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Exhibit 10.7

MORTGAGE

RECORDATION REQUESTED BY:
           National City Bank
           Corporate Banking LOC 01-8485
           1900 East Ninth Street
           Cleveland, OH  44114

WHEN RECORDED MAIL TO:
           National City Bank of Pennsylvania 
           P.O. Box 2977
           Pittsburgh, PA  15230

SEND TAX NOTICES TO:
           Northern Technologies Holding Company, LLC 
           6680 North Highway 49
           Lino Lakes, MN  55014

National City®

MAXIMUM LIEN.  NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, THE MAXIMUM INDEBTEDNESS SECURED BY THIS MORTGAGE IS $1,275,000.00.

THIS MORTGAGE dated May 3, 2006, is made and executed between Northern Technologies Holding Company, LLC, whose address is 6680 North Highway 49 Lino Lakes, MN 55014 (referred to below as “Grantor”) and National City Bank, whose address is 1900 East Ninth Street, Cleveland, OH 44114 (referred to below as “Lender”).

GRANT OF MORTGAGE.  For valuable consideration, Grantor mortgages and conveys to Lender all of Grantor’s right, title, and interest in and to the following described real property, together with all existing or subsequently erected or affixed buildings, improvements and fixtures; all easements, rights of way, and appurtenances; all water, water rights, watercourses and ditch rights (including stock in utilities with ditch or irrigation rights); and all other rights, royalties, and profits relating to the real property, including without limitation all minerals, oil, gas, geothermal and similar matters, (the “Real Property”) located in Anoka County, State of Minnesota:

	
  
 
  	
  
See   Exhibit “A”, which is attached to this Mortgage and made a part of this   Mortgage as if fully set forth herein.
  

The Real Property or its address is commonly known as 22 Village Parkway, Circle Pines, MN 55014.  The Real Property tax identification number is see attached Exhibit “A”.

CROSS-COLLATERALIZATION.  In addition to the Note, this Mortgage secures all obligations, debts and liabilities, plus interest thereon, of Grantor to Lender, or any one or more of them, as well as all claims by Lender against Grantor or any one or more of them, whether now existing or hereafter arising, whether related or unrelated to the purpose of the Note, whether voluntary or otherwise, whether due or

	
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not due, direct or indirect, determined or undetermined, absolute or contingent, liquidated or unliquidated, whether Grantor may be liable individually or jointly with others, whether obligated as guarantor, surety, accommodation party or otherwise, and whether recovery upon such amounts may be or hereafter may become barred by any statute of limitations, and whether the obligation to repay such amounts may be or hereafter may become otherwise unenforceable.

Grantor presently assigns to Lender all of Grantor’s right, title, and interest in and to all present and future leases of the Property and all Rents from the Property.  In addition, Grantor grants to Lender a Uniform Commercial Code security interest in the Personal Property and Rents.

FUTURE ADVANCES.  In addition to the Note, this Mortgage secures all future advances made by Lender to Grantor whether or not the advances are made pursuant to a commitment. Specifically, without limitation, this Mortgage secures, In addition to the amounts specified in the Note, all future amounts Lender in its discretion may loan to Grantor, together with all interest thereon.

THIS MORTGAGE, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS GIVEN TO SECURE (A) PAYMENT OF THE INDEBTEDNESS AND (B) PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THE NOTE AND THIS MORTGAGE. THIS MORTGAGE IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS:

PAYMENT AND PERFORMANCE.  Except as otherwise provided in this Mortgage, Grantor shall pay to Lender all amounts secured by this Mortgage as they become due and shall strictly perform all of Grantor’s obligations under this Mortgage.

POSSESSION AND MAINTENANCE OF THE PROPERTY. Grantor agrees that Grantor’s possession and use of the Property shall be governed by the following provisions:

	
  
 
  	
  
Possession   and Use.  Until the occurrence of an Event of   Default, Grantor may (1) remain in possession and control of the   Property; (2) use, operate or manage the Property; and (3) collect   the Rents from the Property.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Duty to   Maintain.  Grantor shall maintain the Property in   tenantable condition and promptly perform all repairs, replacements, and   maintenance necessary to preserve its value.
  
	
  
 
  	
  
 
  
	
   
  	
  
Compliance   With Environmental Laws.  Grantor represents and   warrants to Lender that: (1) During the period of Grantor’s ownership of   the Property, there has been no use, generation, manufacture, storage,   treatment, disposal, release or threatened release of any Hazardous Substance   by any person on, under, about or from the Property; (2) Grantor has no   knowledge of, or reason to believe that there has been, except as previously   disclosed to and acknowledged by Lender in writing, (a) any breach or   violation of any Environmental Laws, (b) any use, generation, manufacture,   storage, treatment, disposal, release or threatened release of any Hazardous   Substance on, under, about or from the Property by any prior owners or   occupants of the Property, or (c) any actual or threatened litigation or   claims of any kind by any person relating to such matters; and (3) Except as   previously disclosed to and acknowledged by Lender in
writing, (a) neither   Grantor nor any tenant, contractor, agent or other authorized user of the   Property shall use, generate, manufacture, store, treat, dispose of or release   any Hazardous Substance on, under, about or from the Property; and (b) any   such activity shall be conducted in compliance with all applicable federal,   state, and local laws, regulations and ordinances, including without   limitation all Environmental Laws. Grantor authorizes Lender and its agents   to enter upon the Property to make such inspections 
  

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and tests, at Grantor’s   expense, as Lender may deem appropriate to determine compliance of the   Property with this section of the Mortgage. Any inspections or tests made by   Lender shall be for Lender’s purposes only and shall not be construed to   create any responsibility or liability on the part of Lender to Grantor or to   any other person. The representations and warranties contained herein are   based on Grantor’s due diligence in investigating the Property for Hazardous   Substances. Grantor hereby (1) releases and waives any future claims against   Lender for indemnity or contribution in the event Grantor becomes liable for   cleanup or other costs under any such laws; and (2) agrees to indemnify and   hold harmless Lender against any and all claims, losses, liabilities,   damages, penalties, and expenses, including attorneys’ fees, consultants’   fees, and costs which Lender may directly or indirectly sustain or suffer
resulting from a breach of this section of the Mortgage or as a consequence   of any use, generation, manufacture, storage, disposal, release or threatened   release occurring prior to Grantor’s ownership or interest in the Property,   whether or not the same was or should have been known to Grantor. The   provisions of this section of the Mortgage, including the obligation to   indemnify, shall survive the payment of the Indebtedness and the satisfaction   and reconveyance of the lien of this Mortgage and shall not be affected by   Lender’s acquisition of any interest in the Property, whether by foreclosure   or otherwise.
  
	
   
  	
  
 
  
	
  
 
  	
  
Nuisance,   Waste.  Grantor shall not cause, conduct or permit   any nuisance nor commit, permit, or suffer any stripping of or waste on or to   the Property or any portion of the Property.    Without limiting the generality of the foregoing, Grantor will not   remove, or grant to any other party the right to remove, any timber, minerals   (including oil and gas), coal, clay, scoria, soil, gravel or rock products   without Lender’s prior written consent.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Removal   of Improvements.  Grantor shall not demolish or remove any   Improvements from the Real Property without Lender’s prior written   consent.  As a condition to the   removal of any Improvements, Lender may require Grantor to make arrangements   satisfactory to Lender to replace such Improvements with Improvements of at   least equal value.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Lender’s   Right to Enter.  Lender and Lender’s agents and   representatives may enter upon the Real Property at all reasonable times to   attend to Lender’s interests and to inspect the Real Property for purposes of   Grantor’s compliance with the terms and conditions of this Mortgage.
  
	
   
  	
  
 
  
	
  
 
  	
  
Compliance   with Governmental Requirements.  Grantor shall promptly comply   with all laws, ordinances, and regulations, now or hereafter in effect, of   all governmental authorities applicable to the use or occupancy of the   Property, including without limitation, the Americans With Disabilities   Act.  Grantor may contest in good   faith any such law, ordinance, or regulation and withhold compliance during   any proceeding, including appropriate appeals, so long as Grantor has   notified Lender in writing prior to doing so and so long as, in Lender’s sole   opinion, Lender’s interests in the Property are not jeopardized. Lender may   require Grantor to post adequate security or a surety bond, reasonably   satisfactory to Lender, to protect Lender’s interest.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Duty to   Protect.  Grantor agrees neither to abandon or leave   unattended the Property. Grantor shall do all other acts, in addition to   those acts set forth above in this section, which from the character and use   of the Property are reasonably necessary to protect and preserve the   Property.
  

DUE ON SALE - CONSENT BY LENDER.  Lender may, at Lender’s option, declare immediately due and payable all sums secured by this Mortgage upon the sale or transfer, without Lender’s prior written consent, of all or any part of the Real Property, or any interest in the Real Property.  A “sale or transfer” means the conveyance of Real Property or any right, title or interest in the Real Property; whether legal, beneficial or equitable; whether voluntary or involuntary; whether by outright sale, deed, installment sale 

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contract, land contract, contract for deed, leasehold interest with a term greater than three (3) years, lease-option contract, or by sale, assignment, or transfer of any beneficial interest in or to any land trust holding title to the Real Property, or by any other method of conveyance of an interest in the Real Property.  If any Grantor is a corporation, partnership or limited liability company, transfer also includes any change in ownership of more than fifty percent (50%) of the voting stock, partnership interests or limited liability company interests, as the case may be, of such Grantor.  However, this option shall not be exercised by Lender if such exercise is prohibited by federal law or by Minnesota law.

TAXES AND LIENS.  The following provisions relating to the taxes and liens on the Property are part of this Mortgage:

	
  
 
  	
  
Payment.    Grantor shall pay when due (and in all events prior to delinquency)   all taxes, payroll taxes, special taxes, assessments, water charges and sewer   service charges levied against or on account of the Property, and shall pay   when due all claims for work done on or for services rendered or material   furnished to the Property.  Grantor   shall maintain the Property free of any liens having priority over or equal   to the Interest of Lender under this Mortgage, except for those liens   specifically agreed to in writing by Lender, and except for the lien of taxes   and assessments not due as further specified in the Right to Contest   paragraph.
  
	
  
 
  	
  
 
  
	
   
  	
  
Right to   Contest.  Grantor may withhold payment of any tax,   assessment, or claim in connection with a good faith dispute over the   obligation to pay, so long as Lender’s interest in the Property is not   jeopardized. If a lien arises or is filed as a result of nonpayment, Grantor   shall within fifteen (15) days after the lien arises or, if a lien is filed,   within fifteen (15) days after Grantor has notice of the filing, secure the   discharge of the lien, or if requested by Lender, deposit with Lender cash or   a sufficient corporate surety bond or other security satisfactory to Lender   in an amount sufficient to discharge the lien plus any costs and reasonable   attorneys’ fees, or other charges that could accrue as a result of a   foreclosure or sale under the lien.    In any contest, Grantor shall defend itself and Lender and shall   satisfy any adverse judgment before enforcement against the Property.  Grantor shall
name Lender as an additional   obligee under any surety bond furnished in the contest proceedings.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Evidence   of Payment.  Grantor shall upon demand furnish to   Lender satisfactory evidence of payment of the taxes or assessments and shall   authorize the appropriate governmental official to deliver to Lender at any   time a written statement of the taxes and assessments against the Property.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Notice of   Construction.  Grantor shall notify Lender at least   fifteen (15) days before any work is commenced, any services are furnished,   or any materials are supplied to the Property, if any mechanic’s lien,   materialmen’s lien, or other lien could be asserted on account of the work,   services, or materials.  Grantor will   upon request of Lender furnish to Lender advance assurances satisfactory to   Lender that Grantor can and will pay the cost of such improvements.
  

PROPERTY DAMAGE INSURANCE.  The following provisions relating to insuring the Property are a part of this Mortgage:

	
  
 
  	
  
Maintenance   of Insurance.  Grantor shall procure and maintain   policies of fire insurance with standard extended coverage endorsements on a   replacement basis for the full insurable value covering all Improvements on   the Real Property in an amount sufficient to avoid application of any   coinsurance clause, and with a standard mortgagee clause in favor of   Lender.  Grantor shall also procure   and maintain comprehensive general liability insurance in such coverage   amounts as Lender may request with Lender being named as additional insureds   in such liability insurance policies.    Additionally, Grantor shall maintain such other insurance, including   but not limited to hazard, 
  

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business interruption and   boiler insurance as Lender may require. Policies shall be written by such   insurance companies and in such form as may be reasonably acceptable to   Lender.  Grantor shall deliver to   Lender certificates of coverage from each insurer containing a stipulation   that coverage will not be cancelled or diminished without a minimum of thirty   (30) days’ prior written notice to Lender and not containing any disclaimer   of the insurer’s liability for failure to give such notice. Each insurance   policy also shall include an endorsement providing that coverage in favor of   Lender will not be impaired in any way by any act, omission or default of   Grantor or any other person.  Should   the Real Property be located in an area designated by the Director of the   Federal Emergency Management Agency as a special flood hazard area, Grantor   agrees to obtain and maintain Federal Flood Insurance, if available, within   45
days after notice is given by Lender that the Property is located in a   special flood hazard area, for the full unpaid principal balance of the loan   and any prior liens on the property securing the loan, up to the maximum   policy limits set under the National Flood Insurance Program, or as otherwise   required by Lender, and to maintain such insurance for the term of the loan.
  
	
   
  	
  
 
  
	
  
 
  	
  
Application   of Proceeds.  Grantor shall promptly notify Lender of any   loss or damage to the Property.    Lender may make proof of loss if Grantor fails to do so within fifteen   (15) days of the casualty.  Whether or   not Lender’s security is impaired, Lender may, at Lender’s election, receive   and retain the proceeds of any insurance and apply the proceeds to the   reduction of the Indebtedness, payment of any lien affecting the Property, or   the restoration and repair of the Property.    If Lender elects to apply the proceeds to restoration and repair,   Grantor shall repair or replace the damaged or destroyed Improvements in a   manner satisfactory to Lender.  Lender   shall, upon satisfactory proof of such expenditure, pay or reimburse Grantor   from the proceeds for the reasonable cost of repair or restoration if Grantor   is not in default under this Mortgage. Any proceeds which have not been   disbursed
within 180 days after their receipt and which Lender has not   committed to the repair or restoration of the Property shall be used first to   pay any amount owing to Lender under this Mortgage, then to pay accrued   interest, and the remainder, if any, shall be applied to the principal   balance of the Indebtedness.  If   Lender holds any proceeds after payment in full of the Indebtedness, such   proceeds shall be paid to Grantor as Grantor’s interests may appear.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Grantor’s   Report on Insurance.  Upon request of Lender, however not more   than once a year, Grantor shall furnish to Lender a report on each existing   policy of insurance showing: (1) the name of the insurer; (2) the risks   insured; (3) the amount of the policy; (4) the property insured, the then   current replacement value of such property, and the manner of determining   that value; and (5) the expiration date of the policy. Grantor shall, upon   request of Lender, have an independent appraiser satisfactory to Lender   determine the cash value replacement cost of the Property.
  

LENDER’S EXPENDITURES.  If any action or proceeding is commenced that would materially affect Lender’s interest in the Property or if Grantor fails to comply with any provision of this Mortgage or any Related Documents, including but not limited to Grantor’s failure to discharge or pay when due any amounts Grantor is required to discharge or pay under this Mortgage or any Related Documents, Lender on Grantor’s behalf may (but shall not be obligated to) take any action that Lender deems appropriate, including but not limited to discharging or paying all taxes, liens, security interests, encumbrances and other claims, at any time levied or placed on the Property and paying all costs for insuring, maintaining and preserving the Property.  All such expenditures incurred or paid by Lender for such purposes will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment
by Grantor.  All such expenses will become a part of the Indebtedness and, at Lender’s option, will (A) be payable on demand; (B) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during either (1) the term of any applicable insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment which will be due and payable at the Note’s maturity.  The Mortgage also will secure payment of these amounts.  Such right shall be in addition to all other rights and remedies to which Lender may be entitled upon Default.

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WARRANTY; DEFENSE OF TITLE.  The following provisions relating to ownership of the Property are a part of this Mortgage:

	
  
 
  	
  
Title.    Grantor warrants that: (a) Grantor holds good and marketable title of   record to the Property in fee simple, free and clear of all liens and   encumbrances other than those set forth in the Real Property description or   in any title insurance policy, title report, or final title opinion issued in   favor of, and accepted by, Lender in connection with this Mortgage, and   (b) Grantor has the full right, power, and authority to execute and   deliver this Mortgage to Lender.
  
	
   
  	
  
 
  
	
  
 
  	
  
Defense   of Title.  Subject to the exception in the paragraph   above, Grantor warrants and will forever defend the title to the Property   against the lawful claims of all persons.    In the event any action or proceeding is commenced that questions Grantor’s   title or the interest of Lender under this Mortgage, Grantor shall defend the   action at Grantor’s expense. Grantor may be the nominal party in such   proceeding, but Lender shall be entitled to participate in the proceeding and   to be represented in the proceeding by counsel of Lender’s own choice, and   Grantor will deliver, or cause to be delivered, to Lender such instruments as   Lender may request from time to time to permit such participation.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Compliance   With Laws.  Grantor warrants that the Property and   Grantor’s use of the Property complies with all existing applicable laws,   ordinances, and regulations of governmental authorities.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Survival   of Representations and Warranties.  All representations,   warranties, and agreements made by Grantor in this Mortgage shall survive the   execution and delivery of this Mortgage, shall be continuing in nature, and   shall remain in full force and effect until such time as Grantor’s   Indebtedness shall be paid in full.
  

CONDEMNATION.  The following provisions relating to condemnation proceedings are a part of this Mortgage:

	
  
 
  	
  
Proceedings.  If   any proceeding in condemnation is filed, Grantor shall promptly notify Lender   in writing, and Grantor shall promptly take such steps as may be necessary to   defend the action and obtain the award. Grantor may be the nominal party in   such proceeding, but Lender shall be entitled to participate in the   proceeding and to be represented in the proceeding by counsel of its own   choice, and Grantor will deliver or cause to be delivered to Lender such   instruments and documentation as may be requested by Lender from time to time   to permit such participation.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Application   of Net Proceeds.  If all or any part of the Property is   condemned by eminent domain proceedings or by any proceeding or purchase in   lieu of condemnation, Lender may at its election require that all or any   portion of the net proceeds of the award be applied to the Indebtedness or   the repair or restoration of the Property.    The net proceeds of the award shall mean the award after payment of   all reasonable costs, expenses, and attorneys’ fees incurred by Lender in   connection with the condemnation.
  

IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES.  The following provisions relating to governmental taxes, fees and charges are a part of this Mortgage:

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Current   Taxes, Fees and Charges.  Upon request by Lender,   Grantor shall execute such documents in addition to this Mortgage and take   whatever other action is requested by Lender to perfect and continue Lender’s   lien on the Real Property.  Grantor   shall reimburse Lender for all taxes, as described below, together with all   expenses incurred in recording, perfecting or continuing this Mortgage,   including without limitation all taxes, fees, documentary stamps, and other   charges for recording or registering this Mortgage.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Taxes.    The following shall constitute taxes to which this section applies:   (1) a specific tax upon this type of Mortgage or upon all or any part of the   Indebtedness secured by this Mortgage; (2) a specific tax on Grantor   which Grantor is authorized or required to deduct from payments on the   Indebtedness secured by this type of Mortgage: (3) a tax on this type of   Mortgage chargeable against the Lender or the holder of the Note: and   (4) a specific tax on all or any portion of the Indebtedness or on   payments of principal and interest made by Grantor.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Subsequent   Taxes.  If any tax to which this section applies   is enacted subsequent to the date of this Mortgage, this event shall have the   same effect as an Event of Default, and Lender may exercise any or all of its   available remedies for an Event of Default as provided below unless Grantor   either (1) pays the tax before it becomes delinquent, or (2) contests the tax   as provided above in the Taxes and Liens section and deposits with Lender   cash or a sufficient corporate surety bond or other security satisfactory to   Lender.
  

SECURITY AGREEMENT; FINANCING STATEMENTS.  The following provisions relating to this Mortgage as a security agreement are a part of this Mortgage:

	
  
 
  	
  
Security   Agreement.  This instrument shall constitute a   Security Agreement to the extent any of the Property constitutes fixtures,   and Lender shall have all of the rights of a secured party under the Uniform   Commercial Code as amended from time to time.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Security   Interest.  Upon request by Lender, Grantor shall take   whatever action is requested by Lender to perfect and continue Lender’s   security interest in the Rents and Personal Property.  In addition to recording this Mortgage in   the real property records, Lender may, at any time and without further   authorization from Grantor, file executed counterparts, copies or   reproductions of this Mortgage as a financing statement. Grantor shall   reimburse Lender for all expenses incurred in perfecting or continuing this   security Interest.  Upon default,   Grantor shall not remove, sever or detach the Personal Property from the   Property.  Upon default, Grantor shall   assemble any Personal Property not affixed to the Property in a manner and at   a place reasonably convenient to Grantor and Lender and make it available to   Lender within three (3) days after receipt of written demand from Lender to   the extent permitted by
applicable law.
  
	
  
 
  	
  
 
  
	
   
  	
  
Addresses.    The mailing addresses of Grantor (debtor)   and Lender (secured party) from which information concerning the security   interest granted by this Mortgage may be obtained (each as required by the   Uniform Commercial Code) are as stated on the first page of this Mortgage.
  

FURTHER ASSURANCES; ATTORNEY-IN-FACT.  The following provisions relating to further assurances and attorney-in-fact are a part of this Mortgage:

	
  
 
  	
  
Further   Assurances.  At any time, and from time to time, upon   request of Lender, Grantor will make, execute and deliver, or will cause to   be made, executed or delivered, to Lender or to Lender’s designee, and when   requested by Lender, cause to be filed, recorded, refiled, or rerecorded, as   the case may be, at such times and in such offices and places as Lender may   deem appropriate, any and 
  

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all such mortgages, deeds   of trust, security deeds, security agreements, financing statements,   continuation statements, instruments of further assurance, certificates, and   other documents as may, in the sole opinion of Lender, be necessary or   desirable in order to effectuate, complete, perfect, continue, or preserve   (1) Grantor’s obligations under the Note, this Mortgage, and the Related   Documents, and (2) the liens and security interests created by this Mortgage   as first and prior liens on the Property, whether now owned or hereafter   acquired by Grantor.  Unless   prohibited by law or Lender agrees to the contrary in writing, Grantor shall   reimburse Lender for all costs and expenses incurred in connection with the   matters referred to in this paragraph.
  
	
   
  	
  
 
  
	
  
 
  	
  
Attorney-In-Fact.  If   Grantor fails to do any of the things referred to in the preceding paragraph,   Lender may do so for and in the name of Grantor and at Grantor’s   expense.  For such purposes, Grantor   hereby irrevocably appoints Lender as Grantor’s attorney-in-fact for the   purpose of making, executing, delivering, filing, recording, and doing all   other things as may be necessary or desirable, in Lender’s sole opinion, to   accomplish the matters referred to in the preceding paragraph.
  

FULL PERFORMANCE.  If Grantor pays all the Indebtedness, including without limitation all future advances, when due, and otherwise performs all the obligations imposed upon Grantor under this Mortgage, Lender shall execute and deliver to Grantor a suitable satisfaction of this Mortgage and suitable statements of termination of any financing statement on file evidencing Lender’s security interest in the Rents and the Personal Property.  Grantor will pay, if permitted by applicable law, any reasonable termination fee as determined by Lender from time to time.

EVENTS OF DEFAULT.  Each of the following, at Lender’s option, shall constitute an Event of Default under this Mortgage:

	
  
 
  	
  
Payment   Default.  Grantor fails to make any payment when due   under the Indebtedness.
  
	
  
 
  	
  
 
  
	
   
  	
  
Default   on Other Payments.  Failure of Grantor within the time   required by this Mortgage to make any payment for taxes or insurance, or any   other payment necessary to prevent filing of or to effect discharge of any   lien.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Other Defaults.    Grantor fails to comply with or to perform any other term, obligation,   covenant or condition contained in this Mortgage or in any of the Related   Documents or to comply with or to perform any term, obligation, covenant or   condition contained in any other agreement between Lender and Grantor.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
False   Statements.  Any warranty, representation or statement   made or furnished to Lender by Grantor or on Grantor’s behalf under this   Mortgage or the Related Documents is false or misleading in any material   respect, either now or at the time made or furnished or becomes false or   misleading at any time thereafter.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Defective   Collateralization.  This Mortgage or any of the Related   Documents ceases to be in full force and effect (including failure of any collateral   document to create a valid and perfected security interest or lien) at any   time and for any reason.
  
	
   
  	
  
 
  
	
  
 
  	
  
Death or   Insolvency.  The dissolution of Grantor’s (regardless   of whether election to continue is made), any member withdraws from the   limited liability company, or any other termination of Grantor’s existence as   a going business or the death of any member, the insolvency of Grantor, the   appointment of a receiver for any part of Grantor’s property, any assignment   for the benefit of creditors, any type of creditor workout, or the   commencement of any proceeding under any bankruptcy or insolvency laws by or   against Grantor.
  

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Creditor   or Forfeiture Proceedings.  Commencement of foreclosure   or forfeiture proceedings, whether by judicial proceeding, self-help,   repossession or any other method, by any creditor of Grantor or by any   governmental agency against any property securing the Indebtedness.  This includes a garnishment of any of   Grantor’s accounts, including deposit accounts, with Lender.  However, this Event of Default shall not   apply if there is a good faith dispute by Grantor as to the validity or   reasonableness of the claim which is the basis of the creditor or forfeiture   proceeding and if Grantor gives Lender written notice of the creditor or   forfeiture proceeding and deposits with Lender monies or a surety bond for   the creditor or forfeiture proceeding, in an amount determined by Lender, in   its sole discretion, as being an adequate reserve or bond for the dispute.
  
	
   
  	
  
 
  
	
  
 
  	
  
Breach of   Other Agreement.  Any breach by Grantor under the terms of   any other agreement between Grantor and Lender that is not remedied within   any grace period provided therein, including without limitation any agreement   concerning any indebtedness or other obligation of Grantor to Lender, whether   existing now or later.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Events   Affecting Guarantor.  Any of the preceding events occurs with   respect to any guarantor, endorser, surety, or accommodation party of any of   the Indebtedness or any guarantor, endorser, surety, or accommodation party   dies or becomes incompetent, or revokes or disputes the validity of, or   liability under, any Guaranty of the Indebtedness.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Adverse   Change.  A material adverse change occurs in   Grantor’s financial condition, or Lender believes the prospect of payment or   performance of the Indebtedness is impaired.
  

RIGHTS AND REMEDIES ON DEFAULT.  Upon the occurrence of an Event of Default and at any time thereafter, Lender, at Lender’s option, may exercise any one or more of the following rights and remedies, in addition to any other rights or remedies provided by law:

	
  
 
  	
  
Accelerate   Indebtedness.  Lender shall have the right at its option   without notice to Grantor to declare the entire Indebtedness immediately due   and payable, including any prepayment penalty which Grantor would be required   to pay.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
UCC   Remedies.  With respect to all or any part of the   Personal Property, Lender shall have all the rights and remedies of a secured   party under the Uniform Commercial Code. If notice to Grantor of the intended   disposition of the Personal Property is required by law in a particular   instance, such notice shall be deemed commercially reasonable if given to   Grantor at least ten (10) calendar days prior to the date of intended   disposition.  Grantor shall pay on   demand all costs and expenses, including but not limited to reasonable   attorneys’ fees and legal expenses, incurred by Lender in exercising these   rights and remedies.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Appoint   Receiver.  Lender shall have the right to have a   receiver appointed to take possession of all or any part of the Property,   with the power to protect and preserve the Property, to operate the Property   preceding foreclosure or sale, and to collect the Rents from the Property and   apply the proceeds, over and above the cost of the receivership, against the   Indebtedness.  The receiver may serve   without bond if permitted by law.    Lender’s right to the appointment of a receiver shall exist whether or   not the apparent value of the Property exceeds the Indebtedness by a substantial   amount. Employment by Lender shall not disqualify a person from serving as a   receiver.
  

9

	
  Loan No: 98076
  	
  
MORTGAGE
(Continued)
  
	
  

	
  
 
  	
  
Foreclosure   and Sale.  Lender may, and is hereby authorized and   empowered to, foreclose this Mortgage by action or advertisement pursuant to   the statutes of the State of Minnesota providing for such foreclosure. Power   is expressly granted to Lender (1) to sell the Property at public auction and   to convey the Property, in fee simple, to the purchasers at such sale, and   (2) to pay, out of the proceeds of the sale, all of the Indebtedness   secured by this Mortgage, with interest, and all legal costs and charges of   the foreclosure including the maximum attorneys’ fees permitted by law and   Grantor agrees to pay all such costs, and charges and fees.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Other   Remedies.  Lender shall have all other rights and   remedies provided in this Mortgage or the Note or available at law or in   equity.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Sale of   the Property.  To the extent permitted by applicable law,   Grantor hereby waives any and all right to have the Property marshalled.  In exercising its rights and remedies,   Lender shall be free to sell all or any part of the Property together or   separately, in one sale or by separate sales.  Lender shall be entitled to bid at any public sale on all or   any portion of the Property.
  
	
   
  	
  
 
  
	
  
 
  	
  
Notice of   Sale.  Lender shall give Grantor reasonable   notice of the time and place of any public sale of the Personal Property or   of the time after which any private sale or other intended disposition of the   Personal Property is to be made.    Reasonable notice shall mean notice given at least ten (10) days   before the time of the sale or disposition. Any sale of the Personal Property   may be made in conjunction with any sale of the Real Property.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Election   of Remedies.  Election by Lender to pursue any remedy   shall not exclude pursuit of any other remedy, and an election to make   expenditures or to take action to perform an obligation of Grantor under this   Mortgage, after Grantor’s failure to perform, shall not affect Lender’s right   to declare a default and exercise its remedies.  Nothing under this Mortgage or otherwise shall be construed so   as to limit or restrict the rights and remedies available to Lender following   an Event of Default, or in any way to limit or restrict the rights and   ability of Lender to proceed directly against Grantor and/or against any   other co-maker, guarantor, surety or endorser and/or to proceed against any   other collateral directly or indirectly securing the Indebtedness.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Attorneys’   Fees; Expenses.  If Lender institutes any suit or action to   enforce any of the terms of this Mortgage, Lender shall be entitled to   recover such sum as the court may adjudge reasonable as attorneys’ fees at   trial and upon any appeal.  Whether or   not any court action is involved, and to the extent not prohibited by law,   all reasonable expenses Lender incurs that in Lender’s opinion are necessary   at any time for the protection of its interest or the enforcement of its   rights shall become a part of the Indebtedness payable on demand and shall   bear interest at the Note rate from the date of the expenditure until repaid.   Expenses covered by this paragraph include, without limitation, however   subject to any limits under applicable law, Lender’s reasonable attorneys’   fees and Lender’s legal expenses, whether or not there is a lawsuit,   including reasonable attorneys’ fees and expenses
for bankruptcy proceedings   (including efforts to modify or vacate any automatic stay or injunction),   appeals, and any anticipated post-judgment collection services, the cost of   searching records, obtaining title reports (including foreclosure reports),   surveyors’ reports, and appraisal fees and title insurance, to the extent   permitted by applicable law. Grantor also will pay any court costs, in addition   to all other sums provided by law.
  

NOTICES.  Any notice required to be given under this Mortgage, including without limitation any notice of default and any notice of sale shall be given in writing, and shall be effective when actually delivered, when actually received by telefacsimile (unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first 

10

	
  Loan No: 98076
  	
  
MORTGAGE
(Continued)
  
	
  

class, certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this Mortgage.  All copies of notices of foreclosure from the holder of any lien which has priority over this Mortgage shall be sent to Lender’s address, as shown near the beginning of this Mortgage.  Any party may change its address for notices under this Mortgage by giving formal written notice to the other parties, specifying that the purpose of the notice is to change the party’s address.  For notice purposes, Grantor agrees to keep Lender informed at all times of Grantor’s current address. Unless otherwise provided or required by law, if there is more than one Grantor, any notice given by Lender to any Grantor is deemed to be notice given to all Grantors.

ADDENDUM TO THE DEFINITION OF INDEBTEDNESS.  The word “Indebtedness” shall include any and all obligations and liabilities of Borrower/Grantor to National City Bank, an affiliate of Lender, whether absolute or contingent, whether now existing or hereafter created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof and substitutions therefor) under any agreement, device or arrangement designed to protect Borrower/Grantor from fluctuations of interest rates, exchange rates or forward rates, including, but not limited to, dollar-denominated or cross-currency exchange agreements, forward currency exchange agreements, interest rate caps, collars or floors, forward rate currency or interest rate options, puts, warrants, swaps, swaptions, U.S. Treasury locks and U.S. Treasury options, any other interest rate hedging transactions, such as, but not limited to, managing the Borrower’s/Grantor’s
interest rate risk associated with any pending or potential capital market transactions such as fixed rate bond issues and any and all cancellations, buybacks, reversals, terminations or assignments of any of the foregoing.

MISCELLANEOUS PROVISIONS.  The following miscellaneous provisions are a part of this Mortgage:

	
  
 
  	
  
Amendments.    This Mortgage, together with any Related   Documents, constitutes the entire understanding and agreement of the parties   as to the matters set forth in this Mortgage.  No alteration of or amendment to this Mortgage shall be   effective unless given in writing and signed by the party or parties sought   to be charged or bound by the alteration or amendment.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Annual   Reports.  If the Property is used for purposes other   than Grantor’s residence, Grantor shall furnish to Lender, upon request, a   certified statement of net operating income received from the Property during   Grantor’s previous fiscal year in such form and detail as Lender shall   require.  “Net operating income” shall   mean all cash receipts from the Property less all cash expenditures made in   connection with the operation of the Property.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Caption   Headings.  Caption headings in this Mortgage are for   convenience purposes only and are not to be used to interpret or define the   provisions of this Mortgage.
  
	
   
  	
  
 
  
	
  
 
  	
  
Grantor’s   Copy of Documents.  Lender agrees to provide Grantor with a   conformed copy of both the Note and this Mortgage at the time they are   executed or within a reasonable time after request.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Governing   Law.  With respect to procedural   matters related to the perfection and enforcement of Lender’s rights against   the Property, this Mortgage will be governed by federal law applicable to   Lender and to the extent not preempted by federal law, the laws of the State   of Minnesota.  In all other respects,   this Mortgage will be governed by federal law applicable to Lender and, to   the extent not preempted by federal law, the laws of the State of Ohio   without regard to its conflicts of law provisions. However, if there ever is   a question about whether any provision of this Mortgage is valid or   enforceable, the provision that is questioned will be governed by whichever   state or federal law would find the provision to be valid and   enforceable.  The loan transaction   that is evidenced by the Note and this Mortgage has been applied for,   considered, approved and made, and all necessary loan documents have been   accepted
by Lender in the State of Ohio.
  

11

	
  Loan No: 98076
  	
  
MORTGAGE
(Continued)
  
	
  

	
   
  	
  
No Waiver   by Lender.  Lender shall not be deemed to have waived   any rights under this Mortgage unless such waiver is given in writing and   signed by Lender.  No delay or   omission on the part of Lender in exercising any right shall operate as a   waiver of such right or any other right.    A waiver by Lender of a provision of this Mortgage shall not prejudice   or constitute a waiver of Lender’s right otherwise to demand strict   compliance with that provision or any other provision of this Mortgage.  No prior waiver by Lender, nor any course   of dealing between Lender and Grantor, shall constitute a waiver of any of   Lender’s rights or of any of Grantor’s obligations as to any future   transactions.  Whenever the consent of   Lender is required under this Mortgage, the granting of such consent by   Lender in any instance shall not constitute continuing consent to subsequent   instances where such consent is
required and in all cases such consent may be   granted or withheld in the sole discretion of Lender.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Severability.  If   a court of competent jurisdiction finds any provision of this Mortgage to be   illegal, invalid, or unenforceable as to any circumstance, that finding shall   not make the offending provision illegal, invalid, or unenforceable as to any   other circumstance.  If feasible, the   offending provision shall be considered modified so that it becomes legal,   valid and enforceable.  If the   offending provision cannot be so modified, it shall be considered deleted   from this Mortgage.  Unless otherwise   required by law, the illegality, invalidity, or unenforceability of any   provision of this Mortgage shall not affect the legality, validity or   enforceability of any other provision of this Mortgage.
  
	
   
  	
  
 
  
	
  
 
  	
  
Merger.    There shall be no merger of the interest or estate created by this   Mortgage with any other interest or estate in the Property at any time held   by or for the benefit of Lender in any capacity, without the written consent   of Lender.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Successors   and Assigns.  Subject to any limitations stated in this   Mortgage on transfer of Grantor’s interest, this Mortgage shall be binding   upon and inure to the benefit of the parties, their successors and assigns.  If ownership of the Property becomes   vested in a person other than Grantor, Lender, without notice to Grantor, may   deal with Grantor’s successors with reference to this Mortgage and the   Indebtedness by way of forbearance or extension without releasing Grantor   from the obligations of this Mortgage or liability under the Indebtedness.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Time is   of the Essence.  Time is of the essence in the performance   of this Mortgage.
  
	
  
 
  	
  
 
  
	
   
  	
  
Waive   Jury.  All   parties to this Mortgage hereby waive the right to any jury trial in any   action, proceeding, or counterclaim brought by any party against any other   party.
  

DEFINITIONS.  The following capitalized words and terms shall have the following meanings when used in this Mortgage. Unless specifically stated to the contrary, all references to dollar amounts shall mean amounts in lawful money of the United States of America.  Words and terms used in the singular shall include the plural, and the plural shall include the singular, as the context may require.  Words and terms not otherwise defined in this Mortgage shall have the meanings attributed to such terms in the Uniform Commercial Code:

	
  
 
  	
  
Borrower.    The word “Borrower” means Northern Technologies Holding Company, LLC   and includes all co-signers and co-makers signing the Note and all their   successors and assigns.
  

12

	
  Loan No: 98076
  	
  
MORTGAGE
(Continued)
  
	
  

	
  
 
  	
  
Default.    The word “Default” means the Default set forth in this Mortgage in the   section titled “Default”.
  
	
   
  	
  
 
  
	
  
 
  	
  
Environmental   Laws.  The words “Environmental Laws” mean any   and all state, federal and local statutes, regulations and ordinances   relating to the protection of human health or the environment, including   without limitation the Comprehensive Environmental Response, Compensation,   and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq.   (“CERCLA”), the Superfund Amendments and Reauthorization Act of 1986, Pub. L.   No. 99-499 (“SARA”), the Hazardous Materials Transportation Act, 49 U.S.C.   Section 1801, et seq., the Resource Conservation and Recovery Act, 42 U.S.C.   Section 6901, et seq., or other applicable state or federal laws, rules, or   regulations adopted pursuant thereto or common law, and shall also include   pollutants, contaminants, polychlorinated biphenyls, asbestos, urea   formaldehyde, petroleum and petroleum products, and agricultural chemicals.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Event of   Default.  The words “Event of Default” mean any of   the events of default set forth in this Mortgage in the events of default   section of this Mortgage.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Grantor.  The   word “Grantor” means Northern Technologies Holding Company, LLC.
  
	
   
  	
  
 
  
	
  
 
  	
  
Guaranty.    The word “Guaranty” means the guaranty from guarantor, endorser,   surety, or accommodation party to Lender, including without limitation a   guaranty of all or part of the Note.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Hazardous   Substances.  The words “Hazardous Substances” mean   materials that, because of their quantity, concentration or physical,   chemical or infectious characteristics, may cause or pose a present or   potential hazard to human health or the environment when improperly used,   treated, stored, disposed of, generated, manufactured, transported or otherwise   handled.  The words “Hazardous   Substances” are used in their very broadest sense and include without   limitation any and all hazardous or toxic substances, materials or waste as   defined by or listed under the Environmental Laws.  The term “Hazardous Substances” also includes, without   limitation, petroleum and petroleum by-products or any fraction thereof and   asbestos.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Improvements.    The word “Improvements” means all existing   and future improvements, buildings, structures, mobile homes affixed on the   Real Property, facilities, additions, replacements and other construction on   the Real Property.
  
	
   
  	
  
 
  
	
  
 
  	
  
Indebtedness.    The word “Indebtedness” means all   principal, interest, and other amounts, costs and expenses payable under the   Note or Related Documents, together with all renewals of, extensions of,   modifications of, consolidations of and substitutions for the Note or Related   Documents and any amounts expended or advanced by Lender to discharge   Grantor’s obligations or expenses incurred by Lender to enforce Grantor’s   obligations under this Mortgage, together with interest on such amounts as   provided in this Mortgage. Specifically, without limitation, Indebtedness   includes the future advances set forth in the Future Advances provision,   together with all interest thereon and all amounts that may be indirectly   secured by the Cross-Collateralization provision of this Mortgage.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Lender.    The word “Lender” means National City Bank, its successors and   assigns.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Mortgage.    The word “Mortgage” means this Mortgage between Grantor and Lender.
  
	
  
 
  	
  
 
  
	
   
  	
  
Note.    The word “Note” means the promissory note dated April 28, 2006, in the   original principal amount of $1,275,000.00 from Grantor to Lender, together   with all renewals of, extensions of, modifications of, refinancings of,   consolidations of, and substitutions for the promissory note or agreement.
  

13

	
  Loan No: 98076
  	
  
MORTGAGE
(Continued)
  
	
  

	
  
 
  	
  
Personal   Property. The words   “Personal Property” mean all equipment, fixtures, and other articles of   personal property now or hereafter owned by Grantor, and now or hereafter   attached or affixed to the Real Property; together with all accessions,   parts, and additions to, all replacements of, and all substitutions for, any   of such property; and together with all proceeds (including without   limitation all insurance proceeds and refunds of premiums) from any sale or   other disposition of the Property.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Property.    The word “Property” means collectively the Real Property and the   Personal Property.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Real   Property.  The words “Real Property” mean the real   property, interests and rights, as further described in this Mortgage.
  
	
   
  	
  
 
  
	
  
 
  	
  
Related   Documents.  The words “Related Documents” mean all   promissory notes, credit agreements, loan agreements, environmental   agreements, guaranties, security agreements, mortgages, deeds of trust,   security deeds, collateral mortgages, and all other instruments, agreements   and documents, whether now or hereafter existing, executed in connection with   the Indebtedness.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Rents.    The word “Rents” means all present and future rents, revenues, income,   issues, royalties, profits, and other benefits derived from the Property.
  

GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE, AND GRANTOR AGREES TO ITS TERMS. 

See Addendum to Loan Documents attached hereto and made a part hereof for additional provisions.

GRANTOR:

NORTHERN TECHNOLOGIES HOLDING COMPANY, LLC

FIRST AMERICAN EXCHANGE COMPANY, LLC, Member of Northern
 Technologies Holding Company, LLC

	
  By:
  	
  
/s/ Steven P. Katkov
  	
  
 
  
	
  
 
  	
  

  	
  
 
  
	
  
 
  	
  
Steven P. Katkov, Vice   President of First American
  	
  
 
  
	
  
 
  	
  
Exchange Company, LLC
  	
  
 
  

	
  
This Mortgage was drafted   by:
  	
  
National City Bank
  
	
  
 
  	
  
1900 East Ninth Street
  
	
  
 
  	
  
Cleveland, OH  44114
  

14

	
  Loan No: 98076
  	
  
MORTGAGE
(Continued)
  
	
  

LIMITED LIABILITY COMPANY ACKNOWLEDGEMENT

	
  
STATE OF MINNESOTA
  	
  
)
  
	
  
 
  	
  
)ss.
  
	
  
COUNTY OF RAMSEY
  	
  
)
  

On this 3rd day of May, 2006, before me, the undersigned Notary Public, personally appeared Steven P. Katkov, Vice President of First American Exchange Company, LLC, and known to me to be a member or designated agent of the limited liability company that executed the Mortgage and acknowledged the Mortgage to be the free and voluntary act and deed of the limited liability company, by authority of statute, its articles of organization or its operating agreement, for the uses and purposes therein mentioned, and on oath stated that he or she is authorized to execute this Mortgage and in fact executed the Mortgage on behalf of the limited liability company.

	
  
By
  	
  
/s/ Jodean Ives Fritz
  	
  
 
  	
  
 
  
	
   
  	
  

  	
  
 
  	
  
Residing at Ramsey County,   Minnesota
  
	
  
Notary Public in and for   the State of Minnesota
  	
  
 
  	
  
My commission expires   01-31-09
  

15

ADDENDUM TO LOAN DOCUMENTS

          This Addendum is made and entered into by Northern Technologies Holding Company, LLC (“Borrower”) in favor of National City Bank (“Bank”).  The following provisions are incorporated into and made a part of the attached loan document:

1. CONFLICT.  Notwithstanding anything to the contrary set forth in the attached document or in any of the other documents (“Loan Documents”) related to the $$1,275,000 loan (“Loan”) from Bank to Borrower, in the event of a conflict between the terms of the Loan Documents and the terms of this Addendum, the terms of this Addendum shall govern.

2. NO RECOURSE.  Notwithstanding anything to the contrary herein, the Bank hereby waives any right to obtain a money judgment against the Borrower and any and all members, managers, shareholders, partners and employees of the Borrower, whether by an action brought upon the Mortgage given by Borrower to Bank dated of even date herewith (“Mortgage”) or an action brought for a deficiency judgment against the Borrower and/or the members, managers, shareholders, partners and employees of the Borrower, and agrees that the extent of liability on the part of such parties with respect to the Commercial Note given by Borrower in favor of Bank dated of even date herewith, the Mortgage, and any other related loan document is and shall for all purposes be limited to the interest of the Borrower in the Mortgaged Property, including policies of hazard insurance on the Mortgaged Property and any proceeds thereof and any award of damages on account of
condemnation for public use of the Mortgaged Property, the Bank agreeing to look solely to the Borrower’s interest in the Mortgaged Property and such insurance policies and condemnation awards in satisfaction of all obligations, provided, that nothing in this provision shall be deemed to waive any recourse or rights of the Bank under any guaranty of the obligations of the Borrower under this Mortgage.

3. PERMITTED TRANSFERS.  Notwithstanding anything to the contrary set forth in the Mortgage or any other related loan document, the Bank has agreed that (A) the Borrower may deed, transfer and assign the Mortgaged Property to (i) Northern Technologies International Corporation, a Delaware corporation (‘‘NTIC’’) or any entity controlled by, under common with, or controlling NTIC, provided, that (a) no default shall have occurred under the Note or any other loan document related thereto and (b) the relevant Transferee shall have entered into documents reasonably required by the Bank to assume all obligations of the Borrower hereunder, under the Note and the other loan documents related thereto and/or (B) any ownership interests in Borrower may be transferred by and among First American Exchange Company, LLC and/or NTIC and/or any entity controlled by, under common with, or controlling NTIC. Notwithstanding anything to the
contrary set forth in the Mortgage or any other related loan document, the foregoing permitted transfers shall not constitute a default under any such documents.

4. EXCHANGE LOAN.  Notwithstanding anything to the contrary set forth in the Mortgage or any other related loan document, the Bank has consented to that certain subordinated loan given by NTIC to Borrower as evidenced by that certain Promissory Note (“Subordinated Note”) given by Borrower in favor of NTIC, which is secured by that certain Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture Financing Statement (“Subordinated Mortgage”) given by Borrower in favor of NTIC.  Notwithstanding anything to the contrary set forth in the Mortgage or any other related loan document, the foregoing permitted subordinate loan shall not constitute a default under any such documents.

5. COUNTERPARTS.  This Addendum may be executed in any number of counterparts, each of which when executed and delivered will be deemed to be an original and all of which taken together, will be deemed to be one and the same instrument.

16

	
  Loan No: 98076
  	
  
MORTGAGE
(Continued)
  
	
  

          IN WITNESS WHEREOF, the parties have executed this Addendum to be effective as of May 3, 2006.

	
  
NORTHERN   TECHNOLOGIES
   HOLDING COMPANY, LLC,
  	
  
 
  	
  
NATIONAL   CITY BANK, a   national
   banking association
  
	
  
a Minnesota limited   liability company
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
By:
  	
  
/s/ Joseph R. McMullin,   Jr.
  
	
   
  	
  
 
  	
  
 
  	
  
 
  	
  

  
	
  
By:
  	
  
FIRST   AMERICAN EXCHANGE
   COMPANY, LLC, a   Delaware
limited liability company

  	
  
 
  	
  
Name:
  	
  
Joseph R. McMullin, Jr.
  
	
  
 
  	
  
 
  	
  
Its:
  	
  
Assistant Vice President
  
	
  
Its:
  	
  
Sole Member
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  By:
  	
  
/s/ Steven P. Katkov
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  

  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Steven P. Katkov
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Vice President
  	
  
 
  	
  
 
  	
  
 
  

	
  STATE OF OHIO
  	
  
)
  
	
  
 
  	
  
)ss.
  
	
  
COUNTY OF CUYAHOGA
  	
  
)
  

          This instrument was acknowledged before me on May 2, 2006, by Joseph R. McMullin, Jr., the Asst. Vice Pres. of National City Bank, a national banking association, on behalf of the ______________.

	
  
 
  	
  
/s/   Deborah L. Mottoss
  
	
  
 
  	
  

  
	
  
Notarial Stamp or Seal (or   other title or rank)
  	
  
Signature of Notary Public   or other Official
  
	
  
 
  	
  
Notary Public, State of   Ohio
  
	
  
 
  	
  
My Commission Expires   April 21, 2009
  

	
  
STATE OF MINNESOTA
  	
  
)
  
	
  
 
  	
  
)ss.
  
	
  
COUNTY OF RAMSEY
  	
  
)
  

          This instrument was acknowledged before me on May 3, 2006, by Steven P. Katkov, the Vice President of First American Exchange Company, LLC, a Delaware limited liability company, on behalf of the Company.

	
  
 
  	
  
/s/   Jodean Ives Fritz
  
	
  
 
  	
  

  
	
  
Notarial Stamp or Seal (or   other title or rank)
  	
  
Signature of Notary Public   or other Official
  
	
   
  	
  Notary Public, State of   Minnesota
  
	
   
  	
  My Commission Expires   January 31, 2009
  

17Loan No: 98076
  	
  
MORTGAGE
(Continued)
  
	
  

Exhibit 10.8

National City

COMMERCIAL GUARANTY

	
  
Borrower:
  	
  
Northern   Technologies Holding Company, LLC
  	
  
 
  	
  
Lender:
  	
  
National   City Bank
  
	
  
 
  	
  
6680   North Highway 49
  	
  
 
  	
  
 
  	
  
Corporate   Banking LOC 01-8485
  
	
  
 
  	
  
Lino   Lakes, MN 55014
  	
  
 
  	
  
 
  	
  
1900 East   Ninth Street
  
	
   
  	
  
 
  	
  
 
  	
  
 
  	
  
Cleveland,   OH  44114
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
Guarantor:
  	
  
Northern   Technologies International Corporation
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
6680   North Highway 49
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Lino   Lakes, MN 55014
  	
  
 
  	
  
 
  	
  
 
  

CONTINUING UNLIMITED GUARANTY. For good and valuable consideration, Northern Technologies International Corporation (“Guarantor”) absolutely and unconditionally guarantees and promises to pay to National City Bank (“Lender”) or its order, in legal tender of the United States of America, the Indebtedness (as that term is defined below) of Northern Technologies Holding Company, LLC (“Borrower”) to Lender when due on the terms and conditions set forth in this Guaranty. Under this Guaranty, the liability of Guarantor is unlimited and the obligations of Guarantor are continuing.

INDEBTEDNESS. The word “Indebtedness” as used in this Guaranty means all of the principal amount outstanding from time to time and at any one or more times, accrued unpaid interest thereon and all collection costs and legal expenses related thereto permitted by law, reasonable attorneys’ fees, arising from any and all debts, liabilities and obligations of every nature or form, now existing or hereafter arising or acquired, that Borrower individually or collectively or interchangeably with others, owes or will owe Lender. “Indebtedness” includes, without limitation, loans, advances, debts, overdraft indebtedness, credit card indebtedness, lease obligations, liabilities and obligations under any interest rate protection agreements or foreign currency exchange agreements or commodity price protection agreements, other obligations, and liabilities of Borrower, and any present or future judgments against Borrower, future advances, loans
or transactions that renew, extend, modify, refinance, consolidate or substitute these debts, liabilities and obligations whether: voluntarily or involuntarily incurred; due or to become due by their terms or acceleration; absolute or contingent; liquidated or unliquidated; determined or undetermined; direct or indirect; primary or secondary in nature or arising from a guaranty or surety; secured or unsecured; joint or several or joint and several; evidenced by a negotiable or non-negotiable instrument or writing; originated by Lender or another or others; barred or unenforceable against Borrower for any reason whatsoever; for any transactions that may be voidable for any reason (such as infancy, insanity, ultra vires or otherwise); and originated then reduced or extinguished and then afterwards increased or reinstated.

	
  Loan No: 98076
  	
  
MORTGAGE
(Continued)
  
	
  

If Lender presently holds one or more guaranties, or hereafter receives additional guaranties from Guarantor, Lender’s rights under all guaranties shall be cumulative. This Guaranty shall not (unless specifically provided below to the contrary) affect or invalidate any such other guaranties. Guarantor’s liability will be Guarantor’s aggregate liability under the terms of this Guaranty and any such other unterminated guaranties.

CONTINUING GUARANTY. THIS IS A “CONTINUING GUARANTY” UNDER WHICH GUARANTOR AGREES TO GUARANTEE THE FULL AND PUNCTUAL PAYMENT, PERFORMANCE AND SATISFACTION OF THE INDEBTEDNESS OF BORROWER TO LENDER, NOW EXISTING OR HEREAFTER ARISING OR ACQUIRED, ON AN OPEN AND CONTINUING BASIS. ACCORDINGLY, ANY PAYMENTS MADE ON THE INDEBTEDNESS WILL NOT DISCHARGE OR DIMINISH GUARANTOR’S OBLIGATIONS AND LIABILITY UNDER THIS GUARANTY FOR ANY REMAINING AND SUCCEEDING INDEBTEDNESS EVEN WHEN ALL OR PART OF THE OUTSTANDING INDEBTEDNESS MAY BE A ZERO BALANCE FROM TIME TO TIME.

DURATION OF GUARANTY. This Guaranty will take effect when received by Lender without the necessity of any acceptance by Lender, or any notice to Guarantor or to Borrower, and will continue in full force until all the Indebtedness incurred or contracted before receipt by Lender of any notice of revocation shall have been fully and finally paid and satisfied and all of Guarantor’s other obligations under this Guaranty shall have been performed in full. If Guarantor elects to revoke this Guaranty, Guarantor may only do so in writing. Guarantor’s written notice of revocation must be mailed to Lender, by certified mail, at Lender’s address listed above or such other place as Lender may designate in writing. Written revocation of this Guaranty will apply only to advances or new Indebtedness created after actual receipt by Lender of Guarantor’s written revocation. For this purpose and without limitation, the term “new Indebtedness”
does not include the Indebtedness which at the time of notice of revocation is contingent, unliquidated, undetermined or not due and which later becomes absolute, liquidated, determined or due.  This Guaranty will continue to bind Guarantor for all the Indebtedness incurred by Borrower or committed by Lender prior to receipt of Guarantor’s written notice of revocation, including any extensions, renewals, substitutions or modifications of the Indebtedness. All renewals, extensions, substitutions, and modifications of the Indebtedness granted after Guarantor’s revocation, are contemplated under this Guaranty and, specifically will not be considered to be new Indebtedness. This Guaranty shall bind Guarantor’s estate as to the Indebtedness created both before and after Guarantor’s death or incapacity, regardless of Lender’s actual notice of Guarantor’s death. Subject to the foregoing, Guarantor’s executor or administrator or other legal representative may terminate
this Guaranty in the same manner in which Guarantor might have terminated it and with the same effect. Release of any other guarantor or termination of any other guaranty of the Indebtedness shall not affect the liability of Guarantor under this Guaranty. A revocation Lender receives from any one or more Guarantors 

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  Loan No: 98076
  	
  
MORTGAGE
(Continued)
  
	
  

shall not affect the liability of any remaining Guarantors under this Guaranty. It is anticipated that fluctuations may occur in the aggregate amount of the Indebtedness covered by this Guaranty, and Guarantor specifically acknowledges and agrees that reductions in the amount of the Indebtedness, even to zero dollars ($0.00), prior to Guarantor’s written revocation of this Guaranty shall not constitute a termination of this Guaranty. This Guaranty is binding upon Guarantor and Guarantor’s heirs, successors and assigns so long as any of the Indebtedness remains unpaid and even though the Indebtedness may from time to time be zero dollars ($0.00).

GUARANTOR’S AUTHORIZATION TO LENDER. Guarantor authorizes Lender, either before or after any revocation hereof, without notice or demand and without lessening Guarantor’s liability under this Guaranty, from time to time: (A) prior to revocation as set forth above, to make one or more additional secured or unsecured loans to Borrower, to lease equipment or other goods to Borrower, or otherwise to extend additional credit to Borrower; (B) to alter, compromise, renew, extend, accelerate, or otherwise change one or more times the time for payment or other terms of the Indebtedness or any part of the Indebtedness, including increases and decreases of the rate of interest on the Indebtedness; extensions may be repeated and may be for longer than the original loan term; (C) to take and hold security for the payment of this Guaranty or the Indebtedness, and exchange, enforce, waive, subordinate, fail or decide not to perfect, and release any such
security, with or without the substitution of new collateral; (D) to release, substitute, agree not to sue, or deal with any one or more of Borrower’s sureties, endorsers, or other guarantors on any terms or in any manner Lender may choose; (E) to determine how, when and what application of payments and credits shall be made on the Indebtedness; (F) to apply such security and direct the order or manner of sale thereof, including without limitation, any nonjudicial sale permitted by the terms of the controlling security agreement or deed of trust, as Lender in its discretion may determine; (G) to sell, transfer, assign or grant participations in all or any part of the Indebtedness; and (H) to assign or transfer this Guaranty in whole or in part.

GUARANTOR’S REPRESENTATIONS AND WARRANTIES. Guarantor represents and warrants to Lender that (A) no representations or agreements of any kind have been made to Guarantor which would limit or qualify, in any way the terms of this Guaranty; (B) this Guaranty is executed at Borrower’s request and not at the request of Lender; (C) Guarantor has full power, right and authority to enter into this Guaranty; (D) the provisions of this Guaranty do not conflict with or result in a default under any agreement or other instrument binding upon Guarantor and do not result in a violation of any law, regulation, court decree or order applicable to Guarantor; (E) Guarantor has not and will not, without the prior written consent of Lender, sell, lease, assign, encumber, hypothecate, transfer, or otherwise dispose of all or substantially all of Guarantor’s assets, or any interest therein; (F) upon Lender’s request, Guarantor will provide to Lender
financial and credit information in form acceptable to Lender, and all such financial information which currently has been, and all future financial information which will be provided to Lender is and will be true and correct in all material respects and fairly present Guarantor’s financial condition as of the dates the financial information is provided; (G) no material adverse change has occurred in Guarantor’s financial condition since the date of the 

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  Loan No: 98076
  	
  
MORTGAGE
(Continued)
  
	
  

most recent financial statements provided to Lender and no event has occurred which may materially adversely affect Guarantor’s financial condition; (H) no litigation, claim, investigation, administrative proceeding or similar action (including those for unpaid taxes) against Guarantor is pending or threatened; (I) Lender has made no representation to Guarantor as to the creditworthiness of Borrower; and (J) Guarantor has established adequate means of obtaining from Borrower on a continuing basis information regarding Borrower’s financial condition. Guarantor agrees to keep adequately informed from such means of any facts, events, or circumstances which might in any way affect Guarantor’s risks under this Guaranty, and Guarantor further agrees that, absent a request for information, Lender shall have no obligation to disclose to Guarantor any information or documents acquired by Lender in the course of its relationship with Borrower.

GUARANTOR’S WAIVERS. Except as prohibited by applicable law, Guarantor waives any right to require Lender (A) to continue lending money or to extend other credit to Borrower; (B) to make any presentment, protest, demand, or notice of any kind, including notice of any nonpayment of the Indebtedness or of any nonpayment related to any collateral, or notice of any action or nonaction on the part of Borrower, Lender, any surety, endorser, or other guarantor in connection with the Indebtedness or in connection with the creation of new or additional loans or obligations; (C) to resort for payment or to proceed directly or at once against any person, including Borrower or any other guarantor; (D) to proceed directly against or exhaust any collateral held by Lender from Borrower, any other guarantor, or any other person; (E) to give notice of the terms, time, and place of any public or private sale of personal property security held by Lender from

Borrower or to comply with any other applicable provisions of the Uniform Commercial Code; (F) to pursue any other remedy within Lender’s power; or (G) to commit any act or omission of any kind, or at any time, with respect to any matter whatsoever.

Guarantor also waives any and all rights or defenses based on suretyship or impairment of collateral including, but not limited to, any rights or defenses arising by reason of (A) any “one action” or “anti-deficiency” law or any other law which may prevent Lender from bringing any action, including a claim for deficiency, against Guarantor, before or after Lender’s commencement or completion of any foreclosure action, either judicially or by exercise of a power of sale; (B) any election of remedies by Lender which destroys or otherwise adversely affects Guarantor’s subrogation rights or Guarantor’s rights to proceed against Borrower for reimbursement, including without limitation, any loss of rights Guarantor may suffer by reason of any law limiting, qualifying, or discharging the Indebtedness; (C) any disability or other defense of Borrower, of any other guarantor, or of any other person, or by reason of the cessation of
Borrower’s liability from any cause whatsoever, other than payment in full in legal tender, of the Indebtedness; (D) any right to claim discharge of the Indebtedness on the basis of unjustified impairment of any collateral for the Indebtedness; (E) any statute of limitations, if at any time any action or suit, brought by Lender against Guarantor is commenced, there is outstanding Indebtedness which is not barred by any applicable statute of limitations; or (F) any defenses given to guarantors at law or in equity other than actual payment and performance of the Indebtedness. If payment is made by Borrower, whether voluntarily or otherwise, or by any third party, on the Indebtedness and thereafter Lender is forced to remit the amount of that payment to Borrower’s trustee in bankruptcy or to any similar person under any federal or state bankruptcy law or law for the relief of debtors, the Indebtedness shall be considered unpaid for the purpose of the enforcement of this Guaranty.

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  Loan No: 98076
  	
  
MORTGAGE
(Continued)
  
	
  

Guarantor further waives and agrees not to assert or claim at any time any deductions to the amount guaranteed under this Guaranty for any claim of setoff, counterclaim, counter demand, recoupment or similar right, whether such claim, demand or right may be asserted by the Borrower, the Guarantor, or both.

GUARANTOR’S UNDERSTANDING WITH RESPECT TO WAIVERS. Guarantor warrants and agrees that each of the waivers set forth above is made with Guarantor’s full knowledge of its significance and consequences and that, under the circumstances, the waivers are reasonable and not contrary to public policy or law. If any such waiver is determined to be contrary to any applicable law or public policy, such waiver shall be effective only to the extent permitted by law or public policy.

SUBORDINATION OF BORROWER’S DEBTS TO GUARANTOR. Guarantor agrees that the Indebtedness, whether now existing or hereafter created, shall be superior to any claim that Guarantor may now have or hereafter acquire against Borrower, whether or not Borrower becomes insolvent. Guarantor hereby expressly subordinates any claim Guarantor may have against Borrower, upon any account whatsoever, to any claim that Lender may now or hereafter have against Borrower. In the event of insolvency and consequent liquidation of the assets of Borrower, through bankruptcy, by an assignment for the benefit of creditors, by voluntary liquidation, or otherwise, the assets of Borrower applicable to the payment of the claims of both Lender and Guarantor shall be paid to Lender and shall be first applied by Lender to the Indebtedness. Guarantor does hereby assign to Lender all claims which it may have or acquire against Borrower or against any assignee or trustee in bankruptcy of

Borrower; provided however, that such assignment shall be effective only for the purpose of assuring to Lender full payment in legal tender of the Indebtedness. If Lender so requests, any notes or credit agreements now or hereafter evidencing any debts or obligations of Borrower to Guarantor shall be marked with a legend that the same are subject to this Guaranty and shall be delivered to Lender. Guarantor agrees, and Lender is hereby authorized, in the name of Guarantor, from time to time to file financing statements and continuation statements and to execute documents and to take such other actions as Lender deems necessary or appropriate to perfect, preserve and enforce its rights under this Guaranty.

MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Guaranty:

	
  
 
  	
  
Amendments. This Guaranty, together with any   Related Documents, constitutes the entire understanding and agreement of the   parties as to the matters set forth in this Guaranty. No alteration of or   amendment to this Guaranty shall be effective unless given in writing and   signed by the party or parties sought to be charged or bound by the   alteration or amendment.
  

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  Loan No: 98076
  	
  
MORTGAGE
(Continued)
  
	
  

	
  
 
  	
  
Attorneys’ Fees; Expenses. Guarantor agrees   to pay upon demand all of Lender’s costs and expenses, including Lender’s   reasonable attorneys’ fees and Lender’s legal expenses, incurred in   connection with the enforcement of this Guaranty. Lender may hire or pay   someone else to help enforce this Guaranty, and Guarantor shall pay the costs   and expenses of such enforcement. Costs and expenses include Lender’s   reasonable attorneys’ fees and legal expenses whether or not there is a   lawsuit, including reasonable attorneys’ fees and legal expenses for   bankruptcy proceedings (including efforts to modify or vacate any automatic   stay or injunction), appeals, and any anticipated post-judgment collection   services. Guarantor also shall pay all court costs and such additional fees   as may be directed by the court.
  
	
   
  	
  
 
  
	
  
 
  	
  
Caption Headings. Caption headings in this   Guaranty are for convenience purposes only and are not to be used to   interpret or define the provisions of this Guaranty.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Governing law. This Guaranty will be   governed by federal law applicable to Lender and, to the extent not preempted   by federal law, the laws of the State of Ohio without regard to its conflicts   of law provisions. This Guaranty has been accepted by Lender in the State of   Ohio.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Integration. Guarantor further agrees that   Guarantor has read and fully understands the terms of this Guaranty;   Guarantor has had the opportunity to be advised by Guarantor’s attorney with   respect to this Guaranty; the Guaranty fully reflects Guarantor’s intentions   and parol evidence is not required to interpret the terms of this Guaranty.   Guarantor hereby indemnifies and holds Lender harmless from all losses,   claims, damages, and costs (including Lender’s attorneys’ fees) suffered or   incurred by Lender as a result of any breach by Guarantor of the warranties,   representations and agreements of this paragraph.
  
	
  
 
  	
  
 
  
	
   
  	
  
Interpretation. In all cases where there is   more than one Borrower or Guarantor, then all words used in this Guaranty in   the singular shall be deemed to have been used in the plural where the   context and construction so require; and where there is more than one   Borrower named in this Guaranty or when this Guaranty is executed by more   than one Guarantor, the words “Borrower” and “Guarantor” respectively shall   mean all and any one or more of them. The words “Guarantor,” “Borrower,” and   “Lender” include the heirs, successors, assigns, and transferees of each of   them. If a court finds that any provision of this Guaranty is not valid or   should not be enforced, that fact by itself will not mean that the rest of   this Guaranty will not be valid or enforced. Therefore, a court will enforce   the rest of the provisions of this Guaranty even if a provision of this   Guaranty may be found to be
invalid or unenforceable. If anyone or more of   Borrower or Guarantor are corporations, partnerships, limited liability   companies, or similar entities, it is not necessary for Lender to inquire   into the powers of Borrower or Guarantor or of the officers, directors,   partners, managers, or other agents acting or purporting to act on their   behalf, and any indebtedness made or created in reliance upon the professed   exercise of such powers shall be guaranteed under this Guaranty.
  

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  Loan No: 98076
  	
  
MORTGAGE
(Continued)
  
	
  

	
  
 
  	
  
Notices. Any notice required to be given   under this Guaranty shall be given in writing, and, except for revocation   notices by Guarantor, shall be effective when actually delivered, when   actually received by telefacsimile (unless otherwise required by law), when   deposited with a nationally recognized overnight courier, or, if mailed, when   deposited in the United States mail, as first class, certified or registered   mail postage prepaid, directed to the addresses shown near the beginning of   this Guaranty. All revocation notices by Guarantor shall be in writing and   shall be effective upon delivery to Lender as provided in the section of this   Guaranty entitled “DURATION OF GUARANTY.” Any party may change its address   for notices under this Guaranty by giving formal written notice to the other   parties, specifying that the purpose of the notice is to change the party’s   address. For notice purposes, Guarantor agrees to keep
Lender informed at all   times of Guarantor’s current address. Unless otherwise provided or required   by law, if there is more than one Guarantor, any notice given by Lender to   any Guarantor is deemed to be notice given to all Guarantors.
  
	
   
  	
  
 
  
	
  
 
  	
  
No Waiver by Lender. Lender shall not be   deemed to have waived any rights under this Guaranty unless such waiver is   given in writing and signed by Lender. No delay or omission on the part of   Lender in exercising any right shall operate as a waiver of such right or any   other right. A waiver by Lender of a provision of this Guaranty shall not   prejudice or constitute a waiver of Lender’s right otherwise to demand strict   compliance with that provision or any other provision of this Guaranty. No   prior waiver by Lender, nor any course of dealing between Lender and   Guarantor, shall constitute a waiver of any of Lender’s rights or of any of   Guarantor’s obligations as to any future transactions. Whenever the consent   of Lender is required under this Guaranty, the granting of such consent by   Lender in any instance shall not constitute continuing consent to subsequent   instances where such consent is required and in all cases such
consent may be   granted or withheld in the sole discretion of Lender.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Successors and Assigns. Subject to any   limitations stated in this Guaranty on transfer of Guarantor’s interest, this   Guaranty shall be binding upon and inure to the benefit of the parties, their   successors and assigns.
  

FINANCIAL INFORMATION. Guarantor will furnish to Lender, at Guarantor’s expense, promptly upon each request of Lender, such information in writing regarding Guarantor’s financial condition, income taxes, properties, business operations, if any, and pension plans, if any, as Lender may from time to time reasonably request, prepared, in the case of financial information, in accordance with generally accepted accounting principles consistently applied and otherwise in form and detail satisfactory to Lender.

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  Loan No: 98076
  	
  
MORTGAGE
(Continued)
  
	
  

GUARANTY FINAL AGREEMENT. This Guaranty and the related documents set forth the entire agreement between the parties regarding the transactions contemplated hereby and supersede all prior agreements, commitments, discussions, representations and understandings, whether written or oral, and any and all contemporaneous oral agreements, commitments, discussions, representations and understandings between the parties relating to the subject matter hereof.

SHARING INFORMATION. Guarantor hereby authorizes Lender to share all credit and financial information relating to Guarantor with Lender’s parent company and with any subsidiary or affiliate of Lender or of Lender’s parent company.

DEFINITIONS. The following capitalized words and terms shall have the following meanings when used in this Guaranty. Unless specifically stated to the contrary, all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words and terms used in the singular shall include the plural, and the plural shall include the singular, as the context may require. Words and terms not otherwise defined in this Guaranty shall have the meanings attributed to such terms in the Uniform Commercial Code:

	
  
 
  	
  
Borrower. The word “Borrower” means Northern   Technologies Holding Company, LLC and includes all co-signers and co-makers   signing the Note and all their successors and assigns.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Guarantor. The word “Guarantor” means   everyone signing this Guaranty, including without limitation Northern   Technologies International Corporation, and in each case, any signer’s   successors and assigns.
  
	
   
  	
  
 
  
	
  
 
  	
  
Guaranty. The word “Guaranty” means this   guaranty from Guarantor to Lender.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Indebtedness. The word “Indebtedness” means   Borrower’s indebtedness to Lender as more particularly described in this Guaranty.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Lender. The word “Lender” means National   City Bank, its successors and assigns.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Related Documents. The words “Related   Documents” mean all promissory notes, credit agreements, loan agreements,   environmental agreements, guaranties, security agreements, mortgages, deeds   of trust, security deeds, collateral mortgages, and all other instruments,   agreements and documents, whether now or hereafter existing, executed in   connection with the Indebtedness.
  

EACH UNDERSIGNED GUARANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS GUARANTY AND AGREES TO ITS TERMS. IN ADDITION, EACH GUARANTOR UNDERSTANDS THAT THIS GUARANTY IS EFFECTIVE UPON GUARANTOR’S EXECUTION AND DELIVERY OF THIS GUARANTY TO LENDER AND THAT THE GUARANTY WILL CONTINUE UNTIL TERMINATED IN THE MANNER SET FORTH IN THE SECTION TITLED “DURATION OF GUARANTY.” NO FORMAL ACCEPTANCE BY LENDER IS NECESSARY TO MAKE THIS GUARANTY EFFECTIVE.  THIS GUARANTY IS DATED APRIL 28, 2006.

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  Loan No: 98076
  	
  
MORTGAGE
(Continued)
  
	
  

GUARANTOR:

	

  
  NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION
	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
By:
  	
  
/s/ Matthew   C. Wolsfeld
  	
  
 
  
	
  
 
  	
  

  	
  
 
  
	
   
  	
  Matthew C.   Wolsfeld, Chief Financial Officer of
  	
   
  
	
   
  	
  Northern   Technologies International Corporation
  	
   
  

9

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