THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into effective as of
January 1, 2005, or the date immediately following the filing of the quarterly reports (10-Qs) for 2004, whichever
date is latest, (the “Effective Date”), by and between LIQUIDMETAL TECHNOLOGIES , Inc., a Delaware
corporation (the “Company”), and John K. Thorne (the “Employee”).
WHEREAS, the Employee desires to be employed by the Company upon the terms and conditions set
forth in this Agreement; and
WHEREAS, the Company desires to assure itself of the Employee’s continued employment in the
capacities set forth herein.
NOW, THEREFORE , in consideration of the foregoing recitals and for other good and valuable
consideration, the parties hereto covenant and agree as follows:
1. Employment. The Company hereby employs Employee, and the Employee hereby accepts
such employment, upon the terms and conditions set forth in this Agreement.
2. Term . Subject to the terms and conditions of this Agreement, including, but not limited to, the
provisions for termination set forth in Section 6 hereof, the employment of the Employee under this Agreement
shall commence on the Effective Date and shall continue through the close of business on April 30, 2005 (the “
Initial Term ”). Upon the expiration of the Initial Term, the Employee’s employment with the Company may
continue on a month to month basis, at the same salary, if mutually agreed in writing by the Company and the
Employee at least two weeks prior to each extension. Notwithstanding the expiration of the Initial Term of this
Agreement, the provisions of this Agreement other than those of Sections 2, 4, and 6, Term, Compensation, and
Termination, respectively, shall remain in full force and effect. All other provisions of this Agreement, including
but without limitation, Sections 1, 7, and 8, entitled Employment, Nonsolicitation and Nondisclosure Covenants,