Document:

Management Retention Agreement

  
 Exhibit 10.45 
  
 PALM, INC. 
  
 MANAGEMENT RETENTION AGREEMENT

  
 This Management Retention Agreement (the “Agreement”) is made and entered into by and between
Marianne Jackson (the “Employee”) and Palm, Inc. (the “Company”), effective as of the latest date set forth by the signatures of the parties hereto below (the “Effective Date”). 
  
 R E C I T A L S 
  
 A.    It is expected that the Company from time to time may consider a Change of Control (as defined below). The Board of Directors of the Company (the “Board”) recognizes that such consideration can be
a distraction to the Employee and can cause the Employee to consider alternative employment opportunities. The Board has determined that it is in the best interests of the Company and its stockholders to assure that the Company will have the
continued dedication and objectivity of the Employee, notwithstanding the possibility, threat or occurrence of a Change of Control of the Company. 
  
 B.    The Board believes that it is in the best interests of the Company and its stockholders to provide the Employee with an incentive to continue his employment and to motivate
the Employee to maximize the value of the Company upon a Change of Control for the benefit of its stockholders. 
  
 C.    The Board believes that it is imperative to provide the Employee with severance benefits upon Employee’s termination of employment following a Change of Control which provides the Employee with enhanced
financial security and incentive and encouragement to remain with the Company notwithstanding the possibility of a Change of Control. 
  
 D.    Certain capitalized terms used in this Agreement are defined in Section 5 below. 
  
 The parties hereto agree as follows: 
  
 1.    Term of
Agreement.    This Agreement shall terminate upon the date that all obligations of the parties hereto with respect to this Agreement have been satisfied. 
  
 2.    At-Will Employment.    The Company and the Employee acknowledge that the Employee’s employment is and shall
continue to be at-will, as defined under applicable law, and may be terminated by either party at any time, with or without cause or notice. If the Employee’s employment terminates for any reason, including (without limitation) any termination
prior to a Change of Control, the Employee shall not be entitled to any payments, benefits, damages, awards or compensation other than as provided by this Agreement, or as may otherwise be available in accordance with the Company’s established
employee plans or pursuant to other written agreements with the Company. 

  
 3.    Change of Control Severance Benefits.

  
 (a)    Involuntary Termination other than for Cause, Death or Disability
or Voluntary Termination for Good Reason Following A Change of Control. If, within twelve (12) months following a Change of Control, Employee’s employment with the Company (or any subsidiary thereof) is terminated (i) involuntarily by the
Company (or any subsidiary thereof) other than for Cause, death or Disability or (ii) by the Employee pursuant to a Voluntary Termination for Good Reason, then, subject to Employee entering into a standard form of mutual release of claims with the
Company, the Company shall provide Employee with the following benefits upon such termination: 
  
 (i)    Severance Payment.    A lump-sum cash payment in an amount equal to one hundred percent (100%) of the Employee’s Annual Compensation; 
  
 (ii)    Continued Employee Benefits.    Company-paid health, dental,
vision, long-term disability and life insurance coverage at the same level of coverage as was provided to such Employee immediately prior to the Change of Control and at the same ratio of Company premium payment to Employee premium payment as was in
effect immediately prior to the Change of Control (the “Company-Paid Coverage”). If such coverage included the Employee’s dependents immediately prior to the Change of Control, such dependents shall also be covered at Company expense.
Company-Paid Coverage shall continue until the earlier of (A) two years from the date of termination, or (B) the date upon which the Employee and his dependents become covered under another employer’s group health, dental, vision, long-term
disability or life insurance plans that provide Employee and his dependents with comparable benefits and levels of coverage. For purposes of Title X of the Consolidated Budget Reconciliation Act of 1985 (“COBRA”), the date of the
“qualifying event” for Employee and his or her dependents shall be the date upon which the Company-Paid Coverage commences, and each month of Company-Paid Coverage provided hereunder shall offset a month of continuation coverage otherwise
due under COBRA. 
  
 (iii)    Pro-Rated Bonus
Payment.    A lump-sum cash payment equal to one hundred percent (100%) of the higher of (A) Employee’s target bonus as in effect for the fiscal year in which the Change of Control occurs or (B) Employee’s target
bonus as in effect for the fiscal year in which Employee’s termination occurs, pro-rated by multiplying such bonus amount in clause (A) or (B), as applicable, by a fraction, the numerator of which shall be the number of days prior to
Employee’s termination during such fiscal year, and the denominator of which shall be three-hundred and sixty-five. 
  
 (iv)    Equity Compensation Accelerated Vesting.    One Hundred percent (100%) of the unvested portion of any stock option, restricted stock or other Company equity compensation
held by the Employee shall be automatically accelerated in full so as to become completely vested. 
  
 Notwithstanding the foregoing, in the event the Employee is employed by a subsidiary of the Company at the time of a Spin-Off of such subsidiary, then the Employee shall not be deemed to have been terminated for Cause nor shall
Employee be permitted to terminate his or her employment pursuant to a Voluntary Termination for Good Reason and receive the benefits provided for in this 

 
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 Section 3(a) as a result of such Spin-Off, but rather the Former Subsidiary shall assume the obligations under this Agreement as provided for in
Section 7. 
  
 (b)    Voluntary Resignation; Termination For
Cause.    If the Employee’s employment terminates by reason of the Employee’s voluntary resignation (and is not a Voluntary Termination for Good Reason), or if the Employee is terminated for Cause, then the Employee
shall not be entitled to receive severance or other benefits except for those (if any) as may then be established under the Company’s (or any subsidiary’s) then existing severance and benefits plans or pursuant to other written agreements
with the Company (or any subsidiary thereof). 
  
 (c)    Disability;
Death.    If the Employee’s employment with the Company (or any subsidiary thereof) terminates as a result of the Employee’s Disability, or if Employee’s employment is terminated due to the death of the
Employee, then the Employee shall not be entitled to receive severance or other benefits except for those (if any) as may then be established under the Company’s (or any subsidiary’s) then existing severance and benefits plans or pursuant
to other written agreements with the Company (or any subsidiary thereof). 
  
 (d)    Termination Apart from Change of Control.    In the event the Employee’s employment is terminated for any reason, either prior to the occurrence of a Change of Control or
after the twelve (12) month period following a Change of Control, then the Employee shall be entitled to receive severance and any other benefits only as may then be established under the Company’s (or any subsidiary’s) then existing
severance and benefits plans or pursuant to other written agreements with the Company. 
  
 4.    Golden Parachute Excise Tax. 
  
 (a)    In the event that the benefits provided for in this Agreement or otherwise provided by the Company (or any subsidiary thereof) to the Employee (including, but not by way of limitation, any accelerated
vesting on stock options) (the “Total Payments”) would subject the Employee to an excise tax (the “Excise Tax”) imposed under Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), then the Company
(or any subsidiary thereof that employs the Employee at such time) will pay the Employee (i) an amount sufficient to pay the excise tax, and (ii) an additional amount sufficient to pay the Excise Tax and federal, state and local income and
employment taxes arising from the payments made by the Company (or any subsidiary thereof that employs the Employee at such time) pursuant to this sentence. Any amount required to paid to the Employee pursuant to the preceding sentence shall be
referred to as the “Gross-Up Payment.” 
  
 (b)    The determination of
the Employee’s Excise Tax liability and the amount, if any, required to be paid under this Section 4 will be made in writing by the Company’s independent auditors (the “Accountants”). For purposes of making the calculations
required by this Section 4, the Employee shall be deemed to pay federal, state and local income taxes at the highest marginal rate in effect in the calendar year in which the Gross-Up Payment will be made, based on the Employee’s residence. The
Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The Company (or any subsidiary
thereof that employs the Employee at such time) and the Employee shall furnish to the Accountants such 

 
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 information and documents as the Accountants may reasonably request in order to
make a determination under this Section 4. The Company will pay all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section 4. 
  
 (c)    The Accountants shall determine the Gross-Up Payment as soon as practicable after the Employee’s termination of employment
(but in no event later than 15 days after the termination). In addition, the Accountants shall make a determination of any Gross-Up Payment prior to termination of employment upon written request of the Employee and assuming the Employee has a
reasonable basis for believing that the or she may be entitled to a Gross-Up Payment prior to termination of employment. The Gross-Up Payment shall be paid to the Employee within five days after the Accountants’ determination. In the event that
the initial Gross-Up Payment made to the Employee is finally determined to be too large or small, the following rules shall apply. If the initial Gross-Up Payment was too small, the Company (or any subsidiary thereof that employs the Employee at
such time) shall promptly made an additional payment to the Employee equal to the shortfall (plus any interest, penalties or additional payable by executive with respect to such excess). If the initial Gross-Up Payment is too large, then the
Employee shall repay the amount of the excess to the Company (or any subsidiary that has made such payment to the Employee), plus interest on the amount of such repayment at 120% of the applicable federal rate provided in section 1274 of the Code,
but only to the extent that such repayment by the Employee would result in a dollar-for-dollar reduction in the Executive’s taxable income and wages for purposes of federal, state and local income and employment taxes). The Executive and the
Company (or any subsidiary thereof that employs the Employee at such time) shall each reasonably cooperate with the other in connection with any administrative or judicial proceedings concerning the existence or amount of the Excise Tax with respect
to the Total Payments (and associated income taxes, penalties and interest). 
  
 5.    Definition of Terms.    The following terms referred to in this Agreement shall have the following meanings: 
  
 (a)    Annual Compensation.    “Annual Compensation” shall mean an amount equal to the sum of (i)
the Employee’s annual base salary, and (ii) 100% of the Employee’s Target Bonus, as in effect on the date of the Change of Control or Employee’s termination, in each case, whichever is higher. 
  
 (b)    Target Bonus.    “Target Bonus” shall mean Employee’s
annual bonus, assuming 100% “on target” satisfaction of any objective or subjective performance milestones. 
  
 (c)    Cause.    “Cause” shall mean (i) an act of personal dishonesty taken by the Employee in connection with his responsibilities as an employee and intended to
result in substantial personal enrichment of the Employee, (ii) Employee being convicted of a felony, (iii) a willful act by the Employee which constitutes gross misconduct and which is injurious to the Company (or any subsidiary thereof that
employs the Employee at such time), (iv) following delivery to the Employee of a written demand for performance from the Company (or any subsidiary thereof that employs the Employee at such time) which describes the basis for the Company’s (or
any subsidiary’s) reasonable belief that the Employee has not substantially performed his duties, continued violations by the Employee of the Employee’s obligations to the Company (or any subsidiary thereof that 

 
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 employs the Employee at such time) which are demonstrably willful and deliberate on the Employee’s part.

  
 (d)    Change of Control.    “Change of
Control” means the occurrence of any of the following events: 
  
 (i)    Any
“person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) becomes the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the
Company representing fifty percent (50%) or more of the total voting power represented by the Company’s then outstanding voting securities who is not already such as of the Effective Date of this Agreement; or 
  
 (ii)    The consummation of the sale or disposition by the Company of all or substantially all the
Company’s assets; or 
  
 (iii)    The consummation of a merger or
consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining out-standing
or by being converted into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding
immediately after such merger or consolidation; or 
  
 (iv)    A change in the
composition of the Board occurring within a two-year period, as a result of which fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors” shall mean directors who either (A) are directors of the Company as of
the date upon which this Agreement was entered into, or (B) are elected, or nominated for election, to the Board with the affirmative votes of at least a majority of those directors whose election or nomination was not in connection with any
transaction described in subsections (i), (ii), or (iii) above, or in connection with an actual or threatened proxy contest relating to the election of directors to the Company; or 
  
 (e)    Disability.    “Disability” shall mean that the Employee has been unable to perform his
duties as an employee of the Company (or any subsidiary thereof that employs the Employee at such time) as the result of his incapacity due to physical or mental illness, and such in-ability, at least 26 weeks after its commencement, is determined
to be total and permanent by a physician selected by the Company or its insurers and acceptable to the Employee or the Employee’s legal representative (such Agreement as to acceptability not to be unreasonably withheld). Termination resulting
from Disability may only be effected after at least 30 days’ written notice by the Company (or any subsidiary thereof that employs the Employee at such time) of its intention to terminate the Employee’s employment. In the event that the
Employee resumes the performance of substantially all of his duties hereunder before the termination of his employment becomes effective, the notice of intent to terminate shall automatically be deemed to have been revoked. 
  
 (f)    Former Subsidiary.    “Former Subsidiary” shall mean any
former subsidiary of the Company that ceases to be as such due to a Spin-Off. 

 
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 (g)    Spin-Off.    “Spin-Off” shall mean the distribution of the securities of a subsidiary of the Company to the Company’s stockholders at a time when the Company owns
at least 80% of such subsidiary’s securities. 
  
 (h)    Voluntary
Termination for Good Reason.    “Voluntary Termination for Good Reason” shall mean the Employee voluntarily resigns after the occurrence of any of the following (i) without the Employee’s express written
consent, a material reduction of the Employee’s duties, title, authority or responsibilities, relative to the Employee’s duties, title, authority or responsibilities as in effect immediately prior to such reduction, or the assignment to
Employee of such reduced duties, title, authority or responsibilities; provided, however, that a reduction in duties, title, authority or responsibilities solely by virtue of the Company being acquired and made part of a larger entity (as, for
example, when the Senior Vice-President of a business unit of the Company remains as such following a Change of Control) shall not by itself constitute grounds for a “Voluntary Termination for Good Reason;” (ii) without the Employee’s
express written consent, a material reduction, without good business reasons, of the facilities and perquisites (including office space and location) available to the Employee immediately prior to such reduction; (iii) a reduction by the Company in
the base salary of the Employee as in effect immediately prior to such reduction; (iv) a material reduction by the Company in the aggregate level of employee benefits, including bonuses, to which the Employee was entitled immediately prior to such
reduction with the result that the Employee’s aggregate benefits package is materially reduced (other than a reduction that generally applies to Company employees); (v) the relocation of the Employee to a facility or a location more than
thirty-five (35) miles from the Employee’s then present location, without the Employee’s express written consent; (vi) the failure of the Company to obtain the assumption of this agreement by any successors contemplated in Section 7(a)
below; or (vii) any act or set of facts or circumstances which would, under California case law or statute constitute a constructive termination of the Employee. 
  
 6.    Non-Solicitation.    In consideration for the severance benefits Employee is to receive herein, if any, Employee agrees that he or she will not, at
any time during the one year following his or her termination date, directly or indirectly solicit any individuals to leave the Company’s (or any of its subsidiaries’) employ for any reason or interfere in any other manner with the
employment relationships at the time existing between the Company (or any of its subsidiaries) and its current or prospective employees. 
  
 7.    Assignment. 
  
 (a)    Company’s Successors / Former Subsidiary.    Any successor to the Company (whether direct or indirect and whether by purchase, merger, consolidation, liquidation or
otherwise) to all or substantially all of the Company’s business and/or assets or any Former Subsidiary shall assume the obligations under this Agreement and agree expressly to perform the obligations under this Agreement in the same manner and
to the same extent as the Company would be required to perform such obligations in the absence of a succession. For all purposes under this Agreement, the term “Company” shall include (i) any such successor to the Company’s business
and/or assets which executes and delivers the assumption agreement described in this Section 7(a) or which becomes bound by the terms of this Agreement by operation of law, or (ii) a Former Subsidiary. 

 
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 (b)    Employee’s
Successors.    The terms of this Agreement and all rights of the Employee hereunder shall inure to the benefit of, and be enforceable by, the Employee’s personal or legal representatives, executors, administrators,
successors, heirs, distributes, devisees and legatees. 
  
 8.    Notice. 

 
 (a)    General.    Notices and all other communications
contemplated by this Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or one day following mailing via Federal Express or similar overnight courier service. In the case of the Employee, mailed
notices shall be addressed to him at the home address which he most recently communicated to the Company in writing. In the case of the Company, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed to
the attention of its Secretary. 
  
 (b)    Notice of
Termination.    Any termination of the Employee by the Company (or any subsidiary thereof that employs the Employee at such time) for Cause or by the Employee pursuant to a Voluntary Termination for Good Reason as
contemplated by Section 3(a) shall be communicated by a notice of termination to the other party hereto given in accordance with Section 8(a) of this Agreement. Such notice shall indicate the specific termination provision in this Agreement relied
upon, shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination under the provision so indicated, and shall specify the termination date (which shall be not more than 30 days after the giving of such
notice). The failure by the Employee to include in the notice any fact or circumstance which contributes to a showing of Voluntary Termination for Good Reason shall not waive any right of the Employee hereunder or preclude the Employee from
asserting such fact or circumstance in enforcing his rights hereunder. 
  
 9.    Miscellaneous
Provisions. 
  
 (a)    No Duty to Mitigate.    The
Employee shall not be required to mitigate the value of any benefits contemplated by this Agreement, nor shall any such benefits be reduced by any earnings or benefits that the Employee may receive from any other source. 
  
 (b)    Waiver.    No provision of this Agreement shall be modified, waived
or discharged unless the modification, waiver or discharge is agreed to in writing and signed by the Employee and by two authorized officers of the Company (other than the Employee). No waiver by either party of any breach of, or of compliance with,
any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time. 
  
 (c)    Whole Agreement.    No agreements, representations or understandings (whether oral or written and
whether express or implied) which are not expressly set forth in this Agreement have been made or entered into by either party with respect to the subject matter hereof. This Agreement represents the entire understanding of the parties hereto with
respect to the subject matter hereof and supersedes all prior arrangements and understandings regarding same between the Company and the Employee. 

 
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 (d)    Choice of
Law.    The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of California. 
  
 (e)    Severability.    The invalidity or unenforceability of any provision or provisions of this Agreement
shall not affect the validity or enforceability of any other provision hereof, which shall remain in full force and effect. 
  
 (f)    Counterparts.    This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together will
constitute one and the same instrument. 
  
 [Remainder of Page Intentionally Left Blank] 

 
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 IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case
of the Company by its duly authorized officer, as of the day and year set forth below. 
  
 
	 PALM, INC.
 
	 
	 By:
 	 	 /s/    ERIC A. BENHAMOU
 

	 Title:
 	 	 Chief Executive Officer
 
	 Date:
 	 	  

 
  
 
	 EMPLOYEE
 
	 
	 By:
 	 	 /s/    M. JACKSON
 

	 Title:
 	 	  
	 Date:
 	 	 February 12, 2002
 

 

 
 9EXHIBIT 10.13
                              EMPLOYMENT AGREEMENT

     This  EMPLOYMENT  AGREEMENT  (the "Agreement") is made this 1st day of July
                                                                 ---------------
2002,  by  and  between  INTEGRAL TECHNOLOGIES, INC., a Nevada corporation, with
----
principal  executive  offices located at 805 West Orchard Drive, #3, Bellingham,
Washington  98225  (the  "Company"),  and  WILLIAM  S.  ROBINSON,  an individual
residing at 5843 Olympic Ave, Vancouver, B.C., Canada (the "Executive").

                                    RECITALS

     WHEREAS,  the  parties  have  entered  into  an  Employment Agreement dated
     ---------------------------------------------------------------------------
January 2, 2001.
----------------

     WHEREAS,  the  parties desire that this Agreement replace and supercede all
prior  agreements  between  the Executive and the Company related to the subject
matter  herein.

     NOW,  THEREFORE,  for  and  in  consideration  of  the mutual covenants and
representations and warranties of each other contained herein and other good and
valuable  consideration,  the  receipt  of  which  is  hereby  acknowledged, the
Executive  and  the  Company  agree  as  follows:

                                    ARTICLE I
                                   EMPLOYMENT

     The  Company hereby employs the Executive; and the Executive hereby accepts
such  employment and agrees to serve as an employee and Director of the Company,
subject  to  and  upon  the  terms  and  conditions set forth in this Agreement.

                                   ARTICLE II
                                TITLE AND DUTIES

     (A)     During  the term of employment with the Company, and subject to the
direction  of  the  Board  of  Directors, the Executive shall perform duties and
functions consistent with his employment hereunder as an officer and director of
the Company in the capacity of President, Secretary and Chief Financial Officer,
as  further  defined  in  the Company's bylaws. The Executive shall also perform
duties  and functions consistent with his employment hereunder as an officer and
director  of  each  subsidiary  of  the  Company.

     (B)     The  Executive agrees to devote his best efforts to the performance
of  his  duties  for  the  Company; to render his services to any joint venture,
subsidiary or affiliated business of the Company; to participate in establishing
the  direction  of  the  Company's  business;  and  to  promote  the  Company's
relationships  with  its  employees,  customers  and  others in the business and
financial  communities.

                                                                          Page 1
<PAGE>
                                   ARTICLE III
                                  COMPENSATION

     (A)     The  Company  shall  pay to the Executive $170,000 per year for all
                                                       --------
services to be rendered pursuant to the terms of this Agreement.  Such salary is
payable  in  accordance with the Company's normal payroll procedures.  The Board
of  Directors  may  increase  the  Executive's  salary  from time to time in its
discretion.

     (B)     The  Company  shall  grant the Executive options to acquire 415,000
             -------------------------------------------------------------------
shares  of  the  Company's common stock at an exercise price of $1.00 per share.
  ------------------------------------------------------------------------------
These  options shall be granted pursuant to the Integral Technologies, Inc. 2001
  ------------------------------------------------------------------------------
Stock  Plan.  These  options  shall  be  fully vested on July 1, 2002 and may be
--------------------------------------------------------------------------------
exercised  in  whole  or in part at any time after January 1, 2003.  All options
------------------------------------------------------------------
shall  expire  the  earlier  of  December  31,  2005,  or one year following the
termination  of employment with the Company.  The following terms and conditions
apply  to the options: (i) both the number of options and the exercise price are
subject  to  appropriate  adjustments  in  the  event  of any stock split, stock
dividend  or  other  change  in capital structure affecting the Company's common
stock, (ii) the options and the shares of common stock issuable upon exercise of
the  options  are subject to restrictions on transfer, as required by applicable
federal  and  state  securities  laws; (iii) options which have not vested on or
before  the date of termination of the Executive's employment shall terminate on
such date, and (iv) notwithstanding the expiration date, all vested options must
be  exercised  within  the  earlier of the expiration date of the options or one
year  after  termination  of  the  Executive's  employment.  The  Executive
acknowledges  that as long as he remains an executive officer of the Company, he
shall  be  deemed  an  "affiliate"  and/or  a  "control  person" for purposes of
reporting  and  compliance under the rules and regulations of the Securities and
Exchange  Commission.

     (C)     The  Executive  shall  be eligible to receive bonuses, based on the
extent  the Executive achieves certain goals and objectives, to be determined by
mutual  agreement  between  the  Executive  and  the  Board  of  Directors.

     (D)     The  Board  of  Directors  may  at its discretion from time to time
grant  to the Executive additional options to purchase shares of common stock of
the  Company.

                                   ARTICLE IV
                         WORKING CONDITIONS AND BENEFITS

     (A)     The  Executive shall be entitled to paid vacations during each year
of  his  employment with the Company in accordance with Company practice in that
year.  The  Executive  shall  also be entitled to leave for illness or temporary
disability, subject to the terms of Article VII(B), which may be paid or unpaid,
in  accordance  with  the  policies  of  the  Company  in  effect  at that time.

     (B)     The  Executive  is  authorized  to  incur  reasonable and necessary
expenses  for  promoting  the  business  of  the  Company,  including authorized
expenses  for  entertainment,  travel  and  similar  items.  The  Company  shall
reimburse the Executive in accordance with the policies of the Company in effect
from  time  to time for all such expenses, upon presentation by the Executive of
an  itemized  account  of  such  authorized  expenditures.

                                                                          Page 2
<PAGE>
     (C)     The  Executive  shall  be  employed by the Company at its executive
offices  in Bellingham, Washington.  The Executive shall travel on the Company's
behalf to the extent reasonable and necessary and be reimbursed for such travel.

     (D)      The  Company  shall  provide  to the Executive, to the full extent
provided  for  under  the  laws  of the Company's state of incorporation and the
Company's  bylaws,  indemnification  for  any  claim  or  lawsuit  which  may be
threatened,  asserted  or  commenced against the Executive by reason of the fact
that  he  is or was a director, officer, employee or other agent of the Company,
or  is  or  was  serving  at  the request of the Company as a director, officer,
employee  or  other  agent  of  another corporation, partnership, joint venture,
trust,  or  other  enterprise  or  employee  benefit  plan,  provided  that
indemnification  shall  not  be  provided  in  violation of applicable law.  The
Company  shall also provide the Executive with mandatory advancement of expenses
upon receipt by the Company of Executive's written undertaking to repay any such
amount  advanced if he is ultimately found not to be entitled to indemnification
under  applicable  law.

                                    ARTICLE V
                                 OTHER BENEFITS

     (A)     During  the term hereof, the Executive shall be entitled to receive
such of the following other benefits of employment available to other members of
the  Company's  senior executive management: major medical health benefits, life
insurance  benefits, pension, profit sharing and income protection or disability
plans, in each instance, consistent with the Executive's position.

     (B)     The  Executive shall be entitled to receive an automobile allowance
up  to  $1000  per  month.

                                   ARTICLE VI
                                      TERM

     The  term  of this Agreement shall commence as of July 1, 2002 and continue
                                                       ------------
until  June  30, 2004, unless this Agreement is terminated pursuant to the terms
       --------------
hereof.

                                   ARTICLE VII
                                   TERMINATION

     (A)     The  Executive may voluntarily terminate this Agreement at any time
upon  written  notice  to the Company.  The Executive shall provide at least one
month  advance  notice  to  the Company of his election to voluntarily terminate
this  Agreement.

     (B)     The Company may terminate this Agreement upon written notice to the
Executive  if  the  Executive  becomes  disabled  or suffers an illness and as a
result  of  such  disability  or  illness is substantially unable to perform the
Executive's  duties hereunder for a period of three (3) consecutive months or an
aggregate  of  ninety  (90)  working  days  over a consecutive twelve (12) month
period;  such notice shall be forwarded to the Executive by the Company upon and
after  a  resolution  of  the  Company's  Board  of  Directors  authorizing such
notification.  In  the  event  of  the  Executive's  death, this Agreement shall
terminate  upon  the  date  of  death.

                                                                          Page 3
<PAGE>
     (C)     The  Company  may  terminate  this Agreement for cause upon written
notice  from  the  Company  to  the  Executive  if  the Executive has materially
violated  the  terms  of  this  Agreement  or  committed  acts  of misconduct or
willfully fails to carry out the policies of the Company's Board of Directors or
commits  acts  which  have  a  material  adverse  affect  on the business of the
Company.  Such  notice  shall  be forwarded to the Executive by the Company upon
and  after  a  resolution  of  the Company's Board of Directors authorizing such
notification.

     (D)     In  the  event  that  the  Company terminates the employment of the
Executive  without  cause, then the Executive shall be entitled to severance pay
equal to twelve (12) month's base salary based on the base salary then in effect
at the termination date.  Such severance pay shall be made in one lump sum or in
monthly  installments  on  the  first  day  of  each  month at the option of the
Company.  In  addition,  the  Executive  shall  be  entitled to any prior unpaid
salary  and unreimbursed expenses.  In addition, any and all options to purchase
Company's  stock  held  by  the Executive, but not yet vested, shall immediately
vest.  The  payments contemplated in this paragraph shall completely relieve the
Company  of  any liability to the Executive for any compensation that would have
otherwise  been  payable  to  the  Executive  under the terms of this Agreement.

                                  ARTICLE VIII
                       CONFIDENTIALITY AND NON-COMPETITION

     (A)     All  Company  trade  secrets,  proprietary  information,  software,
software codes, advertising, sales, marketing and other materials or articles of
information,  including  without  limitation  customer  and supplier lists, data
processing  reports,  customer  sales  analyses,  invoices,  price  lists  or
information,  samples,  or  any other materials or data of any kind furnished to
the  Executive  by  the  Company  or developed by the Executive on behalf of the
Company  or  at the Company's direction or for the Company's use or otherwise in
connection  with  the Executive's employment hereunder, are and shall remain the
sole  and  confidential  property  of  the  Company; if the Company requests the
return  of  such  materials  at  any time during or after the termination of the
Executive's  employment, the Executive shall immediately deliver the same to the
Company.

     (B)     During  the  term  of  this Agreement and for a period in which any
severance  payments  are  made, the Executive shall not, directly or indirectly,
either  individually  or  as  owner,  partner,  agent,  employee,  consultant or
otherwise,  except  for  the  account  of  and  on  behalf of the Company or its
affiliates,  engage in any activity competitive with the business of the Company
or  its  affiliates,  nor  shall  he,  in  competition  with  the Company or its
affiliates,  solicit  or otherwise attempt to establish for himself or any other
person,  firm  or  entity,  any  business relationships with any person, firm or
corporation,  which  was,  at  any  time  during  the  term of this Agreement, a
customer  or  employee  of  the  Company  or  one  of  its  affiliates.

     (C)     During  the term of this Agreement and at all times thereafter, the
Executive  shall  not  use  for  personal  benefit,  or disclose, communicate or
divulge  to,  or  use  for  the  direct or indirect benefit of any person, firm,
association  or  entity  other  than  the  Company,  any material referred to in
paragraph  (A) above or any information regarding the business methods, business
policies,  procedures,  techniques, research or development projects or results,

                                                                          Page 4
<PAGE>
trade  secrets, or other knowledge or processes used or developed by the Company
or  any  names  and  addresses of customers or clients or any other confidential
information relating to or dealing with the business operations or activities of
the Company, made known to the Executive or learned or acquired by the Executive
while  in  the  employ  of  the  Company.

                                   ARTICLE IX
                                  SEVERABILITY

     If  any provision of this Agreement shall be held invalid or unenforceable,
the  remainder  of this Agreement shall remain in full force and effect.  If any
provision  is  held  invalid  or  unenforceable  with  respect  to  particular
circumstances,  it  shall  remain  in  full  force  and  effect  in  all  other
circumstances.

                                    ARTICLE X
                                   ARBITRATION

     Any  controversy,  claim  or  dispute  arising  out  of  the  terms of this
Agreement,  or  the breach thereof, shall be settled by arbitration in the State
of  Washington  and  the  award  rendered  thereon  shall  be final, binding and
conclusive  as  to  all  parties  and  may  be entered in any court of competent
jurisdiction.

                                   ARTICLE XI
                                     NOTICE

     Any  notice,  request,  demand  or other communication provided for by this
Agreement  shall  be sufficient if in writing and if delivered in person or sent
by registered or certified mail to the Executive at the last resident address he
has  filed  in  writing  with the Company or, in the case of the Company, at its
principal  executive  offices.

                                   ARTICLE XII
                                     BENEFIT

     This  Agreement  shall  inure  to,  and  shall be binding upon, the parties
hereto,  the  successors  and  assigns of the Company and the heirs and personal
representatives  of  the  Executive.

                                  ARTICLE XIII
                                     WAIVER

     The  waiver  of either party of any breach or violation of any provision of
this  Agreement  shall not operate or be construed as a waiver of any subsequent
breach.

                                                                          Page 5
<PAGE>
                                   ARTICLE XIV
                                  GOVERNING LAW

     This  Agreement has been negotiated and executed in the State of Washington
and  the  laws  of  the State of Washington (except its provisions governing the
choice  of  law)  shall  govern  its  construction  and  validity.

                                   ARTICLE XV
                                ENTIRE AGREEMENT

     This Agreement contains the entire Agreement between the parties hereto; no
change,  addition  or amendment shall be made hereto except by written agreement
signed  by  the  parties hereto.  This Agreement supersedes all prior Agreements
and  understandings  between  the  Executive  and  the  Company.

                                   ARTICLE XVI
                      COUNTERPARTS AND FACSIMILE SIGNATURES

     This  Agreement may be executed simultaneously in two or more counterparts,
each of which shall be deemed an original, but all of which taken together shall
constitute  one  and  the  same  instrument.  Execution  and  delivery  of  this
Agreement  by  exchange of facsimile copies bearing the facsimile signature of a
party  shall  constitute  a  valid  and  binding  execution and delivery of this
Agreement  by  such  party.  Such  facsimile copies shall constitute enforceable
original  documents.

     IN  WITNESS WHEREOF, the parties hereto have executed this Agreement on the
day  and  year  first  above  written.

                                           EXECUTIVE:

                                           /s/  William S. Robinson
                                           ---------------------------------
                                           William S. Robinson

                                           COMPANY:

                                           INTEGRAL TECHNOLOGIES, INC.

                                           By:    /s/  William A. Ince
                                              ------------------------------
                                           William A. Ince

                                                                          Page 6
<PAGE>

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