Document:

Exhibit 10.11

NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION
 EMPLOYEE STOCK PURCHASE PLAN

          Section 1.    Purpose.  This Employee Stock Purchase Plan (the “Plan”) is intended to advance the interests of Northern Technologies International Corporation, a Delaware corporation (“the Company”), and its stockholders by providing Employees of the Company and its Designated Subsidiaries with opportunities to acquire shares of the Company’s Common Stock on favorable terms through payroll deductions.  The Plan is intended to qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code of 1986, as amended (the “Code”), and will be construed so as to extend and limit participation in a manner consistent with the requirements of Section 423 of the Code.

	
  
 
  	
  
Section 2.    Definitions.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (a)     “Board”   means the Board of Directors of the Company.
  
	
  
 
  	
  
 
  
	
   
  	
  
          (b)     “Common   Stock” means the common stock, par value $0.02 per share, of the Company, or   the number and kind of shares of stock or other securities into which such   common stock may be changed in accordance with Section 13 of the Plan.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (c)     “Committee”   means the entity administering the Plan, as provided in Section 3 below.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (d)     “Compensation”   means regular straight-time earnings and commissions that are included in   regular compensation, including amounts that would have constituted   compensation but for a Participant’s election to defer or reduce compensation   pursuant to any deferred compensation, cafeteria, capital accumulation or any   other similar plan of the Company, and including all other amounts such as   amounts attributable to overtime, shift premium, incentive compensation and   bonuses (except to the extent that the exclusion of any such item is   specifically directed by the Committee), determined in a manner consistent   with the requirements of Section 423 of the Code.
  
	
  
 
  	
  
 
  
	
   
  	
  
          (e)     “Designated   Subsidiary” means a Subsidiary that has been designated by the Board from   time to time, in its sole discretion, as eligible to participate in the Plan.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (f)     “Employee”   means any person, including an officer, who is employed by the Company or one   of its Designated Subsidiaries and has been so employed for at least six (6)   months prior to the commencement of an offering period.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (g)    “Exchange   Act” means the Securities Exchange Act of 1934, as amended.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (h)    “Fair   Market Value” means, with respect to the Common Stock, as of any date: (i)   the closing sale price of the Common Stock as of such date at the end of the   regular trading session, as reported on the American Stock Exchange or on any   national exchange (or, if no shares were traded on such date, as of the next   preceding date on which there was such a trade); or (ii) if the Common Stock   is not so listed, admitted to unlisted trading privileges, or reported on the   American Stock Exchange or any national exchange, the closing sale price as   of such date at the end of the regular trading session, as reported by the   Nasdaq Capital Market, Over-the-Counter Bulletin Board or the Pink Sheets,   LLC, or other comparable service (or, if no shares were traded or quoted on   such date, as of the next preceding date on which there was such a trade or quote);   or
(iii) if the Common Stock is not so listed or reported, such price as the   Committee determines in its sole discretion in a manner acceptable under   Section 423 of the Code.
  

	
  
 
  	
  
          (i)     “Offering”   means any of the offerings to Participants of options to purchase Common   Stock under the Plan, as described in Section 5 below.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (j)     “Offering   Date” means the first day of the period of an Offering under the Plan, as   described in Section 5 below.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (k)     “Option   Price” is defined in Section 8 below.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (l)     “Participant”   means an eligible Employee who elects to participate in the Plan pursuant to   Section 6 below.
  
	
   
  	
  
 
  
	
  
 
  	
  
          (m)   “Securities   Act” means the Securities Act of 1933, as amended.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (n)    “Subsidiary”   means any subsidiary corporation of the Company within the meaning of Section   424(f) of the Code.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (o)    “Purchase   Date” means the last day of the period of an Offering under the Plan, as   described in Section 5 below.
  

          Section 3.    Administration.  The Plan will be administered by the Board or by a committee of the Board.  So long as the Company has a class of its equity securities registered under Section 12 of the Exchange Act, the Plan will be administered by a committee (the “Committee”) consisting solely of not less than two members of the Board who are “non-employee directors” within the meaning of Rule 16b-3 under the Exchange Act.  Such a committee, if established, will act by majority approval of the members (but may also take action with the written consent of all the members of such committee), and a majority of the members of such a committee will constitute a quorum.  As used in the Plan, “Committee” will refer to the Board or to such a committee, if established.  To the extent consistent with corporate law, the
Committee may delegate to any officers of the Company the duties, power and authority of the Committee under the Plan pursuant to such conditions or limitations as the Committee may establish; provided, however, that only the Committee may exercise such duties, power and authority with respect to Participants who are subject to Section 16 of the Exchange Act.  The Committee may exercise its duties, power and authority under the Plan in its sole discretion without the consent of any Participant or other party, unless the Plan specifically provides otherwise.  Each determination, interpretation or other action made or taken by the Committee pursuant to the provisions of the Plan will be final, conclusive and binding for all purposes and on all persons, including, without limitation, the Company, the stockholders of the Company, the Participants and their respective successors-in-interest.  No member of the Committee shall be liable for any action or determination made in good faith with
respect to the Plan or any option granted under the Plan.

	
  
 
  	
  
Section 4.    Eligibility.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (a)     With   respect to an Offering, any Employee employed by the Company or a Designated   Subsidiary on the Offering Date shall be eligible to participate in the Plan,   subject to the limitations imposed by Section 423(b) of the Code.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (b)     Any   provisions of the Plan to the contrary notwithstanding, no Employee shall be   granted an option under the Plan if:
  

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          (i)     immediately   after the grant, such Employee (or any other person whose stock ownership   would be attributed to such Employee pursuant to Section 424(d) of the Code)   would own shares of Common Stock and/or hold outstanding options to purchase   shares of Common Stock possessing 5% or more of the total combined voting   power or value of all classes of shares of the Company or of any Subsidiary;   or
  
	
   
  	
  
 
  
	
  
 
  	
  
          (ii)     the   amount of payroll deductions that the Employee has elected to have withheld   under such option (pursuant to Section 7 below) would permit the Employee to   purchase shares of Common Stock under all “employee stock purchase plans”   (within the meaning of Section 423 of the Code) of the Company and its   Subsidiaries to accrue (i.e., become exercisable) at a rate that exceeds   $25,000 of the Fair Market Value of such shares of Common Stock (determined   at the time such option is granted) for each calendar year in which such   option is outstanding at any time.
  

          Section 5.    Offerings.  Options to purchase shares of Common Stock shall be offered to Participants under the Plan through a continuous series of Offerings, each continuing for six months and each of which shall commence on September 1 and March 1 of each year, as the case may be, and shall terminate on February 28 or 29th (as the case may be) and August 31 of such year, as the case may be; provided, however, that the first Offering under the Plan shall have an Offering Date and Purchase Date as determined by the Committee in its sole discretion.  Offerings under the Plan shall continue until either (a) the Committee decides, in its sole discretion, that no further Offerings shall be made because the Common Stock remaining available under the Plan is insufficient to make an Offering to all eligible Employees, or (b) the Plan is terminated
under Section 20 below.  Notwithstanding the foregoing, and without limiting the authority of the Committee under Section 3, 13(b) and 17 of the Plan, the Committee, in its sole discretion, may (a) accelerate the Purchase Date of the then current Offering and provide for the exercise of options thereunder by Participants in accordance with Section 9 of the Plan, or (b) accelerate the Purchase Date of the then current Offering and provide that all payroll deductions credited to the accounts of Participants will be paid to Participants as soon as practicable after such Purchase Date and that all options for such Offering will automatically be canceled and will no longer be exercisable, if such change is announced at least five (5) days prior to the newly scheduled Purchase Date.  

	
  
 
  	
  
Section 6.    Participation.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (a)     An   eligible Employee may become a Participant in the Plan by completing a   subscription agreement authorizing payroll deductions on the form provided by   the Company (the “Participation Form”) and filing the Participation Form with   the Company’s Human Resources Department or the stock brokerage or other financial   services firm designated by the Company (“Designated Broker”) not less than   five (5) days before the Offering Date of the first Offering in which the   Participant wishes to participate.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (b)     Except   as provided in Section 7(a) below, payroll deductions for a Participant shall   begin with the first payroll following the applicable Offering Date, and   shall continue until the termination date of the Plan, subject to earlier   termination by the Participant as provided in Section 11 below or increases   or decreases by the Participant in the amount of payroll deductions as   provided in Section 7(c) below.
  

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Section 7.    Payroll Deductions.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (a)     By   completing and filing a Participation Form, a Participant shall elect to have   payroll deductions made from the Participant’s total Compensation (in whole   percentages from 1% to a maximum of 15% of the Participant’s total   Compensation) on each payday during the time he or she is a Participant in   the Plan in such amount as he or she shall designate on the Participation   Form; provided, however, that no Participant’s payroll deductions shall be   less than $10.00 per pay period.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (b)     All   payroll deductions authorized by a Participant shall be credited to an   account established under the Plan for the Participant.  The monies represented by such account   shall be held as part of the Company’s general assets, usable for any   corporate purpose, and the Company shall not be obligated to segregate such   monies.  A Participant may not make   any separate cash payment or contribution to such account.
  
	
   
  	
  
 
  
	
  
 
  	
  
          (c)     No   increases or decreases of the amount of payroll deductions for a Participant   may be made during an Offering.  A   Participant may increase or decrease the amount of the Participant’s payroll   deductions under the Plan for subsequent Offerings by completing an amended   Participation Form and filing it with the Company’s Human Resources   Department or Designated Broker not less than five (5) days prior to the   Offering Date as of which such increase or decrease is to be effective.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (d)     A   Participant may discontinue the Participant’s participation in the Plan at   any time as provided in Section 11 below.
  

          Section 8.    Grant of Option.  On each Offering Date, each eligible Employee who is then a Participant shall be granted (by operation of the Plan) an option to purchase as many full shares of Common Stock at the Option Price as he or she will be able to purchase with (a) the payroll deductions credited to the Participant’s account during the Participant’s participation in the Offering beginning on such Offering Date and (b) the balance (if any) carried forward from the Employee’s payroll deduction account from the preceding Offering.  Notwithstanding the foregoing, in no event may the number of shares purchased by any Employee during an Offering exceed 2,000 shares of Common Stock.  The option price per share of such shares (the “Option Price”) shall be equal to the lesser of: (a) 90% of the Fair Market Value of one share of
Common Stock on the Offering Date or (b) 90% of the Fair Market Value of one share of Common Stock on the Purchase Date.  

	
  
 
  	
  
Section 9.    Exercise of Option.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (a)     Unless   a Participant gives written notice to the Company as provided in Section 9(d)   below or withdraws from the Plan pursuant to Section 11 below, the   Participant’s option for the purchase of shares of Common Stock granted for   an Offering will be exercised automatically at the Purchase Date of such   Offering for the purchase of the number of full shares of Common Stock that   the accumulated payroll deductions in the Participant’s account on such   Purchase Date will purchase at the applicable Option Price.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (b)     A   Participant may only purchase one or more full shares in connection with the   automatic exercise of an option granted for any Offering.  That portion of any balance remaining in a   Participant’s payroll deduction account at the close of business on the   Purchase Date of any Offering that is less than the purchase price of one   full share will be carried forward into the Participant’s payroll deduction   account for the following Offering.    In no event will the balance carried forward be equal to or greater   than the purchase price of one share on the Purchase Date of an   Offering.  Notwithstanding the   foregoing, the Committee may determine, in its sole discretion, that in lieu   of carrying such cash balances forward, such balances will be deemed to have   purchased such number of fractional shares of Common Stock as would then be
purchasable at the applicable Option Price, with such fractional shares   calculated to the fourth (4th) decimal place.
  

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          (c)     No   Participant (or any person claiming through such Participant) shall have any   interest in any Common Stock subject to an option under the Plan until such   option has been exercised, at which point such interest shall be limited to   the interest of a purchaser of the Common Stock purchased upon such exercise   pending the delivery or credit of such Common Stock in accordance with   Section 10 below.  During the   Participant’s lifetime, a Participant’s option to purchase shares of Common   Stock under the Plan is exercisable only by the Participant.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (d)     By   written notice to the Company prior to the Purchase Date of any Offering, a   Participant may elect, effective on such Purchase Date to withdraw all of the   accumulated payroll deductions in the Participant’s account as of the   Purchase Date (which withdrawal may, but need not, also constitute a notice   of termination and withdrawal pursuant to Section 11(a)).
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Section 10.  Delivery.  
  
	
   
  	
  
 
  
	
  
 
  	
  
          (a)     Except   as provided in paragraph (b) below, as promptly as practicable after the   Purchase Date of each Offering, the Company will deliver to each Participant,   as appropriate, either:
  

	
  
 
  	
  
 
  	
  
          (i)     a   certificate representing the shares of Common Stock purchased upon exercise   of the Participant’s option granted for such Offering, registered in the name   of the Participant or, if the Participant so directs on the Participant’s   Participation Form, in the names of the Participant and the Participant’s   spouse; or
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
          (ii)     if   the Participant makes an election pursuant to Section 9(d) for the Offering,   a cash payment equal to the total of the payroll deductions credited to the   Participant’s account.
  

	
  
 
  	
  
          (b)     Notwithstanding   paragraph (a) above, in lieu of delivering certificates to each of the   Participants with respect to shares of Common Stock purchased in connection   with an Offering, the Company may deliver a certificate to a third party   representing an aggregate of all of the shares of Common Stock purchased in   connection with the Offering (including an aggregate of all of the fractional   shares deemed to have been purchased pursuant to Section 9(b), if applicable)   rounded down to the nearest full share, plus cash in an amount equal to the   Option Price multiplied by any remaining fractional share deemed to have been   purchased pursuant to Section 9(b), if applicable, which shares will be held   for the benefit of the Participants in accordance with their respective   interests, and will deliver a statement of account to each Participant   indicating the
number of shares of Common Stock purchased by that Participant   in connection with that Offering.  In   the event shares are held for the benefit of Participants, all full shares   purchased and fractional shares deemed to have been purchased by a   Participant in an Offering and in any subsequent Offerings will accumulate   for the benefit of the Participant until the Participant’s withdrawal or   termination pursuant to Section 11.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Section 11.  Withdrawal; Termination   of Employment.
  
	
   
  	
  
 
  
	
  
 
  	
  
          (a)     A   Participant may terminate the Participant’s participation in the Plan and   withdraw all, but not less than all, the payroll deductions credited to the   Participant’s account under the Plan at any time prior to the Purchase Date   of an Offering, for such Offering, by giving written notice to the Company’s   Human Resources Department or Designated Broker no later than five (5) days   prior to the end of the offering period.    Such notice shall state that the Participant wishes to terminate the Participant’s   involvement in the Plan, specify a termination date and request the   withdrawal of all of the Participant’s payroll deductions held under the   Plan.  
  

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All of the   Participant’s payroll deductions credited to the Participant’s account will   be paid to the Participant as soon as practicable after the termination date   specified in the notice of termination and withdrawal (or, if no such date is   specified, as soon as practical after receipt of the Participant’s notice of   termination and withdrawal), and the Participant’s option for such Offering   will be automatically canceled, and no further payroll deductions for the   purchase of shares of Common Stock will be made for such Offering or for any   subsequent Offering, except in accordance with a new Participation Form filed   pursuant to Section 6 above.
  
	
   
  	
  
 
  
	
  
 
  	
  
          (b)     Upon   termination of a Participant’s employment for any reason, including   retirement or death, the payroll deductions accumulated in the Participant’s   account will be returned to the Participant as soon as practicable after such   termination or, in the case of the Participant’s death, to the person or   persons entitled thereto under Section 14 below, and the Participant’s option   will be automatically canceled.  In   the event that shares are held for the benefit of Participants pursuant to   Section 10(b), then upon the termination of a Participant’s employment for   any reason, including retirement or death, the Participant, or, in the case   of death, the Participant’s designated beneficiary (if allowed by the   Committee) or the executor or administrator of the Participant’s estate will   be entitled to receive, a
certificate representing the number of full shares   of Common Stock held for the benefit of the Participant plus cash in an   amount equal to the Fair Market Value of any remaining fractional share   deemed to have been purchased.  In any   event, Fair Market Value will be determined as of such termination and such   certificate will be delivered and such amounts paid as soon thereafter as   practicable.  For purposes of the   Plan, the termination date of employment shall be the Participant’s last date   of actual employment and shall not include any period during which such   Participant receives any severance payments.    A transfer of employment between the Company and a Designated   Subsidiary or between one Designated Subsidiary and another Designated   Subsidiary, or absence or leave approved by the Company, shall not be deemed   a termination of employment under this Section 11(b).
  
	
  
 
  	
  
 
  
	
   
  	
  
          (c)     A   Participant’s termination and withdrawal pursuant to Section 11(a) above will   not have any effect upon the Participant’s eligibility to participate in a   subsequent Offering by completing and filing a new Participation Form   pursuant to Section 6 above or in any similar plan that may hereafter be   adopted by the Company.
  
	
  
 
  	
  
 
  
	
  
          Section 12.  Interest.  No interest shall accrue   on a Participant’s payroll deductions under the Plan.
  
	
  
 
  	
  
 
  
	
  
          Section 13.  Stock Subject to the Plan.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (a)     The   maximum number of shares of Common Stock that shall be reserved for sale   under the Plan shall be 100,000 shares,   subject to adjustment upon changes in capitalization of the Company as   provided in Section 13(b) below.  The   shares to be sold to Participants under the Plan may be, at the election of   the Company, either treasury shares or shares authorized but unissued.  If the total number of shares of Common   Stock that would otherwise be subject to options granted pursuant to Section   8 above on any Purchase Date exceeds the number of shares then available   under the Plan (after deduction of all shares for which options have been   exercised or are then outstanding), the Company shall make a pro rata   allocation of the shares of Common Stock remaining available for issuance in   as uniform and equitable a manner as is practicable.  In such
event, the Company shall give   written notice of such reduction of the number of shares subject to the   option to each Participant affected thereby and shall return any excess funds   accumulated in each Participant’s account as soon as practicable after the   Purchase Date of such Offering.
  

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          (b)     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) will make appropriate adjustment (which determination will be   conclusive) as to the number and kind of securities or other property   (including cash) available for issuance or payment under the Plan and, in   order to prevent dilution or enlargement of the rights of Participants, the   number and kind of securities or other property (including cash) subject to,   and the exercise price of, outstanding
options.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (c)     In   the event that Participants are deemed to have purchased fractional shares of   Common Stock pursuant to Section 9(b), the aggregate of such fractional share   interests at any given time will be applied to reduce the maximum number of   shares of Common Stock remaining available for issuance under the Plan;   provided, however, that any fractional shares that are paid out to a   Participant in cash pursuant to Section 11 will automatically again become   available for issuance under the Plan.
  
	
   
  	
  
 
  
	
  
 
  	
  
Section 14.  Designation of   Beneficiary.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (a)     In   the discretion of the Committee, a Participant may file written designation   of a beneficiary who is to receive shares of Common Stock and/or cash, if   any, from the Participant’s account under the Plan in the event of such   Participant’s death at a time when cash or shares of Common Stock are held   for the Participant’s account.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (b)     Such   designation of beneficiary may be changed by the Participant at any time by   written notice.  In the event of the   death of a Participant in the absence of a valid designation of a beneficiary   who is living at the time of such Participant’s death, the Company shall   deliver such shares of Common Stock and/or cash to the executor or administrator   of the estate of the Participant; or, if no such executor or administrator   has been appointed (to the knowledge of the Company), the Company, in its   discretion, may deliver such shares of Common Stock and/or cash to the spouse   or to any one or more dependents or relatives of the Participant; or, if no   spouse, dependent or relative is known to the Company, then to such other   person as the Company may designate.
  

          Section 15.  Transferability.  Neither payroll deductions credited to a Participant’s account nor any rights with regard to the exercise of an option or to receive shares of Common Stock under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution, or as provided in Section 14 above) by the Participant.  Any such attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw funds in accordance with Section 11(a) above.

	
  
 
  	
  
Section 16.  Share Transfer   Restrictions.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (a)     Shares   of Common Stock shall not be issued under the Plan unless such issuance is   either registered under the Securities Act and applicable state securities   laws or is exempt from such registration.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          (b)     Shares   of Common Stock issued under the Plan may not be sold, assigned, transferred,   pledged encumbered, or otherwise disposed of (whether voluntarily or involuntarily)   except pursuant to registration under the Securities Act and applicable state   securities laws, or pursuant to exemptions from such registration.
  

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          (c)     The   Company may condition the issuance, sale or transfer of shares of Common   Stock upon the receipt of any representations or agreements from the parties   involved, and the placement of any legends on certificates representing   shares of Common Stock, as may be deemed necessary or advisable by the   Company in order to comply with such securities law or other restrictions.
  

          Section 17.  Amendment.  The Plan may be amended by the Board from time to time to the extent that the Board deems necessary or appropriate in light of, and consistent with, Section 423 of the Code; provided, however, that no such amendment shall be effective, without approval of the stockholders of the Company, if stockholder approval of the amendment is then required pursuant to Rule 16b-3 under the Exchange Act or any successor rule, the rules of any stock exchange or Nasdaq if the Common Stock is then listed on such exchange or Nasdaq or similar regulatory body, or Section 423 of the Code.  

          Section 18.  Notices.  All notices or other communications by a Participant to the Company in connection with the Plan shall be deemed to have been duly given when received by the Chief Financial Officer of the Company or by any other person designated by the Company for the receipt of such notices or other communications, in the form and at the location specified by the Company.

          Section 19.  No Right to Employment.  Nothing in the Plan will interfere with or limit in any way the right of the Company or any Designated Subsidiary to terminate the employment of any Employee or Participant at any time, nor confer upon any Employee or Participant any right to continue in the employ of the Company or any Designated Subsidiary.

          Section 20.  Effective Date of Plan; Termination.  The Plan shall be effective as of November 17, 2006, the date it was adopted by the Board.  The Plan has been adopted by the Board subject to stockholder approval, and prior to stockholder approval shares of Common Stock may be issued under the Plan subject to such approval.  The Board may terminate or suspend the Plan or the granting of options pursuant to the Plan at any time.  No option will be granted after termination of the Plan.

          Section 21.  Governing Law.  Except to the extent expressly provided herein or in connection with other matters of corporate governance and authority (all of which shall be governed by the laws of the Company’s jurisdiction of incorporation), the validity, construction, interpretation, administration and effect of the Plan and any rules, regulations and actions relating to the Plan will be governed by and construed exclusively in accordance with the laws of the State of Minnesota, notwithstanding the conflicts of laws principles of any jurisdictions.

          Section 22.  Miscellaneous.  The headings to Sections in the Plan have been included for convenience of reference only.  Except as otherwise expressly indicated, all references to Sections in the Plan shall be to Sections of the Plan.  

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NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION
 EMPLOYEE STOCK PURCHASE PLAN

Payroll Deduction Authorization Form And Subscription Agreement

	
  
______        Original   Application
  
	
  
______        Change   in Payroll Deduction Amount
  
	
  
 
  
	
  
1.
  	
  
___________________________________   hereby elects to participate in the Northern Technologies International Corporation   Employee Stock Purchase Plan (the “Plan”) and subscribes to purchase shares   of the Company’s Common Stock (the “Shares”) according to this Agreement and   the Plan.
  
	
  
 
  	
  
 
  
	
  
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I hereby   authorize payroll deductions, beginning ____________, 20__, from each   paycheck in the amount of $_______________ (may not exceed 15% of total   compensation on each payday) in accordance with the Plan.
  
	
  
 
  	
  
 
  
	
  3.
  	
  
I understand   that such payroll deductions will be accumulated to purchase shares according   to the Plan, and that shares will be purchased for me automatically at the   end of each offering period under the Plan unless I withdraw my accumulated   payroll deductions, withdraw from the Plan, or both, by giving written notice   to the Company prior to the end of the offering period, as provided in the   Plan.
  
	
  
 
  	
  
 
  
	
  
4.
  	
  
Shares   purchased for me under the Plan should be issued or held in an account in the   name(s) of:
  
	
  
 
  	
  
 
  
	
  
 
  	
  
_______________________________________________
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(name(s))
  
	
  
 
  	
  
 
  
	
  
 
  	
  
_______________________________________________
  
	
   
  	
  
 
  
	
  
 
  	
  
(address)
  
	
  
 
  	
  
 
  
	
  
 
  	
  
_______________________________________________
  
	
  
 
  	
  
 
  
	
  
 
  	
  
_______________________________________________
  
	
  
 
  	
  
(social   security number)
  
	
  
 
  	
  
 
  
	
  
5.
  	
  
I understand   that if I dispose of any shares I receive under the Plan within two years   after the first day of the offering period during which I purchased the   shares, I may be treated for U.S. federal income tax purposes as having   received ordinary income at the time of such disposition in an amount equal   to the excess of the fair market value of the shares on the date purchased   over the option price paid for the shares.    I hereby agree to notify the Company in writing within 30 days   after the date of any such disposition.    However, if I dispose of any such shares at any time after the   expiration of the two-year holding period, I understand that I will be   treated for U.S. federal income tax purposes as having received income only   at the time of such disposition, and that such income will be taxed as   ordinary income only to the extent of an amount equal to the lesser of (a)   the excess of the fair market value of the
shares at the time of such   disposition over the amount paid for the shares under the option, or (b) the   excess of the fair market value of the shares on the first day of the   offering period during which I purchased such shares over the option   price.  The remainder of the gain, if   any, recognized on such disposition will be taxed at capital gains rates.
  

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I have read   the current prospectus for the Northern Technologies International   Corporation Employee Stock Purchase Plan.
  
	
  
 
  	
  
 
  
	
  
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In the event of my death, I hereby designate the following as my   beneficiary(ies) to receive all payments and Shares due me under the Plan:
  

	
  
 
  	
  
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10Exhibit 10.12

NORTHERN TECHNOLOGIES INTERNATIONAL CORPORATION

DESCRIPTION OF NON-EMPLOYEE DIRECTOR
 COMPENSATION ARRANGEMENTS

Fees 

Each non-employee director for an entire fiscal year receives an annual retainer of $10,000 for services rendered as a director of Northern Technologies International Corporation.  Each non-employee director for a portion of the fiscal year receives a prorated portion of such annual retainer.  Each non-employee director of NTIC also receives $1,000 for each Board meeting attended and $500 for each Audit Committee, Compensation Committee and Nominating Committee meeting attended.  The following non-employee directors are Pierre Chenu, Mark J. Stone, Dr. Sunggyu Lee, Dr. Ramani Narayan, Mark M. Mayers, Dr. Vera Kallmeyer and Jean-Guy Coulombe.

Stock Options

Pursuant to the Northern Technologies International Corporation 2000 Stock Incentive Plan, each non-employee director of NTIC is automatically granted a five-year non-qualified option to purchase 2,000 shares of NTIC common stock on the first day of each fiscal year in respect to their past year’s services as a non-employee director of NTIC.  Non-employee directors who are elected or appointed to the Board following the first day of the fiscal year receive an automatic grant of an option to purchase a pro rata portion of 2,000 shares of NTIC common stock calculated by dividing the number of months remaining in the fiscal year at the time of election or appointment divided by 12, which options are automatically granted at the time of their election or appointment.  Each automatically granted option becomes exercisable, on a cumulative basis, with respect to 33 1/3% of the shares covered by such option on each anniversary of the date of its
grant.  The exercise price of such option is equal to the fair market value of a share of NTIC common stock on the date of grant.

Reimbursement of Travel Expenses

All of NTIC’s directors are reimbursed for travel expenses for attending meetings.

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