Integral Technologies, Inc. (OTCMKTS:ITKG) Files An 8-K Termination of a Material Definitive Agreement
Item 1.02 Termination of a Material Definitive Agreement.
On December 14, 2018, Integral Technologies, Inc. (the “Company”) terminated its Management and Services Agreement with Integral Technologies Asia Inc. (“Integral Asia”) dated February 28, 2014 (the “Services Agreement”). A total of $916,066 in amounts payable by the Company had accrued to Integral Asia for services rendered under the agreement. Integral Asia agreed to forgive a total of $881,566 upon termination of the agreement and the employment agreements with Young Min Kim, President of Integral Asia, and Hyung Jin Song, Chief Executive Officer and a director of Integral Asia.
In connection with the termination of the Services Agreement, also on December 14, 2018, the Company and Integral Asia entered into separation and release agreements with Mr. Kim, and Mr. Song (collectively the Termination Agreements”). Mr. Kim has resigned from his position as President, and Mr. Song has resigned as Chief Executive Officer, but remains a director of Integral Asia.
to their employment agreements, the Company and Integral Asia owed $100,000 annually to Mr. Kim and $150,000 annually to Mr. Song. The Termination Agreements released the Company of a total of $881,566 in exchange for the following cash payments:
● The Company will pay Mr. Kim a total of $14,100, of which $7,350 is for out of pocket expenses.
● The Company will pay Mr. Song a total of $20,400, of which $13,650 is for out of pocket expenses.
Payments to Mr. Song and Mr. Kim will be made in two equal installments, the first of which is due ten days after execution of the Termination Agreements, and the second which is due 20 days after execution.
The Company is in the process of closing its Asia office as a cost savings measure and will initiate the process of winding up Integral Asia.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
See above under Item 1.02 for relevant information.
About Integral Technologies, Inc. (OTCMKTS:ITKG)
Integral Technologies, Inc. is engaged in the business of researching, developing and commercializing new electrically conductive resin-based materials called ElectriPlast. The Company is focused on devoting all of its resources to the research, development and commercialization of its ElectriPlast with Flexible Content Technology. The ElectriPlast technology possesses a multitude of applications in industries, such as auto industry, the aerospace, consumer electronics, and commercial aviation. It is focused on business development and marketing efforts on securing licensing and/or joint development agreements in areas for which it holds patents covering specific materials, components, parts, applications or end-products incorporating conductive resins and ElectriPlast technology. It collaborates with suppliers, vendors, original equipment manufacturers (OEMs) and manufacturers of products who would benefit from the incorporation of any of the ElectriPlast applications.