Exhibit 10.32
CONSULTING AND CONFIDENTIALITY
AGREEMENT
CONSULTING AGREEMENT for the key
personnel services of IEGT, Inc.’s employee Mo Zeidan, dated
as of August 10, 2009 (the “Agreement”), by IEGT, Inc.,
a Michigan Corporation (“Consultant”), and Integral
Technologies, Inc. a Nevada corporation (the “Company”
or “Integral”).
WHEREAS, the Company desires to
engage Consultant to provide certain consulting services as the
Company may direct. The Consultant is willing to be engaged by the
Company as a consultant and to provide such services, in assisting
in the development/commercialization of Integral’s
ElectriPlast™ technology. Also, depending on time available
and subject to the direction of the Company, the
development/commercialization of the Carbon Fiber Wire Technology
combined with ElectriPlast™ on the terms and conditions set
forth below;
NOW, THEREFORE, in consideration of
the mutual covenants and agreements contained herein, the receipt
and sufficiency of which are hereby acknowledged, the Company and
Consultant agree as follows:
1.
Consulting . The Company hereby retains Consultant,
and Consultant hereby agrees to make Consultant’s employee Mo
Zeidan available as a consultant to the Company, upon the terms and
subject to the conditions contained herein. During the
Consultant Term (as hereinafter defined), Consultant shall provide
certain consulting services to the Company as requested by
management.
2.
Term . Subject to the provisions for termination
hereinafter provided, the term of this Agreement shall commence on
the date set forth above (the “Effective Date”) and
shall continue until July 31, 2011 (the “Consultant
Term”).
3.
Compensation . In consideration of the services
to be rendered by Consultant hereunder, during the Consultant Term
the Company shall pay and grant to Consultant, and Consultant
agrees to accept the following:
(a) as
a consulting fee, $25,000 per month (the “ Consulting
Fee” ) payable at the beginning of each
month. This consulting fee will be reviewed every six
months effective as of the date of this agreement. Consideration
will be given to renegotiating the Consulting Fee based upon the
success of Consultant obtaining contracts. Also,
compensation per each contract obtained shall be considered by the
Company. The decision on whether the Consulting Fee will be
increased will be at the sole discretion of the Company.
(b) The company shall grant
to Consultant 2,000,000 options for the right to purchase common
stock of the Company. The Grant of Option forms part of this
Agreement and is attached as Exhibit A. These options shall be
priced and vested pursuant to the Grant of Option and as indicated
below.
|
Number of
Options
|
|
Vesting
Date
|
Option
Price
|
|
200,000
|
|
July 10,
2009
|
$0.25
|
|
200,000
|
|
October 10,
2009
|
$0.25
|
|
200,000
|
|
January 10,
2010
|
$0.25
|
|
200,000
|
|
April 10,
2010
|
$0.25
|
|
200,000
|
|
July 10,
2010
|
$0.25
|
|
200,000
|
|
October 10,
2010
|
$0.25
|
|
200,000
|
|
January 10,
2011
|
$0.25
|
|
200,000
|
|
April 10,
2011
|
$0.25
|
|
|
|
|
|
The consideration to be given by
Consultant for the Consulting Fee and the grant of options
agreement shall include the following services and third
party costs over the two year contract:
Services:
* Engineering – Application
designs, Product Development, Technology Roadmap &
Implementation Timing Plan.
* Marketing - Product Introduction
with OEM, Tier I, Tier II, Conventions,
Associations & Publications.
* Customer Approvals and
Validation
* Patents – Complete
Analysis of all Patents (Awarded, Pending) and categorize them by
sector,
Industry, Application, Priority of
implementation, & identify potential customers.
* Research & Development -
Design Technical Solutions to make the “Integral
Patents” Implementation Ready
& “Differentiation”. This anticipates
“New Competitive Innovation” for market penetration
with unique products and New Patent based on cost effective systems
solutions. Joint development with the Customer’s Advanced
Engineering Team for future implementation to transition into Core
Approved Production Technology and migrate as a Global
Customer Strategy.
* Business Case – Systems
Analysis per Application/Sector for Technology
justification and detailing all the benefits (Financial, Technical
Performance, Assembly Processes, Packaging, Weight, impact on Fuel
Efficiency, Environmental, Tooling Investment impact such stamping
tools versus molding tools and product reliability).
* Expenses - Mileage for Customers
Travel & Customers Entertainment in Michigan-/-surrounding
states within reasonable driving distance 4 – 6
hrs. This includes driving to Jasper for meetings. Other travel
expenses will be funded by Integral.
* Joint Development/Joint Venture
– Identify Partner for joint development of products
implementation which includes embedding in applications plus all
the Testing up to approval phase and Business
Award. Structure an agreement frame and
justification.
Work with customer for all phases
Pre-Award - Prototype---Production.
* ElectriPlast™ Web Site
-assist by providing technical information to the personnel of the
Company and Jasper Rubber Products, Inc. of a new
ElectriPlast™ web site.
* Funding - Support Integral as
required in the technical documentation & Presentations for
external funding justification such as the DOE, State, Government,
Grants, and VC.
Third party
costs:
Mileage for Customers Travel & Customers
Entertainment in Michigan-/-surrounding states within
reasonable driving distance 4 – 6 hrs. This includes driving
to Jasper for meetings. Other travel expenses will be funded by
Integral.
4. Termination
. The Consultant Term will end on July 31, 2011
(the “ Expiration Date ”), unless sooner
terminated as provided below. Notwithstanding the foregoing,
the Consultant Term (i) will terminate upon the death of Mo Zeidan
or upon Notice of Termination (as defined below) delivered to
Consultant as a result of Mo Zeidan’s Disability (as defined
in Section 4(e) below), and (ii) may be terminated by the Company
at any time prior to the Expiration Date for Cause (as defined in
Section 4(d) below) or without Cause (“Termination
Date”). Any termination of the Consultant Term by the
Company or by Consultant (other than termination upon Mo
Zeidan’s death) must be communicated by written “
Notice of Termination ” to the other party
hereto. “ Termination Date ” means (i) if
the Consultant Term has not already been terminated by such date,
the Expiration Date, (ii) if the Consultant Term is terminated by
Mo Zeidan’s death, the date of Mo Zeidan’s death, or
(iii) if the Consultant Term is terminated upon Mo Zeidan’s
Disability, by the Company, the date specified in the Notice of
Termination.
(a)
Either party may terminate the contract at the following “six
month” intervals with 30 days notice: January 31, 2010, July
31, 2010, and January 31, 2011.
(b)
If the Consultant Term is terminated by the Company without Cause,
Consultant will be entitled to receive the full amount of the
remaining compensation as identified in paragraph 3.a as it becomes
due pursuant thereto.
(c)
If the Consultant Term is terminated by the Company for Cause, the
Company will pay Consultant only those amounts due as identified in
paragraph 3.a, prorated, to the Termination Date and
any unpaid expenses as of the Termination Date. Upon delivery
of the payment described in this Section 4(b), the Company will
have no further obligation to Consultant under this
agreement.
(d)
If Consultant terminates under paragraph 4(a) then the Company will
pay Consultant only those amounts due as indentified in paragraph
3.a prorated, to the Termination Date and any unpaid expenses as of
the Termination Date. Upon delivery of the payment described in
this Section 4(b), the Company will have no further obligation to
Consultant under this agreement.
(e)