Document:

MANUFACTURING AGREEMENT

     This  Agreement ("Agreement") is made as of the 22nd day of November, 2006,
                                                     ----
by  and  between  INTEGRAL TECHNOLOGIES, INC., a Nevada corporation (hereinafter
called  "Integral")  with  offices  at  805 West Orchard Street, #7, Bellingham,
Washington  98225, and JASPER RUBBER PRODUCTS, INC., an Indiana corporation with
offices at 1010 First Avenue, Jasper, Indiana 47546 ("Jasper").

                                    RECITALS:

     WHEREAS,  Integral  desires  to contract for the manufacture of resin based
conductive, moldable capsules incorporating the ElectriPlast technology; and

     WHEREAS, Jasper desires to provide such manufacturing on and subject to the
terms  of  this  Agreement.

                                   AGREEMENT:

     NOW, THEREFORE, in consideration of the mutual undertakings hereinafter set
forth  and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereby agree as follows:

1.   DEFINITIONS.  For purposes of this Agreement the following terms shall have
     -----------
     the  respective  meanings  set  forth  below:

     "Developed  Products" means Products with definitive Product Specifications
suitable  to  the  requirements  of  Integral  or  Integral's  customer(s),  as
applicable.

     "Integral's  Intellectual  Property" means the intellectual property rights
owned  or  purposed  to  be  owned by Integral, including without limitation the
patents,  provisional  patents,  utility  patent  applications  and  respective
divisions,  continuations,  continuations-in-part,  reissues and re-examinations
thereof pertaining to the ElectriPlast technology.

     "Integral  Raw  Materials"  means  the  applicable raw materials, including
without  limitation  micron  conductive  fiber,  to  be  delivered  to Jasper by
Integral and used in the manufacture of the Products.

     "Jasper  Raw  Materials"  means  the  applicable  raw  materials, including
without  limitation  the applicable polymer resins, to be procured by Jasper and
used  in  the  manufacture  of  the  Products.

     "Orders"  means  a  written  order  or  similar  writing issued by Integral
containing  information with respect to each purchase of Developed Product under
this  Agreement.

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     "Products"  means  resin-based  conductive, moldable capsules incorporating
Integral's  Intellectual  Property, and includes Developed Products and Test-Run
Products.

     "Product  Specifications"  means,  for  each  applicable  Product,  the
specifications  therefor  designated  in  accordance  with  the  terms  of  this
Agreement,  including  without  limitation the specifications for the Jasper Raw
Materials  and  Integral  Raw  Materials  to  be  used in the manufacture of the
respective  Product  and  Product  packaging  requirements.

     "Test-Run Products" shall mean Products in initial development to determine
proper  and  appropriate  Product  Specifications  suitable  to  Integral  and
Integral's  customers.

2.   PRODUCTS DEVELOPMENT AND MANUFACTURE, SALE.
     ------------------------------------------

     2.1.      Manufacture  by  Jasper  after Development and Test-Runs, if any.
               ----------------------------------------------------------------
               During  the  Primary Term and any extension thereof, and provided
               that Jasper has the requisite facilities, equipment and available
               capacity and accepts Integral's respective order therefor, Jasper
               shall  manufacture  Integral's requirements of Developed Products
               to  be  used  by  Integral  or sold by Integral to third parties.

     2.2.      Coordination  of  Manufacturing  Scheduling,  Raw  Materials. Not
               ------------------------------------------------------------
               later  than  five  (5)  business days after the beginning of each
               calendar quarter during the term of this Agreement, Integral will
               provide  Jasper a non-binding forecast of the estimated number of
               Products to be manufactured for the quarter immediately following
               the  current  quarter ("Forecast"). The Forecast will include the
               estimated  quantity  of Product units that will be ordered in the
               relevant quarter. Unlike Orders, the Forecast does not create any
               obligations  on the part of Integral in connection with the order
               or  non-order  of  units of the Product. Integral and Jasper will
               mutually  agree  on  reasonable  guidelines and requirements with
               respect  to delivery requests, delivery of Integral Raw Materials
               to  Jasper  and  the  coordination  and  purchase  of  Jasper Raw
               Materials.

     2.3.      Tendering  of Orders. All Orders shall be proposed by Integral to
               --------------------
               Jasper  in  writing  (including  facsimile,  email or mail). Each
               Order  shall  include  the  applicable  Product(s)  and  proposed
               delivery dates, the price, the consignment destination and/or any
               other  detail  or  instruction.  Each order so submitted shall be
               accepted or declined in writing, in whole or part, not later than
               five  (5)  business  days  following receipt by Jasper. Where the
               quantity  of  Developed Product units ordered is within the scope
               of the Forecast, Jasper will accept the Order. Where the quantity
               of  units is higher than the quantity in the Forecast, Jasper may
               confirm  the  entire  Order  or  it may confirm only the quantity
               falling  within  the  scope of the Forecast and decline the extra
               quantity,  and  its  decision  shall  be  stated in the notice to
               Integral.  Failure  to  notify  Integral of rejection of an Order
               within  the  stated  period  constitutes acceptance of the entire
               Order.

     2.4.      Development  of  Specifications  and  Manufacture  of  Test-Run
               ---------------------------------------------------------------
               Products.  During  the  Primary  Term  and any extension thereof,
               --------
               Integral  will  develop  proposed

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               Product  Specifications  for  Test Run Products. Jasper will work
               with Integral to manufacture Test-Run Products in accordance with
               the  Product  Specifications  developed  by  Integral.

     2.5.      Specifications.  Prior  to tendering to Jasper an Order, Integral
               --------------
               shall  provide  to  Jasper written Product Specifications for the
               applicable Product, including proposed Product Specifications for
               Test-Run  Products.  Integral  may, by written request (including
               facsimile  or  email), make changes in the Product Specifications
               and  Jasper  will  not  unreasonably refuse such request ("CHANGE
               ORDER").  If the Change Order results in a cost modification that
               has been mutually agreed to by the parties at the time the Change
               Order  is  proposed,  the  new price will apply to any subsequent
               orders  of  Product.

     2.6.      Integral  Raw Materials. Integral shall retain title and, subject
               -----------------------
               to  the  provisions set forth below, risk of loss to all Integral
               Raw Materials until such Integral Raw Materials are combined with
               Jasper  Raw  Materials  in  the manufacture of Products; provided
               however  that  Jasper  shall  retain  insurance  on  Integral Raw
               Materials  on  Jasper's premises as required by Section 10 hereof
               and Integral shall be a loss payee with respect to such insurance
               as  applicable  to  Integral  Raw  Materials.

     2.7.      Products. Jasper will package the Products in accordance with the
               --------
               packaging  specifications  provided  by  Integral  from  time  to
               time.  Title  and  risk of loss to all Products shall transfer to
               Integral  upon  loading  into  trucks  or  railcars  at  Jasper's
               facility  for  shipment  in  accordance with written instructions
               provided  by  Integral.

     2.8.      Inspection  and  Acceptance.  Within  ten  (10)  days  after
               ---------------------------
               confirmation  to Integral of receipt of each complete shipment of
               Product  by  Integral's customers, Integral conclusively shall be
               deemed  to  have concurred in the appropriateness of the quantity
               of the shipment, unless Integral shall state a claim for shortage
               in  count  in  writing  within such ten (10) day period. Integral
               will  accept  any  Products that have been manufactured, packaged
               and delivered in compliance with the terms of this Agreement, the
               Product  Specifications  and  Integral's  orders  ("Conforming
               Products"). Integral or its customer if direct shipped may reject
               or  revoke  acceptance  of  any  Products that are not Conforming
               Products  upon  discovery  of  defects  or other non-conformities
               within  a  reasonable  time of its receipt of such Products. Upon
               rejection  or  revocation  of  non- Conforming Products, Integral
               will  immediately  send  a  representative  sample  of  such
               non-Conforming  Product  to  Jasper. Upon Integral's rejection or
               revocation  of  acceptance  of  Products  hereunder  or  Jasper's
               failure to fully meet the terms of a Product order in whole or in
               part,  Integral shall return the rejected Products to Jasper and,
               at  its  sole  option,  direct  Jasper to (i) pay to Integral the
               Price  (as  defined below) of such rejected or missing Product if
               Integral  has  already  paid  for  such  Product through a direct
               payment to Integral or (at Integral's sole option) apply a credit
               towards  Integral's future payments or (ii) replace such rejected
               or  missing Product with Conforming Product at no additional cost
               to  Integral.

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3.   TERM AND TERMINATION.
     --------------------

     3.1.      Primary  Term.  This Agreement shall commence on the date hereof,
               -------------
               and  shall  continue  until  the  close  of  Jasper's business on
               the  date  five  (5)  years  from  the  date hereof (the "Primary
               Term"),  unless  sooner  terminated,  or extended, as hereinafter
               provided.

     3.2.      Extensions.  After  the  Primary Term, this Agreement shall renew
               ----------
               automatically  for successive five (5) year renewal terms, unless
               notice  of  non-renewal is given not less than one (1) year prior
               to  the  commencement  of  the  applicable  renewal  term.

     3.3.      Default  Termination.  Either  party may terminate this Agreement
               --------------------
               upon  a  "Default",  as  defined  in  Section  3.4, below, by the
                                                     ------------
               other  party,  such  termination to be effective thirty (30) days
               from  the  date  the  party  desiring termination gives the other
               party  written  notice of the Default; provided that if the party
               in Default cures or remedies the same within such thirty (30) day
               period, such termination shall be deemed null and void.

     3.4.      Default.  The  occurrence  of  any  one  or more of the following
               -------
               events  shall constitute a Default under this Agreement; provided
               that none of the following shall constitute a Default if disputed
               in  good faith, pending receipt of a final judicial determination
               as  to  the  alleged  Default  or  Settlement  of  the  matter.

               1.   If  either  party  to  this  Agreement  fails  to  pay  any
                    undisputed  amount due under this Agreement when the same is
                    due  and  payable;

               2.   If  either  party to this Agreement is in material breach of
                    any  warranty,  term  or  condition  of to this Agreement. ;

               3.   If  either  party becomes insolvent, makes an assignment for
                    the  benefit  of  creditors or is unable to pay its debts as
                    they  mature;  or

               4.   If  any action or proceeding is brought by or against either
                    party  under  any  law  that affects the rights of creditors
                    (including,  but  not  limited  to, any action or proceeding
                    seeking  the  dissolution  or  liquidation  of,  or  the
                    appointment  of  a  receiver  or  trustee for, any of either
                    party's  assets);  provided, however, that the party subject
                    to such actions shall not be in Default hereunder so long as
                    that  party  in  good  faith challenges the appointment of a
                    receiver  or  trustee  for  any  of  its  assets;

     3.5.      Termination  without  Cause  by  Integral. Integral may terminate
               -----------------------------------------
               this  Agreement  for  any reason, with or without cause, upon one
               year's prior written notice to Jasper, provided that Integral may
               not  terminate  the  Agreement  under this Section 3.5 during the
               first two (2) calendar years following the Effective Date. In the

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               event  of  any  termination  without cause by Integral during the
               Primary  Term, Integral shall purchase from Jasper all equipment,
               fixtures  and  facilities  purchased  by  Jasper  for purposes of
               performing  the  work  under  this  Agreement  (the  "Purchased
               Equipment")  at a fee equal to the then-current fair-market value
               of such Purchased Equipment (which appraiser of such "fair-market
               value"  shall  be  jointly  appointed by, and whose cost shall be
               borne  equally  by,  the  parties). In addition to purchasing the
               Manufacturing  Equipment, Integral will pay Jasper a fee equal to
               any  and  all  sums  due  for  leased equipment acquired for such
               purpose  accruing  or  payable  after  the  termination  of  this
               Agreement  provided  that Jasper will use commercially reasonable
               good  faith  efforts  to  assign  such  leases  to  Integral.

4.   PRICE, INVOICING AND PAYMENT.
     ----------------------------

     4.1.      Price. The Price and its components will be set forth in Schedule
               -----                                                    --------
               A  to  be  attached  to  this  Agreement and amended periodically
               -
               as  provided  herein. The per unit price for each unit of Product
               produced and shipped by Jasper (the "Price") shall consist of the
               sum of (x) the mutually agreed upon anticipated delivered cost of
               the  Jasper  Raw  Materials (the "Materials Component"), plus (y)
               the  cost of manufacturing by Jasper (the "Conversion Component")
               as  set  out  in  Schedule A, which shall be an hourly charge for
                                 ----------
               Test-Run  Products and a per unit or per pound charge agreed upon
               in  advance  for  all  Developed  Products,  plus  (z)  Jasper's
               packaging  costs  (such  costs  to  be  agreed  in advance by the
               parties).

     4.2.      Materials  Component. The  Materials Component of the Price shall
               --------------------
               be  reconciled,  within  thirty  (30)  days after the end of each
               calendar  quarter via a quarterly Materials Variance Report which
               Jasper  shall provide to Integral, to the actual cost experienced
               for a calendar quarter as of the end of each calendar quarter. If
               neither  party  requests  a  payment  to reconcile any calculated
               difference  in  Material  costs, such reconciled balance shall be
               carried  until  a reconciliation is requested. If the actual cost
               of  Materials significantly changes, either party may request and
               receive  a  Schedule  A  adjustment of the Materials Component to
                           -----------
               compensate  for  such  Material  Component  changes.

     4.3.      Conversion  Component. The Conversion Component shall include all
               ---------------------
               of  Jasper's direct and indirect labor costs, overhead, overtime,
               profit  and waste above the applicable Waste Component (estimated
               at  five  percent  (5%),  and  only  applicable for hourly charge
               work).  For Products for which a per unit or per pound Conversion
               Component  is  changed,  the  Waste  Component  for  Integral Raw
               Materials  shall be two percent (2%), and Jasper shall compensate
               Integral  for excess waste of Integral Raw Materials if the Waste
               Component for Integral Raw Materials exceeds two percent (2%) for
               any  calendar  quarter.  The Conversion Component shall be agreed
               upon  in  good  faith  for  each  Product  based  upon the volume
               ("Period  Volume")  of  Products produced and shipped during each
               calendar quarter from and after the date of this Agreement as set
               forth  on  Schedule  A. The Conversion Component for the upcoming
                          -----------
               period  shall  be  based

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               on  the  Forecast  provided  by Integral. Within thirty (30) days
               after  the  end of each quarter, a retroactive billing adjustment
               shall  be calculated to the extent the actual volume produced and
               shipped is greater or less than the projected volume estimated by
               Integral on which the Conversion Component was based. A credit or
               charge  shall  be  issued to compensate for the proper Conversion
               Component  based  upon  the  actual  Period  Volume.

     4.4.      Taxes  and  Law  Changes.  Integral  shall be responsible for any
               ------------------------
               sales  or  use  taxes relating to the transfer of the Products to
               Integral  unless  Integral  provides  to  Jasper  necessary
               documentation  relating  to  resale  of  the Products to properly
               avoid  such taxes. If a change in law or regulation affecting the
               price  of  Jasper  Raw Materials or the production or sale of the
               Products after the date hereof shall increase the cost to Jasper,
               Jasper  and  Integral  shall  negotiate  a  mutually  agreeable
               adjustment  to  the  Price  to  offset such increased cost from a
               change  in  law  or  regulation.

     4.5.      Payment  Terms.  Jasper  will  provide  Integral  with an invoice
               --------------
               setting  forth  the  quantity  and  Price  for  Products  in each
               delivery  identified  by  the  applicable purchase order, product
               code,  callout  numbers  or  other applicable reference. Integral
               agrees  to  pay Jasper (i) net ten (10) days from the date of the
               invoice  less a one percent (1%) discount on the fee set forth in
               such  invoice  or  (ii) net thirty (30) days from the date of the
               invoice with no discount. If the date payment is due is a weekend
               or  is a holiday recognized by the party sending the payment, the
               payment  will  be  made on the immediately following workday. The
               instruction  for  sending  payments  to  Jasper  is:

                         Jasper Rubber Products, Inc.
                         P.O. Box 660233
                         Indianapolis, Indiana  46266-0233

     All invoices will be sent to Integral at the following address:

                         Integral Technologies, Inc.
                         805 West Orchard Street, #7
                         Bellingham, Washington  98225

5.   FORCE  MAJEURE.
     --------------

     5.1.      Force  Majeure Defined. The term "Force Majeure," as used herein,
               ----------------------
               shall  mean  any  causes beyond the control of the party affected
               thereby,  such  as,  without limitation, acts of God; acts of the
               public  enemy; national emergency; insurrections; riots; strikes;
               labor disputes; fires; explosions; floods, breakdown or damage to
               plants,  equipment,  or  facilities  not  the  fault of the party
               attempting  to exercise the applicability of this section and the
               non-performance  or  inadequate  performance by any vendor of any
               Integral  Raw  Materials  or  Jasper  Raw  Materials.

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     5.2.      Performance  Excused.  If, because of Force Majeure, either party
               --------------------
               hereto  is  reasonably  prevented from performing its obligations
               under  this  Agreement  and  if  such party promptly gives to the
               other  party  notice of the Force Majeure, the obligations of the
               parties  shall  be  excused  as  of the commencement of the Force
               Majeure event to the extent affected by the Force Majeure and its
               continuance,  provided  the  party  claiming  Force  Majeure uses
               commercially  reasonable  efforts  to mitigate the effect of such
               Force  Majeure  insofar  as  possible  with  reasonable dispatch.
               Nothing  herein  shall  be construed as requiring either party to
               settle  any  labor  dispute.

6.   INTELLECTUAL  PROPERTY  RIGHTS

     6.1.      Integral is  the sole and exclusive owner of all the intellectual
               property  rights  (including  rights  in  inventions,  patents,
               copyright,  trademarks,  trade  secrets,  and  any  other legally
               recognized  intellectual property right) embodied in, relating to
               or  linked  to  the  Product and the Specifications. In the event
               that  Jasper  or anyone on its behalf creates works deriving from
               the  Products or Specifications, Jasper undertakes to transfer or
               to arrange for the transfer of any right that it or anyone on its
               behalf  might  have  in the derivative works. This agreement does
               not  vest  Jasper with any proprietary or obligatory right to the
               Products  or  Specifications.

7.   WARRANTY;  DISCLAIMER

     7.1.      Warranty  by  Jasper. Jasper  warrants  that the Products and the
               --------------------
               Jasper Raw Materials will (a) assuming conformity of the Integral
               Raw  Materials,  conform  to  the  Product Specifications and any
               samples,  drawings,  and  descriptions applicable to the specific
               Product;  (b)  assuming conformity of the Integral Raw Materials,
               be free from defects in material and workmanship under normal use
               and  service for a period of at least twelve (12) months from the
               date  of shipment of the Products to the end-user customer in the
               form  of  a  completed product to be used by the end-user; (c) be
               new  and  unused; and (d) be free and clear of any and all liens,
               claims,  encumbrances  and  other restrictions of any kind. These
               warranties  shall  survive  any delivery, inspection, acceptance,
               payment,  or  resale  of  the  Products.

     7.2.      Warranty  by  Integral.  Integral  warrants that the Integral Raw
               ----------------------
               Materials  will (a) conform to the Product Specifications and any
               samples,  drawings,  and  descriptions applicable to the specific
               Product;  (b)  be  free  from defects in material and workmanship
               under normal use and service for a period of at least twelve (12)
               months  from the date of shipment of the Products to the end-user
               customer  in  the  form  of a completed product to be used by the
               end-user; (c) be new and unused; (d) be free and clear of any and
               all  liens,  claims,  encumbrances  and other restrictions of any
               kind;  (e)  conform  to  all  the  requirements of applicable law
               including  all  applicable  health,  safety  and  environmental
               regulations,  and (f) not infringe upon the intellectual property
               rights  of  any  third  party.

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     7.3.      EXCEPT FOR THOSE WARRANTIES EXPRESSLY PROVIDED  IN  SECTIONS  7.1
               AND  7.2,  EACH  PARTY  ON BEHALF OF ITSELF AND ITS SUBSIDIARIES,
               AFFILIATES,  AND  SUPPLIERS, DISCLAIMS ALL WARRANTIES AND DUTIES,
               WHETHER  EXPRESS,  IMPLIED  STATUTORY,  OR  OTHERWISE,  AS TO ANY
               MATTER  WHATSOEVER  RELATING  TO  THIS  AGREEMENT,  INCLUDING THE
               SERVICES,  PRODUCTS  AND  ANY  OTHER  INFORMATION  OR  MATERIALS
               EXCHANGED  BETWEEN  THE PARTIES, INCLUDING BUT NOT LIMITED TO ANY
               (IF  ANY)  IMPLIED  WARRANTIES,  DUTIES,  OR  CONDITIONS  OF
               MERCHANTABILITY,  FITNESS  FOR  A  PARTICULAR PURPOSE, REASONABLE
               CARE  OR  WORKMANLIKE EFFORT, OR RESULTS, ALL WITH REGARD TO THIS
               AGREEMENT,  INCLUDING  THE  SERVICES,  PRODUCTS,  AND  ANY  OTHER
               INFORMATION  OR  MATERIALS  EXCHANGED  BETWEEN  THE  PARTIES  IN
               CONNECTION  WITH  THIS  AGREEMENT.

8.   INDEMNITY  OBLIGATIONS.
     ----------------------

     8.1.      Indemnification  by  Jasper.  Jasper  will defend, indemnify, and
               ---------------------------
               hold harmless Integral and its parents, subsidiaries, affiliates,
               successors,  and  assigns,  and  their  respective  officers,
               directors,  employees,  agents,  and contractors from and against
               (i)  any  and  all claims, demands, liabilities, losses, damages,
               costs,  or  expenses  (including  reasonable  attorneys'  fees),
               including  by  way  of example only and not limitation for death,
               personal  injury,  property  damage,  or otherwise, to the extent
               based  on,  arising  out  of,  or  in  any way related to (a) the
               operation  or condition of Jasper's equipment and facilities, (b)
               Jasper's  or  its  parents',  subsidiaries',  affiliates',
               successors',  or  assigns',  or  their  respective  officers',
               directors',  employees',  agents',  or  contractors'  failure  to
               perform  its  obligations  under  this Agreement or breach of the
               warranties  under  Section 7.1, (c) any claim that the Jasper Raw
               Materials  violate  the  Intellectual  Property rights of a third
               party,  or (d) any negligent act, misfeasance, or malfeasance, by
               Jasper  or  its parents, subsidiaries, affiliates, successors, or
               assigns,  or  their  respective  officers,  directors, employees,
               agents,  or  contractors,  (ii)  any  and  all  fees  (including
               reasonable  attorneys'  fees),  costs,  and  expenses incurred by
               Integral or its parents, subsidiaries, affiliates, successors, or
               assigns,  or  their  respective  officers,  directors, employees,
               agents,  or  contractors,  in  the  investigation, correction, or
               defense  against  any  and all such losses, claims, or threatened
               claims;  except  to  the  extent  any  such claim for loss, cost,
               expense, damage, or liability is the direct result of the acts or
               negligence  of Integral or its parents, subsidiaries, affiliates,
               successors,  or  assigns or their respective officers, directors,
               employees, agents, or contractors. If Integral receives notice of
               any  claim  for  which it considers Jasper responsible under this
               Paragraph,  Integral  promptly  will  inform  Jasper  in  writing

     8.2.      Indemnification by Integral. Integral will defend, indemnify, and
               ---------------------------
               hold  harmless  Jasper and its parents, subsidiaries, affiliates,
               successors,  and  assigns,  and  their  respective  officers,
               directors,  employees,  agents,  and contractors from and against
               (i)  any  and  all claims, demands, liabilities, losses, damages,
               cost,  or  expenses

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               (including  reasonable  attorneys'  fees),  including  by  way of
               example  only  and  not  limitation  for  death, personal injury,
               property damage, or otherwise to the extent based on, arising out
               of,  or  in  any  way  related to (a) Integral's or its parents',
               subsidiaries',  affiliates',  successors',  or assigns', or their
               respective  officers',  directors',  employees',  agents;,  or
               contractors;  failure  to  perform  its  obligations  under  this
               Agreement  or breach of the warranties under Section 7.2, (b) any
               claim  that  Integral's Intellectual Property violates the rights
               of  any  third  party,  or  (c)  any  negligent act, misfeasance,
               malfeasance,  or  non-feasance  by  Integral  or  its  parents,
               subsidiaries,  affiliates,  successors,  or  assigns,  or  their
               respective  officers,  directors,  employees,  agents,  or
               contractors,  and  (ii)  any  and  all fees (including reasonable
               attorney's  fees),  costs, and expenses incurred by Jasper or its
               parents,  subsidiaries,  affiliates,  successors,  or assigns, or
               their  respective  officers,  directors,  employees,  agents,  or
               contractors  in the investigation, correction, or defense against
               any  and all such losses, claims, or threatened claims; except to
               the  extent  any  such  claim for loss, cost, expense, damage, or
               liability  is  the  direct  result  of  the acts or negligence of
               Jasper  or  its parents, subsidiaries, affiliates, successors, or
               assigns,  or  their  respective  officers,  directors, employees,
               agents,  or  contractors.  If Jasper receives notice of any claim
               for which it considers Integral responsible under this Paragraph,
               Jasper  promptly  will  inform  Integral  in  writing.

     8.3.      Procedure.  The foregoing indemnifications are conditioned on the
               ---------
               party  claiming  indemnification  promptly  furnishing  the
               indemnifying  party  with  written  notice  of  each claim, loss,
               damage,  or  expense  for  which  indemnity  will  be claimed and
               permitting  the  indemnifying party to assume the defense thereof
               with  the  cooperation  of  the  other party, at the indemnifying
               party's  sole  cost and expense. The indemnifying party will have
               the  obligation  to  assume  the defense of any such claim to the
               extent  the  indemnifying  party  has  responsibility  to  the
               indemnified party under this Article 6. The indemnified party may
               participate in, but not control, the defense of such claim at its
               sole  cost  and  expense.  An  indemnifying  party  will  have no
               liability  under  this  Article  6  as  to  any  claim  for which
               settlement  or compromise or an offer of settlement or compromise
               is made by the indemnified party without the prior consent of the
               indemnifying  party,  which  consent  will  not  be  unreasonably
               withheld.

9.   LIMITATION  OF  LIABILITY.
     -------------------------

     9.1.      EXCEPT FOR A BREACH OF SECTION 15.6 (CONFIDENTIALITY) OR A BREACH
               OF  A  PARTY'S  OBLIGATIONS  UNDER  SECTION  8 (INDEMNIFICATION),
               NEITHER  PARTY  SHALL  BE  LIABLE  FOR  ANY INDIRECT, INCIDENTAL,
               CONSEQUENTIAL,  PUNITIVE  OR  SPECIAL DAMAGES, EVEN IF SUCH PARTY
               HAS  BEEN  ADVISED  OF  THE  POSSIBILITY  OF  SUCH  DAMAGES.

10.  INSURANCE.
     ---------

                                        9
<PAGE>
     10.1.     Insurance.  Jasper  will maintain the insurance coverage required
               ---------
               in Subparagraphs 1, 2, 3 and 4.

               1.   Workmen's  Compensation.  Workmen's  compensation  insurance
                    -----------------------
                    in  compliance  with  the  applicable workmen's compensation
                    and/or  occupational  disease  act.

               2.   Employer's  Liability.  Employer's  liability insurance with
                    ---------------------
                    limits  of  liability  of not less than $500,000 for any one
                    accident  or  disease.

               3.   General  Liability.  Comprehensive  or  commercial  general
                    ------------------
                    liability  insurance  (including  coverage  for  premises
                    operations,  broad  form property damage, products/completed
                    operations, contractual liability covering this Agreement as
                    an  "insured  contract", independent contractor and personal
                    injury,  with limits of not less than $10,000,000). Products
                    liability  includes a broad form vendor's endorsement naming
                    Integral  as  an  additional  insured.

               4.   Automobile.  Automobile liability insurance (including hired
                    ----------
                    car and non-ownership liability insurance if any automobiles
                    will  be  hired by Jasper or if its employees will use their
                    personally  owned  vehicles  in the business of Jasper) with
                    limits  of  liability  of  not less than $1,000,000 combined
                    single  limit  bodily  injury  and  property  damage.

               5.   All Risk  Property  Policy.  All  risk  property  policy,
                    --------------------------
                    including  coverage  for  business  interruption, based upon
                    replacement  cost  covering  Jasper's  plant,  Jasper  Raw
                    Materials,  Integral  Raw  Materials  on Jasper premises and
                    finished  Products  inventory.

               Certificates  of  insurance  showing  compliance  with  foregoing
               requirements  shall  be  furnished  by  Jasper to Integral within
               fifteen  (15)  days  of the execution of this Agreement. Integral
               has no obligation to either review such certificates or to inform
               Jasper  that  the  certificates or policies do not conform to the
               requirements of this Agreement. Certificates shall state that the
               General  Liability  policy  or  policies will not be canceled nor
               altered without at least thirty (30) days prior written notice to
               Integral and without reducing the coverage amounts of such policy
               or  policies.  No other required policy shall be altered to lower
               the coverage or coverage limits from those required above without
               Integral's  prior  consent.  If Integral shall so request, Jasper
               shall  furnish  Integral  for  its  inspection  and approval such
               policies  of  insurance  with  all  endorsements,  or  conformed
               specimens  thereof  certified by the insurance company to be true
               and  correct  copies.  The  policy  limits specified above may be
               satisfied  through  a  combination  of  the  stipulated  primary
               liability  insurance  and  umbrella  and/or  excess  liability
               insurance. The insurance policies required by this Agreement must
               be  written  by  an  insurance  company  that is authorized to do
               business  in  the states where Jasper's facilities exist and that
               have  a  rating  or  A-  or  above.

                                       10
<PAGE>
11.  ADDITIONAL COVENANTS AND UNDERTAKINGS.
     -------------------------------------

     11.1.     Authority.  Both  parties  respectively state that they have full
               ---------
               power and authority to execute and deliver this Agreement and all
               related documents, and to carry out the transactions contemplated
               herein.  This Agreement is valid, binding and enforceable against
               the  parties  in accordance with its terms. The execution of this
               Agreement  and  the consummation of the transactions contemplated
               herein  will not result in the breach of the terms and conditions
               of,  nor  constitute  a  default  under or a violation of, either
               parties'  articles  of  incorporation,  or  by-laws,  or any law,
               regulation,  court  order,  mortgage,  note,  bond  indenture,
               agreement,  license,  or  other instrument or obligation to which
               either  party  is  now a party or by which either party of any of
               its  assets  may  be  bound  or  affected.

     11.2.     Non-competition.  During the Term and for a period of twelve (12)
               ---------------
               months after its expiration or termination for any reason, Jasper
               will  not, directly, indirectly or through a third party, supply,
               manufacturer  or  assemble  products  that  constitute  or  might
               constitute  an  alternative  to the Products or performs the same
               functionality  as  the  Products and will not engage, directly or
               indirectly  or  through  a  third  party,  as  manager, employee,
               consultant,  agent,  franchisee,  shareholder and/or in any other
               way  assist  in  the  development  of a product competing or that
               might compete with Integral's business, that constitutes or might
               constitute  an  alternative  to the Products or performs the same
               functionality  as  the  Product.  Jasper  agrees  that  the above
               restrictions  are  fair  and  reasonable  for  the  purpose  of
               protecting  Integral's  interests  pursuant  to  this  agreement,
               including  the  protection of its trade secrets, that they do not
               deny  Jasper  an opportunity to make reasonable earnings and that
               the parties took these restrictions into account when agreeing to
               the  payments  provided  for  herein.

12.  DISCLAIMER  OF  AGENCY  AND  PARTNERSHIP.
     ----------------------------------------

     12.1.     Relationship  of  the Parties.  The relationship between Integral
               -----------------------------
               and  Jasper  shall  be that of vendor and purchaser only. Nothing
               contained  herein  shall be deemed or construed to create a joint
               venture  or  general partnership between Integral and Jasper, nor
               authorize  either  party  to act as a general agent for the other
               party,  nor  to  permit either party to undertake any obligations
               for  or  on  behalf  of  the other party, except as expressly set
               forth  herein. It is further expressly understood and agreed that
               no work, act, commission or omission of either party, its agents,
               servants  or  employees,  shall  be  construed  to make or render
               either  party  (or  its agents, servants or employees), an agent,
               servant or employee of other party. No agent, servant or employee
               of either party shall be entitled to the benefits provided by the
               other  party  to its agents, employees or servants, including but
               not  limited  to,  wages,  salaries, health benefits and deferred
               compensation  benefits.  Furthermore,  this  agreement  shall not
               create  nor  be  construed to create in any manner whatsoever any
               third-party  beneficiary  rights  in  any  person.

                                       11
<PAGE>
13.  WAIVERS;  REMEDIES  CUMULATIVE.
     ------------------------------

     13.1.     Waiver.  The  failure of either party hereto to insist in any one
               ------
               or  more  instances  upon  strict  performance  of  any provision
               of this Agreement by the other party hereto, or to take advantage
               of  any  of  its  rights  hereunder,  shall not be construed as a
               waiver by it of any such provision or the relinquishment by it of
               any  such  rights  in respect of any subsequent nonperformance of
               such  provision;  but  the same shall continue and remain in full
               force  and  effect.

     13.2.     Remedies Cumulative.  Each remedy specifically provided for under
               -------------------
               this  Agreement  shall  be  taken  and  construed  as  cumulative
               and  in  addition to every other remedy provided for herein or by
               law.

14.  MEDIATION.
     ---------

     14.1.     Dispute  Resolution.  In  the  event  of  any controversy, claim,
               -------------------
               counterclaim, defense, dispute, difference or misunderstanding of
               any  type  whatsoever  between  the  parties  arising  out  of or
               relating to this Agreement ("Dispute(s)"), representatives of the
               parties  shall  meet promptly in an effort to resolve the Dispute
               amicably.  If the Dispute is not amicably resolved by negotiation
               within  forty-five  (45)  days of the disputing party's notice of
               such  Dispute,  or if the parties' representatives failed to meet
               within  twenty  (20)  days  of  such  notice,  the  parties shall
               endeavor  to  settle such Dispute by mediation. All Disputes will
               be  referred to mediation before, and as a condition precedent to
               the  initiation  of  any  adjudicative  action.

     14.2.     Mediation  Procedure.   If  the parties fail to resolve a Dispute
               --------------------
               by  negotiation or to meet within the time limits provided above,
               the  parties  will  have  ten  (10)  calendar  days  to appoint a
               mutually  acceptable  mediator.  If  unable to agree, the parties
               will  seek  the  assistance  of the Attorney-Mediators Institute,
               based  in  Houston, Texas, to choose a mediator. The parties will
               mediate  in  good  faith for up to twenty (20) calendar days from
               the  appointment  of  the mediator. If the parties do not resolve
               the  Dispute  within the twenty (20) day period, either party may
               initiate an action or proceeding based on the Dispute. Each party
               will  continue  to  perform  this  Agreement  pending  the  final
               resolution  of  the  Dispute.

15.  MISCELLANEOUS.
     -------------

     15.1.     Change of Control. Jasper shall not assign its rights, interests,
               -------------------
               or  duties under this Agreement without the prior written consent
               of  Integral. Following any assignment or attempted assignment by
               Jasper,  Integral  may,  but  is  not  obligated  to, immediately
               terminate  this  Agreement.  For  purposes  of this Agreement, an
               "assignment"  by  Jasper  under  this  Section  15.1 is deemed to
               include,  without limitation, each of the following: (a) a merger
               of  Jasper  with  another  party,  whether  or  not Jasper is the
               surviving entity; (b) the acquisition of more than twenty percent
               (20%) of any class of Jasper's voting stock (or any class of non-

                                       12
<PAGE>
               voting  security  convertible into voting stock) by another party
               (whether  in a single transaction or series of transactions); and
               (d)  the  sale or other transfer of more than fifty percent (50%)
               of  Jasper's assets (whether in a single transaction or series of
               transactions).  Following  any assignment or attempted assignment
               by  Jasper,  Integral  may,  but is not obligated to, immediately
               terminate  this  Agreement.  In  the  event  of  any  assignment
               permitted  under this Section 15.1, Jasper will remain liable for
               the  performance  of  their  obligations  under  this  Agreement.

     15.2.     Notices.  Except  as  otherwise  provided  herein,  all  notices
               -------
               required  or  permitted to be given hereunder shall be in writing
               and  shall  be  deemed properly given when delivered in person to
               the  party  to  be  notified,  or  when  mailed  by registered or
               certified  United  States mail, postage prepaid, or by telegraph,
               Telex,  TWX,  or  other  electronic  means,  to  the  party to be
               notified  or such designee as it may designate by written notice,
               at  its address set forth below, or such other address within the
               continental  United States of America as the party to be notified
               may have designated prior thereto by written notice to the other:

               As to Jasper:            Jasper Rubber Products, Inc.
                                        1010 First Avenue
                                        Jasper, IN 47547
                                        Attention:  President
                                        Fax: 812/481-2702

               As to Integral:          Integral Technologies, Inc.
                                        805 West Orchard Street, #7
                                        Bellingham, Washington 98225
                                        Attention: President
                                        Fax:  604/685-6794

               Reports  and  statements hereunder also may be mailed by ordinary
               United  States  mail,  postage  prepaid,  addressed  as set forth
               above.

     15.3.     Governing  Law.  This  Agreement  shall  be  governed  by  and
               --------------
               interpreted  by  the  laws  of  the  State of Washington, without
               regard  to  conflicts of laws provisions. The prevailing party in
               any  such  action shall be entitled to recover its attorney fees,
               court  costs  and expenses reasonably incurred in connection with
               any  such  action.

     15.4.     Time.  Time is of the essence of each part of this Agreement.
               ----

     15.5.     Further  Assurances.  Each  party  hereto  will perform all other
               -------------------
               acts  and  execute  and  deliver  all  other  documents  and/or
               instruments  as  may be necessary or appropriate to carry out the
               intent  and  purpose  of  this  Agreement.

                                       13
<PAGE>
     15.6.     Confidentiality.  Integral  and  Jasper  acknowledge  that  the
               ---------------
               specific  terms  of  this Agreement, and the parties' disclosures
               and  activities  in  connection  with  this  Agreement,  are
               confidential  and  subject  to  the  terms  and conditions of the
               Proprietary  Information  Mutual  Nondisclosure Agreement between
               Jasper  and  Integral  dated  April  10,  2006  as  "Proprietary
               Information."

     15.7.     Entire  Agreement.  This  Agreement  (together with any exhibits,
               -----------------
               all  of  which  are  incorporated by reference in their entirety)
               contains the entire agreement between the parties hereto relating
               to  the rights herein granted and the obligations herein assumed.
               Any  other  prior  agreements,  promises,  negotiations  or
               representations  relating to the subject matter of this Agreement
               not  expressly  set  forth herein shall be of no force or effect.

     15.8.     Modification.  This  Agreement shall not be modified, altered, or
               ------------
               amended except in writing signed by both parties.

     15.9.     Binding  Effect.  This  Agreement  and all rights and obligations
               ---------------
               accruing  hereunder,  shall  be  binding  upon  and  inure to the
               benefit  of  the parties hereto, and their respective successors,
               including  successors  by  way  of  merger,  consolidation,
               reorganization  and/or purchase and sale of all, or substantially
               all,  of  the  assets  of  a  party  hereto.

     15.10.    Headings.  The  headings  of  this  Agreement are for convenience
               --------
               and reference only, have no substantive significance and shall be
               disregarded  in  the  interpretation  of  this  Agreement.

     15.11.    Execution.  This  Agreement may be executed in counterparts, each
               ----------
               of  which  shall be deemed an original, but all of which together
               shall  constitute  one  and  the  same.

[Remainder of Page Intentionally Left Blank]

                                       14
<PAGE>
     IN  WITNESS WHEREOF, this Agreement has been executed by the parties hereto
as  of  the  date  first  above  written.

                              INTEGRAL TECHNOLOGIES, INC.

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

                              ITS:   President
                                   ---------------------------------------------

     Before  me,  a  Notary Public, in and for said County and State, personally
appeared  the  within  named  William  A.  Ince,  President  and CFO of INTEGRAL
TECHNOLOGIES, INC. who acknowledged the execution of the foregoing Manufacturing
Agreement  to  be  their  voluntary act and deed and to be the voluntary act and
deed  of  said  corporation.

     WITNESS my hand and Notarial Seal this 22nd day of November, 2006.
                                            ----

                                                  /s/Erica Zender
                                                  ---------------
                                                  Notary Public

     My Commission Expires: 4-1-10 My County of Residence is:

     STATE  of  WASHINGTON    )
                              )
     COUNTY  OF  WHATCOM      )

                              JASPER RUBBER PRODUCTS, INC.

                              BY:    /s/  Douglas R. Mathias
                                   ---------------------------------------------

                              ITS:   President and CEO
                                   ---------------------------------------------

     Before  me,  a  Notary Public, in and for said County and State, personally
appeared the within named Douglas R. Mathias, President and CEO of JASPER RUBBER
PRODUCTS,  INC.  who  acknowledged  the execution of the foregoing Manufacturing
Agreement  to  be  their  voluntary act and deed and to be the voluntary act and
deed  of  said  corporation.

     WITNESS my hand and Notarial Seal this 27th day of November, 2006.
                                            ----

                                                  /s/  Janelle Durcholz
                                                  ---------------------
                                                  Notary Public

     My Commission Expires: Oct 19, 2007 My County of Residence is:

     STATE  of  INDIANA       )
                              )
     COUNTY  OF  DUBOIS       )

                                       15Exhibit
      10.1

     

    SECOND
      AMENDMENT TO 

    WARRANT
      PURCHASE AGREEMENT AND

    STOCK
      PURCHASE WARRANT

    

    

    This
      Second Amendment, effective as of November 29, 2006, amends the terms of the
      Warrant Purchase Agreement by and between Streicher Mobile Fueling, Inc., a
      Florida corporation (the “Company”), and the undersigned Purchasers dated June
      30, 2006 (the “Agreement”) and of the Stock Purchase Warrants issued in
      connection with the Agreement (the “Warrants”).

    

    WITNESSETH:

    

    WHEREAS,
      the Company and the Purchasers entered into the Agreement pursuant to which
      the
      Warrants were issued to the Purchasers, and the Warrants by their terms expire
      on September 28, 2006, unless sooner exercised (the “Exercise Period”);
      and

    

    WHEREAS,
      the Company and the Purchasers by an Amendment to Warrant Purchase Agreement
      and
      Stock Purchase Warrant dated September 28, 2006 extended the Exercise Period
      for
      the Warrants to November 30, 2006 and correspondingly extended the suspension
      of
      the Company’s obligation to make principal payments on the Notes (as that term
      is defined in the Agreement); and

    

    WHEREAS,
      the Company and the Purchasers wish now to further extend the Exercise Period
      for the Warrants to January 15, 2007 and to correspondingly extend the
      suspension of the Company’s obligation to make principal payments on the Notes
      (as that term is defined in the Agreement). 

    

    NOW,
      THEREFORE, in consideration of the mutual covenants and agreements contained
      in
      the Warrants and the Agreement and hereinafter set forth, the parties hereto
      hereby alter, modify and amend the Warrants and the Agreement as
      follows.

    

    1.    The
      Exercise Period for each of the Warrants is hereby extended to January 15,
      2007.

    

    2.    If
      and to
      the extent that the Warrants are not exercised and expire, the suspended
      principal payments for the January Notes (as that term is defined in the
      Agreement) will be paid at the time of the next scheduled principal payments
      on
      January 24, 2007 and the suspended principal payments for the August Notes
      (as
      that term is defined in the Agreement) will be paid at the time of the next
      scheduled principal payments on February 28, 2007.

    

    3.    Except
      as
      expressly stated in this Amendment, the terms and conditions of the Warrants
      and
      the Agreement shall remain in all respects unchanged.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the parties hereto have caused these Amendments to be duly
      executed as of the date first above set forth.

     

    
      	 	 	 
	 	THE COMPANY:
	 	 
	 	STREICHER MOBILE FUELING,
              INC. 
	 
 	 
 	 
 
	 	By:  	/s/
              Richard E.
              Gathright
	 	Richard E. Gathright, President
              and CEO

    

     

    
      	 	 	 
	 	PURCHASERS:
	 	 
	 	TRIAGE CAPITAL MANAGEMENT,
              L.P. 
	 
 	 
 	 
 
	 	By:  	/s/
              Leon Frenkel
	 	Name: 	Leon
              Frenkel 
	 	Title: 	Senior
              Manager 

    

     

    
      	 	 	 
	 	TRIAGE
              CAPITAL
              MANAGEMENT B, L.P.
	 
 	 
 	 
 
	 	By:  	/s/
              Leon
              Frenkel
	 	Name: 	Leon
              Frenkel 
	 	Title: 	Senior
              Manager 

    

     

    
       

       

      [Signatures
        to that certain Second Amendment to Warrant Purchase Agreement and Stock
        Purchase Warrant effective as of November 29, 2006]

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