strict confidence, use a high degree of care in safeguarding the Discloser’s
Confidential Information, and take all precautions necessary to protect the
Discloser’s Confidential Information including, at a minimum, all precautions
the Recipient normally employs with respect to its own Confidential
Information, (ii) not divulge any of the Discloser’s Confidential Information
or any information derived therefrom (including results of tests on material
samples) to any other person (except as set forth in Section 10.2(b)
(Disclosure to Representatives) hereof), (iii) not make any use whatsoever at
any time of the Discloser’s Confidential Information except as is necessary in
the performance of Recipient’s specific duties or the exercise of its rights
under this Agreement, (iv) notify the Discloser in writing immediately upon
discovery by the Recipient or its Representatives of any unauthorized use or
disclosure of the Discloser’s Confidential Information, and (v) upon the
termination or expiration of this Agreement, immediately return to the
Discloser or destroy (at the option of the Recipient) all such Confidential
Information, including all originals, copies and extracts.

(b)   Disclosure to Representatives.  The Recipient may only disseminate the
Discloser’s Confidential Information to its Representatives who have been
informed of the Recipient’s obligations under this Agreement and are bound by
an obligation of confidentiality and non-use with respect to the Discloser’s
Confidential Information at least as broad in scope as the Recipient’s
obligations under this Agreement.  The
Recipient agrees to reasonably restrict disclosure of the Discloser’s
Confidential Information to the smallest number of the Recipient’s
Representatives which have a need to know the Confidential Information.  The Recipient shall be responsible for
enforcing this Agreement as to the Recipient’s Representatives and shall take
such action (legal or otherwise) to the extent necessary to cause them to
comply with this Agreement.

(c)   Trade Secrets.  Any
trade secrets of the Discloser will also be entitled to all of the protections
and benefits of applicable trade secret law, and the Recipient agrees to be
bound by all applicable trade secret laws, unfair competition laws, and any
other similar laws with respect to the Discloser’s Confidential
Information.  If any Confidential
Information that the Discloser deems to be a trade secret is found by a court
of competent jurisdiction not be a trade secret under applicable law, such
Confidential Information will nevertheless still be protected by this
Agreement.

 10
 

(d)   Protection of Licensed Technical Information by Licensee.  Licensee acknowledges and agrees that the
Licensed Technical Information derives economic value from not being generally
known to other persons who can obtain economic value from its disclosure or
use.  Therefore, without the express
written consent of Licensor, Licensee covenants and agrees that it, its
employees, contractors, representatives, successors, assigns, affiliates,
parents, subsidiaries, officers, directors, and the like will (1) hold the
Licensed Technical Information in strict confidence, use a high degree of care
in safeguarding the Licensed Technical Information, and take all precautions
reasonably necessary to protect the Licensed Technical Information including,
without limitation, all precautions Licensee normally takes with respect to its
own most sensitive and confidential information, (2) not divulge any of
the Licensed Technical Information or any information derived therefrom to any
person other than Licensor, (3) not make any use whatsoever at any time of
the Licensed Technical Information except in furtherance of Licensee’s
obligations to Licensor and as necessary to produce Licensed Products in
accordance with the license granted under this Agreement, and (4) notify
Licensor in writing immediately upon discovery of any unauthorized use or
disclosure of the Licensed Technical Information by Licensee or its employees
or any third party.

(e)   Enforcement. 
Licensee acknowledges and agrees that due to the unique nature of the
Licensed Technical Information and other Confidential Information of Licensor,
there can be no adequate remedy at law for any breach of its obligations
hereunder, which breach may result in irreparable harm to Licensor, and
therefore, that upon any such breach or any threat thereof, Licensor shall be
entitled to appropriate equitable relief, including injunction, without the
requirement of posting a bond, in addition to whatever remedies it might have
at law.

(f)    Exceptions. 
Confidential Information does not include information:

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

(ii)           or 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

(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; or

(iv)          is required to be disclosed by Licensor
pursuant to U.S. securities laws.

A specific item of Confidential Information shall not
be deemed to fall within the foregoing exceptions merely because such specific
item is embraced or implied by more general Confidential Information that falls
within the foregoing exceptions.

 11
 

ARTICLE 11

MISCELLANEOUS

11.1.              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.

11.2.              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:

Grace Metal Co., Ltd.

Balan Industrial Complex
6-9

Gumunchunri, Hyangnam

Hwasung, Gyeonggi

Republic of Korea

Attention: James Kang

Phone No.: +82 (31)
366-2303

Fax No.: +82 (31)
366-2306

Or to such other
person or address as Licensee shall furnish to Licensor in writing.

(b)   If to Licensor:

Liquidmetal Technologies,
Inc.

25800 Commercentre Drive,
Suite 100

Lake Forest, California
92630

Attention:  Larry Buffington, President

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.

If personally delivered, such communication shall be
deemed delivered upon actual receipt by the “attention” addressees or persons
authorized to accept for such addressees; if transmitted by facsimile pursuant
to this paragraph, such communication shall be deemed delivered the next
business day after transmission (and sender shall bear the burden of proof of
delivery); if sent by overnight courier pursuant to this paragraph, such
communication shall be deemed delivered upon receipt by the “attention”
addressees or persons authorized to accept for such addressees; and if sent by
mail pursuant to this paragraph, such communication shall be deemed delivered
as of the date of delivery indicated on the receipt issued by the relevant
postal service, or, if the addressee fails or refuses to accept delivery, as of
the date of such failure or refusal.  Any
party to this Agreement may change its address for the purposes of this
Agreement by giving notice thereof in accordance with this paragraph.

 12
 

11.3.              Independent Contractors.  In the 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.

11.4.              Survival. 
Articles 3, 4, 5, 6, 7, 8, 9, 10 and 11, and Section 9.3, 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.

11.5.              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.

11.6.              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.

11.7.              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.

11.8.              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.

11.9.              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.

11.10.            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.

 13
 

11.11.            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.

11.12.            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, Licensor 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 Licensor relating to the subject
matter of this Agreement.  For purposes
hereof, a merger, consolidation, or change in equity ownership of Licensee
shall constitute an “assignment” of this Agreement unless the equity holders of
Licensee on the date of this Agreement continue to hold, as a group, 75% or
more of the total equity interest in Licensee immediately after such merger,
consolidation, or change in equity ownership.

11.13.            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.

11.14.            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.

11.15.            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.

11.16.            Consent Not to be Unreasonably Withheld.  When consent to an action is requested of a
party to this Agreement, unless otherwise specifically provided for in this
Agreement, such consent shall not be arbitrarily or unreasonably withheld.

11.17.            Orders and Inquiries Regarding Licensed Products.  If any person within Korea 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.

ARTICLE
12

CONTRACT MANUFACTURING

12.1.              Contract Manufacturing.  As
an inducement for Licensee to build and maintain capacity on behalf of
Licensor, Licensor agrees to engage Licensee to serve as a contract
manufacturer with respect to Liquidmetal Alloy products that are not Licensed
Products (“Contracted Products”). 
Licensor agrees to pay to Licensee a price for Contracted Products such
that Licensee earns a twenty percent (20%) gross margin on the cost incurred by
Licensee for production of Contracted Products. 
The gross margin shall exclude selling, general and administrative
expenses, but will include appropriate depreciation of the manufacturing assets
and equipment used for the production of Contracted Products.

 14
 

12.2.              Payment Terms. 
Licensor will pay Licensee on a monthly basis within thirty (30) days
following the end of the month in which the Licensee delivers the Contracted
Products.  Licensee will invoice the
Licensor promptly at the end of each month.

12.3.              Minimum Commitment and
Reserved Capacity.  Licensor agrees to commit a minimum of fifty
percent (50%) of its available production to Licensee during the first twelve
(12) months after Licensee is established and ready for production in
China.  During the second twelve (12)
months, the Licensor shall commit a minimum of twenty-five percent (25%) of its
available production to Licensee.  Licensee shall also reserve up to fifty
percent (50%) of its capacity for production of Contracted Products of Licensor
during the first twelve (12) months after Licensee is established and ready for
production in China.  During the second
twelve (12) months, the Licensor shall commit a minimum of thirty-five percent
(35%) of its available capacity to Licensor.

IN WITNESS WHEREOF,
the parties have caused this Agreement to be executed by their duly authorized
representatives as of the Effective Date set forth above:

	
  

  	
   

  	
  GRACE METAL

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ James Kang

  	
   

  
	
   

  	
   

  	
   

  	
  James Kang,
  President / Chairman

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LIQUIDMETAL TECHNOLOGIES, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Larry Buffington

  	
   

  
	
   

  	
   

  	
   

  	
  Larry
  Buffington, President

  

 

 15

EXHIBIT A

LICENSED
PATENTS

	
   

  	
   

  	
  US

  Patent #

  	
   

  	
  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

  

 

 16
 

EXHIBIT B

FIELD OF
USE RESTRICTIONS

The licenses granted in Sections 2.1 and 2.2 of this
Agreement are limited as follows:

(a)          On a monthly basis or more frequently,
Licensee will report, in writing, to Licensor the Licensee’s activities related
to Korea-based customers.

(b)         Licensee may only make Licensed Products
through a die-casting process utilizing casting machines that are purchased
from Licensor or that are otherwise approved by Licensor in writing.

(c)          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 and
approved by Licensor).  Licensee may only
utilize its Vacuum Induction Melting Machine for melting of Liquidmetal Alloys
and not for any other use.  Licensee may
not use such feedstock for any purpose other than the exercise of its license
under this Agreement.

(d)         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.

(e)          Licensee will provide space to accommodate
the manufacturing of the Licensed Products in China.  The space provided must be acceptable to
Licensor and, in particular, must be a protected environment restricted from
unauthorized access and viewing. 
Licensee will manufacture Licensed Products only at its facility in
China and not at any other location, and any breach of this limitation will
constitute a material breach of the Agreement.

 17
 

EXHIBIT C

MARGIN

The Margin for each Licensed Product for
purposes of Section 3.1 of this Agreement will be equal to a percentage that is
calculated by dividing, for any particular calendar month (the “Selected Month”),
(i) the Gross Sale Price of the Licensed Product minus the Total Cost of Sale
for the Licensed Products, by (ii) the Gross Sale Price of the Licensed
Product.  For purposes of this
calculation, the following terms shall have the following meanings:

“Gross Sale Price” shall mean the Licensee’s
revenues from sales of the Licensed Product for the Selected Month calculated
in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”).

“Total Cost of Sale” shall mean the sum of
(i) the costs of goods sold on the Licensed Products for the Selected Month
calculated in accordance with GAAP, plus (ii) the Allocated Depreciation for
the Selected Month, minus (iii) royalties payable to Licensor pursuant to this
Agreement.

“Allocated Depreciation” for the Selected
Month with respect to each different Licensed Product shall be calculated by
dividing the Licensee’s aggregate purchase price paid for the Equipment by 60
to arrive at the “Monthly Depreciation Cost,” and then allocating the Monthly
Depreciation Cost to each Licensed Product produced during the Selected Month
(on a model-by-model basis) based on the number of hours of casting-machine
operation utilized with respect to each such product model as a percentage of
the total number of hours of casting-machine available for use, taking into
consideration routine maintenance and machine set-up time, during such Selected
Month with respect to all Licensed Products.. 
Routine maintenance and machine set up time shall not exceed thirty
percent (30%) of the total number of hours of casting-machine hours available
for use.

The cost of services provided by Licensor to
Licensee shall be excluded from “Total Cost of Sale” unless accepted by
Licensee and provided that such services are at levels of competitive services.

 18
 

EXHIBIT D

AMENDMENTS TO SECTION 1.8 - LICENSED PRODUCTS

AMENDMENT
TO LICENSED PRODUCTS

	
  Market

  	
   

  	
  Approved

  Customers

  	
   

  	
  Effective Date

  
	
     

  	
   

  	
   

  	
   

  	
   

  
	
     

  	
   

  	
   

  	
   

  	
   

  
	
     

  	
   

  	
   

  	
   

  	
   

  

 

	
  Approved by Licensor:

  	
   

  	
  LIQUIDMETAL TECHNOLOGIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Larry
  Buffington, President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Approved by
  Licensee:

  	
   

  	
  GRACEMETAL

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  	
   

  
										

 

 19
 

EXHIBIT E

EXAMPLE OF INDEX OF METAL COMMODITY PRICES

For purposes of Section 9.4, an example of
the index of metal commodity prices is provided below :

	
  Raw Material

  	
   

  	
  % Weight

  	
   

  
	
  [*]

  	
   

  	
  [*]

  	
   

  
	
  Total Weight and
  Cost of materials

  	
   

  	
  1,00000

  	
   

  

 

 20

EQUIPMENT PURCHASE AGREEMENT

THIS EQUIPMENT PURCHASE AGREEMENT (this
“Agreement”) is made and entered into this 1st day of June, 2007 (the “Purchase
Date”), by and between

GRACEMETAL, a company
incorporated under the laws of Korea, with legal office in Balan Industrial
Complex 6-9, Gumunchunri, Hyangnam, Hwasung, Kyungkido, Republic of Korea (“Grace
Metal”), and

LIQUIDMETAL TECHNOLOGIES, INC.,
a Delaware corporation (“Liquidmetal”),

Hereinafter, GraceMetal and Liquidmetal are sometimes
referred to individually as a “Party” and together as the “Parties.”

RECITALS:

A.            Liquidmetal
is engaged in the business of developing, manufacturing, and marketing products
made from amorphous alloys, and Liquidmetal utilizes proprietary machines for
the processing of its proprietary bulk amorphous alloys.

B.            Liquidmetal
and GraceMetal are entering into a Liquidmetal License Agreement on the date
hereof (the “License Agreement”), pursuant to which Liquidmetal has
granted to GraceMetal a license (subject to the terms and conditions of the
License Agreement) to make, offer to sell, sell, and export certain products
containing or incorporating, among other things, alloys that now or in the
future are proprietary to Liquidmetal or marketed or sold under the Liquidmetal® brand (collectively, “Liquidmetal Alloys”
or “Liquidmetal® Alloys”).

C.            Upon
the terms and conditions set forth in this Agreement, GraceMetal desires to
purchase from Liquidmetal, and Liquidmetal desires to sell to GraceMetal,
proprietary casting machines and vacuum induction melting machines used in the
production of products made of Liquidmetal Alloys.

AGREEMENTS:

NOW, THEREFORE, in consideration
of the foregoing recitals and the mutual agreements and covenants contained
herein, the Parties agree as follows:

ARTICLE I

PURCHASE OF MANUFACTURING EQUIPMENT

13.1.                        Purchase
and Sale. Upon the terms and conditions herein, Liquidmetal agrees to sell
to GraceMetal, and GraceMetal agrees to buy from Liquidmetal, manufacturing
equipment to be used in the manufacturing of products made from Liquidmetal
Alloys as described more fully in Exhibit A (the “Equipment”).

 1
 

13.2.                        Delivery
of Equipment. Liquidmetal shall ship the Equipment FOB from its facility
through a carrier selected by GraceMetal (with the ultimate destination being
Weihai, China). All shipping costs, insurance and duties from the Liquidmetal
facility shall be paid by and shall be for the account of GraceMetal. Title and
risk of loss to the Equipment shall transfer to GraceMetal at the time of
delivery of the Equipment to GraceMetal’s carrier.  GraceMetal shall insure the Equipment against
loss or damage during shipment in the full amount of the purchase price
hereunder, and the proceeds of such insurance shall be payable to Liquidmetal
to the extent of the portion of the purchase price that has not yet then been
paid.  Evidence of such insurance naming
Liquidmetal as loss payee must be provided by GraceMetal prior to delivery to
GraceMetal’s carrier.  GraceMetal will also maintain insurance on
the Equipment following the shipment thereof in the full amount of the purchase
price against loss or damage at all times prior to making full payment of its
entire obligation to the Liquidmetal, and proceeds of such insurance shall be
payable to the Liquidmetal to the extent of the portion the purchase price that
has not yet been paid.  Evidence of such insurance naming Liquidmetal as
loss payee must be provided by GraceMetal upon delivery of Equipment to
GraceMetal’s carrier.  The parties
acknowledge that Liquidmetal and GraceMetal shall cooperate to determine the
times at which the Equipment will be delivered based on Liquidmetal’s
continuing manufacturing needs and the receipt, installation, and commissioning
by Liquidmetal of new manufacturing equipment, and Liquidmetal and GraceMetal
may elect to deliver the Equipment to GraceMetal on an incremental basis from
time to time.

13.3.                        Price
and Payment Terms. The nonrefundable purchase price for the Equipment is
Two Million U.S. Dollars (U.S. $2,000,000.00) and shall be paid as follows:

(a)   Four
Hundred Thousand U.S. Dollars (U.S. $400,000.00) will be paid as a deposit by
GraceMetal upon the effectiveness of this Agreement.

(b)   The
balance of One Million Six Hundred Thousand U.S. Dollars (U.S. $1,600,000.00)
will be due and payable within thirty (30) days following the completion of the
commissioning of the Equipment as provided in Section 2.2.

(c)   Amounts
owed by Liquidmetal to GraceMetal and/or James Kang (and acknowledged by
Liquidmetal in writing) may be offset against the purchase price of the
Equipment upon the written consent of the Parties.

 2
 

Liquidmetal will maintain a purchase money
security interest in the Equipment until the full purchase price thereof shall
have been paid, and GraceMetal hereby agrees to execute upon Liquidmetal’s
request and at Liquidmetal’s expense any documentation required to protect or
perfect Liquidmetal’s security interest. GraceMetal’s failure to pay any
amounts when due shall give Liquidmetal the right to possession and removal of
the Equipment at any time upon Liquidmetal’s demand. Liquidmetal’s taking of
such possession shall be without prejudice to any other legal remedies
Liquidmetal may have. Should legal action be taken by Liquidmetal for the
collection of the overdue purchase price or any portion thereof, GraceMetal
will reimburse Liquidmetal for all reasonable costs, attorney fees, and other
expenses associated with such collection. 
GraceMetal hereby absolutely and unconditionally guarantees to Liquidmetal,
its successors and assigns the punctual payment when due of all outstanding
amounts due to Liquidmetal under this Agreement.

13.4.                        Delivery
to Site.  The Parties shall instruct
the carrier transporting the Equipment to deliver the Equipment at such site
within a time frame reasonably determined by the Parties.

13.5.                        Usage
Rights and Restrictions. GraceMetal agrees that its use of the Equipment is
subject to the confidentiality provisions and other limitations required by
Liquidmetal and this Agreement, and additionally, GraceMetal agrees that it may
not use the Equipment to cast, alloy, or otherwise process any amorphous alloys
(or composite materials containing amorphous alloys) other than Liquidmetal
Alloys. GraceMetal will have the right to utilize the Equipment only for
internal use and only for the development and production of the Products as
provided in the License Agreement.

1.6                           No
Warranty. THE EQUIPMENT IS BEING PURCHASED “AS IS” AND “WITH ALL FAULTS”
AND WITHOUT WARRANTIES (WHETHER EXPRESS OR IMPLIED) OF ANY KIND, INCLUDING WITHOUT
LIMITATION WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

ARTICLE II

COMMISSIONING OF EQUIPMENT

14.1.              Installation.  Liquidmetal
will provide an installation team to oversee and assist in the installation of
the Equipment at GraceMetal’s site in accordance with the specifications for
the Equipment and in accordance with the site requirements provided by
GraceMetal and approved by Liquidmetal. 
Liquidmetal agrees that the installation team will consist of no less
than two qualified individuals selected by Liiquidmetal.  GraceMetal agrees to provide sufficient
personnel (in terms of number and qualifications) to handle the installation of
the Equipment with the assistance and oversight of Liquidmetal’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 GraceMetal’s facility, all living accommodations and
all food and beverage needs of the installation team during the installation,
testing and commissioning period).

 3
 

14.2.              Commissioning.  The
Parties 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.

(ii)           Drawings of a product  will be provided by Liquidmetal, with such
specifications to be determined by Liquidmetal (the product set forth in such
drawings will be referred to as the “Commissioning Product”).

(iii)          One used mold suitable for manufacturing the
Commissioning Product for use in the commissioning process will be provided by
Liquidmetal.

(iv)          Commissioning will be deemed complete and
acceptable when Liquidmetal 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)           Liquidmetal will provide a team of no less
than two qualified Liquidmetal employees to assist and oversee the
commissioning process, which two employees will be selected by Liquidmetal and
which may or may not be  the same
individuals who are a part of the Liquidmetal installation team.  GraceMetal 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 Liquidmetal commissioning team. 
To enable proper training of the GraceMetal 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 2.2.

14.3.                              Ongoing Support. 
Liquidmetal shall provide GraceMetal ongoing support as reasonably
necessary after commissioning of the Equipment. 
As a part of such support, Liquidmetal will advise and consult with
GraceMetal regarding the use, maintenance and operation of the Equipment,
including by making available a qualified technician available at GraceMetal’s
facility in China at reasonable times and upon reasonable notice.  In connection with the provision of such
support services, GraceMetal 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 Liquidmetal and GraceMetal. 
As a part of this support, for critical situations where the Equipment
is not operational, Liquidmetal will use reasonable commercial efforts to make
available a qualified technician upon five (5) business days’ prior notice, at
GraceMetal’s facility in China.

 4
 

ARTICLE
15

INTELLECTUAL PROPERTY

15.1.                        Confidentiality.
The Parties acknowledge that they are and will be subject to certain
confidentiality obligations set forth in the License Agreement and they further
acknowledge that any disclosures relating to the purchase or delivery of the
Equipment shall be deemed “Confidential Information” within the meaning of the
License Agreement. GraceMetal further understands that the Equipment contains
significant confidential and proprietary know-how and technology that is the sole
and exclusive property of Liquidmetal, and therefore the Equipment itself
(including the design and components thereof) and any information regarding the
Equipment shall be Liquidmetal’s “Confidential Information” that is protected
by Liquidmetal.

15.2.                        New
Intellectual Property. GraceMetal acknowledges that it is subject to the
License Agreement with respect to all New Amorphous Alloy Technology (as
defined in the License Agreement) developed by GraceMetal, either alone or in
conjunction with others, arising from GraceMetal’s use of the Equipment. The
License Agreement will regulate the developments made by GraceMetal.

ARTICLE III

GENERAL

16.1.                        Notices.
All notices required by or referred to in this Agreement shall be in writing
and in the English language and sent by personal delivery, Federal Express (or
other reliable overnight delivery service), facsimile, or U.S. Certified Mail,
postage prepaid, and properly addressed as follows:

If to GraceMetal:                  Grace
Metal Co., Ltd.

Balan Industrial Complex
6-9

Gumunchunri, Hyangnam

Hwasung, Gyeonggi

Republic of Korea

Tel: +82 (31) 366-2303

Fax: +82 (31) 366-2306

Attention: James Kang

If to Liquidmetal:                  Liquidmetal
Technologies, Inc..

25800 Commercentre Drive, Suite 100

Lake Forest, CA 
92630

Tel: +1 (949) 206-8000

Fax: +1 (949) 206-8008

Attention: Larry Buffington

All notices required by or referred to in this
Agreement which are addressed as provided in this Section 3.1 shall be
effective, (a) if sent by personal delivery, upon delivery, (b) if sent by
Federal Express or other reliable overnight delivery service, upon delivery,
(c) if sent by facsimile, upon the sending party’s receipt of electronic
confirmation of successful transmission provided a confirmation copy is sent
within one (1) business day by personal delivery or by

 5
 

Federal Express or other reliable overnight delivery
service. Any Party may change its address for the purposes of this Section 3.1
by giving written notice of such change to the other Parties in the manner
provided for in this Section 3.1.

16.2.                        Governing
Law. This Agreement shall be governed by and interpreted in accordance with
the laws of the State of California, without regard to its conflict of law
principles.

16.3.                        Successors
and Assigns. Neither this Agreement nor any interest herein may be
assigned, in whole or in part, by any Party without the prior written consent
of the other Parties and Liquidmetal Technologies.

16.4.                        Entire
Agreement; Amendment; Severability. This Agreement is the entire agreement
between the Parties with respect to the subject matter hereof and supersedes
any prior oral or written agreements, commitments, drafts, memorandums of
understanding, or other communications with respect to the subject matter of
this Agreement. This Agreement shall be subject to amendment at any time upon
the mutual written agreement of the Parties. Any such amendment shall be in
writing, shall identify the provisions of this Agreement that are to be
amended, and shall be signed by authorized signatories of the Parties. If any
term, provision, covenant or condition of this Agreement is held invalid or
unenforceable for any reason, the remainder of the provision shall continue in
full force and effect as if this Agreement had been executed with the invalid
portion eliminated.

16.5.                        Waiver.
No waiver by any Party of strict compliance with any of the terms and
conditions of this Agreement shall constitute a waiver of any subsequent
failure of any other Party to comply strictly with each and every term and
condition hereof.

16.6.                        Headings;
Counterparts. The section headings in this Agreement are for convenience
only and are not intended to affect the meaning or interpretation of this
Agreement. 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.

3.7                           Intended
Beneficiary.  The Parties agree and
acknowledge that Liquidmetal is an intended third-party beneficiary of each
Parties’ obligations and duties hereunder and that Liquidmetal shall have the
right to enforce any of the provisions of this Agreement.

 6
 

IN WITNESS WHEREOF,
the Parties have caused their duly authorized representatives to execute this
Agreement as of the Effective Date.

	
  Liquidmetal Technologies, Inc.

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Larry Buffington

  	
   

  
	
  Name: Larry Buffington

  	
   

  
	
  Title: President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  GraceMetal

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ James Kang

  	
   

  
	
  Name:   James
  Kang

  	
   

  
	
  Title:

  	
  President & Chairman

  	
   

  
						

 

 7
 

EXHIBIT A

EQUIPMENT

	
  Quantity

  	
   

  	
  Description

  
	
  3

  	
   

  	
  50 Kg Simple Type Vacuum Induction Melting Machine

  
	
  1

  	
   

  	
  100 Kg Tilting Type Vacuum Induction Melting Machine

  
	
  14

  	
   

  	
  Die Casting Machines

  
	
  2

  	
   

  	
  CNC Milling Machines

  
	
  5

  	
   

  	
  Supporting Machines (Mold Shop)

  

 

 8

Exhibit 10.65

TRANSFER AGREEMENT REGARDING WEIHAI OPERATIONS

THIS TRANSFER  AGREEMENT (this “Agreement”) is made and entered into this 1st day
of June, 2007 (the “Agreement Date”), by and between LIQUIDMETAL
TECHNOLOGIES KOREA CO., LTD., a South Korean
corporation (“LMTK”) and GRACE  METAL CO.,
LTD., also a South Korean corporation (“Grace Metal”).  Hereinafter, Grace Metal and LMTK are sometimes referred to
individually as a “Party” and together as the “Parties.”

RECITALS:

A.    LMTK, a wholly-owned subsidiary of Liquidmetal
Technologies, Inc. (“LMT”), is engaged in the business of developing,
manufacturing, and marketing products made from amorphous alloys, and LMTK
utilizes proprietary machines for the processing of its proprietary bulk
amorphous alloys.

B.    In connection with the License Agreement and Equipment
Purchase Agreement dated June 1, 2007 between LMT, a parent company of LMTK,
and Grace Metal, this Agreement clarifies the understanding of the Parties with
regard to the LMTK’s post-processing operation located in Weihai, China.

C.    Upon the terms and conditions set forth in this Agreement, Grace Metal
desires to assume from LMTK, LMTK desires to transfer to Grace Metal, the operating and financial responsibility of
the Weihai operation.

AGREEMENTS:

NOW, THEREFORE, in consideration
of the foregoing recitals and the mutual agreements and covenants contained
herein, the Parties agree as follows:

Article I

Transfer of WEIHAI
OPERATIONS

1.1.  General
Assumption of Operational and Financial Responsibility.  Effective as of June 1, 2007, GraceMetal
became completely responsible for the operational and financial management of
the Weihai operations.  GraceMetal agrees
to employ all of the personnel at the Weihai operations as of June 1, 2007 and
assume any liability with regards to their employment, such as health, welfare
and retirement benefits.  GraceMetal
further agrees to assume responsibility for all expenses incurred on or after
June 1, 2007 with regards to the Weihai operation.  LMTK agrees not to seek reimbursement for the
prepaid rent of the Weihai facility.

1.2.  Post-Processing
for LMTK.  As an inducement to LMTK
to enter into this Agreement, GraceMetal commits to provide post-processing of
products for LMTK.  For existing
products, current pricing will prevail. 
For new products, GraceMetal will provide quotations based upon product
specifications provided by LMTK. 
GraceMetal agrees to provide 

 1
 

post-processing of products for LMTK which meet specifications,
workmanship standards and quality requirements with on-time delivery and at
competitive market rates.

1.3.  Addition of Certain Equipment Located in Weihai.  Exhibit A of the Equipment Purchase Agreement
dated June 1, 2007 describes the equipment to be used in the manufacturing of
products made of Liquidmetal Alloys to be purchased by GraceMetal.  Exhibit A to this Agreement lists certain
additional equipment located in Weihai which the Parties wish to add to and
make a part of Exhibit A of the Equipment Purchase Agreement dated June 1,
2007.

1.4.  Laser Marking Machines.  Exhibit
A to this Agreement specifically omits all laser marking machines at Weihai
which will remain the property of LMTK. 
GraceMetal agrees to house the laser marking machines at its facility in
Weihai and utilize those laser marking machines only on projects for LMT and
LMTK.

1.5.  Inventory. All inventory
located in Weihai shall remain the property of LMT or LMTK including, but not
limited to, any finished goods, work-in-process, raw material, scrap parts,
defect parts, samples and the like. 
GraceMetal may issue purchase orders to LMTK for work-in-process
inventory that may be completed and sold pursuant to the License Agreement
dated June 1, 2007 between the Parties.

1.6.  Corporate Records.  LMT and LMTK presently maintain corporate records
in Weihai.  GraceMetal agrees that these
corporate records will be maintained in good order.  In addition, GraceMetal agrees to grant LMT
and LMTK personnel, auditors and other representatives with access to corporate
and financial records in Weihai upon reasonable notice during working hours.

Article II

GENERAL

2.1.              Notices.  All notices required by or referred to in
this Agreement shall be in writing and in the English language and sent by
personal delivery, Federal Express (or other reliable overnight delivery
service), facsimile, or a certified mail, postage prepaid, and properly addressed as follows:

If to Grace Metal:                             Grace Metal Co., Ltd

Balan Industrial Complex 6-9

Gumunchunri, Hyangnam

Hwasung, Gyeonggi

Republic of Korea

Tel:     +82 (31)
366-2303

Fax:     +82 (31)
366-2306

Attention:
James Kang

If to LMTK:                                      Liquidmetal
Korea Co., Ltd.

884 EoyeonHansan

Cheongbuk, Pyeongtaek

Gyeonggi, Republic of Korea

Attention:

 2
 

All notices required by or referred to in this
Agreement which are addressed as provided shall be effective, (a) if sent by
personal delivery, upon delivery, (b) if sent by Federal Express or other
reliable overnight delivery service, upon delivery, or (c) if sent by
facsimile, upon the sending party’s receipt of electronic confirmation of successful
transmission provided a confirmation copy is sent within one (1) business day
by personal delivery or by Federal Express or other reliable overnight delivery
service.

2.2.              Governing Law.
This Agreement shall be governed by and interpreted in accordance with the laws
of the Republic of
Korea, without regard to its conflict of law principles.

2.3.             Successors
and Assigns. Neither this Agreement nor any interest herein may be
assigned, in whole or in part, by any Party without the prior written consent of
the other Parties and LMTK.

2.4.              Entire
Agreement: Severability. This Agreement is the
entire agreement between the Parties with respect to the subject matter hereof
and supersedes any prior oral or written agreements.  If any term, provision, covenant or condition
of this Agreement is held invalid or unenforceable for any reason, the
remainder of the provision shall continue in full force and effect as if this
Agreement had been executed with the invalid portion eliminated.

2.5.              Waiver.
No waiver by any Party of strict compliance with any of the terms and
conditions of this Agreement shall constitute a waiver of any subsequent
failure of any other Party to comply strictly with each and every term and
condition hereof.

 IN WITNESS WHEREOF, the Parties have caused
their duly authorized representatives to execute this Agreement as of the
Effective Date.

	
   Liquidmetal Technologies Korea Co., Ltd.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ David Choi

  	
   

  	
   

  
	
  Name: David Choi

  	
   

  
	
  Title: GM of
  Casting Business Unit

  	
   

  
	
   

  	
   

  
	
  Grace  Metal Co.,
  Ltd.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Patrick
  Hobum Lee

  	
   

  	
   

  
	
  Name: Patrick
  Hobum Lee

  	
   

  
	
  Title: Chief
  Financial Officer

  	
   

  

 

 3
 

EXHIBIT A

ADDITIONAL EQUIPMENT LOCATED
IN WEIHAI

 

 

Other
included assets:

	
  Description

  	
   

  	
  Serial No

  	
   

  	
  Qty

  	
   

  
	
  Grinding Booth

  	
   

  	
  GB0405-10

  	
   

  	
  6

  	
   

  
	
  CNC Miling Machine

  	
   

  	
  ML01

  	
   

  	
  1

  	
   

  

 

Items
specifically excluded:

	
  Description

  	
   

  	
  Serial No

  	
   

  	
  Qty

  	
   

  
	
  Laser Marking
  Machines

  	
   

  	
  V102-H0102 (Violino2)

  V102E1805

  V100380406

  V1003D0206

  V1003E1406

  	
   

  	
  5

  	
   

  
	
  Video Conference
  Equipment

  	
   

  	
   

  	
   

  	
  1

  	
   

  
	
  Laptops

  	
   

  	
   

  	
   

  	
  3

  	
   

  
	
  Polishing Booth

  	
   

  	
  PB0401-4

  	
   

  	
  4

  	
   

  
	
  Polishing Booth

  	
   

  	
  PB0405-9

  	
   

  	
  5

  	
   

  
	
  Dust Collector

  	
   

  	
  0211023, 0209086

  	
   

  	
  2

  	
   

  
	
  Air Suction
  Blasting Machine

  	
   

  	
  BL01-02

  	
   

  	
  2

  	
   

  
	
  Auto Blasting
  Machine

  	
   

  	
  Hanablast — 0200A

  	
   

  	
  1

  	
   

  
	
  Ultrasonic
  Cleaning Machine

  	
   

  	
  KUS-001

  	
   

  	
  1

  	
   

  
	
  Proector
  (PJ-H3000F)

  	
   

  	
   

  	
   

  	
  1

  	
   

  
	
  Auto Blasting
  Machine

  	
   

  	
  Hanablast — 0200B

  	
   

  	
  1

  	
   

  
	
  Wheel Plate
  Machine (Jaras)

  	
   

  	
   

  	
   

  	
  1

  	
   

  
	
  Wheel Plate Machine
  (Jaras)

  	
   

  	
   

  	
   

  	
  1

  	
   

  

 

 4

ASSUMPTION OF RETIREMENT
ALLOWANCE AGREEMENT

THIS ASSUMPTION OF RETIREMENT
ALLOWANCE  AGREEMENT  (this “Agreement”) is made
and entered into this 1st day of June, 2007 (the “Agreement Date”), by and between LIQUIDMETAL KOREA CO., LTD., a South Korean
corporation (“LMTK”) and GRACE  METAL CO.,
LTD., also a South Korean corporation (“Grace Metal”).  Hereinafter, Grace Metal and LMTK are sometimes referred to
individually as a “Party” and together as the “Parties.”

RECITALS:

A.            LMTK, a
wholly-owned subsidiary of Liquidmetal Technologies, Inc. (“LMT”), is
engaged in the business of developing, manufacturing, and marketing products
made from amorphous alloys, and LMTK utilizes proprietary machines for the
processing of its proprietary bulk amorphous alloys.

B.            In connection
with the Equipment Purchase Agreement dated June 1, 2007 between LMT, a parent
company of LMTK, and Grace Metal, certain employees of LMTK will join Grace
Metal as full-time employees. 
Accordingly, Grace Metal desires to assume the accrued retirement allowance for the
employees of LMTK who will transfer their employment to Grace Metal, and
provide the same retirement benefit plan for the employees who will transfer to
Grace Metal.

C.            Upon
the terms and conditions set forth in this Agreement, Grace Metal
desires to assume from LMTK, LMTK desires to transfer to Grace Metal, the retirement allowance liability of the employees
of LMTK who will join Grace Metal as full-time employees.

AGREEMENTS:

NOW, THEREFORE, in consideration
of the foregoing recitals and the mutual agreements and covenants contained
herein, the Parties agree as follows:

ARTICLE
III

TRANSFER
OF RETIREMENT
ALLOWANCE

3.1.          Assumption and Transfer of Liability.
Upon the terms and conditions herein, Grace
Metal agrees to assume from LMTK,
and LMTK agrees to transfer to Grace
Metal, the retirement allowance liability
for the employees of LMTK who will join Grace Metal as full-time employees as
described in Exhibit A (the “Employees
of LMTK to Grace Metal”).

3.2.          Retirement
Allowance. In accordance with LMTK’s corporate policy, a retirement allowance is
calculated and accrued for all full-time employees who have continuously worked
for more than one (1) year at LMTK.  For
each year of continuous employment, an amount equivalent to salaries for thirty
(30) working days, based on the employee’s average salaries during the year, is
determined and accrued for by LMTK.  The
Board of Directors of LMTK, however, has the authority to approve an amount
exceeding the 

 1
 

amount
determined using the methodology aforementioned.  For any remaining days between the annual
retirement allowance calculation date and the resignation or termination date,
the retirement allowance shall be calculated proportionately.  For example, at the termination date, if an
employee has worked continuously at LMTK for a period of three (3) years and
five (5) months, the retirement benefit for the 5 month period shall be
calculated as follows:

  5 months

---------------    X  salaries for 30 days.

12 months

3.3.          Assumed Liability Amount. LMTK will prepare and provide Grace Metal a
detail schedule of retirement allowance including but not limited to employees’
name, hiring date, title, national identity number, address and phone number
and past and current annual salaries.  In
addition, LMTK will calculate and provide Grace Metal the retirement allowance
balance for the employees who will transfer from LMTK to Grace Metal as
described in Appendix A within seven (7) business days from the date of
employees’ transfer from LMTK to Grace Metal.

3.4.  Indemnification.  As
of the Agreement Date, Grace Metal shall assume, pay, perform and become
obligated for the retirement allowance liability of the employees
of LMTK who will join Grace Metal as full-time employees.  Grace Metal agrees to indemnify
and hold harmless LMTK, its parent and affiliates from and against any losses,
directly or indirectly, as a result of, in connection with, or based upon or
arising from any of the assumed retirement allowance liability.  Grace Metal shall reimburse LMTK, its parent
or affiliates promptly upon demand for any loss suffered or incurred or
any payment made by LMTK, its parent or affiliates at any time after the Agreement Date as to any loss to which the foregoing
indemnity relates.

ARTICLE
IV

GENERAL

4.1.          Notices.  All notices required by or referred to in
this Agreement shall be in writing and in the English language and sent by
personal delivery, Federal Express (or other reliable overnight delivery
service), facsimile, or a certified mail, postage prepaid, and properly addressed as follows:

	
  If to Grace Metal:

  	
  Grace Metal Co., Ltd

  
	
   

  	
  Balan Industrial Complex 6-9

  
	
   

  	
  Gumunchunri, Hyangnam

  
	
   

  	
  Hwasung, Gyeonggi

  
	
   

  	
  Republic of Korea

  
	
   

  	
   

  
	
   

  	
  Tel:  +82 (31) 366-2303

  
	
   

  	
  Fax:  +82 (31) 366-2306

  
	
   

  	
  Attention: James Kang

  

 

 2
 

 

	
  If to LMTK:

  	
  Liquidmetal Korea Co., Ltd.

  
	
   

  	
  884 EoyeonHansan

  
	
   

  	
  Cheongbuk, Pyeongtaek

  
	
   

  	
  Gyeonggi, Republic of Korea

  
	
   

  	
  Attention:

  

 

All notices required by or referred to in this
Agreement which are addressed as provided shall be effective, (a) if sent by
personal delivery, upon delivery, (b) if sent by Federal Express or other
reliable overnight delivery service, upon delivery, or (c) if sent by
facsimile, upon the sending party’s receipt of electronic confirmation of
successful transmission provided a confirmation copy is sent within one (1)
business day by personal delivery or by Federal Express or other reliable
overnight delivery service.

4.2.          Governing
Law. This Agreement shall be governed by and interpreted in accordance with
the laws of the Republic
of Korea, without regard to its conflict of law principles.

4.3.          Successors
and Assigns. Neither this Agreement nor any interest herein may be
assigned, in whole or in part, by any Party without the prior written consent
of the other Parties and LMTK.

4.4.          Entire
Agreement: Severability. This Agreement is the
entire agreement between the Parties with respect to the subject matter hereof
and supersedes any prior oral or written agreements.  If any term, provision, covenant or condition
of this Agreement is held invalid or unenforceable for any reason, the
remainder of the provision shall continue in full force and effect as if this
Agreement had been executed with the invalid portion eliminated.

4.5.          Waiver.
No waiver by any Party of strict compliance with any of the terms and
conditions of this Agreement shall constitute a waiver of any subsequent
failure of any other Party to comply strictly with each and every term and
condition hereof.

IN WITNESS WHEREOF,
the Parties have caused their duly authorized representatives to execute this
Agreement as of the Effective Date.

	
  Liquidmetal Korea
  Co., Ltd.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By: /s/ David
  Choi

  	
   

  
	
  Name: David Choi

  	
   

  
	
  Title: GM of
  Casting Business Unit

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Grace  Metal Co.,
  Ltd.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:/s/ Patrick
  Hobum Lee

  	
   

  
	
  Name: Patrick
  Hobum Lee

  	
   

  
	
  Title: Chief
  Financial Officer

  	
   

  

 

 3
 

EXHIBIT A

EMPLOYEES OF LMTK TO GRACE
METAL

	
  Name

  	
   

  	
  Department

  	
   

  	
  Title

  	
   

  	
  Date
  of Hire

  
	
  KYOUNG JIN KIM

  	
   

  	
  Executive

  	
   

  	
  Representative Director

  	
   

  	
  November 22, 2002

  
	
  SEYONG JEON

  	
   

  	
  CS

  	
   

  	
  Assistant Manager

  	
   

  	
  May 15, 2002

  
	
   SOONHO
  KIM

  	
   

  	
  CS

  	
   

  	
  Assistant Manager

  	
   

  	
  October 1, 2002

  
	
  JUNGHA HWANG

  	
   

  	
  CS

  	
   

  	
  Dept. Assistant
  Manager

  	
   

  	
  October 7, 2002

  
	
   HYUNMI
  KIM

  	
   

  	
  CS

  	
   

  	
  Sawon

  	
   

  	
  October 1, 2004

  
	
   JEONGGIL KIM

  	
   

  	
  CS

  	
   

  	
  Department Manager

  	
   

  	
  October 15, 2004

  
	
   HACHUNG
  JUNG

  	
   

  	
  CS

  	
   

  	
  Sawon

  	
   

  	
  February 13, 2006

  
	
   HYUNLEE
  KIM

  	
   

  	
  CS

  	
   

  	
  Sawon

  	
   

  	
  June 1, 2006

  
	
   NAMYOUNG LEE

  	
   

  	
  Die casting

  	
   

  	
  Assistant Manager

  	
   

  	
  October 1, 2002

  
	
   SUNGHWA
  CHO

  	
   

  	
  Die casting

  	
   

  	
  Section Manager

  	
   

  	
  October 21, 2002

  
	
   DOOHO
  KIM

  	
   

  	
  Die casting

  	
   

  	
  Section Manager

  	
   

  	
  November 11, 2002

  
	
   HYUNWOO
  JO

  	
   

  	
  Die casting

  	
   

  	
  Department Manager

  	
   

  	
  August 1, 2005

  
	
   MINWOO
  KIM

  	
   

  	
  Die casting

  	
   

  	
  Sawon

  	
   

  	
  March 1, 2006

  
	
   JINGU
  SEO

  	
   

  	
  Die casting

  	
   

  	
  Sawon

  	
   

  	
  August 14, 2006

  
	
   HONGJU
  LEE

  	
   

  	
  Die casting

  	
   

  	
  Sawon

  	
   

  	
  October 23, 2006

  
	
   KWANGCHUL
  HAN

  	
   

  	
  Die casting

  	
   

  	
  Sawon

  	
   

  	
  November 7, 2006

  
	
   DONGSOO
  OH

  	
   

  	
  LMC

  	
   

  	
  Assistant Manager

  	
   

  	
  November 25, 2004

  
	
   MINWOO
  LEE

  	
   

  	
  LMC

  	
   

  	
  Sawon

  	
   

  	
  July 1, 2005

  
	
   YUNYUNG
  HAN

  	
   

  	
  LMC

  	
   

  	
  Sawon

  	
   

  	
  February 1, 2006

  
	
   MOONTAE
  KIM

  	
   

  	
  Mold

  	
   

  	
  Department Manager

  	
   

  	
  June 1, 2002

  
	
   JUNGDAE
  KIM

  	
   

  	
  Mold

  	
   

  	
  Section Manager

  	
   

  	
  September 2, 2002

  
	
   BOHYUN
  KIM

  	
   

  	
  Mold

  	
   

  	
  Assistant Manager

  	
   

  	
  October 14, 2002

  
	
   BYUNGKYUN JUNG

  	
   

  	
  Mold

  	
   

  	
  Department Manager

  	
   

  	
  September 1, 2005

  
	
   SANGSIK
  KIM

  	
   

  	
  Mold

  	
   

  	
  Assistant Manager

  	
   

  	
  February 15, 2006

  
	
   CHANSUB
  LEE

  	
   

  	
  Mold

  	
   

  	
  Assistant Manager

  	
   

  	
  March 27, 2006

  
	
   SEUNGPYO RYU

  	
   

  	
  Mold

  	
   

  	
  Sawon

  	
   

  	
  April 1, 2006

  
	
   JANGHO
  KIM

  	
   

  	
  Mold

  	
   

  	
  Sawon

  	
   

  	
  May 29, 2006

  
	
   JUNGHYUNG GO

  	
   

  	
  Mold

  	
   

  	
  Sawon

  	
   

  	
  October 12, 2006

  
	
   SUNGSANG PARK

  	
   

  	
  Outsourcing Management

  	
   

  	
  Department Manager

  	
   

  	
  December 7, 2005

  
	
   JAEDUK
  JANG

  	
   

  	
  Post Processing

  	
   

  	
  Sawon

  	
   

  	
  November 1, 2005

  
	
   JONGBOK
  LIM

  	
   

  	
  Post Processing

  	
   

  	
  Section Manager

  	
   

  	
  April 2, 2003

  
	
   JAEHAK
  YUN

  	
   

  	
  Product Development

  	
   

  	
  Section Manager

  	
   

  	
  December 2, 2002

  
	
   DONGKYU
  LEE

  	
   

  	
  Production Planning

  	
   

  	
  Department Manager

  	
   

  	
  June 13, 2005

  
	
   SUNGCHUL WOO

  	
   

  	
  Sales

  	
   

  	
  Sawon

  	
   

  	
  June 15, 2005

  
	
   SUNGYOL
  PARK

  	
   

  	
  Sales

  	
   

  	
  Assistant Manager

  	
   

  	
  May 1, 2006

  

 

 4

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