EXTENDED SYSTEMS INC
FUNCTIONAL MANAGEMENT TEAM EMPLOYMENT AGREEMENT
<DOCUMENT>
<TYPE>EX-10.36
<SEQUENCE>3
<FILENAME>exh10-36_12970.txt
<DESCRIPTION>FUNCTIONAL MANAGEMENT TEAM EMPLOYMENT AGREEMENT
<TEXT>
                                                                   EXHIBIT 10.36
                                                                   -------------

                 FUNCTIONAL MANAGEMENT TEAM EMPLOYMENT AGREEMENT


THIS AGREEMENT is made between EXTENDED SYSTEMS OF IDAHO, INCORPORATED (ESI) and
____________Jeffrey M. Siegel________ (EMPLOYEE) for the employment of EMPLOYEE
by ESI.

IT IS AGREED BETWEEN THE PARTIES:

1.   EMPLOYMENT: ESI hereby hires EMPLOYEE and EMPLOYEE accepts employment with
     ESI as ____Chief Marketing Officer_____________.

2.   TERMS OF EMPLOYMENT: This Agreement shall commence the _____10th__ day of
     __May_, ___2004 and shall continue until terminated by either party
     pursuant to paragraph five.

3.   COMPENSATION: The EMPLOYEE shall receive as compensation for his/her
     services the amount of __$13,750_ per __month based on full-time employment
     (which amount may be increased from time to time, "Base Salary") plus all
     employee benefits as set forth in the current issue of the Extended Systems
     Employee Handbook.

4.   DUTIES OF EMPLOYEE: EMPLOYEE shall have the duties and authority as set
     forth in the job description.

5.   VACATION: EMPLOYEE shall accumulate paid vacation as set forth in Extended
     Systems Time-Off Policy.

6.   TRAVEL EXPENSES: EMPLOYEE shall be reimbursed for all authorized travel and
     lodging expenses.

7.   FRINGE BENEFITS: Fringe benefits shall be provided by ESI as set forth in
     the Extended Systems Employee Handbook, which is located on the HR
     Intranet. I understand that I am responsible for familiarizing myself with
     the contents of the handbook. I understand that the contents in the
     Employee Handbook are subject to change at Extended Systems' discretion and
     do not create any contractual commitments by the Company. __js__ (Employee
     Initials)

8.   DRUG AND ALCOHOL POLICY: EMPLOYEE agrees to abide by the terms of the
     Extended Systems Drug and Alcohol Policy. Receipt of Drug and Alcohol
     Policy is hereby acknowledged. js (Employee Initials).

9.   NON-DISCLOSURE AGREEMENT: EMPLOYEE agrees to abide by the terms of the
     Extended Systems Non-Disclosure Agreement.

10.  INSIDER TRADING POLICY: EMPLOYEE agrees to abide by the terms of Extended
     Systems' Insider Trading Policy.

11.  NOTICE OF TERMINATION: With or without good cause either party may
     terminate this agreement by giving fourteen (14) days written notice to the
     other party. Termination of this Agreement shall not terminate the
     NONDISCLOSURE AGREEMENT between the parties.

12.  SEVERANCE. (a) Termination Without Cause; Constructive Termination. Except
     as provided in Section 12(b), in the event EMPLOYEE is terminated without
     cause, or in the event any of the following events occur without EMPLOYEE'S
     consent: (i) EMPLOYEE is relocated; (ii) EMPLOYEE'S overall compensation
     package (including but not limited to salary, bonus, commission structure,
     fringe benefits, perquisites, and vacation time) is detrimentally changed
     or modified other than in connection with a general change in compensation
     for all ESI employees or for all ESI employees in any group or
     classification that includes EMPLOYEE (provided that any reduction in
     compensation is made as a result of a decline in ESI's economic conditions,
     is temporary, and is no greater than twenty percent (20%) of Base Salary);
     or (iii) EMPLOYEE'S position within ESI (including EMPLOYEE'S officer
     status with ESI or its parent), or any of the duties, responsibilities or
     requirements of EMPLOYEE'S position, are substantially changed or modified,
     THEN EMPLOYEE shall be entitled to receive the following: (A) an amount
     equal to six (6) months of Base Salary at EMPLOYEE'S then current Base
     Salary; (B) $3,000.00 in lieu of fringe benefits; (C) all salary, vacation
     time and other benefits earned and accrued to the date of termination; and
     (D) a pro rata bonus for the year in which termination occurs assuming the
     EMPLOYEE would have received a bonus. In order to receive the severance
     payment under this Section 12(a), EMPLOYEE must execute a mutually
     agreeable form of "Release of All

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     Employment Claims." Participation in all stock option plans, stock purchase
     plans, and other company personnel benefits shall cease on the EMPLOYEE'S
     date of termination, subject to the specific provisions of option
     agreements or plans that may extend EMPLOYEE'S rights beyond the date of
     termination.

     (b) Change in Control. Notwithstanding the foregoing, if within 12 months
     following a Change in Control, EMPLOYEE is terminated for any reason other
     than for cause or any of the following events occur without EMPLOYEE'S
     consent: (i) EMPLOYEE is relocated; (ii) any component of EMPLOYEE'S
     compensation package (including but not limited to salary, bonus,
     commission structure, fringe benefits, perquisites, and vacation time) is
     detrimentally changed or modified; or (iii) EMPLOYEE'S position within the
     surviving entity, or any of the duties, responsibilities or requirements of
     EMPLOYEE'S position, are changed or modified in relation to EMPLOYEE'S
     position within ESI (including EMPLOYEE'S officer status with ESI or its
     parent), THEN EMPLOYEE shall be entitled to receive the following: (A) an
     amount equal to twelve (12) months of Base Salary at EMPLOYEE'S then
     current Base Salary; (B) $6,000 in lieu of fringe benefits; (C) all salary,
     vacation time and other benefits earned and accrued to the date of
     termination; and (D) a pro rata bonus for the year in which termination
     occurs assuming the EMPLOYEE would have received a bonus. In order to
     receive the severance payment under this Section 12(b), EMPLOYEE must
     execute a mutually agreeable form of "Release of All Employment Claims."
     Furthermore, all unvested ESI stock options held by EMPLOYEE shall
     automatically vest upon termination (or the occurrence of an event
     described in Sections 12(b)(i)-(iii)) and, on or before the ninetieth
     (90th) day following termination (or the triggering event, as the case may
     be), EMPLOYEE shall have the option, exercisable by delivery of written
     notice of exercise to ESI or its successor, of converting any incentive
     stock options into nonqualified stock options with an exercise period
     extending until the earliest of twenty-four (24) months following such
     date, or the expiration date of such option.

     For purposes of this Agreement, a "Change In Control" shall mean the
     occurrence of any of the following events:

          A third "person," including a "group," but excluding an existing
          stockholder of ESI who is the "beneficial owner" (as these terms are
          defined in or for the purposes of Section 13(d) of the Securities
          Exchange Act of 1934, as amended, and as in effect on the date hereof)
          of more than 20% of the total number of votes that may be cast for the
          election of directors of ESI, (A) becomes the beneficial owner of
          shares of ESI having more than 50% of the total number of votes that
          may be cast for the election of directors of ESI, or (B) otherwise is
          able to appoint, designate or control, by proxy, agreement or
          otherwise, a majority of the directors of ESI;

          The merger or consolidation of ESI with or into any other corporation
          or entity or the merger or consolidation of any other corporation or
          entity into or with ESI, in which case those persons who are
          stockholders of ESI immediately prior to such merger or consolidation
          do not receive, as a result of such merger or consolidation, more than
          50% in voting power of the outstanding capital stock of the surviving
          corporation; or

          Any sale or transfer in a single transaction or series of related
          transactions of more than 50% of fair market value of ESI's assets.

     Notwithstanding the above, ESI and EMPLOYEE acknowledge that this Section
     12(b) shall be triggered and EMPLOYEE shall be entitled to severance
     thereunder if after execution of a definitive agreement but prior to the
     actual closing of a Change in Control, EMPLOYEE is terminated in relation
     to the Change in Control.

     Payments. Severance payments may be paid in one lump sum or in installments
     at the option of EMPLOYEE.

     Excess Parachute Payments. If any portion of the payments or benefits under
     this Agreement or any other agreement or benefit plan of the Company
     (including stock options) would be characterized as an "excess parachute
     payment" to the Employee under Section 280G of the Internal Revenue Code of
     1986, as amended (the "Code"), the Employee shall be paid any excise tax
     that the Employee owes under Section 4999 of the Code as a result of such
     characterization, such excise tax to be paid to the Employee at least ten
     (10) days prior to the date that he or she is obligated to make the excise
     tax payment. The determination of whether and to what extent any

<PAGE>

     payments or benefits would be "excess parachute payments" and the date by
     which any excise tax shall be due, shall be determined by recognized tax
     counsel selected by ESI and reasonably acceptable to the Employee.

     Except as specifically set forth herein, the Agreement shall remain in full
     force and effect. This Amendment shall be governed in all respects by the
     internal laws of the state of Idaho (without regard to its conflicts of
     laws principles). This Amendment may be executed in counterparts, each of
     which shall be an original and all of which together shall constitute the
     same document. This Amendment shall be binding upon, and inure to the
     benefit of, the parties and their respective permitted successors and
     assigns.

                                        Extended Systems of Idaho, Incorporated


                                        By: /s/ Charles W. Jepson
                                            -------------------------
                                        Its:  President and CEO
                                              --------------------------


Accepted and Approved By:


/s/_Jeffrey M. Siegel
--------------------------
Employee

05/11/04
--------------------------
Dated:




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</DOCUMENT>
