Document:

Exhibit 10.9

FORM OF NON-STATUTORY STOCK OPTION AGREEMENT

          THIS NON-STATUTORY STOCK OPTION AGREEMENT is entered into and effective as of this ____  day of ____________, ______ (the “Date of Grant”), by and between Northern Technologies International Corporation (the “Company”) and ----_________________ (the “Optionee”).

          A.     The Company has adopted the Northern Technologies International Corporation 2007 Stock Incentive Plan (the “Plan”) authorizing the Board of Directors of the Company, or a committee as provided for in the Plan (the Board or such a committee to be referred to as the “Committee”), to grant non-statutory stock options to employees (including, without limitation, officers and directors who are also employees) of the Company or any Subsidiary, and any non-employee directors, consultants, advisors and independent contractors of the Company or any Subsidiary (as defined in the Plan).

          B.     The Company desires to give the Optionee an inducement to acquire a proprietary interest in the Company and an added incentive to advance the interests of the Company by granting to the Optionee an option to purchase shares of common stock of the Company pursuant to the Plan.

          Accordingly, the parties agree as follows:

1.   Grant of Option.

          The Company hereby grants to the Optionee the right, privilege, and option (the “Option”) to purchase _______________ (______) shares (the “Option Shares”) of the Company’s common stock, $0.02 par value (the “Common Stock”), according to the terms and subject to the conditions hereinafter set forth and as set forth in the Plan.  The Option is not intended to be an “incentive stock option,” as that term is used in Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”).

2.   Option Exercise Price.

          The per share price to be paid by Optionee in the event of an exercise of the Option will be $______.

3.   Duration of Option and Time of Exercise.

          3.1     Initial Period of Exercisability.  The Option will become exercisable with respect to the Option Shares [immediately/in _____ installments].  [The following table sets forth the initial dates of exercisability of each installment and the number of Option Shares as to which this Option will become exercisable on such dates:

	
  
Exercisability
  	
   
 	
  
Available for Exercise
  
	
  

  	
   
 	
  

  
	
  
___________________
  	
  
 
  	
  
_______
  
	
  
___________________
  	
  
 
  	
  
_______
  
	
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_______
  
	
  
___________________
  	
  
 
  	
  
_______]
  

	
  
 
  	
  
[The   foregoing rights to exercise this Option will be cumulative with respect to   the Option Shares becoming exercisable on each such date.]  In no event will this Option be   exercisable after, and this Option will become void and expire as to all   unexercised Option Shares at 5:00 p.m. Circle Pines, Minnesota time on   ______________________ (the “Time of Termination”).
  

	
  
 
  	
  
3.2     Termination   of Employment or Service.
  
	
  
 
  	
  
 
  
	
   
  	
  
          (a)     Termination   Due to Death, Disability or Retirement.    In the event the Optionee’s employment or service relationship with   the Company and all Subsidiaries is terminated by reason of death, Disability   or Retirement, this Option will remain exercisable, to the extent exercisable   as of the date of such termination, for a period of 12 months after such   termination (but in no event after the Time of Termination).
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (b)     Termination   for Reasons Other Than Death, Disability or Retirement.  In the event that the Optionee’s   employment or service relationship with the Company and all Subsidiaries is   terminated for any reason other than death, Disability or Retirement, or the   Optionee is in the employ of or perform services to a Subsidiary and the   Subsidiary ceases to be a Subsidiary of the Company (unless the Optionee   continues in the employ of or performs services to the Company or another   Subsidiary), all rights of the Optionee under the Plan and this Agreement   will immediately terminate without notice of any kind, and this Option will   no longer be exercisable; provided, however, that if such termination is due   to any reason other than termination by the Company or any Subsidiary for   “cause” (as defined in the Plan), this Option will remain
exercisable to the   extent exercisable as of such termination for a period of three months after   such termination (but in no event after the Time of Termination).
  
	
  
 
  	
  
 
  
	
   
  	
  
          (c)     Breach   of Employment, Service, Confidentiality, Non-Compete or Non-Solicitation   Agreements.  Notwithstanding   anything in this Agreement to the contrary and in addition to the rights of   the Committee under Section 12.4 of the Plan, in the event that the Optionee   materially breaches the terms of any employment, service, confidentiality,   non-compete or non-solicitation agreement entered into with the Company or   any Subsidiary (including an employment, service, confidentiality,   non-compete or non-solicitation agreement made in connection with the grant   of the Option), whether such breach occurs before or after termination of   such Participant’s employment or other service with the Company or any Subsidiary,   the Committee in its sole discretion may require the Participant to surrender   shares of Common Stock received, and to disgorge any
profits (however defined   by the Committee), made or realized by the Participant in connection with   this Option or any shares issued upon the exercise or vesting of this Option.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
3.3     Change   in Control.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (a)     Impact   of Change in Control.  If a Change   in Control (as defined in the Plan) of the Company occurs, this Option will   become immediately exercisable in full and will remain exercisable until the   Time of Termination, regardless of whether the Optionee remains in the employ   or service of the Company or any Subsidiary.    In addition, if a Change in Control of the Company occurs, the   Committee, in its sole discretion and without the consent of the Optionee,   may determine that the Optionee will receive, with respect to some or all of   the Option Shares, as of the effective date of any such Change in Control of   the Company, cash in an amount equal to the excess of the Fair Market Value   (as defined in the Plan) of such Option Shares immediately prior to the   effective date of such Change in Control of the Company over the option   exercise
price per share of this Option.
  
	
   
  	
  
 
  
	
  
 
  	
  
          (b)     Limitation   on Change in Control Payments.    Notwithstanding anything in this Section 3.3 to the contrary, if,   with respect to the Optionee, the acceleration of the vesting of this Option   or the payment of cash in exchange for all or part of the Option Shares as   provided above (which acceleration or payment could be deemed a “payment”   within the meaning of Section 280G(b)(2) of the Code), together with any   other “payments” that the Optionee has the
  

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right to   receive from the Company or any corporation that is a member of an   “affiliated group” (as defined in Section 1504(a) of the Code without   regard to Section 1504(b) of the Code) of which the Company is a member,   would constitute a “parachute payment” (as defined in Section 280G(b)(2)   of the Code), then the “payments” to the Optionee as set forth herein will be   reduced to the largest amount as will result in no portion of such “payments”   being subject to the excise tax imposed by Section 4999 of the Code;   provided, that such reduction shall be made only if the aggregate amount of   the payments after such reduction exceeds the difference between (A) the   amount of such payments absent such reduction minus (B) the aggregate amount   of the excise tax imposed under Section 4999 of the Code attributable to any   such excess parachute payments.    Notwithstanding the foregoing sentence,
if the Optionee is subject to   a separate agreement with the Company or a Subsidiary that expressly   addresses the potential application of Sections 280G or 4999 of the Code   (including, without limitation, that “payments” under such agreement or   otherwise will be reduced, that the Optionee will have the discretion to   determine which “payments” will be reduced, that such “payments” will not be   reduced or that such “payments” will be “grossed up” for tax purposes), then   this Section 3.3(b) will not apply, and any “payments” to the Optionee as   provided herein will be treated as “payments” arising under such separate   agreement
  

4.   Manner of Option Exercise.

          4.1     Notice.  This Option may be exercised by the Optionee in whole or in part from time to time, subject to the conditions contained in the Plan and in this Agreement, by delivery, in person, by facsimile or electronic transmission or through the mail, to the Company at its principal executive office in Circle Pines, Minnesota, of a written notice of exercise.  Such notice must be in a form satisfactory to the Committee, must identify the Option, must specify the number of Option Shares with respect to which the Option is being exercised, and must be signed by the person or persons so exercising the Option.  Such notice must be accompanied by payment in full of the total purchase price of the Option Shares purchased.  In the event that the Option is being exercised, as provided by the Plan and Section 3.2 above, by any person or persons other than
the Optionee, the notice must be accompanied by appropriate proof of right of such person or persons to exercise the Option.  As soon as practicable after the effective exercise of the Option, the Optionee will be recorded on the stock transfer books of the Company as the owner of the Option Shares purchased, and the Company will deliver to the Optionee certificated or uncertificated (“book entry”) shares.  In the event that the Option is being exercised, as provided by resolutions of the Committee and Section 4.2 below, by tender of a Broker Exercise Notice, the Company will deliver such shares directly to the Optionee’s broker or dealer or their nominee.

	
  
 
  	
  
4.2     Payment.
  
	
  
 
  	
  
 
  
	
   
  	
  
          (a)     At   the time of exercise of this Option, the Optionee must pay the total purchase   price of the Option Shares to be purchased entirely in cash (including check,   bank draft or money order); provided, however, that the Committee, in its   sole discretion and upon terms and conditions established by the Committee,   may allow such payments to be made, in whole or in part, by (i) tender of a   Broker Exercise Notice; (ii) by tender, or attestation as to ownership, of   Previously Acquired Shares that are acceptable to the Committee; (iii) by a   “net exercise” of the Option (as described in the Plan);  or    (iv) by a combination of such methods.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (b)     In   the event the Optionee is permitted to pay the total purchase price of this   Option in whole or in part with Previously Acquired Shares, the value of such   shares will be equal to their Fair Market Value on the date of exercise of   this Option.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (c)     In   the case of a “net exercise” of an Option, the Company will not require a   payment of the exercise price of the Option from the Optionee but will reduce   the number of shares of Common Stock issued upon the exercise by the largest   number of whole shares that has a Fair Market Value on the exercise date that   does not exceed the aggregate exercise price for the shares exercised under   this method.
  

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          (d)   Shares   of Common Stock will no longer be outstanding under this Option (and will   therefore not thereafter be exercisable) following the exercise of such   Option to the extent of (i) shares used to pay the exercise price of an   Option under the “net exercise,” (ii) shares actually delivered to the   Optionee as a result of such exercise and (iii) any shares withheld for   purposes of tax withholding.
  

5.   Rights of Optionee; Transferability.

          5.1     Employment or Service.  Nothing in this Agreement will interfere with or limit in any way the right of the Company or any Subsidiary to terminate the employment or service of the Optionee at any time, nor confer upon the Optionee any right to continue in the employ of or provide services to the Company or any Subsidiary at any particular position or rate of pay or for any particular period of time.

          5.2     Rights as a Shareholder.  The Optionee will have no rights as a shareholder unless and until all conditions to the effective exercise of this Option (including, without limitation, the conditions set forth in Sections 4 and 6 of this Agreement) have been satisfied and the Optionee has become the holder of record of such shares.  No adjustment will be made for dividends or distributions with respect to this Option as to which there is a record date preceding the date the Optionee becomes the holder of record of such shares, except as may otherwise be provided in the Plan or determined by the Committee in its sole discretion.

          5.3     Restrictions on Transfer.  Except pursuant to testamentary will or the laws of descent and distribution or as otherwise expressly permitted by the Plan, no right or interest of the Optionee in this Option prior to exercise may be assigned or transferred, or subjected to any lien, during the lifetime of the Optionee, either voluntarily or involuntarily, directly or indirectly, by operation of law or otherwise.  The Optionee will, however, be entitled to designate a beneficiary to receive this Option upon such Optionee’s death, and, in the event of the Optionee’s death, exercise of this Option (to the extent permitted pursuant to Section 3.2(a) of this Agreement) may be made by the Optionee’s legal representatives, heirs and legatees.

          5.4     Breach of Agreements.  Notwithstanding anything in this Agreement or the Plan to the contrary, in the event that the Optionee materially breaches the terms of any employment, service, confidentiality, non-compete or non-solicitation agreement entered into with the Company or any Subsidiary, whether such breach occurs before or after termination of the Optionee’s employment or other service with the Company or any Subsidiary, the Committee in its sole discretion may immediately terminate all rights of the Optionee under the Plan and this Agreement without notice of any kind or may require the Optionee to surrender shares of Common Stock received, and to disgorge any profits (however defined by the Committee), made or realized by the Optionee in connection with this Option or any shares issued upon the exercise or vesting of this Option.

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6.   Withholding Taxes.

          The Company is entitled to (a) withhold and deduct from future wages of the Optionee (or from other amounts that may be due and owing to the Optionee from the Company or a Subsidiary), or make other arrangements for the collection of, all legally required amounts necessary to satisfy any and all federal, foreign, state and local withholding and employment-related tax requirements attributable to the Option, including, without limitation, the grant, exercise or vesting of, this Option or a disqualifying disposition of any Option Shares; (b) withhold cash paid or payable or shares of Common Stock from the shares issued or otherwise issuable to the Optionee in connection with this Option; or (c) require the Optionee promptly to remit the amount of such withholding to the Company before taking any action, including issuing any shares of Common Stock, with respect to this Option.  Shares of Common Stock
issued or otherwise issuable to the Optionee in connection with this Option that gives rise to the tax withholding obligation that are withheld for purposes of satisfying the Optionee’s withholding or employment-related tax obligation will be valued at their Fair Market Value on the Tax Date.

7.   Adjustments.

          In the event of any reorganization, merger, consolidation, recapitalization, liquidation, reclassification, stock dividend, stock split, combination of shares, rights offering, divestiture or extraordinary dividend (including a spin-off), or any other similar change in the corporate structure or shares of the Company, the Committee (or, if the Company is not the surviving corporation in any such transaction, the board of directors of the surviving corporation), in order to prevent dilution or enlargement of the rights of the Optionee, will make appropriate adjustment (which determination will be conclusive) as to the number and kind of securities or other property (including cash) subject to, and the exercise price of, this Option.  

8.   Stock Subject to Plan.

          The Option and the Option Shares granted and issued pursuant to this Agreement have been granted and issued under, and are subject to the terms of, the Plan.  The terms of the Plan are incorporated by reference in this Agreement in their entirety, and the Optionee, by execution of this Agreement, acknowledges having received a copy of the Plan.  The provisions of this Agreement will be interpreted as to be consistent with the Plan, and any ambiguities in this Agreement will be interpreted by reference to the Plan.  In the event that any provision of this Agreement is inconsistent with the terms of the Plan, the terms of the Plan will prevail.

9.   Miscellaneous.

          9.1   Binding Effect.  This Agreement will be binding upon the heirs, executors, administrators and successors of the parties to this Agreement.

          9.2   Governing Law.  This Agreement and all rights and obligations under this Agreement will be construed in accordance with the Plan and governed by the laws of the State of Minnesota, without regard to conflicts of laws provisions.  Any legal proceeding related to this Agreement will be brought in an appropriate Minnesota court, and the parties to this Agreement consent to the exclusive jurisdiction of the court for this purpose.

          9.3   Entire Agreement.  This Agreement and the Plan set forth the entire agreement and understanding of the parties to this Agreement with respect to the grant and exercise of this Option and the administration of the Plan and supersede all prior agreements, arrangements, plans and understandings relating to the grant and exercise of this Option and the administration of the Plan.

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          9.4   Amendment and Waiver.  Other than as provided in the Plan, this Agreement may be amended, waived, modified or canceled only by a written instrument executed by the parties to this Agreement or, in the case of a waiver, by the party waiving compliance.

          9.5   Construction.  Wherever possible, each provision of this Agreement will be interpreted so that it is valid under the applicable law.  If any provision of this Agreement is to any extent invalid under the applicable law that provision will still be effective to the extent it remains valid.  The remainder of this Agreement also will continue to be valid, and the entire Agreement will continue to be valid in other jurisdictions.

          9.6   Counterparts.  For convenience of the parties hereto, this Agreement may be executed in any number of counterparts, each such counterpart to be deemed an original instrument, and all such counterparts together to constitute the same agreement.

[Remainder of page intentionally left blank]

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          The parties to this Agreement have executed this Agreement effective the day and year first above written.

	
  
 
  	
  
NORTHERN   TECHNOLOGIES
  
	
  
 
  	
  
INTERNATIONAL   CORPORATION
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
By
  	

  
	  
	  
	 

	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Its
  	
 
 

  
	  
	  
	

	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
 
  
	
  
By execution   of this Agreement,
  	
  
OPTIONEE

  
	
  
the Optionee   acknowledges having
  	
  
 
  	
  
 
  
	
  
received a   copy of the Plan.
  	

  
  
	
  
 
  	
  
(Signature)

  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	

  
  
	
  
 
  	
  
(Name and   Address)

  
	 
	  
	  

	  
	

   
	 
	  
	  

	  
	

   
	 
	  
	  

7Exhibit 10.10

FORM OF RESTRICTED STOCK AWARD AGREEMENT

          THIS RESTRICTED STOCK AWARD AGREEMENT is entered into and effective as of this ____  day of ____________, ______ (the “Date of Grant”), by and between Northern Technologies International Corporation (the “Company”) and ----_________________ (the “Grantee”).

          A.     The Company has adopted the Northern Technologies International Corporation 2007 Stock Incentive Plan (the “Plan”) authorizing the Board of Directors of the Company, or a committee as provided for in the Plan (the Board or such a committee to be referred to as the “Committee”), to grant restricted stock awards to employees (including, without limitation, officers and directors who are also employees) of the Company or any Subsidiary, and any non-employee directors, consultants, advisors and independent contractors of the Company or any Subsidiary (as defined in the Plan).

          B.     The Company desires to give the Grantee an incentive in the form of a grant of a restricted stock award pursuant to the Plan, to encourage the Grantee’s long-term performance for the Company and its stockholders as an employee, officer or director and more closely align the Grantee’s interest in the Company with that of the Company’s stockholders.

          Accordingly, the parties agree as follows:

1.   Grant of Award.

          The Company hereby grants to the Grantee a restricted stock award (the “Award”) consisting of __________________ (_____) shares (the “Award Shares”) of the Company’s common stock, $0.02 par value (the “Common Stock”), according to the terms and subject to the restrictions and conditions hereinafter set forth and as set forth in the Plan.  Reference to “Award Shares” in this Agreement will be deemed to include the Dividend Proceeds (as defined in Section 3.3 of this Agreement) with respect to such Award Shares that are retained and held by the Committee as provided in Section 3.3 of this Agreement and the Plan

2.   Grant Restriction.

          2.1     Restriction and Forfeiture.  The Grantee’s right to retain the Award Shares will be subject to the Grantee remaining in the continuous service of the Company as an employee, officer or director for a period of ________ (___) years (the “Restriction Period”) following the Date of Grant; provided, however, that such period restrictions (the “Restrictions”) will lapse and terminate prior to end of the Restriction Period with respect to installments of Award Shares to the extent and on such dates as follows:

	
  
Date of
Restriction Lapse
  	
   
 	
  
Number of Award Shares for
Which Restrictions Lapse
  
	
  

  	
  
 
  	
  

  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  

 

	
  
 
  	
  
2.2      Termination   of Employment or Service.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (a)     General   Rule.  In the event the Grantee’s   employment or service relationship with the Company and all Subsidiaries is   terminated by reason of death, Disability, Retirement, or any other reason,   all outstanding Award Shares held by Grantee that have not vested as of such   termination will be terminated and forfeited and the certificate(s)   representing the non-vested portion of the Award Shares so forfeited shall be   canceled.
  

	
  
 
  	
  
          (b)     Modification   of Rights Upon Termination.    Notwithstanding the other provisions of this Section 2.2, upon a   Grantee’s termination of employment or service relationship with the Company,   the Committee may, in its sole discretion (which may be exercised at any time   on or after the date of grant, including following such termination), cause   any or all of any outstanding Award Shares then held by such Grantee to vest   and/or continue to vest or become free of restrictions following such   termination of employment or service relationship, in each case in the manner   determined by the Committee; provided, however, that any modification of an   Award upon a Grantee’s termination of employment or service relationship will   be subject to Sections 12.3, 12.4 and 12.6 of the Plan.
  
	
   
  	
  
 
  
	
  
 
  	
  
2.3     Change   in Control.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (a)     Impact   of Change in Control.  If a Change   in Control (as defined in the Plan) of the Company occurs, then the   Restrictions applicable to the Award Shares that have been outstanding will   become immediately fully vested and non-forfeitable, subject to Section 14.4   of the Plan.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (b)     Limitation   on Change in Control Payments.    Notwithstanding anything in this Section 2.3 to the contrary, if,   with respect to the Grantee, the acceleration of the vesting of the Award   Shares as provided above (which acceleration or payment could be deemed a   “payment” within the meaning of Section 280G(b)(2) of the Code),   together with any other “payments” that the Grantee has the right to receive   from the Company or any corporation that is a member of an “affiliated group”   (as defined in Section 1504(a) of the Code without regard to   Section 1504(b) of the Code) of which the Company is a member, would   constitute a “parachute payment” (as defined in Section 280G(b)(2) of   the Code), then the “payments” to the Grantee as set forth herein will be   reduced to the largest
amount as will result in no portion of such “payments”   being subject to the excise tax imposed by Section 4999 of the Code;   provided, that such reduction shall be made only if the aggregate amount of   the payments after such reduction exceeds the difference between (A) the   amount of such payments absent such reduction minus (B) the aggregate amount   of the excise tax imposed under Section 4999 of the Code attributable to any   such excess parachute payments.    Notwithstanding the foregoing sentence, if the Grantee is subject to a   separate agreement with the Company or a Subsidiary that expressly addresses   the potential application of Sections 280G or 4999 of the Code (including,   without limitation, that “payments” under such agreement or otherwise will be   reduced, that the Grantee will have the discretion to determine which   “payments” will be reduced, that such “payments” will not be reduced or that   such “payments” will be
“grossed up” for tax purposes), then this Section   3.3(b) will not apply, and any “payments” to the Grantee as provided herein   will be treated as “payments” arising under such separate agreement.
  
	
   
  	
  
 
  
	
  
3.
  	
  
Issuance of   Award Shares.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          3.1     Privileges   of a Stockholder; Transferability.    As soon as practicable after the execution and delivery of this   Agreement and the satisfaction of any conditions to the effective issuance of   such Award Shares (including, without limitation, the conditions set forth in   Section 3 of this Agreement and Section 8 of the Plan), the Grantee will be   recorded on the books of the Company as the owner of the Award Shares, and   the Company will issue one or more duly issued and executed stock   certificates evidencing the Award Shares.    Except as provided in Sections 8.1, 8.3, 8.4 and 15.3 of the Plan and   this Agreement, the Grantee will have all voting, dividend, liquidation and   other rights with respect to the Award Shares in accordance with their terms   upon becoming the holder of record of such Award Shares; provided, however,   that prior to
the lapse 
  

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	 or other termination of the Restrictions applicable to Award Shares, except as provided in Section 15.3 of the Plan, such Award Shares will not be assignable or transferable by the Grantee, either voluntarily or involuntarily, and may not be subjected to any lien, directly or indirectly, by operation of law or otherwise.  Any attempt to transfer, assign or encumber the Award Shares other than in accordance with this Agreement and the Plan will be null and void and will void the Award, and all Award Shares for which the Restrictions have not lapsed will be forfeited and immediately returned to the Company.

	  
	  

	
  
 
  	
  
          3.2     Escrow   of Award Share Certificates.  To   enforce the Restrictions imposed by this Agreement and the Plan, until the   Restrictions have lapsed with respect to the Award Shares (a) the stock   certificates evidencing the Award Shares will bear a legend referring to the   Restrictions and (b) the stock certificates evidencing the Award Shares,   together with duly endorsed stock powers, attached hereto as Exhibit A,   will be kept in the custody of the Company or its transfer agent or evidence   of stock ownership of such Award Shares will be maintained, together with   duly endorsed stock powers, in a certificateless book-entry stock account   with the Company’s transfer agent.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          3.3     Dividends   and Other Distributions.  Unless   the Committee determines otherwise in its sole discretion, any dividends or   distributions with respect to the Award Shares, including regular cash   dividends, stock dividends or dividends in kind (all of which will   collectively be referred to as “Dividend Proceeds”), will be subject to the   same risk of forfeiture and restrictions on transfer as the forfeitable Award   Shares in respect of which they are issued or transferred, will be deposited,   along with any necessary duly endorsed stock powers, with the Company or its   transfer agent, and will become Award Shares for the purposes of this   Agreement.  The Committee may, in its   sole discretion, determine whether any interest will be paid on such Dividend   Proceeds.
  
	
   
  	
  
 
  
	
  
 
  	
  
          3.4     Lapse   of Restrictions; Issuance of Unrestricted Shares.  Upon the vesting of any Award Shares, such   vested Award Shares will no longer be subject to forfeiture as provided in   Section 2.2 of this Agreement.  Upon   the vesting of any Award Shares, all restrictions on such Award Shares will   lapse, and the Company will, subject to the provisions of the Plan, issue to   the Grantee a certificate evidencing the Award Shares that is free of any   transfer or other restrictions arising under this Agreement.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          3.5     Employment   or Service.  Nothing in this   Agreement will interfere with or limit in any way the right of the Company or   any Subsidiary to terminate the employment or service of the Grantee at any   time, nor confer upon the Grantee any right to continue in the employ of or   provide services to the Company or any Subsidiary at any particular position   or rate of pay or for any particular period of time.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          3.6     Breach   of Agreements.  Notwithstanding   anything in this Agreement or the Plan to the contrary, in the event that the   Grantee materially breaches the terms of any employment, service,   confidentiality, non-compete or non-solicitation agreement entered into with   the Company or any Subsidiary, whether such breach occurs before or after   termination of the Grantee’s employment or other service with the Company or   any Subsidiary, the Committee in its sole discretion may immediately   terminate all rights of the Grantee under the Plan and this Agreement without   notice of any kind or may require the Grantee to surrender shares of Common   Stock received, and to disgorge any profits (however defined by the   Committee), made or realized by the Grantee in connection with this   Agreement.
  

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4.   Section 83(b) Election.  

          The Grantee hereby acknowledges that Grantee has been informed that, with respect to the grant of the Award, an election may be filed by the Grantee with the Internal Revenue Service, within 30 days of the Date of Grant, electing pursuant to Section 83(b) of the Code to be taxed currently on the fair market value of the Award on the Date of Grant.  The Grantee acknowledges that it is the Grantee’s sole responsibility to timely file the election under Section 83(b) of the Code if the Grantee chooses to make such an election.  The Grantee has been advised that he or she should consult his or her personal tax or financial advisor with any questions regarding whether to make a Section 83(b) election.  If the Grantee makes such an election, the Grantee agrees to promptly provide the Company a copy of the election form.

5.   Withholding Taxes.

          The Company is entitled to (a) withhold and deduct from future wages of the Grantee (or from other amounts that may be due and owing to the Grantee from the Company or a Subsidiary), or cause to be paid to the Company out of the Dividend Proceeds, or make other arrangements for the collection of, all legally required amounts necessary to satisfy any and all federal, foreign, state and local withholding and employment-related tax requirements attributable to the receipt of the Award, the receipt of dividends or distributions on Award Shares, or the lapse or termination of the Restrictions applicable to the Award Shares; (b) withhold cash paid or payable or shares of Common Stock from the shares issued or otherwise issuable to the Grantee in connection with this Award; or (c) require the Grantee promptly to remit the amount of such withholding to the Company before taking any action, including issuing any
shares of Common Stock, with respect to this Award.  Shares of Common Stock issued or otherwise issuable to the Grantee in connection with this Award that gives rise to the tax withholding obligation that are withheld for purposes of satisfying the Grantee’s withholding or employment-related tax obligation will be valued at their Fair Market Value on the Tax Date.

6.   Adjustments.

          In the event of any reorganization, merger, consolidation, recapitalization, liquidation, reclassification, stock dividend, stock split, combination of shares, rights offering, divestiture or extraordinary dividend (including a spin-off), or any other similar change in the corporate structure or shares of the Company, the Committee (or, if the Company is not the surviving corporation in any such transaction, the board of directors of the surviving corporation), in order to prevent dilution or enlargement of the rights of the Grantee, will make appropriate adjustment (which determination will be conclusive) as to the number and kind of securities or other property (including cash) subject to, and the exercise price of, this Award.  

7.   Stock Subject to Plan.

          This Award and the Award Shares granted and issued pursuant to this Agreement have been granted and issued under, and are subject to the terms of, the Plan.  The terms of the Plan are incorporated by reference in this Agreement in their entirety, and the Grantee, by execution of this Agreement, acknowledges having received a copy of the Plan.  The provisions of this Agreement will be interpreted as to be consistent with the Plan, and any ambiguities in this Agreement will be interpreted by reference to the Plan.  In the event that any provision of this Agreement is inconsistent with the terms of the Plan, the terms of the Plan will prevail.

8.   Miscellaneous.

          8.1     Code Section 409A Compliance.  If any provision of this Agreement would result in the imposition of an excise tax under Section 409A of the Code and related regulations and Treasury pronouncements (“Section 409A”), that provision will be reformed to avoid imposition of the excise tax and no action taken to comply with Section 409A will be deemed to impair a benefit under this Agreement.

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          8.2     Binding Effect.  This Agreement will be binding upon the heirs, executors, administrators and successors of the parties to this Agreement.

          8.3     Governing Law.  This Agreement and all rights and obligations under this Agreement will be construed in accordance with the Plan and governed by the laws of the State of Minnesota, without regard to conflicts of laws provisions.  Any legal proceeding related to this Agreement will be brought in an appropriate Minnesota court, and the parties to this Agreement consent to the exclusive jurisdiction of the court for this purpose.

          8.4     Entire Agreement.  This Agreement and the Plan set forth the entire agreement and understanding of the parties to this Agreement with respect to the grant and exercise of this Option and the administration of the Plan and supersede all prior agreements, arrangements, plans and understandings relating to the grant and exercise of this Option and the administration of the Plan.

          8.5     Amendment and Waiver.  Other than as provided in the Plan, this Agreement may be amended, waived, modified or canceled only by a written instrument executed by the parties to this Agreement or, in the case of a waiver, by the party waiving compliance.

          8.6     Construction.  Wherever possible, each provision of this Agreement will be interpreted so that it is valid under the applicable law.  If any provision of this Agreement is to any extent invalid under the applicable law that provision will still be effective to the extent it remains valid.  The remainder of this Agreement also will continue to be valid, and the entire Agreement will continue to be valid in other jurisdictions.

          8.7     Counterparts.  For convenience of the parties hereto, this Agreement may be executed in any number of counterparts, each such counterpart to be deemed an original instrument, and all such counterparts together to constitute the same agreement.

[Remainder of page intentionally left blank]

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          The parties to this Agreement have executed this Agreement effective the day and year first above written.

	
  
 
  	
  
NORTHERN   TECHNOLOGIES
  
	
  
 
  	
  
INTERNATIONAL   CORPORATION
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
By
  	
  
 
  
	
  
 
  	
  
 
  	
  

  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
Its
  	
  
 

  
	
  
 
  	
  
 
  	
  

  
	  
	  
	  

	
  
 
  	
  
 
  	
  
 
  
	
  
By execution   of this Agreement,
  	
  
GRANTEE
  
	
  
the Grantee   acknowledges having
  	
  
 
  	
  
 
  
	
  
received a copy   of the Plan.
  	
  

  
	
  
 
  	
  
(Signature)
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  

  
	
  
 
  	
  
(Name and   Address)
  
	  
	  
	  

	 
	

   
	  
	  
	  

	 
	

   

6

Exhibit A

STOCK POWER

          For value received, I hereby sell, assign and transfer unto ___________________ ______________________________ shares of the Common Stock of Northern Technologies International Corporation standing in my name on the books of said company represented by Certificate(s) Number(s) _________ herewith, and do hereby irrevocably constitute and appoint ________________________ attorney to transfer said stock on the books of said company with full power of substitute in the premises.

	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
	
   
  	(Signature)

  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
	
  
 
  	(Name and   Address)

  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
  
	
   
  	
   
  	
   
  
	 
	Date:
	 

   
	 	 	

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