Document:

EX-10.1

 Exhibit 10.1 

SOLENO THERAPEUTICS, INC. 

EMPLOYMENT AGREEMENT 

This Employment Agreement (the “Agreement”) is entered into effective as of November 11, 2020, (the “Effective
Date”) by and between Soleno Therapeutics, Inc. (the “Company”), and James Mackaness (“Executive”). 

1.    Duties and Scope of Employment. 

(a)    Positions and Duties. This employment agreement between the Executive and the Company will
commence on the Effective Date, as defined above. Executive will serve as Chief Financial Officer of the Company. Executive will render such business and professional services in the performance of his duties, consistent with Executive’s
position within the Company, as will reasonably be assigned to him by the Company’s CEO. The CEO may modify Executive’s job title and duties as it deems necessary and appropriate in light of the Company’s needs and interests from time
to time. The period of Executive’s employment under this Agreement is referred to herein as the “Employment Term.” 

(b)    Obligations. During the Employment Term, Executive will perform his duties faithfully and to
the best of his ability and will devote substantially all of Executive’s business efforts and time to the Company. For the duration of the Employment Term, Executive agrees not to actively engage in any other employment, occupation or
consulting activity for any direct or indirect remuneration that would impact in any material respect Executive’s ability to perform Executive’s duties and obligations hereunder. 

2.    At-Will Employment. The parties agree that Executive’s
employment with the Company will be “at-will” employment and may be terminated at any time with or without Cause or notice. Executive understands and agrees that neither his job performance nor
promotions, commendations, bonuses or the like from the Company give rise to or in any way serve as the basis for modification, amendment, or extension, by implication or otherwise, of his employment with the Company. However, as described in this
Agreement, Executive may be entitled to severance benefits depending on the circumstances of Executive’s termination of employment with the Company. 

3.    Term of Agreement. This Agreement will have a term running from the Effective Date through the first
anniversary of the Effective Date (the “Initial Term”). On the first anniversary of the Effective Date, this Agreement will renew automatically for additional one (1) year terms (each an “Additional Term”),
unless either party provides the other party with written notice of non-renewal at least thirty (30) days prior to the date of automatic renewal. If Executive becomes entitled to benefits under
Section 8 during the term of this Agreement, the Agreement will not terminate until all of the obligations of the parties hereto with respect to this Agreement have been satisfied. 

 4.    Compensation. 

(a)    Base Salary. Commencing on the Effective Date, the Company will pay Executive an annual
salary of $350,000 as compensation for his services (the “Base Salary”). The Base Salary will be paid periodically in accordance with the Company’s normal payroll practices and be subject to the usual, required withholding.
Executive’s Base Salary will be subject to review and adjustments will be made based upon the Company’s normal performance review practices. 

(b)    Annual Bonus. Executive will be eligible to participate in any bonus plans or programs
maintained from time to time by the Company on such terms and conditions as determined by the Company’s Board of Directors (the “Board”) or its compensation committee (the “Committee”), including eligibility
for a bonus of up to thirty percent (30%) of Executive’s Base Salary, upon achievement of performance objectives to be determined by the Board in its good faith discretion (the “Target Bonus”). Any earned bonus will be paid in
the next regular payroll period after the Board or the Committee determines that it has been earned, but in no event shall the bonus be paid after the later of (i) the fifteenth (15th) day of
the third (3rd) month following the close of the Company’s fiscal year in which the bonus is earned, or (ii) March 15 following the calendar year in which the bonus is earned. 

(c)    Equity. Following the Effective Date, the Board will grant Executive an option to purchase
300,000 shares of the Company’s common stock at an exercise price equal to the fair market value of Company common stock per share on the date of grant (the “Option”). Subject to the acceleration provisions below, the Option
will vest as to 1/4th of the shares subject to the Option on the one year anniversary of the Effective Date, and as to 1/48th of the shares subject to the Option monthly thereafter on the same day of each month as the Effective Date, so that the
Option will be fully vested and exercisable on the fourth anniversary of the Effective Date, subject to Executive continuing to provide services to the Company through the relevant vesting dates. The Option will be subject to the terms, definitions
and provisions of the Company’s 2020 Inducement Equity Incentive Plan (the “2020 Plan”) and the stock option agreement between Executive and the Company (the “Option Agreement”), both of which documents are
incorporated herein by reference. Executive will be eligible to receive additional awards of stock options, restricted stock units or other equity awards pursuant to any plans or arrangements the Company may have in effect from time to time. The
Board or the Committee of the Board will determine in its discretion within Executive will be granted any such equity awards and the terms of any such award in accordance with the terms of any applicable plan or arrangement that may be in effect
from time to time. 
 5.    Employee Benefits. During the Employment Term, Executive will be entitled to
participate in the employee benefit plans currently and hereafter maintained by the Company of general applicability to other senior executives of the Company, including, without limitation, the Company’s group medical, dental, vision,
disability, life insurance, and flexible-spending account plans. The Company reserves the right to cancel or change the benefit plans and programs it offers to its employees at any time. 

  
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 6.    Vacation. Executive will be entitled to receive paid annual
vacation in accordance with Company policy for other senior executive officers. 
 7.    Expenses. The Company
will reimburse Executive for reasonable travel, entertainment or other expenses incurred by Executive in the furtherance of or in connection with the performance of Executive’s duties hereunder, in accordance with the Company’s expense
reimbursement policy as in effect from time to time. Such expenses must be pre-approved by the Company. 

8.    Severance. If the Company, after the Initial Term, terminates Executive’s employment without Cause
(excluding death or Disability) or if Executive resigns from such employment for Good Reason, and, in each case, Executive signs and does not revoke a standard release of claims with the Company in a form acceptable to the Company and subject
to Section 9 below, then Executive will receive, in addition to Executive’s salary payable through the date of termination of employment and any other employee benefits earned and owed through the date of termination, the following
benefits from the Company: 
 (a)    continuing payments of severance pay in accordance with the
Company’s normal payroll policies at a rate equal to Executive’s Base Salary rate, as is then in effect, for (x) six (6) months from the date of such termination without Cause or resignation for Good Reason, if such termination or
resignation occurs prior to three (3) months before a Change in Control of the Company, or (y) twelve (12) months from the date of such termination without Cause or resignation for Good Reason, if such termination or resignation occurs
within three (3) months prior to, or six (6) months following a Change of Control of the Company; 

(b)    if such termination or resignation occurs within three (3) months prior to, or six
(6) months following, a Change in Control of the Company, then one hundred percent (100%) of any Equity Awards held by Executive as of the date of such termination without Cause or resignation for Good Reason shall immediately vest and become
fully exercisable (to the extent applicable); 
 (c)     if such termination or resignation occurs
within three (3) months prior to, or six (6) months following, a Change in Control of the Company, then Executive shall receive fifty percent (50%) the annual Target Bonus opportunity for the year in which employee is terminated without
Cause or resigns for Good Reason; and 
 (d)    if Executive elects continuation coverage pursuant to
the Consolidated Budget Reconciliation Act of 1985 (“COBRA”) within the time period prescribed pursuant to COBRA for Executive and Executive’s eligible dependents, then the Company will reimburse Executive on the last day of
each month after his employment termination date for the COBRA premiums paid during such period for such coverage (at the coverage levels in effect immediately prior to Executive’s termination) for a period ending (x) six (6) months, if
such termination or resignation occurs prior to three (3) months before a Change in Control of the Company, or (y) twelve (12) months, if such termination or resignation occurs within three (3) months prior to, or six (6) months
following a 

  
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Change in Control of the Company; provided, that such coverage shall end upon such earlier date that Executive and/or Executive’s eligible dependents become covered under similar plans.
Notwithstanding the foregoing, if the Company determines in its sole discretion that it cannot provide the benefit described in this Section 8(b) without potentially violating, or being subject to an excise tax under, applicable law (including,
without limitation, Section 2716 of the Public Health Service Act), the Company will in lieu thereof provide to Executive a taxable monthly payment, payable on the last day of a given month, in an amount equal to the monthly COBRA premium that
Executive would be required to pay to continue Executive’s group health coverage in effect on the termination of employment date (which amount will be based on the premium for the first month of COBRA coverage), which payments will be made
regardless of within Executive elects COBRA continuation coverage and will commence on the month following Executive’s termination of employment and will end on the earlier of (A) the date upon which Executive obtains other employment or
(B) the date the Company has paid an amount equal to six (6) or twelve (12) payments, per the terms of this agreement. For the avoidance of doubt, the taxable payments in lieu of COBRA reimbursements may be used for any purpose,
including, but not limited to continuation coverage under COBRA, and will be subject to all applicable tax withholdings. 

9.    Conditions to Receipt of Severance; No Duty to Mitigate. 

(a)    Separation Agreement and Release of Claims. The payment of any severance set forth in
Section 8 above is contingent upon Executive signing and not revoking the Company’s standard separation and release of claims agreement upon Executive’s termination of employment and such agreement becoming effective no later than
sixty (60) days following Executive’s employment termination date (such deadline, the “Release Deadline”). In no event will severance payments be paid or provided until the release actually becomes effective. Any severance
payments or benefits under this Agreement will be paid on, or, in the case of installments, will not commence until, the sixtieth (60th) day following Executive’s separation from service, or
if later, such time as required by Section 9(c). Except as required by Section 9(c), any installment payments that would have been made to Executive during the sixty (60) day period immediately following his separation from service
but for the preceding sentence will be paid to Executive on the sixtieth (60th) day following Executive’s separation from service and the remaining payments will be made as provided in the
Agreement. 
 (b)    Confidential Information Agreement. Executive’s receipt of any payments
or benefits under Section 8 will be subject to Executive continuing to comply with the terms of his Confidential Information Agreement (as defined in Section 12), unless Executive is engaged in Protected Activity (as discussed in
Section 23). 

  
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 (c)    Section 409A. 

(i)    Notwithstanding anything to the contrary in this Agreement, no severance pay or benefits payable upon separation
that is payable to Executive, if any, pursuant to this Agreement, when considered together with any other severance payments or separation benefits that are considered deferred compensation (together, the “Deferred Payments”) under
Section 409A of the Internal Revenue Code, as amended (the “Code”) and the final regulations and official guidance thereunder (“Section 409A”) will be payable until Executive has a
“separation from service” within the meaning of Section 409A. 
 (ii)    Notwithstanding anything to the
contrary in this Agreement, if Executive is a “specified employee” within the meaning of Section 409A at the time of his termination (other than due to death), then the Deferred Payments, if any, that are payable within the first six
(6) months following his separation from service, will become payable on the first payroll date that occurs on or after the date six (6) months and one (1) day following the date of Executive’s separation from service. All
subsequent Deferred Payments, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit. Notwithstanding anything herein to the contrary, if Executive dies following his separation from service, but prior
to the six (6) month anniversary of the separation from service, then any payments delayed in accordance with this Section 9(c) will be payable in a lump sum as soon as administratively practicable after the date of Executive’s death
and all other Deferred Payments will be payable in accordance with the payment schedule applicable to each payment or benefit. Each payment, installment and benefit payable under this Agreement is intended to constitute a separate payment for
purposes of Section 1.409A-2(b)(2) of the Treasury Regulations. 

(iii)    Any severance payment that satisfies the requirements of the “short-term deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations shall not constitute Deferred Payments for purposes herein. Any amount paid under this Agreement that qualifies as a payment made as a result of an involuntary
separation from service pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury Regulations that does not exceed the Section 409A Limit (as defined below) will not constitute Deferred Payments for purposes herein. 

(iv)    For purposes of this Agreement, “Section 409A Limit” means the lesser of two
(2) times: (x) Executive’s annualized compensation based upon the annual rate of pay paid to Executive during Executive’s taxable year preceding Executive’s taxable year of Executive’s termination of employment as determined
under Treasury Regulation 1.409A-1(b)(9)(iii)(A)(1) and any Internal Revenue Service guidance issued with respect thereto, or (y) the maximum amount that may be taken into account under a qualified plan
pursuant to Section 401(a)(17) of the Code for the year in which Executive’s employment is terminated. 

(v)    The foregoing provisions are intended to comply with or be exempt from the requirements of Section 409A so
that none of the severance payments and benefits to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so comply. Executive and the Company agree to work
together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to Executive
under Section 409A. 

  
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 (d)    No Duty to Mitigate. Executive will not
be required to mitigate the amount of any payment contemplated by this Agreement, nor will any earnings that Executive may receive from any other source reduce any such payment. 

10.    Definitions. 

(a)    Cause. For purposes of this Agreement, “Cause” means:
(i) Executive’s act of personal dishonesty in connection with his responsibilities as an employee that is intended to result in Executive’s substantial personal enrichment; (ii) Executive being convicted of, or pleading no
contest or guilty to, (x) a misdemeanor that the Company reasonably believes has had or will have a material detrimental effect on the Company, or (y) any felony; (iii) Executive’s gross misconduct; (iv) Executive’s
willful and continued failure to perform the duties and responsibilities of his position after there has been delivered to Executive a written demand for performance from the Company that describes the basis for the Company’s belief that
Executive has not substantially performed his duties and Executive has not corrected such failure within thirty (30) days of such written demand; or (v) Executive’s material violation of any written Company employment policy or
standard of conduct, including a material breach of the Confidential Information Agreement. 

(b)    Change in Control. For purposes of this Agreement, “Change in Control” has
the same meaning assigned to such term in the 2020 Plan. 
 (c)    Disability. For purposes of
this Agreement, “Disability” means Executive’s inability to perform Executive’s duties due to Executive’s physical or mental incapacity, as reasonably determined by the Board or its designee, for an aggregate of 180
days in any 365 consecutive day period. 
 (d)    Equity Awards. For purposes of this Agreement,
“Equity Awards” means Executive’s outstanding stock options, stock appreciation rights, restricted stock units, performance shares, performance stock units and any other Company equity compensation awards. 

(e)    Good Reason. For purposes of this Agreement, “Good Reason” means
Executive’s resignation within thirty (30) days following the expiration of any Company cure period (discussed below) following the occurrence of one or more of the following, without Executive’s consent: (i) a material reduction
in Executive’s Base Salary, excluding the substitution of substantially equivalent compensation and benefits, that is not generally applicable to all Company senior management or employees of the Company generally; (ii) a material
reduction of Executive’s authority, duties or responsibilities, unless Executive is provided with a comparable position; provided, however, that a reduction in authority, duties, or responsibilities solely by virtue of the Company being
acquired and made part of a larger entity within as a subsidiary, business unit or otherwise (as, for example, when the Chief Executive Officer of the Company remains as such following an acquisition where the Company becomes a wholly owned
subsidiary of the 

  
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acquirer, but is not made the Chief Executive Officer of the acquiring corporation) will not constitute “Good Reason”; or (iii) a material change in the geographic location of
Executive’s primary work facility or location; provided, that a relocation of fifty (50) miles or less from Executive’s then present location or to Executive’s home as his primary work location will not be considered a material
change in geographic location. In order for an event to qualify as Good Reason, Executive must not terminate employment with the Company without first providing the Company with written notice of the acts or omissions constituting the grounds for
“Good Reason” within ninety (90) days of the initial existence of the grounds for “Good Reason” and a reasonable cure period of not less than thirty (30) days following the date of such notice, and such grounds must not
have been cured during such time. 
 11.    Limitation on Payments. In the event that the payments or benefits
provided for in this Agreement or otherwise payable to Executive (collectively, the “Payments”) (i) constitute “parachute payments” within the meaning of Section 280G of the Code and (ii) but for this
Section 11, would be subject to the excise tax imposed by Section 4999 of the Code, then Executive’s the Payments will be either: 

(a)    delivered in full, or 

(b)    delivered as to such lesser extent which would result in no portion of such Payments being subject
to excise tax under Section 4999 of the Code, 
 whichever of the foregoing amounts, taking into account the applicable federal, state and local income
taxes and the excise tax imposed by Section 4999, results in the receipt by Executive on an after-tax basis, of the greatest amount of Payments, notwithstanding that all or some portion of such Payments
may be taxable under Section 4999 of the Code. If a reduction in Payments constituting “parachute payments” is necessary so that the Payments are delivered to a lesser extent, reduction will occur in the following order:
(i) reduction of cash payments, which shall occur in reverse chronological order such that the cash payment owed on the latest date following the occurrence of the event triggering such excise tax will be the first cash payment to be reduced;
(ii) reduction of acceleration of vesting of equity awards, which shall occur in the reverse order of the date of grant for such stock awards (i.e., the vesting of the most recently granted stock awards will be reduced first); and
(iii) reduction of other benefits paid or provided to the Executive, which shall occur in reverse chronological order such that the benefit owed on the latest date following the occurrence of the event triggering such excise tax will be the
first benefit to be reduced. If more than one equity award was made to the Executive on the same date of grant, all such awards shall have their acceleration of vesting reduced pro rata. In no event shall the Executive have any discretion with
respect to the ordering of payment reductions. 
 Unless the Company and Executive otherwise agree in writing, any determination required
under this Section 11 will be made in writing by a nationally recognized firm of independent public accountants selected by the Company (the “Accountants”), whose determination will be conclusive and binding upon Executive and
the Company for all purposes. For purposes of making the calculations required by this Section 11, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith
interpretations 

  
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concerning the application of Sections 280G and 4999 of the Code. The Company and Executive will furnish to the Accountants such information and documents as the Accountants may reasonably
request in order to make a determination under this Section. The Company will bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section 11. 

12.    Confidential Information. Executive confirms his continuing obligations under the Company’s standard At-Will Employment, Proprietary Information and Invention Assignment Agreement (the “Confidential Information Agreement”) dated on or about the date hereof. 

13.    Assignment. This Agreement will be binding upon and inure to the benefit of (a) the heirs, executors
and legal representatives of Executive upon Executive’s death and (b) any successor of the Company. Any such successor of the Company will be deemed substituted for the Company under the terms of this Agreement for all purposes. For this
purpose, “successor” means any person, firm, corporation or other business entity which at any time, within by purchase, merger or otherwise, directly or indirectly acquires all or substantially all of the assets or business of the
Company. None of the rights of Executive to receive any form of compensation payable pursuant to this Agreement may be assigned or transferred except by will or the laws of descent and distribution. Any other attempted assignment, transfer,
conveyance or other disposition of Executive’s right to compensation or other benefits will be null and void. 

14.    Notices. All notices, requests, demands and other communications called for hereunder will be in writing and
will be deemed given (i) on the date of delivery if delivered personally; (ii) one (1) day after being sent by a well-established commercial overnight service; or (iii) four (4) days after being mailed by registered or certified mail,
return receipt requested, prepaid and addressed to the parties or their successors at the following addresses, or at such other addresses as the parties may later designate in writing: 

If to the Company: 
 Soleno
Therapeutics, Inc. 
 Attn: Chief Executive Officer 

203 Redwood Shores Pkwy Suite 500 

Redwood City, CA 94065 
 If to
Executive: 
 at the last residential address known by the Company. 

15.    Severability. In the event that any provision hereof becomes or is declared by a court of competent
jurisdiction to be illegal, unenforceable or void, this Agreement will continue in full force and effect without said provision. 

16.    Integration. This Agreement, together with the 2020 Plan, Option Agreement and the Confidential Information
Agreement represents the entire agreement and understanding between the parties as to the subject matter herein and supersedes all prior or contemporaneous agreements within written or oral. This Agreement may be modified only by agreement of the
parties by a written instrument executed by the parties that is designated as an amendment to this Agreement. 

  
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 17.    Waiver of Breach. The waiver of a breach of any term or
provision of this Agreement, which must be in writing, will not operate as or be construed to be a waiver of any other previous or subsequent breach of this Agreement. 

18.    Headings. All captions and section headings used in this Agreement are for convenient reference only and do
not form a part of this Agreement. 
 19.    Tax Withholding. All payments made pursuant to this Agreement will
be subject to withholding of applicable taxes. 
 20.    Governing Law. This Agreement will be governed by the
laws of the State of California (with the exception of its conflict of laws provisions). 

21.    Acknowledgment. Executive acknowledges that he has had the opportunity to discuss this matter with and
obtain advice from his private attorney, has had sufficient time to, and has carefully read and fully understands all the provisions of this Agreement, and is knowingly and voluntarily entering into this Agreement. 

22.    Counterparts. This Agreement may be executed in counterparts, and each counterpart will have the same force
and effect as an original and will constitute an effective, binding agreement on the part of each of the undersigned. 

23.    Protected Activity. Nothing in this Agreement limits or prohibits Executive from filing a charge or
complaint with, or otherwise communicating or cooperating with or participating in any investigation or proceeding that may be conducted by, any federal, state or local government agency or commission, including the Securities and Exchange
Commission, the Equal Employment Opportunity Commission, the Occupational Safety and Health Administration, and the National Labor Relations Board (“Government Agencies”), including disclosing documents or other information as
permitted by law, without giving notice to, or receiving authorization from, the Company. Notwithstanding, in making any such disclosures or communications, Executive must take all reasonable precautions to prevent any unauthorized use or disclosure
of any information that may constitute confidential information of the Company to any parties other than the Government Agencies. Executive is not permitted to disclose the Company’s attorney-client privileged communications or attorney work
product. 

  
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 IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the
Company by their duly authorized officers, as of the day and year first above written. 
  

			
	COMPANY:	  	
		
	SOLENO THERAPEUTICS, INC.	  	
		
	By:    /s/ Anish Bhatnagar, M.D.	  	Date: November 11, 2020
		
	Anish Bhatnagar, MD	  	
		
	Chief Executive Officer	  	
		
	EXECUTIVE:	  	
		
	By:    /s/ James Mackaness	  	Date: November 10, 2020
		
	James Mackaness	  	

 [SIGNATURE PAGE TO JAMES MACKANESS EMPLOYMENT AGREEMENT] 

  
 -10-Exhibit 4.2

 

northern technologies
international corporation

DESCRIPTION OF SECURITIES REGISTERED PURSUANT TO SECTION 12 OF

THE SECURITIES EXCHANGE ACT OF 1934

 

Northern Technologies International Corporation, a Delaware corporation (referred to
as NTIC, we, us and our), has only one class of securities registered under Section 12 of the Securities Exchange Act of 1934,
as amended: common stock, par value $0.02 per share (common stock).

 

The following description of our common stock is a summary and does not purport to be
complete. It is subject to and qualified in its entirety by reference to our Restated Certificate of Incorporation, as amended
(Charter), and our Amended and Restated Bylaws (Bylaws), which are filed as exhibits to our Annual Report on Form 10-K for the
fiscal year ended August 31, 2020 and are incorporated by reference herein. We encourage you to read our Charter, our Bylaws and
the applicable provisions of the General Corporation Law of the State of Delaware (DGCL) for additional information.

 

Authorized Shares

 

Our Charter authorizes the issuance of up to 15,010,000 shares of capital stock, consisting
of:

 

		·	15,000,000
                                         shares of common stock; and

 

		·	10,000
                                         shares of preferred stock, no par value per share (preferred stock).

 

As of August 31, 2020, we had 9,099,990 shares of common stock outstanding and no preferred
stock outstanding.

 

We may amend from time to time our Charter to increase the number of authorized shares
of common stock or preferred stock. Any such amendment would require the approval of the holders of a majority of the voting power
of the shares entitled to vote thereon.

 

Voting Rights

 

Each holder of our common stock is entitled to one vote per share registered in the holder’s
name on our books on all matters submitted to a vote of stockholders. Our common stock does not have cumulative voting rights.
Our Bylaws provide that, in all matters, other than the election of directors and except as otherwise required by law, the Charter,
or the Bylaws, the affirmative vote of a majority of the voting power of the shares present or represented by proxy at the meeting
and entitled to vote on the subject matter shall be the act of the stockholders. Directors shall be elected by a plurality of the
voting power of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors.

 

Dividend Rights

 

Subject to applicable law and the rights, if any, of the holders of outstanding shares
of any series of preferred stock we may designate and issue in the future, holders of our common stock are entitled to receive
ratably the dividends, if any, at such times and in such amounts as may be declared by the Board. Dividends may be paid in cash,
in property, or in shares of the capital stock, subject to the provisions of the Charter. Before payment of any dividend, there
may be set aside out of any funds of NTIC available for dividends such sum or sums as the directors from time to time, in their
absolute discretion, think proper as a reserve or reserves to meet contingencies, or for equalizing dividends, or for repairing
or maintaining any property of NTIC, or for such other purpose as the directors think is in the best interest of NTIC, and the
directors may modify or abolish any such reserve in the manner in which it was created.

 

    	 	1	 

     

    

 

Liquidation Rights

 

If there is a liquidation, dissolution or winding up of NTIC, subject to applicable law
and the rights, if any, of the holders of outstanding shares of any series of preferred stock we may designate and issue in the
future, holders of our common stock are entitled to share ratably in all the assets that remain after we pay our liabilities.

 

Other Rights and Preferences

 

Holders of our common stock do not have preemptive or subscription rights, and they have
no right to convert their common stock into any other securities, and there are no redemption or sinking fund provisions applicable
to our common stock. The rights, preferences, and privileges of common stockholders are subject to the rights of the stockholders
of any series of preferred stock which we may designate in the future. Our Charter and Bylaws do not restrict the ability of a
holder of common stock to transfer his or her shares of common stock. All currently outstanding shares of our common stock are
fully paid and nonassessable.

 

Transfer Agent and Registrar

 

The transfer agent and registrar for our common stock is Broadridge Financial Services.

 

Exchange Listing

 

Our common stock is listed on the Nasdaq Global Market under the symbol “NTIC.”

 

Anti-Takeover Effects of Certain Provisions of our Charter and Bylaws and the DGCL

 

Our Charter and Bylaws and the DGCL contain provisions that may have the anti-takeover
effect of delaying, deferring or preventing a change in control of NTIC.

 

Anti-Takeover Provisions in our Charter and Bylaws

 

Our Charter and Bylaws contain the following anti-takeover provisions that may have the
anti-takeover effect of delaying, deferring or preventing a change in control of NTIC:

 

		·	We have shares of common stock and preferred stock available for future issuance without stockholder approval. The existence
of unissued and unreserved common stock and preferred stock may enable the Board of Directors to issue shares to persons friendly
to current management or to issue preferred stock with terms that could render more difficult or discourage a third-party attempt
to obtain control of us by means of a merger, tender offer, proxy contest or otherwise, thereby protecting the continuity of our
management.

 

		·	The Board of Directors may adopt, amend or repeal our Bylaws, subject to the reserved power of the stockholders to adopt, amend
or repeal our Bylaws.

 

		·	Special meetings of our stockholders may be called only by our Chairman of the Board, Chief Executive Officer or President
at the request in writing of stockholders owning a majority in the amount of the entire capital stock of NTIC issued and outstanding
and entitled to vote.

 

		·	Stockholders must follow advance notice procedures to submit proposals for business to be brought before an annual meeting
of stockholders. Additionally, stockholders must follow advance notice procedures to propose nominees for election to our Board
of Directors at an annual meeting of stockholders.

 

		·	Subject to the rights, if any, of the holders of any series of preferred stock then outstanding, vacancies and newly created
directorships resulting from any increase in the authorized number of directors may be filled by a majority of the directors then
in office though less than a quorum, and each director so chosen shall hold office until the next annual election or until a successor
is duly elected and qualified or until his or her earlier death, resignation or removal as hereinafter provided.

 

    	 	2	 

     

    

 

Delaware Business Combination Statute

 

We are a Delaware corporation and are subject to Section 203 of the DGCL, known as the
Delaware Business Combination Statute. In general, Section 203 of the DGCL prohibits a publicly-held Delaware corporation from
engaging in a “business combination” with an “interested stockholder” for a period of three years following
the time at which the stockholder became an interested stockholder, unless:

 

		·	Prior
                                         to the time the stockholder became an interested stockholder, the board of directors
                                         of the corporation approved either the business combination or the transaction that resulted
                                         in the stockholder becoming an interested stockholder;

 

		·	Upon
                                         consummation of the transaction that resulted in the stockholder becoming an interested
                                         stockholder, the interested stockholder owned at least 85% of the voting stock of the
                                         corporation outstanding at the time the transaction commenced, exclusive of shares owned
                                         by directors who are also officers and by certain employee stock plans; or

 

		·	At
                                         or subsequent to such time, the business combination is approved by the board of directors
                                         and authorized at an annual or special meeting of the stockholder by the affirmative
                                         vote of at least two-thirds of the outstanding voting stock that is not owned by the
                                         interested stockholder.

 

Generally, for purposes of the Delaware Business Combination Statute, a “business
combination” includes a merger, asset or stock sale or other transaction resulting in a financial benefit to the interested
stockholder, and an “interested stockholder” is a person who owns, individually or through other persons, 15% or more
of the corporation’s outstanding voting stock at any time within the three-year period immediately before the date of determination.

 

 

 

 

 

 

 

 

 

 

 

 

3

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