EMPLOYMENT SEPARATION AGREEMENT
THIS EMPLOYMENT SEPARATION AGREEMENT (this "Agreement") is made and entered into as of the
31st day of December, 2003 (the "Effective Date"), by and between LIQUIDMETAL TECHNOLOGIES,
INC., a Delaware corporation ("Company"), and BRIAN MCDOUGALL, an individual ("Employee").
A. Pursuant to the Employment Agreement, dated May 21, 2001, by and between Company and Employee (the
"Employment Agreement"), Employee is currently employed by Company as Chief Operating and Financial
B. Employee and Company both desire to terminate Employee's employment with Company.
C. Employee and Company have reached agreement on the terms of Employee's departure, and both parties
view their separation as amicable.
NOW, THEREFORE, in consideration of the premises and covenants contained in this Agreement, the parties
hereto, intending to be legally bound, agree as follows:
1. RECITALS. The above recitals are true and correct and are made a part hereof.
2. TERMINATION OF EMPLOYMENT AGREEMENT. Company and Employee hereby agree that, for
purposes of this Agreement, the date of notification of termination and the date of termination of the Employment
Agreement shall be the Effective Date. The Employee will continue to work for the Company in a transitional
capacity as an employee through Feb 27, 2004, at the same monthly salary as paid in December 2003 and
subject to the full benefit package as provided to similarly situated employees in 2004.
3. SEPARATION PAYMENTS. In consideration of Employee's agreement to the terms of this Agreement,
Company will pay Employee the following amounts (the "Separation Payments"):
a. For the period beginning on February 28, 2004 and ending February 28, 2006, (the "Severance Period"),
Company will continue to pay to Employee (or Employee's estate, in the case of his death) a monthly amount
equal to the Employee's monthly base salary of $15,750.00 as in effect as of the date hereof. Such amount shall