AMENDED AND RESTATED SECURITY AGREEMENT
THIS AMENDED AND RESTATED SECURITY AGREEMENT (this “ Agreement ”) is made
and entered into as of the August 2, 2005, by and between LIQUIDMETAL TECHNOLOGIES, INC., a
Delaware corporation (“ Borrower ”), and COMMONWEALTH ASSOCIATES, L.P., a New York limited
partnership (“CA” or “Agent”) and each other person or entity listed as an “Investor” on Schedule 1 attached to
this Agreement (the “ Investors ” and together with CA the “ Secured Parties ”). Capitalized terms used herein
and not otherwise defined shall have the meanings set forth in that Securities Purchase Agreement of even date
herewith between the Company and the Investors (“ Securities Purchase Agreement ”).
WHEREAS , certain Secured Parties have agreed to purchase Notes from the Borrower
pursuant to the terms of the Securities Purchase Agreement, and certain Secured Parties continue to hold
July 2007 Notes previously issued by the Borrower.
WHEREAS , the Secured Parties have required, as a condition to entering into the Securities
Purchase Agreement, that Borrower grant Secured Parties a first priority security interest in all of Borrower’s
Collateral listed in Exhibit A hereto, and to that end has required the execution and delivery of this Agreement by
WHEREAS , this Agreement shall amend and restate, and supersede in their entirety, the
Security Agreements, dated March 1, 2004 and as amended on July 29, 2004, previously entered into among
the Company and the holders of the July 2005 Notes and July 2006 Notes (the “ Prior Security Agreements ”).
NOW, THEREFORE , in consideration of the mutual covenants and agreements contained in
the Securities Purchase Agreement and herein, the parties hereto, intending to be legally bound, agree as follows:
1. Incorporation of Recitals, Purchase Agreement, and Note . The foregoing Recitals are
hereby incorporated herein in their entirety by this reference.