PATENT LICENSE AGREEMENT


This  Patent  License Agreement (the "AGREEMENT") is entered into by and between
Integral  Technologies,  Inc.,  a Nevada corporation located at 805 West Orchard
Street,  #7,  Bellingham,  WA  98225  ("INTEGRAL") and  Heatron, Inc. a Missouri
corporation  with  offices  at  3000  Wilson  Avenue,  Leavenworth,  KS  66048
("HEATRON")  and  is  effective  as  of  March  17, 2006 (the "EFFECTIVE DATE").

WHEREAS, Integral is the owner of certain technology, generally characterized as
ElectriPlast  technology;

WHEREAS, particular applications of the technology are covered by certain patent
rights  defined  below  and  those  patent  rights  are  owned  by Integral; and

WHEREAS,  Heatron wishes to obtain a non-exclusive license under such patents to
develop,  manufacture,  and  sell  certain  products.

NOW, THEREFORE, in consideration of the premises and of the mutual covenants and
agreements  herein  contained,  receipt  and  sufficiency  of  which  is  hereby
acknowledged,  the  Parties  hereby  agree  as  follows:

1.   DEFINITIONS.

     a.   "AFFILIATE"  means any corporation or other business entity controlled
          by,  controlling,  or under common control with Heatron, Inc. For this
          purpose,  "control"  means  direct or indirect beneficial ownership of
          stock  sufficient  to  vote on the election of a director, or at least
          fifty  percent  (50%)  interest  in  the income of such corporation or
          other  business  entity.

     b.   "HEATRON"  means Heatron, Inc. and all of its Affiliates collectively.

     c.   "LICENSED PRODUCT" means a product or composition that (i) contains at
          least  one  Product;  (ii)  uses  Raw  Materials;  and (iii) is either
          branded  with  a  Heatron  brand or is designed by Heatron and sold in
          Heatron's  ordinary  course  of  business.

     d.   "PARTY"  means  Heatron  or  Integral  and  when used in plural, means
          Heatron  and  Integral.

     e.   "PATENT  RIGHTS"  means  all  rights  granted  under  the  Patents.

     f.   "PATENTS"  means  all  patent  claims  in the (i) patents, provisional
          patent  applications,  and  utility  patent  applications set forth in
          Exhibit  A;  (ii) any divisions, continuations, continuations-in-part,
          ----------
          reissues,  or re-examinations of such patents and patent applications;
          (iii) all foreign counterparts of the foregoing (i) and (ii); and (iv)
          all  applications  for  any of the foregoing (i) through (iii). Patent
          Rights do not include any patent claim that has either expired or been
          held invalid or unenforceable by a decision of a court or governmental
          agency  of  competent  jurisdiction, which decision is unappealable or
          unappealed  within the time allowed for an appeal, or any other patent
          or  patent  application.

     g.   "PRODUCT"  means any product (i) the manufacture, use, sale, offer for
          sale,  or  import  of  which  is  covered by at least one claim of the
          Patents;  or  (ii)  produced  by  a  process, the practice of which is
          covered  by  at  least  one  claim  of  the  Patents.

     h.   "RAW  MATERIALS"  means the ElectriPlast,TM Technology, as provided by
          Integral  on  a  per  weight  basis  for use in manufacturing Licensed
          Products.

     i.   "TECHNOLOGY"  means Integral's proprietary ElectriPlast,TM technology,
          portions  of  which  may  be  covered  by the Patents. The Technology,
          sometimes  referred  to as ElectriPlast,TM is a compounded, pelletized
          formulation of resin-based materials, which are conductively loaded or
          doped  with a proprietary controlled, balanced concentration of micron
          conductive  materials  contained  within  the manufactured pellet. The
          conductive  loading  or  doping  within  this  pellet  is


                      INTEGRAL PROPRIETARY AND CONFIDENTIAL
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          then  homogenized  using  conventional  molding  techniques  and
          conventional  molding equipment. The resulting polymer is electrically
          conductive.

     j.   "THIRD  PARTY"  means  corporate  entities  or  individuals other than
          Integral  or  Heatron.

2.   TECHNOLOGY  TRANSFER  SERVICES.  Integral  shall  provide  Heatron  with
     commercially  reasonable  technology  transfer  services  related  to  the
     Technology  ("TECHNOLOGY  TRANSFER"),  on a date and at a location mutually
     agreeable  to  the  Parties,  at  Integral's  standard hourly rates for the
     provision  of  technology transfer consulting services. If Heatron requests
     that  all or part of the Technology Transfer take place at facilities other
     than Integral's place of business, Heatron shall reimburse Integral for its
     reasonable  and  actual  meals,  travel, and lodging expenses incurred as a
     result  of  providing  such  Technology  Transfer. Integral may, but is not
     obligated  to,  provide  Heatron  with  certain  pre-existing  or developed
     written  materials  as  part  of the Technology Transfer ("DOCUMENTATION"),
     provided  that  in  no event shall any Documentation be deemed a "work made
     for  hire"  or  any  ownership  rights  in the Documentation be assigned to
     Heatron. By way of clarification, Integral's rights in the Technology under
     U.S.  patent application numbers 10/883,915 and 11/313,915 are not licensed
     under  this  Agreement,  except  as  otherwise  covered  under the Patents.

3.   LICENSE  GRANT.

     a.   To  Heatron.  Integral  grants  to  Heatron  a  non-exclusive,
          -------------
          non-sublicensable, non-assignable, worldwide license, under the Patent
          Rights,  to  (i)  make,  use,  offer  to sell, sell or import Licensed
          Products;  and  (ii)  internally use the Documentation and information
          provided  as  part  of  any Technology Transfer solely for purposes of
          developing  and  manufacturing  Licensed  Products.  However, Integral
          agrees  that Heatron's rights under this section will be exclusive for
          two  years  from  the  Effective  Date. That exclusivity period may be
          extended  by  mutual  agreement  of the parties, as memorialized in an
          amendment  to this Agreement. No other rights are granted hereby under
          any  patent  rights,  copyrights  or  trade  secret  rights  owned  by
          Integral,  including  but  not  limited  to  Integral's  rights in the
          Technology  not  covered  by  the  Patents.

     b.   New  Joint  Developments.  All  technology, information and inventions
          -------------------------
          ("New  Developments"), whether or not patentable, developed jointly by
          Integral  and  Heatron  that  concern  the  Technology  (including the
          manufacture  or  formulation  of  the  Raw  Materials)  shall  be  the
          exclusive  property  of Integral. All New Developments, whether or not
          patentable, developed jointly by Integral and Heatron that concern the
          design  or  manufacture  of  fabricated  products  made  using the Raw
          Materials  shall  be  the exclusive property of Heatron; provided that
          Heatron  shall  have  no rights in the Technology or Patents except as
          provided  pursuant  to  the delivery of Raw Materials by Integral. All
          other  New  Developments  jointly  developed by the Parties under this
          Agreement shall be jointly owned by the Parties; provided that Heatron
          shall  have  no rights in the Technology or Patents except as provided
          pursuant  to  the  delivery  of Raw Materials by Integral. The Parties
          agree to discuss in good faith whether and how to jointly prosecute or
          enforce  any  patents  based  on  jointly  owned New Developments in a
          mutually  agreed  fashion. Neither Party shall be obligated to pay the
          other  any  royalties or other consideration, nor account to the other
          for  any  royalties  or  other  consideration  it may receive, for any
          licenses, assignment, sale, lease or other distribution of the jointly
          owned  New Developments or any derivative technology thereof. Any such
          derivative technology made after the termination or expiration of this
          Agreement shall be owned exclusively by the creator of such derivative
          technology.  Additionally,  regardless  of  subject  matter,  all  New
          Developments  discovered  or  developed  by  one  Party  without  the
          participation of the other Party shall become the sole property of the
          discovering  or  developing Party; provided that Heatron shall have no
          rights in the Technology or Patents except as provided pursuant to the
          delivery  of  Raw  Materials  by  Integral.


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4.   PAYMENTS.

     a.   Up-Front  Payment. Upon execution of this Agreement, Heatron shall pay
          ------------------
          Integral  a  non-refundable  up-front  fee in the amount of One Dollar
          ($1.00).

     b.   Raw  Materials  Fees.  The  Parties agree to use good faith efforts to
          ---------------------
          reach  agreement  on commercially reasonable terms for the pricing and
          delivery  of  the  Raw  Materials  to  Heatron  by  Integral, and that
          agreement regarding the pricing and delivery of Raw Materials shall be
          memorialized  as  an  amendment  to  this  Agreement.

5.   [SECTION  NUMBER  RESERVED  AND  NOT  USED]

6.   ENFORCEMENT  OF  PATENT  RIGHTS.

     a.   Notice; Enforcement. In the event that Heatron becomes aware of actual
          --------------------
          or  threatened  infringement  of  the  Patent  Rights by a Third Party
          involving  Licensed Product, Heatron shall promptly notify Integral in
          writing.  Integral  may,  at  its  discretion,  take corrective action
          against  the  Third  Party,  and may identify Heatron as having rights
          under  the  Patents.  Integral shall not name Heatron as a co-party in
          any  such  action  without  an  express  written request from Heatron.

     b.   Infringement  Action.  In  the  event  Integral brings an infringement
          ---------------------
          action  against  a  Third  Party,  such  action shall be at no cost to
          Heatron  unless Heatron joins the suit as a co-party, and any recovery
          shall  go  solely  to Integral. Heatron is under no obligation to join
          any such action and Integral must approve the addition of Heatron as a
          co-party.

7.   TERM  AND  TERMINATION.

     a.   Term.  This  Agreement  shall  be  in  full  force and effect from the
          -----
          Effective  Date and shall remain in effect until the expiration of the
          last  patent  contemplated  to be licensed by this Agreement, or until
          otherwise  terminated  pursuant  to  the  terms and conditions of this
          Agreement.

     b.   Termination.  Heatron  may  terminate  this Agreement upon thirty (30)
          ------------
          days'  written  notice  at  any  time. Either Party may terminate this
          Agreement  immediately  upon  written  notice at any time if the other
          Party  is  in  material  breach  of  any  material  warranty,  term or
          condition  of this Agreement and has failed to cure that breach within
          thirty  (30) days after written notice thereof. Integral may terminate
          this Agreement upon written notice in the event (i) Heatron institutes
          any action or proceeding in which it claims that any Patent is invalid
          or  unenforceable; or (ii) Heatron institutes any action (including by
          counter  or  cross-claim) alleging that Integral infringes any Heatron
          patent  and/or patent application. The terminating Party will incur no
          liability  to the other Party for damages of any kind resulting solely
          from  terminating  this  Agreement  in  accordance  with  its  terms.

     c.   Effect of Expiration or Termination. Upon expiration or termination of
          ------------------------------------
          this Agreement, (i) Heatron shall pay all sums accrued hereunder prior
          to  such termination, (ii) Integral shall have the right to retain any
          sums  already  paid  by  Heatron,  and  (iii)  Heatron shall return or
          certify  in  writing that it has destroyed all Documentation. Upon the
          termination  of this Agreement, Heatron shall have the right to use or
          sell  all  Licensed  Product  on-hand at the time of such termination,
          provided  that  Heatron  shall be obliged to pay Integral a royalty on
          use  or  such  sales  as  set  forth  in  this  Agreement.

     d.   Survival.  In the event of expiration or termination of this Agreement
          ---------
          for  any  reason, the following sections will survive such termination
          or  expiration:  1,  3(b),  7(d),  and  8  -  11.

8.   WARRANTIES,  REPRESENTATIONS,  AND  COVENANTS;  DISCLAIMER.

     a.   Mutual  Representations  and  Warranties.  Each  Party  represents,
          -----------------------------------------
          warrants,  and  covenants  that:  (i) this Agreement has been duly and
          validly  executed  and delivered by such Party and constitutes a legal
          and  binding  obligation  of  such  Party,  enforceable  against it in
          accordance  with  its  terms;  (ii)


                      INTEGRAL PROPRIETARY AND CONFIDENTIAL
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          such  Party  has  all  necessary  power  and  authority to execute and
          perform  in  accordance  with  this  Agreement; and (iii) such Party's
          execution,  delivery  and  performance  of  this  Agreement  will  not
          conflict  with  or violate any provision of law, rule or regulation to
          which  it is subject, or any agreement or other obligation directly or
          indirectly  applicable  to  such  Party  or  binding  upon its assets.

     b.   Representations  and  Warranties  of Integral. Integral represents and
          ----------------------------------------------
          warrants  that  (i)  it  has the lawful right to grant the license set
          forth herein; and (ii) as of the Effective Date, the patents listed in
          Exhibit  A  are  issued, unexpired, valid according to the U.S. Patent
          and  Trademark  Office  and  in  good  standing.

     c.   Representations,  Warranties,  and  Covenants  of  Heatron.  Heatron
          -----------------------------------------------------------
          warrants  that  it  has  and  will have throughout the Term the lawful
          right  to  grant  the  licenses  contemplated  herein.

     d.   WARRANTY  DISCLAIMER.  EXCEPT  AS  PROVIDED IN SECTIONS 8(A), AND 8(B)
          ---------------------
          ABOVE,  INTEGRAL  EXPRESSLY DISCLAIMS ALL WARRANTIES, EXPRESS, IMPLIED
          OR  STATUTORY,  INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTIES OF
          MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NONINFRINGEMENT,
          ALL  WITH  RESPECT  TO  THE  PATENTS,  DOCUMENTATION,  AND  ANY  OTHER
          MATERIALS  OR  INTELLECTUAL PROVIDED OR LICENSED UNDER THIS AGREEMENT.
          IN  ADDITION,  NOTHING  IN  THIS AGREEMENT SHALL BE CONSTRUED AS (I) A
          WARRANTY OR REPRESENTATION BY INTEGRAL OF THE VALIDITY OR SCOPE OF ANY
          OF  THE  PATENTS  OR  PATENT RIGHTS; (II) A WARRANTY OR REPRESENTATION
          THAT  ANYTHING  MADE,  USED,  SOLD  OFFERED  FOR  SALE,  IMPORTED,  OR
          OTHERWISE  DISPOSED  OF UNDER ANY LICENSE GRANTED IN THIS AGREEMENT IS
          OR SHALL BE FREE FROM INFRINGEMENT OF PATENTS OR PROPRIETARY RIGHTS OF
          THIRD PARTIES; OR (III) AN AGREEMENT BY INTEGRAL TO BRING OR PROSECUTE
          ACTIONS  OR SUITS AGAINST THIRD PARTIES FOR INFRINGEMENT OF THE PATENT
          RIGHTS.

9.   INDEMIFICATION.  Each Party (the "INDEMNIFYING PARTY") will indemnify, hold
     ---------------
     harmless,  and  defend  the  other  Party (the "INDEMNIFIED PARTY") and its
     subsidiary  and  parent  entities, successors, affiliates, and assigns, and
     all of their respective officers, directors, members, stockholders, agents,
     employees,  and  attorneys,  from  any  and  all actions, causes of action,
     suits,  proceedings,  claims,  demands,  judgments,  bona fide settlements,
     penalties,  damages,  losses,  liabilities,  costs, and expenses (including
     without limitation reasonable attorneys' fees and costs and those necessary
     to  interpret  or enforce this Section 9) arising out of or relating to any
     claim or allegation a arising out of (i) the Indemnifying Party's breach of
     this  Agreement,  including  without limitation the warranties set forth in
     Sections  8(a)  and  8(b)  above;  or (ii) in the case where Heatron is the
     Indemnifying  Party, the manufacture, use, or sale of any Licensed Product,
     including, but not limited to any damages, losses or liabilities whatsoever
     with  respect  to  death or injury to any person and damage to any property
     arising  from  the  possession, use or operation of the Licensed Product by
     Heatron  or their customers in any manner whatsoever. The Indemnified Party
     may,  at its expense, employ separate counsel to monitor and participate in
     the  defense  of  any  claim that the Indemnifying Party is defending under
     this  Section.  The  Indemnified  Party will provide the Indemnifying Party
     with reasonably prompt notice in writing of any claim to which this Section
     relates.

10.  CONFIDENTIALITY. A Party receiving Confidential Information (the "RECEIVING
     ---------------
     PARTY")  of  the other Party (the "DISCLOSING PARTY") shall not disclose or
     make  any  use  of  any  of the Disclosing Party's Confidential Information
     except  expressly  as  authorized  in  writing  by  the  Disclosing  Party.
     Authorized  uses  include  use  related  to  the  implementation  of  this
     Agreement.  The  Receiving  Party  agrees  to  take  all  steps  reasonably
     requested  by  the  Disclosing  Party to confirm and protect the Disclosing
     Party's  interests  in  the  Confidential  Information.  For  purposes  of
     clarification,


                      INTEGRAL PROPRIETARY AND CONFIDENTIAL
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<PAGE>
     Confidential  Information  shall not include information that the Receiving
     Party can establish by written evidence: (i) entered or subsequently enters
     the  public  domain  without the Receiving Party's breach of any obligation
     owed  the  Disclosing Party; (ii) became known to the Receiving Party prior
     to  the  Disclosing Party's disclosure of such information to the Receiving
     Party;  (iii)  became known to the Receiving Party from a source other than
     the  Disclosing  Party  other  than  by  the  breach  of  an  obligation of
     confidentiality  owed  to  the  Disclosing  Party; or (iv) is independently
     developed by the Receiving Party without reference to any of the Disclosing
     Party's Confidential Information. The term "Confidential Information" means
     all  non-public  information regarding the Disclosing Party or its business
     activities,  including  without  limitation  (i)  its  sublicensees,
     manufacturers,  contractors,  or  sales,  (ii)  any  non-public information
     disclosed  in  any  report  provided  under  this  Agreement,  (iii)  the
     Documentation  and  any  other  information disclosed during the Technology
     Transfer;  (v)  the  terms  of  this  Agreement;  and  (v)  any information
     disclosed  by  Heatron  pursuant  to  Section  3.

11.  GENERAL.

     a.   Notices. All notices, requests, consents, approvals, or authorizations
          --------
          in  connection  with this Agreement: (i) must be given in writing; and
          (ii)  will  be  deemed  given  as of (a) the day they are delivered on
          paper  by  a  nationally  recognized express delivery service (such as
          Federal  Express  or  DHL), addressed as set forth below; or (b) three
          (3)  days  after  they  are  deposited  in  the sender's national mail
          system,  postage  prepaid,  certified  or  registered,  return receipt
          requested,  and  addressed  as  follows:

          To  Integral: 805 West Orchard Street, #7, Bellingham, WA 98225, Attn:
          -------------
          William  Robinson

          To Heatron:3000 Wilson Avenue, Leavenworth, KS 66048; Attn: Michael W.
          -----------
          Keenan,  CEO

          Either  Party  may  change  the  address above by giving notice to the
          other  Party  pursuant  to  this  Section  11.1.

     b.   Assignment.  Integral  may  assign  this  Agreement  or its rights and
          -----------
          duties  under  this  Agreement,  but  Heatron  may  not  undertake any
          assignment  of  this  Agreement  or any of its rights and duties under
          this  Agreement  without  Integral's  prior  written consent. However,
          Heatron  may  assign  this  Agreement without Integral's prior written
          consent  as  part  of  a  merger,  or  a  sale  or  transfer of all or
          substantially  all  of its assets, provided such merger or sale is not
          with  or  to  a  competitor  of  Integral. Any attempted assignment by
          Heatron  of  this  Agreement  or  all  or  part  of  its rights and/or
          obligations  under  this  Agreement  without  Integral's prior written
          consent (except as provided by the prior sentence) will be voidable at
          Integral's  option.  This  Agreement  will bind each Party's heirs and
          personal  representatives,  and inure to the benefit of each Party and
          its  successors,  heirs  and/or  personal  assigns.

     c.   Dispute  Resolution.  This Agreement will be governed by and construed
          --------------------
          in  accordance  with  the laws of the State of Washington as such laws
          apply  to  contracts performed within Washington by its residents. Any
          dispute  arising under or relating to this Agreement or concerning its
          interpretation  will  be  resolved  exclusively by binding arbitration
          conducted  under  the  Commercial  Arbitration  Rules  of the American
          Arbitration Association. Any such arbitration shall take place in King
          County, Washington. In any action to enforce any right or remedy under
          this  Agreement  or  to interpret any provision of this Agreement, the
          prevailing  Party  will  be  entitled  to recover its costs, including
          attorneys'  fees.

     d.   No  Joint Venture. Nothing in this Agreement will be construed to mean
          ------------------
          that  any  Party  is  appointed  or in any way authorized to act as an
          agent  of  any  other  Party. This Agreement does not create any joint
          venture,  partnership or formal business entity or organization of any
          kind.


                      INTEGRAL PROPRIETARY AND CONFIDENTIAL
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     e.   Waiver. No waiver of any provision of this Agreement will be effective
          -------
          unless it is in a signed writing, and no such waiver will constitute a
          waiver  of  any other provision(s) or of the same provision on another
          occasion.

     f.   Severability.  If  a  court  of competent jurisdiction holds any term,
          -------------
          covenant  or  restriction  of this Agreement to be illegal, invalid or
          unenforceable,  in whole or in part, the Parties agree to negotiate in
          good  faith to create an appropriate amendment to the remaining terms,
          covenants  and  provisions  that will replicate the economic effect of
          the  Parties'  intentions  under  this  Agreement.

     g.   Injunctive  and  Equitable  Relief. Each Party acknowledges and agrees
          -----------------------------------
          that  monetary  damages may not be a sufficient remedy for a breach of
          the  terms  of this Agreement respecting Confidential Information, and
          that such breach will cause the owner of that Confidential Information
          immediate  and  irreparable  injury.  In such cases, the non-breaching
          Party  will  be  entitled,  without  waiving  or prejudicing any other
          rights  or  remedies,  to  injunctive  or  equitable  relief.

     h.   Entire  Agreement;  Amendments.  This  Agreement  is  not  an offer by
          -------------------------------
          Integral  and  it  is not effective until signed by both Parties. This
          Agreement,  including  the  Exhibits  attached  hereto  which  are
          incorporated  by  this  reference,  constitutes  the  entire agreement
          between  the  Parties  with  respect  to the subject matter hereof and
          merges  all  prior  and  contemporaneous communications and proposals,
          whether  electronic, oral or written, between the Parties with respect
          to such subject matter. This Agreement may not be modified except by a
          written  agreement  dated subsequent to the date of this Agreement and
          signed  by  duly  authorized  representatives of Integral and Heatron.

IN  WITNESS  WHEREOF, both Integral and Heatron have executed this Agreement, in
duplicate  originals  by  their  respective  officers  hereunto duly authorized.


----------------------------------------  --------------------------------------
INTEGRAL TECHNOLOGIES, INC.               HEATRON, INC.


By: /s/ William S. Robinson               By: /s/ Michael W. Keenan
    -----------------------                   ---------------------

Title: Chairman and CEO                   Title: CEO
       ----------------                          ---

----------------------------------------  --------------------------------------


                      INTEGRAL PROPRIETARY AND CONFIDENTIAL
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                                    EXHIBIT A

                    LICENSED PATENTS AND PATENT APPLICATIONS

1.     U.S. Patent Application No. 10/819,809 (Publication No. 20040189170)
(Plastilight)  -  Low cost lighting circuits manufactured from conductive loaded
resin-based  materials

2.     U.S. Patent Application No. 10/819,808 (Publication No. 20040188418)
(Plastiheater)  -  Low  cost heating devices manufactured from conductive loaded
resin-based  materials


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