NORTHERN TECHNOLOGIES INTERNATIONAL
CORPORATION
NOTICE OF ANNUAL MEETING OF
STOCKHOLDERS
January 24, 2008
The Annual Meeting of the Stockholders of
Northern Technologies International Corporation, a Delaware corporation, will be
held at Northern Technologies International Corporation Headquarters, 4201
Woodland Road, Circle Pines, Minnesota 55014, beginning at 4:00 p.m., local
time, on Thursday, January 24, 2008, for the following purposes:
|
1.
|
|
To elect seven persons to serve
as our directors until the next annual meeting of the stockholders or
until their respective successors shall be elected and
qualified.
|
|
|
|
2.
|
|
To ratify the selection of
Virchow Krause & Company LLP as our independent registered public
accounting firm for the fiscal year ending August 31, 2008.
|
|
|
|
3.
|
|
To transact such other business
as may properly come before the meeting or any adjournment of the
meeting.
|
Only stockholders of record at the close
of business on November 30, 2007 will be entitled to notice of, and to vote at,
the meeting and any adjournments thereof. A stockholder list will be available
at our corporate offices beginning January 14, 2008 during normal business hours
for examination by any stockholder registered on NTICs stock ledger as of the
record date, November 30, 2007, for any purpose germane to the annual meeting.
It is important that your shares be
represented and voted at the meeting. Please vote by the Internet or telephone
or request a paper proxy card to sign, date and return by mail so that your
shares may be voted.
|
By Order of the Board of Directors,
|
|
|
|
|
|
|
|
|
Matthew
Wolsfeld
|
|
Corporate
Secretary
|
December 12,
2007
|
|
Circle Pines,
Minnesota
|
|
Important: Whether or
not you expect to attend the meeting in person, please vote by the
Internet
or telephone, or request a
paper proxy card to sign, date and return by mail so that your shares may
be voted. A prompt response is helpful and your cooperation is
appreciated.
|
TABLE OF
CONTENTS
|
|
INFORMATION CONCERNING THE ANNUAL MEETING
|
1
|
Date, Time, Place and Purposes of Meeting
|
1
|
Who Can Vote
|
1
|
How
You Can Vote
|
1
|
How Does the Board Recommend that You Vote
|
2
|
How You Can Change Your Vote or Revoke Your Proxy
|
2
|
Quorum Requirement
|
2
|
Vote Required
|
3
|
Proxy Solicitation Costs
|
3
|
Procedures at the Annual Meeting
|
3
|
SECURITY OWNERSHIP OF PRINCIPAL STOCKHOLDERS AND MANAGEMENT
|
4
|
PROPOSAL ONE ELECTION OF DIRECTORS
|
6
|
Number of Directors
|
6
|
Nominees for Director
|
6
|
Board Recommendation
|
6
|
Information About Current Directors and Board
Nominees
|
7
|
Additional Information About Current Directors and Board
Nominees
|
7
|
CORPORATE GOVERNANCE
|
10
|
Director Independence
|
10
|
Board of Directors and Committees of the Board
|
10
|
Audit Committee
|
10
|
Audit Committee Report
|
11
|
Compensation Committee
|
12
|
Nominating and Corporate Governance Committee
|
14
|
Corporate Governance Guidelines
|
16
|
Code of Ethics
|
17
|
Policy Regarding Director Attendance at Annual Meetings
of Stockholders
|
17
|
Complaint Procedures
|
17
|
Process Regarding Stockholder Communications with Board
of Directors
|
17
|
DIRECTOR COMPENSATION
|
18
|
Summary of Cash and Other Compensation
|
18
|
Non-Employee Director Compensation Program
|
20
|
Consulting Arrangements
|
21
|
Compensation Arrangements with Inside Directors
|
21
|
EXECUTIVE COMPENSATION
|
22
|
Executive Compensation Program
|
22
|
Summary of Cash and Other Compensation
|
25
|
Outstanding Equity Awards at Fiscal Year End
|
26
|
Stock Incentive Plans
|
27
|
Post-Termination Severance and Change in Control
Arrangements
|
28
|
RELATED
PERSON RELATIONSHIPS AND TRANSACTIONS
|
29
|
Agreement with Entity Affiliated with Former Chairman of the Board
and Chief Executive Officer
|
29
|
Director and Executive Officer Compensation
|
29
|
PROPOSAL TWO RATIFICATION OF SELECTION OF INDEPENDENT
REGISTERED
|
|
PUBLIC ACCOUNTING FIRM
|
30
|
Selection of Independent Registered Public Accounting
Firm
|
30
|
Audit, Audit-Related, Tax and Other Fees
|
30
|
Audit Committee Pre-Approval Policies and
Procedures
|
30
|
Board of Directors Recommendation
|
31
|
OTHER
MATTERS
|
32
|
Section 16(a) Beneficial Ownership Reporting
Compliance
|
32
|
Stockholder Proposals for 2009 Annual
Meeting
|
32
|
Director Nominations
|
32
|
Other Business
|
33
|
Copies of 2007 Annual Report
|
33
|
Householding of Annual Meeting Materials
|
33
|
NORTHERN TECHNOLOGIES INTERNATIONAL
CORPORATION
4201 Woodland Road, Circle Pines, Minnesota 55014
___________________________________
PROXY STATEMENT FOR
ANNUAL MEETING
OF STOCKHOLDERS
January 24, 2008
___________________________________
The Board of Directors of Northern
Technologies International Corporation is soliciting your proxy for use at the
2008 Annual Meeting of Stockholders on Thursday, January 24, 2008. The Board of
Directors has made available to our stockholders beginning on or about December
12, 2007 the Notice of Annual Meeting, this proxy statement and a form of proxy
on the Internet or has mailed these materials to stockholders of NTIC upon their
request.
INFORMATION CONCERNING THE ANNUAL
MEETING
________________
Date, Time, Place and Purposes of
Meeting
The Annual Meeting of the Stockholders of
Northern Technologies International Corporation (sometimes referred to as
NTIC, we, our or us in this proxy statement) will be held on Thursday,
January 24, 2008, at 4:00 p.m., local time, at the principal executive offices
of Northern Technologies International Corporation, 4201 Woodland Road, Circle
Pines, Minnesota 55014, for the purposes set forth in the Notice of Annual
Meeting.
Who Can Vote
Stockholders of record at the close of
business on November 30, 2007 will be entitled to notice of and to vote at the
meeting or any adjournment of the meeting. As of that date, there were 3,655,520
shares of our common stock outstanding. Each share of our common stock is
entitled to one vote on each matter to be voted on at the Annual Meeting.
Stockholders are not entitled to cumulate voting rights.
How You Can Vote
Your vote is important. If you are a
stockholder whose shares are registered in your name, you may vote your shares
in person at the meeting or by one of the three following methods:
-
Vote by Internet
, by going to the website address http://www.proxyvote.com and
following the instructions for Internet voting shown on the proxy
card.
-
Vote by Telephone
, by
dialing 1-800-690-6903 and following the instructions for telephone voting
shown on the proxy card.
-
Vote by Proxy Card
, by
completing, signing, dating and mailing a proxy card in the envelope provided
if you requested copies of these proxy materials.
If you vote by Internet or telephone,
please do not mail your proxy card.
1
If your shares are held in street name
(through a broker, bank or other nominee), you may receive a separate voting
instruction form with this proxy statement or you may need to contact your
broker, bank or other nominee to determine whether you will be able to vote
electronically using the Internet or telephone.
If you return your signed proxy card or
use Internet or telephone voting before the Annual Meeting, the named proxies
will vote your shares as you direct. You have three choices on each matter to be
voted on.
For the election of directors, you may
vote:
-
FOR
the
seven nominees for director,
-
WITHHOLD
your vote from the
seven nominees for director or
-
WITHHOLD
your vote from one
or more of the seven nominees for director.
For each of the other proposals, you may
vote:
-
FOR
the
proposal,
-
AGAINST
the proposal
or
-
ABSTAIN
from voting on the
proposal.
If you send in your proxy card or use
Internet or telephone voting, but do not specify how you want to vote your
shares, the proxies will vote your shares
FOR
all seven of the nominees for
director and
FOR
all of the other proposals set forth in the Notice of Annual Meeting.
How Does the Board Recommend that You
Vote
The Board of Directors unanimously
recommends that you vote FOR all seven of the nominees for director and FOR the
approval of all of the other proposals set forth in the Notice of Annual
Meeting.
How You Can Change Your Vote or Revoke
Your Proxy
If you are a stockholder whose shares are
registered in your name, you may revoke your proxy at any time before it is
voted by one of the following methods:
-
Submitting another proper proxy with a more recent
date than that of the proxy first given by following the Internet or telephone
voting instructions or completing, signing, dating and returning a proxy card
to us.
-
Sending written notice of your revocation to our Corporate
Secretary.
-
Attending the Annual Meeting and voting by
ballot.
Quorum Requirement
The presence at the Annual Meeting, in
person or by proxy, of the holders of a majority (1,827,761
shares) of the outstanding
shares of our common stock as of the record date will constitute a quorum for
the transaction of business at the Annual Meeting. In general, shares of our
common stock represented by proxies marked For, Abstain or Withheld are
counted in determining whether a quorum is present. In addition, a broker
non-vote is considered in determining whether a quorum is present. A broker
non-vote is a card returned by a broker on behalf of its beneficial owner
customer that is not voted on a particular matter because voting instructions
have not been received by the broker from the customer, and the broker has no
discretionary authority to vote on behalf of such customer on such
matter.
2
Vote Required
Assuming a quorum is represented at the
Annual Meeting, either in person or by proxy, the election of the seven nominees
for director requires the affirmative vote of a plurality of the shares of
common stock present in person or by proxy and entitled to vote and the approval
of each of the other proposals requires the affirmative vote of the holders of a
majority of the shares of common stock present in person or by proxy and
entitled to vote.
If your shares are held in street name
and you do not indicate how you wish to vote, your broker is permitted to
exercise its discretion to vote your shares on certain routine matters that
include the election of directors (Proposal One) and the ratification of the
selection of our independent registered public accounting firm (Proposal Two).
Abstentions and withheld votes will be counted, and will have the effect of a
negative vote.
Proxy Solicitation Costs
The cost of soliciting proxies, including
the preparation, assembly, electronic availability and mailing of proxies and
soliciting material, as well as the cost of making available or forwarding this
material to the beneficial owners of our common stock will be borne by NTIC. Our
directors, officers and regular employees may, without compensation other than
their regular compensation, solicit proxies by telephone, e-mail, facsimile,
telegraph or personal conversation. We may reimburse brokerage firms and others
for expenses in making available or forwarding solicitation materials to the
beneficial owners of our common stock.
Procedures at the Annual Meeting
The presiding officer at the Annual
Meeting will determine how business at the meeting will be conducted. Only
matters brought before the Annual Meeting in accordance with our bylaws will be
considered.
Only a natural person present at the
Annual Meeting who is either one of our stockholders, or is acting on behalf of
one of our stockholders, may make a motion or second a motion. A person acting
on behalf of a stockholder must present a written statement executed by the
stockholder or the duly authorized representative of the stockholder on whose
behalf the person purports to act.
3
SECURITY OWNERSHIP OF PRINCIPAL
STOCKHOLDERS AND MANAGEMENT
________________
The following table sets forth information
known to us with respect to the beneficial ownership of our common stock as of
November 30, 2007 for:
-
each person known by us to beneficially own more
than five percent of the outstanding shares of our common
stock,
-
each of our directors and nominees for
director,
-
each of the executive officers named in the Summary
Compensation Table on page 25 under the heading Executive Compensation
and
-
all of our directors and executive officers as a
group.
Shares are deemed to be beneficially
owned by a person if such person, directly or indirectly, has sole or shared
power to vote or to direct the voting of such shares or sole or shared power to
dispose or direct the disposition of such shares. Except as otherwise indicated,
we believe that each of the beneficial owners of our common stock listed below,
based on information provided by these owners, has sole dispositive and voting
power with respect to its shares, subject to community property laws where
applicable. Shares not outstanding but deemed beneficially owned by virtue of
the right of a person or member of a group to acquire them within 60 days are
treated as outstanding only when determining the amount and percent owned by
such person or group.
|
|
Shares Subject to Options
|
|
Total Number of Shares
|
|
Percent of
|
|
|
Immediately Exercisable or
|
|
of Common Stock
|
|
Total Voting
|
Name
|
|
Exercisable Within 60
Days
|
|
Beneficially
Owned
|
|
Power
|
Stockholders Owning 5% or More:
|
|
|
|
|
|
|
|
|
|
Inter Alia Holding
Company
(1)
|
|
0
|
|
|
911,668
|
|
|
24.9
|
%
|
Kern
Capital Management, LLC
(2)
|
|
0
|
|
|
531,200
|
|
|
14.5
|
%
|
Directors and
Named Executive Officers:
|
|
|
|
|
|
|
|
|
|
Pierre
Chenu
|
|
6,001
|
|
|
6,001
|
|
|
*
|
|
Dr. Donald A.
Kubik
|
|
5,334
|
|
|
132,877
|
|
|
3.6
|
%
|
Dr.
Sunggyu Lee
|
|
4,001
|
|
|
4,001
|
|
|
*
|
|
G. Patrick
Lynch
(3)
|
|
5,334
|
|
|
938,024
|
|
|
25.6
|
%
|
Mark M.
Mayers
(4)
|
|
3,501
|
|
|
4,001
|
|
|
*
|
|
Dr. Ramani
Narayan
|
|
3,501
|
|
|
3,501
|
|
|
*
|
|
Dr.
Barry Rosenbaum
|
|
389
|
|
|
489
|
|
|
*
|
|
Mark J.
Stone
(5)
|
|
2,001
|
|
|
12,001
|
|
|
*
|
|
Matthew
C. Wolsfeld
|
|
5,334
|
|
|
30,550
|
|
|
*
|
|
Directors and executive officers
as a group (nine persons)
(6)
|
|
35,396
|
|
|
1,131,445
|
|
|
30.7
|
%
|
____________________
*
|
|
Represents beneficial
ownership of less than one percent of our common stock.
|
|
|
|
(1)
|
|
Inter Alia Holding
Company is an entity of which G. Patrick Lynch, our President and Chief
Executive Officer, and Philip M. Lynch, our former Chairman of the Board
and Chief Executive Officer and current Chairman Emeritus, are
stockholders. Philip M. Lynch and G. Patrick Lynch share voting and
dispositive power over such shares. Inter Alia Holding Companys address
is 16210 Parkland Drive, Shaker Heights, Ohio
44120.
|
4
(2)
|
|
On February 14, 2007, Kern
Capital Management, LLC reported in an amended Schedule 13G filed with the
Securities and Exchange Commission that as of December 31, 2006, Kern
Capital Management, LLC beneficially owned 531,200 shares of our common
stock. Robert E. Kern Jr. and David G. Kern are principals and controlling
members of Kern Capital Management, LLC. The principal business address of
Kern Capital Management, LLC, Robert E. Kern Jr. and David G. Kern is 114
West 47th Street, Suite 1926, New York, NY 10036.
|
|
(3)
|
|
Includes 911,688 shares held by
Inter Alia Holding Company. See note (1) above.
|
|
(4)
|
|
Includes 500 shares held jointly
with Mr. Mayers spouse.
|
|
(5)
|
|
Includes 10,000 shares held
jointly with Mr. Stones spouse.
|
|
(6)
|
|
The amount beneficially owned by
all current directors and executive officers as a group includes 911,668
shares held of record by Inter Alia Holding Company. See note (1)
above.
|
5
PROPOSAL ONE ELECTION OF
DIRECTORS
________________
Number of Directors
Our bylaws provide that the Board of
Directors will consist of at least one member or such other number as may be
determined by the Board of Directors from time to time or by the stockholders at
an annual meeting. In light of the recent previously announced decision by Dr.
Barry Rosenbaum not to stand for re-election as a director of NTIC at the annual
meeting of stockholders, the Board of Directors has fixed the number of
directors at seven commencing on the date of our next annual meeting of
stockholders. However, the Board of Directors, through the Nominating and
Corporate Governance Committee, is currently in the process of seeking an
additional member of the Board of Directors. Due to the timing of the Annual
Meeting and the length of time it typically takes the Nominating and Corporate
Governance Committee to identify individuals qualified to become members of the
Board of Directors and the Board of Directors to evaluate such individuals and
nominate or elect such individuals as directors of NTIC, it is possible that the
Board of Directors will increase the number of directors to more than seven and
elect an additional director to fill such vacancy shortly after the Annual
Meeting. At the Annual Meeting, however, the number of individuals nominated by
the Board of Directors to serve as our directors until the next annual meeting
of our stockholders or until their successors are elected and qualified is
seven.
Nominees for Director
The Board of Directors has nominated the
following seven individuals to serve as our directors until the next annual
meeting of our stockholders or until their successors are elected and qualified.
All of the nominees named below are current members of the Board of Directors.
-
Pierre Chenu
-
Dr. Donald A. Kubik
-
Dr. Sunggyu Lee
-
G. Patrick Lynch
-
Mark M. Mayers
-
Dr. Ramani Narayan
-
Mark J. Stone
Proxies can only be voted for the number
of persons named as nominees in this proxy statement, which is seven.
Dr. Barry Rosenbaum, a current member of
the Board of Directors, has decided not to stand for reelection at the Annual
Meeting. The Board of Directors thanks Dr. Rosenbaum for his service as a member
of the Board of Directors of NTIC.
Board Recommendation
The Board of Directors recommends a vote
FOR
the
election of all of the nominees named above.
If prior to the Annual Meeting, the Board
of Directors should learn that any nominee will be unable to serve for any
reason, the proxies that otherwise would have been voted for this nominee will
be voted for a substitute nominee as selected by the Board of Directors.
Alternatively, the proxies, at the Boards discretion, may be voted for that
fewer number of nominees as results from the inability of any nominee to serve.
The Board of Directors has no reason to believe that any of the nominees will be
unable to serve.
6
Information About Current Directors and
Board Nominees
The following table sets forth as of
November 16, 2007 the name, age and principal occupation of each current
director and each individual who has been nominated by the Board of Directors to
serve as a director of our company, as well as how long each individual has
served as a director of NTIC. Dr. Rosenbaum has decided not to stand for
re-election as a director of NTIC and, therefore, was not nominated by the Board
of Directors to serve as a director of our company for election at the Annual
Meeting.
|
|
|
|
|
|
Director
|
Name
|
|
Age
|
|
Principal
Occupation
|
|
Since
|
Pierre
Chenu
(1)(2)
|
|
69
|
|
Chairman of the Board of NTIC
|
|
2003
|
Dr. Donald A.
Kubik
|
|
67
|
|
Vice Chairman and Chief
Technology Officer of NTIC
|
|
1995
|
Dr.
Sunggyu Lee
|
|
55
|
|
Professor of Chemical & Biological Engineering,
|
|
2004
|
|
|
|
|
University of Missouri-Rolla
|
|
|
G. Patrick
Lynch
|
|
40
|
|
President and Chief
Executive Officer of NTIC
|
|
2004
|
Mark M.
Mayers
(2)(3)
|
|
75
|
|
Co-Chairman, Harbor Group NY, Inc.
|
|
2004
|
Dr. Ramani
Narayan
|
|
58
|
|
Professor of Chemical
& Biochemical Engineering in the
|
|
2004
|
|
|
|
|
Department of Chemical
Engineering & Materials Science
|
|
|
|
|
|
|
at Michigan State
University
|
|
|
Dr.
Barry Rosenbaum
(2)
|
|
65
|
|
Senior
Fellow, The University of Akron Research
|
|
2007
|
|
|
|
|
Foundation
|
|
|
Mark J.
Stone
(1)(3)
|
|
48
|
|
President of Petrus International, Inc.
|
|
2001
|
____________________
(1)
|
|
Member of the Audit
Committee
|
|
(2)
|
|
Member of the Compensation
Committee
|
|
(3)
|
|
Member of the Nominating and
Corporate Governance Committee
|
There are no family relationships among
any of our directors.
Additional Information About Current
Directors and Board Nominees
Pierre Chenu
has been a director of NTIC since 2003 and Chairman of the Board since
July 2005. Mr. Chenu is currently retired. Prior to his retirement, Mr. Chenu
served as Vice President, Worldwide Operations, Flat Glass Activities within the
Asahi-Glaverbel Glass Group, a position he had served for five years. Prior to
that, Mr. Chenu was a member of the Executive Committee of Glaverbel S.A., with
various operating responsibilities in France, Spain, Italy, Russia, Germany,
China and the United States. Before joining Glaverbel, Mr. Chenu worked for U.S.
Steel in steel production in Pittsburgh, Pennsylvania and for Corning Inc. where
he held various staff, line and executive positions in the United States, France
and the United Kingdom. Mr. Chenu holds a Masters Degree in Engineering, with a
specialty in metallurgy, from the University of Liege (Belgium) and a M.B.A.
from Harvard University. Mr. Chenu is a citizen of Belgium.
Dr. Donald A. Kubik,
Ph.D.
has been employed by NTIC since 1978,
was appointed Vice Chairman of the Board in September 1999 and Chief Technology
Officer in May 2000. Dr. Kubik served as Vice President of NTIC from 1979 to
September 1999 and as Co-Chief Executive Officer of NTIC from September 1999 to
May 2000. Dr. Kubik is responsible for developing the patent that led to NTICs
introduction of protective plastic film and paper products incorporating
volatile corrosion inhibitors. Prior to joining NTIC, Dr. Kubik held a
research and development position with Minnesota Mining & Manufacturing
(3M).
7
Dr. Sunggyu Lee, Ph.D.
was elected a director of NTIC in January 2004. Dr. Lee is
Professor of
Chemical and Biological Engineering,
University of Missouri-Rolla, Rolla, Missouri. Previously, he held positions of
Robert Iredell Professor and Head of Chemical Engineering Department at the
University of Akron, Akron, Ohio for 1988-1996 and C.W. LaPierre Professor and
Chairman of Chemical Engineering at University of Missouri-Columbia for
1997-2005. He has authored six books and over 400 archival publications and
received 22 U.S. patents in a variety of chemical and polymer processes and
products. He is currently serving as Editor of Encyclopedia of Chemical
Processing, Taylor & Francis, New York, NY. Throughout his career, he has
served as consultant and technical advisor to a number of national and
international companies. He received his Ph.D. from Case Western Reserve
University, Cleveland, Ohio in 1980.
Mr. G. Patrick Lynch
, an employee of NTIC since 1995, has been President since
July 2005 and Chief Executive Officer since January 2006 and was appointed a
director of NTIC in February 2004. Mr. Lynch served as President of North
American Operations of NTIC from May 2004 to July 2005. Prior to May 2004, Mr.
Lynch held various positions with NTIC, including Vice President of Strategic
Planning, Corporate Secretary and Project Manager. Mr. Lynch is also an officer
and director of Inter Alia Holding Company, a financial and management
consulting firm that is a significant stockholder of NTIC. Prior to joining
NTIC, Mr. Lynch held positions in sales management for Fuji Electric Co., Ltd.
in Tokyo, Japan, and programming project management for BMW AG in Munich,
Germany. Mr. Lynch received an M.B.A. degree from the University of Michigan
Business School in Ann Arbor, Michigan. Mr. Lynch is the son of Philip M. Lynch,
a former Chairman of the Board and current Chairman Emeritus.
Mark M. Mayers
has been a director of NTIC since November 2004. Mr. Mayers
has been a co-chairman of the Harbor Group NY, Inc. since 1996. Harbor is a
small boutique investment firm which primarily creates financial products which
it markets or licenses to principally insurance companies to market. His primary
expertise is with energy related matters, technology and finance. Prior to 1996,
Mr. Mayers served as the Chief Executive Officer of Columbia Energy Storage
Company, Inc. for seven years. In addition from 1970 to 1986, Mr. Mayers served
in various capacities as a technical, energy, and financial advisor to the
Reynolds Metals Company. Mr. Mayers holds a BA from the University of Maryland.
Dr. Ramani Narayan,
Ph.D.
has been a director of NTIC since
November 2004. He is Professor of Chemical & Biochemical Engineering in the
Department of Chemical Engineering & Materials Science at Michigan State
University, E. Lansing, MI where he has 105 refereed publications in leading
journals to his credit, 18 patents, edited three books and one expert dossier in
the area of bio-based polymeric materials. His research encompasses design &
engineering of sustainable, biobased products, biodegradable plastics and
polymers, reactive extrusion polymerization and processing, studies in polymer
biodegradation and composting. He is on the Board of Directors of ASTM
International and the Biodegradable Products Institute (BPI), North America. He
serves on the Technical Advisory board of Tate & Lyle. He has won the
Governors University Award for commercialization excellence; Michigan State
University Distinguished Faculty Award, 2006, 2005 Withrow Distinguished Scholar
award, Fulbright Distinguished Lectureship Chair in Science & Technology
Management & Commercialization (University of Lisbon; Portugal); First
recipient of the William N. Findley Award, The James Hammer Memorial Lifetime
Achievement Award, and Research and Commercialization Award sponsored by ICI
Americas, Inc. & the National Corn Growers Association.
8
Dr. Barry Rosenbaum
was elected as a director of NTIC in January 2007 and will
serve as a director until the annual meeting of NTICs stockholders in January
2008. He is currently working with The University of Akron Research Foundation,
in a pro bono position as Senior Fellow focused on promoting Wealth Creation,
Angel Investment, and Regional Innovation in North East, Ohio. Dr. Rosenbaum
retired from OMNOVA Solutions in 2005, where he served as Technology Director
from 2000 until his retirement in 2005. Prior to 2000, Dr. Rosenbaum served as
Technology Director of GenCorp, from 1997, the parent company of OMNOVA. Dr.
Rosenbaum retired from Advanced Elastomer Systems in 1997, an affiliate of Exxon
Mobil Chemical Company, producing Santoprene Thermoplastic Elastomers, where he
was Vice President of Technology. In 1991, he helped to found Advanced Elastomer
Systems as a joint venture between Exxon Chemical and Monsanto. Dr. Rosenbaum
worked with Exxon Chemical Polymers Division for about 25 years and was active
in ACS Rubber Division and the IISRP. Dr. Rosenbaum spent six years in Europe
with Exxon Chemical and was responsible for the European VISTALON EPDM Business
from 1986 to 1990. Dr. Rosenbaum was Technology Manager of Exxon Chemicals EPDM
Rubber Business and Exxon Chemicals Butyl and Halobutyl Rubber Business and was
responsible for developing Exxons bromobutyl technology for tire innerliners.
He also initiated Exxons new Exxpro Butyl Polymers Technology Platform
Development. Dr. Rosenbaum has extensive industrial manufacturing experience,
working as a Senior Process Engineer in Exxons Elastomer Plants in France and
Baton Rouge, LA. In Baytown, Texas, he was Operations Head of Exxons Butyl
Rubber Plant. Dr. Rosenbaum holds a PhD in Chemical Engineering from
Northwestern University and a BSChE from The Cooper Union.
Mark J. Stone
has been a director of NTIC since 2001. Mr. Stone has been
President of Petrus International, Inc., an international consulting firm, since
1992. Mr. Stone has advised a variety of Japanese and other multi-national
corporations in areas including project finance and international investment
strategy. Mr. Stone was a director of Aqua Design, Inc., an international water
desalination company, from 1988 to 1996. Mr. Stone was Director, Marketing &
Business Development of Toray Marketing & Sales (America) Inc. from 1986 to
1992. From 1980 to 1986, Mr. Stone was employed by Mitsui & Co. (U.S.A.),
Inc. where he founded and was Treasurer of Hydro Management Resources, a Mitsui
subsidiary, which finances, owns, and operates water treatment projects. Mr.
Stone holds an A.B. from Harvard University.
9
CORPORATE GOVERNANCE
________________
Director Independence
The Board of Directors has affirmatively
determined that five of NTICs current eight directors are independent
directors as defined by the listing standards of The American Stock Exchange:
Messrs. Chenu, Mayers and Stone and Drs. Lee and Rosenbaum. The Board of
Directors also affirmatively determined that two former directors of NTIC that
served during fiscal 2007 until our annual meeting of stockholders in January
2007 were also independent Mr. Guy Coulombe and Ms. Vera
Kallmeyer.
In making these affirmative determinations
that such individuals are independent directors, the Board of Directors
reviewed and discussed information provided by the directors and by NTIC with
regard to each directors business and personal activities as they may relate to
NTIC and NTICs management. In determining that Dr. Lee is independent, the
Board of Directors specifically discussed Dr. Lees former consulting
arrangement with NTIC and the fact that although Dr. Lee received $100,000 in
consulting fees from NTIC during each of fiscal 2005 and fiscal 2006, he
received only $50,000 in consulting fees in fiscal 2007 and will not receive any
future consulting fees since his consulting arrangement with NTIC has been
terminated. In determining that Dr. Lee is independent, the Board of Directors
noted that The American Stock Exchange does not automatically deem a director
not independent unless the director received in excess of $100,000 during any
period of 12 consecutive months within the past three years.
Board of Directors and Committees of
the Board
The Board of Directors met four times
during the fiscal year ended August 31, 2007. Each of the directors attended at
least 75 percent of the aggregate of the total number of meetings of the Board
and the total number of meetings held by all Board committees on which he
served.
The Board of Directors has a standing
Audit Committee, Compensation Committee and Nominating and Corporate Governance
Committee. The Board of Directors may from time to time establish other
committees to facilitate the management of our company and may change the
composition and responsibilities of our existing committees.
Audit Committee
Responsibilities
. The Audit Committee provides assistance to the Board of
Directors in fulfilling its responsibilities for oversight, for quality and
integrity of the accounting, auditing, reporting practices, systems of internal
accounting and financial controls, the annual independent audit of our financial
statements, and the legal compliance and ethics programs of NTIC as established
by management. The Audit Committees primary responsibilities include:
-
Overseeing NTICs financial reporting process on
behalf of the Board of Directors and reporting the results of their activities
to the Board of Directors;
-
Having sole authority to appoint, retain and oversee the work
of NTICs independent registered public accounting firm and establish the
compensation to be paid to the independent auditors;
-
Reviewing and pre-approving all audit services and
permissible non-audit services to be provided to NTIC by our independent
registered public accounting firm;
-
Establishing procedures for the receipt, retention and
treatment of complaints regarding accounting, internal accounting controls or
auditing matters and for the confidential, anonymous submission by NTICs
employees of concerns regarding questionable accounting or auditing matters;
and
-
Overseeing the establishment and administration (including
the grant of any waiver from) a written code of ethics applicable to NTICs
principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions.
10
The Audit Committee operates under a
written charter adopted by the Board of Directors, which can be found on the
Investor Relations-Corporate Governance Items section of our corporate website
www.ntic.com. A printed copy of such charter is also available to any
stockholder upon request to our Corporate Secretary at Northern Technologies
International Corporation, 4201 Woodland Road, Circle Pines, Minnesota 55014 or
by telephone at (763) 225-6637.
Composition
. The current members of the Audit Committee are Messrs. Chenu, Mayers
and Stone. Mr. Stone is the current chair of the Audit Committee. Prior to
leaving the Board of Directors in January 2007, Ms. Kallmeyer served as a member
of the Audit Committee.
Each member of the Audit Committee
qualifies as independent for purposes of membership on audit committees
pursuant to the listing standards of The American Stock Exchange and the rules
and regulations of the Securities and Exchange Commission and is financially
literate as required by American Stock Exchanges listing standards. In
addition, the Board has determined that Mr. Stone satisfies the financial
sophistication requirement of the listing standards of The American Stock
Exchange and meets the definition of audit committee financial expert within
the meaning of Item 401(e) of Regulation S-B under the Securities Exchange Act
of 1934, as amended, as a result of his extensive financial background and
various financial positions he has held throughout his career. Stockholders
should understand that these designations related to our Audit Committee
members experience and understanding with respect to certain accounting and
auditing matters do not impose upon any of them any duties, obligations or
liabilities that are greater than those generally imposed on a member of the
Audit Committee or of the Board of Directors.
Meetings and Other
Information
. The Audit Committee met five
times during fiscal 2007, one time outside the presence of management and one
time face to face with Virchow Krause & Company LLP, NTICs independent
registered public accounting firm. Additional information regarding NTICs Audit
Committee and its independent registered public accounting firm is disclosed
under the Audit Committee Report and Proposal TwoRatification of Selection
of Independent Registered Public Accounting Firm sections of this proxy
statement.
Audit Committee Report
This report is furnished by the Audit
Committee of the Board of Directors with respect to NTICs financial statements
for the fiscal year ended August 31, 2007.
One of the purposes of the Audit Committee
is to oversee NTICs accounting and financial reporting processes and the audit
of NTICs annual financial statements. NTICs management is responsible for the
preparation and presentation of complete and accurate financial statements.
NTICs independent registered public accounting firm, Virchow Krause &
Company LLP, is responsible for performing an independent audit of NTICs
financial statements in accordance with the standards of the Public Company
Accounting Oversight Board (United States) and for issuing a report on their
audit.
11
In performing its oversight role, the
Audit Committee has reviewed and discussed NTICs audited financial statements
for the fiscal year ended August 31, 2007 with NTICs management. Management
represented to the Audit Committee that NTICs consolidated financial statements
were prepared in accordance with generally accepted accounting principles. The
Audit Committee has discussed with Virchow Krause & Company LLP, NTICs
independent registered public accounting firm, the matters required to be
discussed by Statement on Auditing Standards No. 61, Communication with Audit
Committees (Codification of Statements on Auditing Standards, AU 380), as in
effect for NTICs fiscal year ended August 31, 2007. The Audit Committee has
received the written disclosures and the letter from Virchow Krause &
Company LLP required by Independence Standards Board Standard No. 1
(Independence Discussions with Audit Committees), as in effect for NTICs fiscal
year ended August 31, 2007. The Audit Committee has discussed with Virchow
Krause & Company LLP its independence and concluded that the independent
registered public accounting firm is independent from NTIC and NTICs
management.
Based on the review and discussions of the
Audit Committee described above, in reliance on the unqualified opinion of
Virchow Krause & Company LLP regarding NTICs audited financial statements,
and subject to the limitations on the role and responsibilities of the Audit
Committee discussed above and in the Audit Committees charter, the Audit
Committee recommended to the Board of Directors that NTICs audited financial
statements for the fiscal year ended August 31, 2007 be included in its Annual
Report on Form 10-KSB for the fiscal year ended August 31, 2007 for filing with
the Securities and Exchange Commission.
This report is dated as of November 15,
2007.
Audit
Committee
Mark J.
Stone, Chair
Pierre
Chenu
Mark M. Mayers
The foregoing Audit Committee Report
shall not be deemed to be soliciting material or to be filed with the
Securities and Exchange Commission or subject to Regulation 14A or 14C under the
Securities Exchange Act of 1934, as amended, or to the liabilities of Section 18
of that act. Notwithstanding anything to the contrary set forth in any of our
previous filings under the Securities Act of 1933, as amended, or the Securities
Exchange Act of 1934, as amended, that might incorporate future filings,
including this proxy statement, in whole or in part, the Audit Committee Report
shall not be incorporated by reference into any such filings
.
Compensation Committee
Responsibilities
. The Compensation Committee provides assistance to the Board
of Directors in fulfilling its oversight responsibility relating to compensation
of our chief executive officer and other executive officers and administers our
equity compensation plans. In so doing, the Compensation Committee, among other
things:
-
recommends to the Board of Directors for its
determination, the annual salaries, incentive compensation, long-term
compensation and any and all other compensation applicable to the our
executive officers;
-
establishes, and from time to time reviews and revises,
corporate goals and objectives with respect to compensation for our executive
officers and establishes and leads a process for the full
Board of Directors to evaluate the performance of our executive
officers in light of those goals and objectives; and
-
administers our equity compensation plans and recommends to
the Board of Directors for its determination grants of options or other
equity-based awards for executive officers, employees and independent
consultants under our equity compensation plans.
12
The Compensation Committee operates under
a written charter adopted by the Board of Directors, which can be found on the
Investor Relations-Corporate Governance Items section of our corporate website
www.ntic.com. A printed copy of such charter is also available to any
stockholder upon request to our Corporate Secretary at Northern Technologies
International Corporation, 4201 Woodland Road, Circle Pines, Minnesota 55014 or
by telephone at (763) 225-6637.
Composition
. The current members of the Compensation Committee are Mr. Mayers and
Dr. Rosenbaum. Dr. Rosenbaum is the current chair
of the Compensation Committee. Prior to leaving the Board of Directors in
January 2007, Mr. Coulombe served as a member of the Compensation Committee.
Once Dr. Rosenbraum leaves the Board of Directors in January 2008, Mr. Chenu
will become a member of the Compensation Committee and Mr. Mayers will become
chair of the Compensation Committee. The Board of Directors has determined that
each of Mr. Mayers, Dr. Rosenbaum and Mr. Chenu is considered an independent
director within the meaning of the listing standards of The American Stock
Exchange and a non-employee director within the meaning of Rule 16b-3 under
the Securities Exchange Act of 1934, as amended..
Processes and Procedures for
Consideration and Determination of Executive Compensation
. As described in more detail above under the heading
Responsibilities, the Board of Directors has delegated to the Compensation
Committee the responsibility, among other things, to recommend to the Board of
Directors any and all compensation payable to our executive officers, including
annual salaries, incentive compensation and long-term incentive compensation,
and to administer our equity and incentive compensation plans applicable to our
executive officers. Decisions regarding executive compensation made by the
Compensation Committee are not considered final and are subject to final review
and approval by the entire Board of Directors. Under the terms of its formal
written charter, the
Compensation Committee has
the power and authority, to the extent permitted by our bylaws and applicable
law, to delegate all or a portion of its duties and responsibilities to a
subcommittee of the Compensation Committee.
Our President and Chief Executive Officer
assists the Compensation Committee in gathering compensation related data
regarding our executive officers and making recommendations to the Compensation
Committee regarding the form and amount of compensation to be paid to each
executive officer. In making final recommendations to the Board of Directors
regarding compensation to be paid to our executive officers, the Compensation
Committee considers the recommendations of our President and Chief Executive
Officer, but also considers other factors, such as its own views as to the form
and amount of compensation to be paid, the achievement by the company of
pre-established performance objectives the general performance of the company
and the individual officers, the performance of the companys stock price and
other factors that may be relevant.
Final deliberations and decisions by the
Compensation Committee regarding its recommendations to the Board of Directors
of the form and amount of compensation to be paid to our executive officers,
including our President and Chief Executive Officer, are made by the
Compensation Committee, without the presence of the President and Chief
Executive Officer or any other executive officer of our company.
In making final decisions
regarding compensation to be paid to our executive officers, the Board of
Directors gives considerable weight to the recommendations of the Compensation
Committee.
13
For a portion of fiscal 2007 after the
decision of Mr. Coulombe not to stand for re-election as a director of NTIC at
our 2007 annual meeting of stockholders in November 2006 and continuing until
the 2008 annual meeting of stockholders and the election of Mr. Rosenbaum to the
Board of Directors and his appointment as a member of the Compensation
Committee, all of our directors who are considered independent directors of
our company Messrs. Chenu, Mayers and Stone made recommendations to the
Board of Directors regarding executive compensation decisions.
Meetings
. The Compensation Committee met twice during fiscal 2007.
Nominating and Corporate Governance
Committee
Responsibilities
. The primary responsibilities of the Nominating and Corporate
Governance Committee include:
-
identifying individuals qualified to become
members of the Board of Directors;
-
recommending director nominees for each annual meeting of our
stockholders and director nominees to fill any vacancies that may occur
between meetings of stockholders;
-
being aware of best practices in corporate governance
matters;
-
developing and overseeing an annual Board of Directors and
Board committee evaluation process; and
-
establishing and leading a process for determination of the
compensation applicable to the non-employee directors on the
Board.
The Nominating and Corporate Governance
Committee operates under a written charter adopted by the Board of Directors,
which can be found on the Investor Relations-Corporate Governance Items section
of our corporate website www.ntic.com. A printed copy of such charter is also
available to any stockholder upon request to our Corporate Secretary at Northern
Technologies International Corporation, 4201 Woodland Road, Circle Pines,
Minnesota 55014 or by telephone at (763) 225-6637.
Composition
. The current members of the Nominating and Corporate Governance
Committee are Messrs. Mayers and Stone. Mr. Stone is the current chair of the
Nominating and Corporate Governance
Committee.
The Board of Directors has determined that each of Messrs. Mayers and Stone is
considered an independent director within the meaning of the listing standards
of The American Stock Exchange.
Director Nominations
Process
. In selecting nominees for the Board
of Directors, the Nominating and Corporate Governance Committee first determines
whether the incumbent directors are qualified to serve, and wish to continue to
serve, on the Board. The Nominating and Corporate Governance Committee believes
that NTIC and its stockholders benefit from the continued service of qualified
incumbent directors because those directors have familiarity with and insight
into NTICs affairs that they have accumulated during their tenure with the
company. Appropriate continuity of Board membership also contributes to the
Boards ability to work as a collective body. Accordingly, it is the practice of
the Nominating and Corporate Governance Committee, in general, to re-nominate an
incumbent director if the director wishes to continue his or her service with
the Board, the director continues to satisfy any criteria for membership on the
Board established by the Nominating and Corporate Governance Committee, the
Nominating and Corporate Governance Committee believes the director continues to
make important contributions to the Board, and there are no special,
countervailing considerations against re-nomination of the director.
14
In identifying and evaluating new
candidates for election to the Board, the Nominating and Corporate Governance
Committee solicits recommendations for nominees from persons whom the Nominating
and Corporate Governance Committee believes are likely to be familiar with
qualified candidates having the qualifications, skills and characteristics
required for Board nominees from time to time. Such persons may include members
of the Board and senior management of NTIC. In addition, the Nominating and
Corporate Governance Committee may engage a search firm to assist it in
identifying qualified candidates. The Nominating and Corporate Governance
Committee reviews and evaluates each candidate whom it believes merits serious
consideration, taking into account available information concerning the
candidate, any qualifications or criteria for Board membership established by
the Nominating and Corporate Governance Committee, the existing composition of
the Board, and other factors that it deems relevant. In conducting its review
and evaluation, the Nominating and Corporate Governance Committee solicits the
views of NTICs management, other Board members, and any other individuals it
believes may have insight into a candidate. The Nominating and Corporate
Governance Committee may designate one or more of its members and/or other Board
members to interview any proposed candidate.
The Nominating and Corporate Governance
Committee will consider recommendations for the nomination of directors
submitted by NTIC stockholders. For more information, see the information set
forth under the heading Other Matters Director Nominations. The Nominating and
Corporate Governance Committee will evaluate candidates recommended by
stockholders in the same manner as those recommended as stated above.
There are no formal requirements or
minimum qualifications that a candidate must meet in order for the Nominating
and Corporate Governance Committee to recommend the candidate to the Board. The
Nominating and Corporate Governance Committee believes that each nominee should
be evaluated based on his or her merits as an individual, taking into account
the needs of NTIC and the Board. However, in evaluating candidates, there are a
number of criteria that the Nominating and Corporate Governance Committee
generally views as relevant and is likely to consider. Some of these factors
include whether the candidate is an independent director under the rules and
regulations of The American Stock Exchange and meets any other applicable
independence tests under the federal securities laws and rules and regulations
of the Securities and Exchange Commission; whether the candidate is financially
sophisticated and otherwise meets the requirements for serving as a member of
an audit committee under the rules and regulations of The American Stock
Exchange; whether the candidate is an audit committee financial expert under
the federal securities laws and the rules and regulations of the Securities and
Exchange Commission; the needs of NTIC with respect to the particular talents
and experience of its directors; the personal and professional integrity and
reputation of the candidate; the candidates level of education and business
experience; the candidates broad-based business acumen; the candidates level
of understanding of NTICs business and its industry; the candidates ability
and willingness to devote adequate time to work of the Board and its committees;
the fit of the candidates skills and personality with those of other directors
and potential directors in building a board that is effective, collegial and
responsive to the needs of NTIC; whether the candidate possesses strategic
thinking and a willingness to share ideas; the candidates diversity of
experiences, expertise and background; and the candidates ability to represent
the interests of all stockholders and not a particular interest group.
Processes and Procedures for
Consideration and Determination of Director Compensation
. As described in more detail above under the heading
Responsibilities, the Board of Directors has delegated to the Nominating and
Corporate Governance Committee the responsibility, among other things, to review
and make recommendations to the Board of Directors concerning compensation for
non-employee members of the Board of Directors, including but not limited to
retainers, meeting fees, committee fees, committee chair fees and equity
compensation. Decisions regarding director compensation made by the Nominating
and Corporate Governance Committee are not considered final and are subject to
final review and approval by the entire Board of Directors. Under the terms of
its formal written charter, the Nominating and Corporate Governance Committee
has the power and authority, to the extent permitted by our bylaws and
applicable law, to delegate all or a portion of its duties and responsibilities
to a subcommittee of the Nominating and Corporate Governance Committee. The
Nominating and Corporate Governance Committee has not generally delegated any of
its duties and responsibilities to subcommittees, but rather has taken such
actions as a committee, as a whole.
15
In making recommendations to the Board of
Directors regarding compensation to be paid to our non-employee directors, the
Nominating and Corporate Governance Committee considers fees paid to directors
of comparable public companies, the number of board and committee meetings that
our directors are expected to attend, and other factors that may be relevant. In
making final decisions regarding non-employee director compensation, the Board
of Directors considers the same factors and the recommendation of the Nominating
and Corporate Governance Committee.
Meetings and Other
Matters
. The Nominating and Corporate
Governance Committee met twice during fiscal 2007. Additional information
regarding the Nominating and Corporate Governance Committee is disclosed under
the Director Nominations and Director CompensationElements of Our Director
Compensation Program sections of this proxy statement.
Corporate Governance Guidelines
The Board of Directors has adopted
Corporate Governance Guidelines. A copy of these Corporate Governance Guidelines
can be found on the Investor Relations-Corporate Governance Items section of our
corporate website www.ntic.com. A printed copy of such Corporate Governance
Guidelines is also available to any stockholder upon request to our Corporate
Secretary at Northern Technologies International Corporation, 4201 Woodland
Road, Circle Pines, Minnesota 55014 or by telephone at (763) 225-6637. Among the
topics addressed in our Corporate Governance Guidelines are:
-
Board size, composition and qualifications;
-
Selection of directors;
-
Board leadership;
-
Board committees;
-
Board and committee meetings;
-
Executive sessions of outside directors;
-
Meeting attendance by directors and
non-directors;
-
Appropriate information and access;
-
Ability to retain advisors;
-
Conflicts of interest;
-
Board interaction with corporate constituencies;
-
Change of principal occupation and board
memberships;
-
Retirement and term limits;
-
Board compensation;
-
Stock ownership by directors and executive
officers;
-
Loans to directors and executive officers;
-
CEO evaluation;
-
Board and committee evaluation;
-
Director continuing education;
-
Succession planning; and
-
Communications with directors.
16
Code of Ethics
The Board of Directors has adopted a Code
of Ethics, which applies to all of NTICs directors, executive officers,
including NTICs Chief Executive Officer and Chief Financial Officer, and other
employees, and meets the requirements of the Securities and Exchange Commission
and The American Stock Exchange. A copy of NTICs Code of Ethics was filed as an
exhibit to our Annual Report on Form 10-KSB for the year ended August 31, 2007
and is available on the Investor Relations-Corporate Governance Items section of
our corporate website www.ntic.com.
Policy Regarding Director Attendance at
Annual Meetings of Stockholders
It is the policy of the Board of Directors
that directors standing for reelection should attend our annual meeting of
stockholders, if their schedules permit. A Board of Directors meeting is
generally held on the day following the annual meeting of stockholders. Last
year, all directors attended the annual meeting of stockholders, except for Mr.
Coulombe and Ms. Kallmeyer who were not standing for re-election.
Complaint Procedures
The Audit Committee has established
procedures for the receipt, retention, and treatment of complaints received by
NTIC regarding accounting, internal accounting controls, or auditing matters,
and the submission by employees of NTIC, on a confidential and anonymous basis,
of concerns regarding questionable accounting or auditing matters. NTIC
personnel with such concerns are encouraged to discuss their concerns with our
outside legal counsel, who in turn will be responsible for informing the Audit
Committee.
Process Regarding Stockholder
Communications with Board of Directors
Stockholders may communicate with the
Board of Directors of NTIC by sending correspondence, addressed to our Corporate
Secretary, Northern Technologies International Corporation, 4201 Woodland Road,
Circle Pines, Minnesota 55014, or mwolsfeld@ntic.com with an instruction to
forward the communication to a particular director. Our Corporate Secretary will
receive the correspondence and forward it to any individual director or
directors to whom the communication is directed.
17
DIRECTOR
COMPENSATION
________________
Summary of Cash and Other
Compensation
The following table provides summary
information concerning the compensation of each individual who served as a
director of our company during the fiscal year ended August 31, 2007, other than
G. Patrick Lynch, our Chief Executive Officer, and Donald A. Kubik, Ph.D.,
neither of whom is compensated separately for serving on the Board of Directors
or any Board committees. Their compensation for serving as executive officers of
our company is set forth under the heading Executive Compensation included
elsewhere in this proxy statement.
DIRECTOR COMPENSATIONFISCAL 2007
|
|
Fees Earned or
|
|
Option
|
|
All Other
|
|
|
|
Name
|
|
Paid in Cash
($)
|
|
Awards
($)(1)(2)(3)
|
|
Compensation
($)(4)
|
|
Total
($)
|
Pierre
Chenu
|
|
$16,500
|
|
|
$4,614
|
|
|
$
|
0
|
|
|
$
|
21,114
|
Jean-Guy Coulombe
(5)
|
|
2,500
|
|
|
0
|
|
|
|
0
|
|
|
|
2,500
|
Dr.
Vera Kallmeyer (5)
|
|
2,500
|
|
|
0
|
|
|
|
0
|
|
|
|
2,500
|
Mark J.
Stone
|
|
17,000
|
|
|
4,614
|
|
|
|
0
|
|
|
|
21,614
|
Dr.
Sunggyu Lee
|
|
13,000
|
|
|
3,372
|
|
|
|
50,000
|
|
|
|
66,372
|
Mark M. Mayers
|
|
17,500
|
|
|
4,470
|
|
|
|
0
|
|
|
|
21,970
|
Dr.
Ramani Narayan
|
|
14,000
|
|
|
4,470
|
|
|
|
100,000
|
|
|
|
118,470
|
Dr. Barry Rosenbaum
(6)
|
|
12,000
|
|
|
1,082
|
|
|
|
0
|
|
|
|
13,820
|
____________________
(1)
|
|
Reflects the dollar amount
recognized for each director for financial statement reporting purposes
with respect to the fiscal year ended August 31, 2007 in accordance with
Statement of Financial Accounting Standards No. 123(R),
Share-Based
Payment
(SFAS 123(R)), without taking into account forfeiture rates.
We refer you to note 3 to our consolidated financial statements for the
fiscal year ended August 31, 2007 for a discussion of the assumptions made
in calculating the dollar amount recognized for each director for
financial statement reporting purposes with respect to the fiscal year
ended August 31, 2007 in accordance with SFAS 123(R). The following table
provides additional information regarding the dollar amount recognized
during the fiscal year ended August 31, 2007, without taking into account
forfeiture rates, for each option award held by each director and
reflected in the Option Awards column in the table
above:
|
|
|
|
|
|
Number of
Securities
|
|
Amount Recognized
in
|
|
|
|
Grant
|
|
Underlying
Options
|
|
Financial
Statements
|
|
Name
|
|
Date
|
|
Granted
|
|
in Fiscal 2007
($)
|
|
Pierre
Chenu
|
|
09/01/06
|
|
2,000
|
|
$1,981
|
|
|
|
09/01/05
|
|
2,000
|
|
1,391
|
|
|
|
09/01/04
|
|
2,000
|
|
1,242
|
|
Mark J.
Stone
|
|
09/01/06
|
|
2,000
|
|
1,981
|
|
|
|
09/01/05
|
|
2,000
|
|
1,391
|
|
|
|
09/01/04
|
|
2,000
|
|
1,242
|
|
Dr.
Sunggyu Lee
|
|
09/01/06
|
|
2,000
|
|
1,981
|
|
|
|
09/01/05
|
|
2,000
|
|
1,391
|
|
Mark M. Mayers
|
|
09/01/06
|
|
2,000
|
|
1,981
|
|
|
|
09/01/05
|
|
2,000
|
|
1,391
|
|
|
|
09/01/04
|
|
1,500
|
|
1,098
|
|
Dr.
Ramani Narayan
|
|
09/01/06
|
|
2,000
|
|
1,981
|
|
|
|
09/01/05
|
|
2,000
|
|
1,391
|
|
|
|
09/01/04
|
|
1,500
|
|
1,098
|
|
Dr. Barry
Rosenbaum
|
|
01/24/07
|
|
1,167
|
|
1,082
|
18
(2)
|
|
The following table provides
information regarding each stock option grant to each director during the
fiscal year ended August 31, 2007:
|
|
|
|
|
|
Number of
|
|
|
|
|
|
|
|
|
|
|
|
Securities
|
|
|
|
|
|
|
|
|
|
|
|
Underlying
|
|
Exercise
|
|
|
|
Grant Date
|
|
|
|
Grant
|
|
Options
|
|
Price
|
|
Expiration
|
|
Fair Value of
|
|
Name
|
|
Date
|
|
Granted (#)(a)
|
|
($/Share)
|
|
Date
|
|
Option Awards
($)(b)
|
|
Pierre
Chenu
|
|
9/01/06
|
|
2,000(c)
|
|
$8.01
|
|
9/01/2011
|
|
$5,940
|
|
Jean-Guy
Coulombe
|
|
9/01/06
|
|
2,000(c)
|
|
8.01
|
|
9/01/2011
|
|
5,940
|
|
Dr.
Vera Kallmeyer
|
|
9/01/06
|
|
2,000(c)
|
|
8.01
|
|
9/01/2011
|
|
5,940
|
|
Mark J.
Stone
|
|
9/01/06
|
|
2,000(c)
|
|
8.01
|
|
9/01/2011
|
|
5,940
|
|
Dr.
Sunggyu Lee
|
|
9/01/06
|
|
2,000(c)
|
|
8.01
|
|
9/01/2011
|
|
5,940
|
|
Mark M.
Mayers
|
|
9/01/06
|
|
2,000(c)
|
|
8.01
|
|
9/01/2011
|
|
5,940
|
|
Dr.
Ramani Narayan
|
|
9/01/06
|
|
2,000(c)
|
|
8.01
|
|
9/01/2011
|
|
5,940
|
|
Dr. Barry
Rosenbaum
|
|
1/23/07
|
|
1,167(c)
|
|
7.51
|
|
1/23/2012
|
|
3,245
|
|
____________________
|
|
|
|
|
|
(a)
|
|
Represents options granted under
the Northern Technologies International Corporation 2000 Stock Incentive
Plan or the Northern Technologies International Corporation 2007 Stock
Incentive Plan , the material terms of which are described in more detail
below under the heading Executive Compensation Cash and Other
CompensationStock Incentive Plans.
|
|
|
|
(b)
|
|
We refer you to note 3 to our
consolidated financial statements for the fiscal year ended August 31,
2007 for a discussion of the assumptions made in calculating the grant
date fair value of the option awards.
|
|
|
|
(c)
|
|
This option vests with respect to
one-third of the underlying shares of our common stock on each of the
following dates, so long as the individual remains a director of our
company as of such dates: September 1, 2007, September 1, 2008 and
September 1, 2009.
|
|
|
|
(d)
|
|
This option vests with respect to
one-third of the underlying shares of our common stock on each of the
following dates, so long as the individual remains a director of our
company as of such dates: January 23, 2008, January 23, 2009 and January
23, 2010.
|
|
|
(3)
|
|
The following table provides
information regarding the aggregate number of options to purchase shares
of our common stock outstanding at August 31, 2007 and held by each of the
directors listed in the above table:
|
|
|
|
Aggregate Number
|
|
|
|
|
|
|
|
|
|
|
of Securities
|
|
Exercisable/
|
|
Exercise
|
|
Expiration
|
|
Name
|
|
Underlying Options
|
|
Unexercisable
|
|
Price(s)
|
|
Date(s)
|
|
Pierre
Chenu
|
|
8,000
|
|
|
4,001
/ 3,999
|
|
$5.25
8.01
|
|
|
9/1/2008 9/1/2011
|
|
Jean-Guy Coulombe
|
|
|
|
|
|
|
|
|
|
|
|
Dr.
Vera Kallmeyer
|
|
|
|
|
|
|
|
|
|
|
|
Mark J.
Stone
|
|
4,000
|
|
|
667 /
3,333
|
|
5.75
8.01
|
|
|
9/1/2010 9/1/2011
|
|
Dr.
Sunggyu Lee
|
|
6,000
|
|
|
2,001
/ 3,999
|
|
5.25
8.01
|
|
|
9/1/2009 9/1/2011
|
|
Mark M.
Mayers
|
|
5,500
|
|
|
1,167
/ 3,833
|
|
5.75
8.01
|
|
|
11/12/2009 9/1/2011
|
|
Dr.
Ramani Narayan
|
|
5,500
|
|
|
1,167
/ 3,833
|
|
5.75
8.01
|
|
|
11/12/2009 9/1/2011
|
|
Dr.
Barry Rosenbaum
|
|
1,167
|
|
|
0 /
1,167
|
|
7.51
|
|
|
1/23/2012
|
(4)
|
|
We do not provide perquisites or
other personal benefits to our directors. The amounts reflected for Drs.
Lee and Narayan reflect consulting fees paid to these individuals during
the fiscal year ended August 31, 2007 as described in more detail below
under the heading Consulting Arrangements.
|
|
(5)
|
|
Mr. Coulombe and Dr. Kallmeyer
did not stand for re-election at the annual meeting of stockholders held
in January 2007 and thus are no longer current directors of
NTIC.
|
|
|
|
(6)
|
|
Dr. Rosenbaum was elected as a new
director at the annual meeting of stockholders held in January 2007 and
will not stand for re-election at the annual meeting of stockholders to be
held in January 2008.
|
19
Non-Employee Director Compensation
Program
Overview.
Our non-employee directors currently consist of Pierre Chenu, Dr. Sunggyu
Lee, Mark M. Mayers, Dr. Ramani Narayan, Dr. Barry Rosenbaum and Mark J. Stone.
We use a combination of cash and long-term equity-based incentive compensation
in the form of annual stock option grants to attract and retain qualified
candidates to serve on the Board of Directors. In setting non-employee director
compensation, we follow the process and procedures described under the heading
Corporate GovernanceNominating and Corporate Governance CommitteeProcesses
and Procedures for the Determination of Director Compensation.
In November 2007, the Board of Directors,
upon recommendation of the Nominating and Corporate Governance Committee,
approved increases in certain meeting fees, additional Chairman of the Board and
Audit Committee retainers and increased automatic stock option grants as
described in more detail below. With the exception of the increased automatic
stock option grants, which will be effective commencing September 1, 2008, the
other non-employee director compensation changes will be effective commencing
January 28, 2008.
Annual Retainers; Meeting
Fees
. Each person who was a non-employee
director for all of fiscal 2007 and the Chairman of the Board received an annual
retainer of $10,000 in fiscal 2007 for services rendered as a director of NTIC.
The annual retainer is paid quarterly. Each person who was a non-employee
director for a portion of fiscal 2007 received a prorated portion of such annual
retainer. Each of our non-employee directors also received $1,000 for each Board
meeting attended and $500 for each Audit Committee, Compensation Committee and
Nominating and Corporate Governance Committee meeting attended. Any director
that is an employee of NTIC (Mr. Lynch and Dr. Kubik) does not receive any
retainer or Board or Committee meeting fees.
Commencing January 28, 2008, the Chairman
of the Board will receive an additional annual retainer of $25,000, the Chair of
the Audit Committee will receive an additional annual retainer of $5,000 and
other members of the Audit Committee will receive an additional retainer of
$4,000. In addition, commencing January 28, 2008, each of our non-employee
directors will receive $1,000 for each strategy review meeting attended in
addition to Board meetings and the fee to be paid for attendance at each Audit
Committee, Compensation Committee and Nominating and Corporate Governance
Committee meeting will be increased from $500 to $1,000. No director, however,
will earn more than $1,000 per day in Board, Board committee and strategy review
meeting fees.
Stock Options
. For the past several years, each of our non-employee
directors have been automatically granted a five-year non-qualified option to
purchase 2,000 shares of our common stock on the first day of each fiscal year
in consideration for their services as directors of NTIC. Non-employee directors
who were elected or appointed to the Board following the first day of our fiscal
year received an automatic grant of an option to purchase a pro rata portion of
2,000 shares of our 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 were automatically granted at the time of their election or
appointment. Each automatically granted option becomes exercisable, on a
cumulative basis, with respect to one-third of the shares covered by such option
on each one-year anniversary of the date of its grant. The exercise price of
such option is equal to the fair market value of a share of our common stock on
the date of grant.
Prior to January 23, 2007, such options
were granted under the terms of the Northern Technologies International
Corporation 2000 Stock Incentive Plan. After January 23, 2007 and the adoption
by our stockholders of the Northern Technologies International Corporation 2007
Stock Incentive Plan, such options were granted under the 2007 plan and standing
resolutions of the Board of Directors providing for such automatic
grants.
20
Commencing on September 1, 2008, each of
our non-employee directors will be automatically granted a five-year
non-qualified option to purchase 4,000 shares of our common stock on the first
day of each fiscal year in consideration for their services as directors of NTIC
and the Chairman of the Board will be automatically granted an additional
five-year non-qualified option to purchase 2,000 shares of our common stock on
the first day of each fiscal year in consideration for his services as Chairman.
We refer you to the table in footnote 2 to
the Director Compensation Table above for a summary of all option grants to our
non-employee directors during the fiscal year ended August 31, 2007. We refer
you to footnote 3 to the Director Compensation Table above for a summary of all
options to purchase shares of our common stock held by our non-employee
directors as of August 31, 2007.
Reimbursement of
Expenses
. All of our directors are reimbursed
for travel expenses for attending meetings and other miscellaneous expenses
incurred in performing their Board functions.
Consulting Arrangements
We paid consulting fees to Bioplastic
Polymers LLC which is owned by Dr. Ramani Narayan in the aggregate amount of
$100,000 during the fiscal year ended August 31, 2007. We paid consulting fees
to Dr. Sunggyu Lee in the aggregate amount of $50,000 during the fiscal year
ended August 31, 2007. The consulting services rendered by Drs. Narayan and Lee
related to research and development associated with various new technologies.
Our consulting relationship with Dr. Lee was terminated in May 2007.
We have entered into an oral agreement
with Bioplastic Polymers LLC which is owned by Dr. Narayan, and Dr. Narayan
pursuant to which we have agreed to pay Bioplastic Polymers LLC and Dr. Narayan
in consideration of the transfer and assignment by Biopolymer Plastics LLC and
Dr. Narayan of certain biodegradable polymer technology to us, three percent of
the gross margin on any net sales of products incorporating the biodegradable
polymer technology transferred to us by Bioplastic Polymers LLC and Dr. Narayan
for a period of 10 years, provided that if a patent for or with respect to
biodegradable polymer technology is issued before the expiration of such 10 year
period, then we will until the expiration of such patent pay to Bioplastic
Polymers LLC and Dr. Narayan three percent of the biodegradable polymer
technology gross margin attributable to such patent.
Compensation Arrangements with Inside
Directors
Our inside directorsG. Patrick Lynch and
Dr. Donald Kubik were compensated during fiscal 2007 for their services as
executive officers of our company. For information relating to compensation
awarded to, earned by or paid to Mr. Lynch and Dr. Kubik, see Executive
Compensation included elsewhere in this proxy statement. We do not separately
compensate Mr. Lynch and Dr. Kubik for their services as directors of our
company, although we do reimburse them for any out-of-pocket expenses they incur
in connection with attending Board and Board committee meetings. Information
regarding all stock options held by Mr. Lynch and Dr. Kubik as of August 31,
2007 is set forth under the heading Executive CompensationOutstanding Equity
Awards at Fiscal Year End included elsewhere in this proxy statement. Neither
Mr. Lynch nor Dr. Kubik was granted a stock option during the fiscal year ended
August 31, 2007.
21
EXECUTIVE
COMPENSATION
________________
Executive Compensation Program
Our executive compensation program for the
fiscal year ended August 31, 2007 consisted of:
-
Base salary;
-
Annual incentive compensation;
-
Long-term equity-based incentive compensation, in the form of
stock options; and
-
All other compensation.
Base Salary
. We provide a base salary for our named executive officers, which,
unlike some of the other elements of our executive compensation program, is not
subject to company or individual performance risk. We recognize the need for
most executives to receive at least a portion of their total compensation in the
form of a guaranteed base salary that is paid in cash regularly throughout the
year to support a reasonable standard of living.
We initially fix base salaries for our
executives at a level that we believe enable us to hire and retain them in a
competitive environment and to reward satisfactory individual performance and a
satisfactory level of contribution to our overall business objectives. The
Compensation Committee reviews base salaries for our named executive officers
each year beginning in early July and generally recommends to the Board of
Directors any increases for the following fiscal year in late July or August or
as soon as practicable thereafter. Regardless of when the final decision
regarding base salaries for a fiscal year is made by the Board of Directors, any
increases in base salaries are effective as of September 1 of that year, which
could result in a retroactive payment to the executive shortly after the final
decision is made.
The Compensation Committees
recommendations to the Board of Directors regarding the base salaries of our
named executive officers are based on a number of factors, including: the
executives level of responsibility, prior experience, and base salary for the
prior year, the skills and experiences required by the position, length of
service with our company, past individual performance and other considerations
the Compensation Committee deems relevant. The Compensation Committee also
recognizes that in addition to the typical responsibilities and duties held by
our executives by virtue of their positions, our executives due to the small
number of our employees, often possess additional responsibilities and perform
additional duties that would be typically delegated to others in most
organizations with additional personnel and resources.
Annualized base salary rates for fiscal
2005, 2006 and 2007 for our named executive officers were as follows:
|
|
|
|
|
|
% Change
|
|
|
|
% Change
|
|
|
Fiscal
|
|
Fiscal
|
|
From Fiscal
|
|
Fiscal
|
|
From Fiscal
|
Name
|
|
2005
|
|
2006
|
|
2005
|
|
2007
|
|
2006
|
G.
Patrick Lynch
|
|
$
150,000
|
|
$
180,000
|
|
20.0
%
|
|
$190,000
|
|
5.3
|
%
|
Dr. Donald A.
Kubik
|
|
120,000
|
|
160,000
|
|
33.4%
|
|
170,000
|
|
6.3
|
%
|
Matthew
C. Wolsfeld
|
|
120,000
|
|
135,000
|
|
12.5%
|
|
145,000
|
|
7.4
|
%
|
We have historically granted our executive
officers a mid-single digit percentage increase in their base salary each fiscal
year, although the percentage may be higher or lower if the responsibilities of
the executive increased or decreased during the year. During fiscal 2006, base
salaries were significantly increased compared to fiscal 2005 and compared to
increases in prior or subsequent periods to reflect market adjustments to bring
the salaries of our named executive officers more in line with the salaries of
other executives at comparable companies.
22
Annual Incentive
Compensation
. In addition to base
compensation, we provide our named executive officers the opportunity to earn
annual incentive compensation based on the achievement of certain company and
individual related performance goals. Our annual bonus program directly aligns
the interests of our executive officers and stockholders by providing an
incentive for the achievement of key corporate and individual performance
measures that are critical to the success of our company and linking a
significant portion of each executive officers annual compensation to the
achievement of such measures. The following is a brief summary of the material
terms of our annual bonus plan program for fiscal 2007:
-
The total amount available under the bonus plan
will be up to 25 percent of NTICs earnings before interest, taxes and other
income (EBITOI);
-
The total amount available under the bonus plan will be $0 if
EBITOI, as adjusted to take into account amounts to be paid under the bonus
plan, fall below 70 percent of target EBITOI; and
-
The payment of bonuses under the plan will be made in both
cash and shares of NTIC common stock, the exact amount and percentages of
which will be determined by the Compensation Committee of the Board of
Directors of NTIC.
Long-Term Equity-Based Incentive
Compensation
. Although we do not have any
stock retention or ownership guidelines, the Board of Directors encourages our
named executive officers to have a financial stake in our company in order to
align the interests of our stockholders and management. We therefore provide
long-term equity-based incentive compensation to our named executive officers,
as well as to all of our other U.S.-based employees, in the form of stock
options. We believe that stock options are an important part of our overall
compensation program. In particular, we believe that stock options align the
interests of our executives and other employees with stockholder interests and
long-term value creation and enable these individuals to achieve meaningful
equity ownership in our company. Through the grant of stock options, we seek to
align the long-term interests of our executives and other employees with the
long-term interests of our stockholders by creating a strong and direct linkage
between compensation and long-term stockholder return. When our executives
deliver returns to our stockholders, in the form of increases in our stock price
or otherwise, stock options permit an increase in their compensation. We believe
stock options also may enable us to attract, retain and motivate executives and
other employees by maintaining competitive levels of total compensation.
However, unless our stock price increases after stock option grants are made,
the stock options deliver no value to the option holders. A stock option becomes
valuable only if our common stock price increases above the option exercise
price and the holder of the option remains employed during the period required
for the option to vest. This provides an incentive for an option holder to
remain employed by us.
All of our stock options have been granted
under the Northern Technologies International Corporation 2007 Stock Incentive
Plan or the Northern Technologies International Corporation 2000 Stock Incentive
Plan. Both of these plans have been approved by our stockholders. Under the 2007
plan, we have the ability to grant stock options, stock appreciation rights,
restricted stock awards, stock unit awards, performance awards and stock
bonuses. To date, only incentive and non-statutory stock options and stock
bonuses have been granted. The 2007 plan contains both an overall limit on the
number of shares of our common stock that may be issued, as well as individual
and other grant limits. For more information regarding the terms of our 2007
plan, we refer you to Executive CompensationStock Incentive Plans.
In November 2007, we adopted a Policy and
Procedures Regarding the Grant of Stock Options and Other Equity-Based Incentive
Awards. Under this policy, the Board of Directors has retained all authority to
grant options and other equity-based incentive awards to eligible recipients,
upon recommendation of the Compensation Committee, and, none of its authority
may be delegated to our management in the form of mass or block grants to be
allocated among employees by our management. Current executive officers and
other employees are eligible for option grants on a periodic basis. We do not
have, nor have we ever had, a program, plan or practice to time stock option
grants to executives in coordination with the release of material nonpublic
information.
23
The policy also sets forth the general
terms and conditions of our stock option grants. For example, we generally grant
incentive stock options within the meaning of Section 422 of the Internal
Revenue Code of 1986, as amended, in order to provide our executives and other
employees the additional tax benefit associated with incentive stock options,
which we believe at this time outweighs our interest in obtaining the tax
deduction which would be available if we granted non-statutory stock options
which were later exercised by the optionees. The stock options granted to our
executives and other employees typically vest or become exercisable over a
period of three years from the date of grant, with one-third of the underlying
shares vesting in each year on the anniversary of the date of grant. Stock
options typically remain exercisable for a period of five years from the date of
grant, so long as the optionee continues to be employed by us.
It is our policy to set the per share
exercise price of all stock options granted under the 2007 plan at an amount
equal to the fair market value of a share of our common stock on the date of
grant. For purposes of the 2007 plan, the fair market value of our common stock
is the mean between the reported high and low sale price of our common stock, as
reported by The American Stock Exchange. The Board of Directors may not, under
the terms of the 2007 plan, without prior approval of our stockholders, seek to
effect any re-pricing of any previously granted, underwater option by amending
or modifying the terms of the underwater option to lower the exercise price,
cancelling the underwater option and granting replacement options having a lower
exercise price, or other incentive award in exchange, or repurchasing the
underwater options and granting new incentive awards under the plan. For
purposes of the 2007 plan, an option is deemed to be underwater at any time
when the fair market value of our common stock is less than the exercise price.
We review the long-term equity-based
incentives for our named executive officers, on an individual basis and on an
aggregate basis, at least each year at the time we determine base salaries and
the terms of our annual incentive compensation arrangements for the upcoming
year. The determinations by the Board of Directors, upon recommendation of the
Compensation Committee, regarding the number of stock options, if any, to grant
our named executive officers are based on a number of factors, including: the
executives position within the company and the level of responsibility, skills
and experiences required by the executives position; the attainment of or
failure to attain company objectives and the difficulty in achieving desired
company objectives; individual performance of the executive; the executives
length of service to our company; the executives percentage ownership of our
common equity outstanding, including stock options, and competitive compensation
data, including outstanding options held by an executive as a percentage of our
common equity outstanding.
All Other Compensation
. It is generally our policy not to extend significant
perquisites to our executives that are not available to our employees generally.
The only significant perquisites that we provide to our named executive officers
are the personal use of a company owned vehicle. Our executives also receive
benefits, which are also received by our other employees, including
participation in the Northern Technologies International Corporation 401(k) Plan
and health, dental and life insurance benefits. Under the 401(k) plan, all
eligible participants, including our named executive officers, may voluntarily
request that we reduce his or her pre-tax compensation by up to 10 percent
(subject to certain special limitations) and contribute such amounts to a trust.
We contributed an amount equal to 50 percent of the first seven percent of the
amount that each participant contributed under this plan. We do not provide
pension arrangements or post-retirement health coverage for our executives or
employees. We also do not provide any nonqualified defined contribution or other
deferred compensation plans.
24
Employment Agreements.
All of our employees, including our named executive officers,
are employed at will and do not have employment agreements that guarantee them
any particular base salary, annual incentive cash compensation or any other
compensation or benefits. Nor do we have any severance arrangements with our
named executive officers.
Summary of Cash and Other Compensation
The following table provides summary
information concerning all compensation awarded to, earned by or paid to our
principal executive officer and our two other most highly compensated executive
officers, other than our principal executive officer, who earned more than
$100,000 during the fiscal year ended August 31, 2007. We refer to these
individuals in this proxy statement as our named executive officers.
SUMMARY COMPENSATION TABLEFISCAL
2007
|
|
|
|
|
|
|
|
Stock
|
|
Option
|
|
All
Other
|
|
|
Name and Principal
Position
|
|
Year
|
|
Salary
|
|
Bonus
(1)
|
|
Awards
(2)
|
|
Awards
(3)
|
|
Compensation
(4)
|
|
Total
|
G. Patrick Lynch
|
|
2007
|
|
$190,000
|
|
$61,827
|
|
$61,827
|
|
$5,275
|
|
$8,946
|
|
$327,875
|
President and Chief Executive
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Officer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dr. Donald A. Kubik
|
|
2007
|
|
170,000
|
|
35,883
|
|
35,883
|
|
5,275
|
|
7,743
|
|
254,784
|
Vice Chairman and Chief
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology Officer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Matthew Wolsfeld
|
|
2007
|
|
145,000
|
|
47,184
|
|
47,184
|
|
5,275
|
|
4,671
|
|
249,314
|
Chief Financial Officer and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Secretary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
____________________
(1)
|
|
Represents discretionary cash
bonuses earned in fiscal year as indicated, but actually paid to named
executive officer in the following fiscal year. Annually, prior to the
November meeting of the Board of Directors, the Compensation Committee
recommends annual incentive compensation to be paid to our executive
officers in cash and/or NTIC common stock. The Board of Directors then
considers and, if it deems appropriate, approves the amount and manner of
payment of the annual incentive compensation. The bonuses earned for
fiscal 2007 were paid one-half in cash and one-half in shares of NTIC
common stock. The amount reflected in the column entitled Bonus reflects
the cash amount of bonus received by each of the officers. The following
officers also received the following number of shares of NTIC common
stock: Mr. Lynch (6,214 shares); Dr. Kubik (3,606 shares); and Mr.
Wolsfeld (4,742 shares). The number of shares was determined by dividing
one-half of the amount of the total bonus to be awarded to the individual
by the closing sale price of a share of NTIC common stock, as reported on
The American Stock Exchange, on the date the Board of Directors determined
the amount of the bonus. We refer you to the information under the heading
Executive Compensation Program Annual Incentive Compensation for a
discussion of the factors taken into consideration by the Board of
Directors in determining the amount of bonus paid to each named executive
officer.
|
|
(2)
|
|
The following named executive
officers received the following number of shares of NTIC common stock in
connection with their annual bonuses for fiscal 2007 Mr. Lynch (6,214
shares); Dr. Kubik (3,606 shares); and Mr. Wolsfeld (4,742 shares). The
amount reflected in the column entitled Stock Awards for each officer
reflects the dollar amount recognized for each officer for financial
statement reporting purposes with respect to the fiscal year ended August
31, 2007 in accordance with SFAS 123(R) for that portion of annual bonus
paid in shares of NTIC common stock.
|
|
(3)
|
|
Although none of the named
executive officers received stock option grants during the fiscal year
ended August 31, 2007, such officers received stock option grants on
November 4, 2005, a portion of which vested during fiscal 2007. The amount
reflected in the column entitled Option Awards for each officer reflects
the dollar amount recognized for each officer for financial statement
reporting purposes with respect to the fiscal year ended August 31, 2007
in accordance with SFAS 123(R). We refer you to note 3 to our consolidated
financial statements for the fiscal year ended August 31, 2007 for a
discussion of the assumptions made in calculating the dollar amount
recognized for each named executive officer for financial statement
reporting purposes with respect to the fiscal year ended August 31, 2007
in accordance with SFAS 123(R).
|
25
(4)
|
|
The amounts shown in the column
entitled All Other Compensation include the following with respect to
each named executive officer:
|
|
|
401(k)
|
|
Personal
Use
|
Name
|
|
Match
|
|
of
Auto
|
G.
Patrick Lynch
|
|
$5,986
|
|
|
$2,960
|
|
Dr. Donald A.
Kubik
|
|
5,532
|
|
|
2,211
|
|
Matthew
C. Wolsfeld
|
|
4,671
|
|
|
-
|
|
Outstanding Equity Awards at Fiscal
Year End
The following table provides information
regarding unexercised stock options for each of our named executive officers
that remained outstanding at August 31, 2007. We did not have any unvested stock
awards outstanding at August 31, 2007. None of the named executive officers were
granted stock options during the fiscal year ended August 31, 2007. Such
individuals, however, received a portion of their annual incentive compensation
in shares of NTIC common stock, as described in more detail above in footnotes
(1) and (2) to the Summary Compensation Table under the heading Summary of
Cash and Other Compensation.
OUTSTANDING EQUITY AWARDS AT FISCAL
YEAR ENDFISCAL 2007
|
|
Option Awards
|
|
|
Number of
Securities
|
|
Number of Securities
|
|
|
|
|
|
|
Underlying
|
|
Underlying
|
|
|
|
|
|
|
Unexercised
Options
|
|
Unexercised Options
|
|
|
|
|
|
|
(#)
|
|
(#)
|
|
Option Exercise
|
|
Option Expiration
|
Name
|
|
Exercisable(1)
|
|
Unexercisable(1)
|
|
Price ($)
|
|
Date
|
G.
Patrick Lynch
|
|
5,334
|
|
|
2,666
|
|
$5.38
|
|
11/4/2010
|
|
Dr.
Donald A. Kubik
|
|
5,334
|
|
|
2,666
|
|
5.38
|
|
11/4/2010
|
|
Matthew
C. Wolsfeld
|
|
5,334
|
(2)
|
|
2,666
|
|
5.38
|
|
11/4/2010
|
____________________
(1)
|
|
These options were granted under
the Northern Technologies International Corporation 2000 Stock Incentive
Plan. These options vest over a three-year period, with one-third of the
underlying shares vesting on each of November 4, 2007, 2008 and 2009 so
long as the individual remains an employee of NTIC as of such date. These
options expire on November 4, 2010 or earlier if the individual leaves the
employ of NTIC. Upon the occurrence of a change in control, the unvested
and unexercisable options described in this table will be accelerated and
become fully vested and immediately exercisable as of the date of the
change in control. For more information, we refer you to the discussion
below under the heading Stock Incentive Plans.
|
|
(2)
|
|
Mr. Wolsfeld exercised an option
to purchase 10,000 shares of NTIC common stock on February 5, 2007. The
aggregate dollar value he realized upon exercise was $34,400, which is
equal to the difference between the market price of the underlying shares
of our common stock on the date of exercise, based on the closing sale
price of our common stock on the date of exercise, which was $8.00 on
February 5, 2007, and the exercise price of the options, which was
$4.56.
|
26
Stock Incentive Plans
We have two stock incentive plans under
which stock options are currently outstanding the Northern Technologies
International Corporation 2007 Stock Incentive Plan and the Northern
Technologies International Corporation 2000 Stock Incentive Plan. Upon the
approval of the 2007 plan by our stockholders in January 2007, we terminated the
2000 plan with respect to any future grants and thus any future grants of stock
options or other stock incentive awards will be made under the 2007 plan.
Under the terms of the 2007 plan, our
named executive officers, in addition to other employees and individuals, are
eligible to receive equity compensation awards, such as stock options, stock
appreciation rights, restricted stock awards, stock bonuses and performance
awards. To date, only incentive and non-statutory stock options and stock
bonuses have been granted under the plan. The plan contains both an overall
limit on the number of shares of our common stock that may be issued, as well as
individual and other grant limits.
Incentive stock options must be granted
with a per share exercise price equal to at least the fair market value of a
share of our common stock on the date of grant. For purposes of the plan, the
fair market value of our common stock is the mean between the reported high and
low sale price of our common stock, as reported by The American Stock Exchange.
We generally set the per share exercise price of all stock options granted under
the plan at an amount equal to the fair market value of a share of our common
stock on the date of grant.
Except in connection with certain
specified changes in our corporate structure or shares, the Compensation
Committee may not, without prior approval of our stockholders, seek to effect
any repricing of any previously granted, underwater option by amending or
modifying the terms of the underwater option to lower the exercise price,
cancelling the underwater option and granting replacement options having a lower
exercise price, or other incentive award in exchange, or repurchasing the
underwater options and granting new incentive awards under the plan. For
purposes of the plan, an option is deemed to be underwater at any time when
the fair market value of our common stock is less than the exercise price.
Options will become exercisable at such
times and in such installments as may be determined by the Compensation
Committee, provided that options may not be exercisable after 10 years from
their date of grant. We generally provide for the vesting of stock options in
equal annual installments over a three-year period commencing on the one-year
anniversary of the date of grant and for option terms of five years.
Optionees may pay the exercise price of
stock options in cash, except that the Compensation Committee may allow payment
to be made (in whole or in part) by (1) using a broker-assisted cashless
exercise procedure pursuant to which the optionee, upon exercise of an option,
irrevocably instructs a broker or dealer to sell a sufficient number of shares
of our common stock or loan a sufficient amount of money to pay all or a portion
of the exercise price of the option and/or any related withholding tax
obligations and remit such sums to us and directs us to deliver stock
certificates to be issued upon such exercise directly to such broker or dealer;
or (2) using a cashless exercise procedure pursuant to which the optionee
surrenders to us shares of our common stock either underlying the option or that
are otherwise held by the optionee.
27
Under the terms of the plan, unless
otherwise provided in a separate agreement, if a named executive officers
employment or service with our company terminates for any reason, the unvested
portion of the option will immediately terminate and the executives right to
exercise the then vested portion of the option will:
-
immediately terminate if the executives
employment or service relationship with our company terminated for
cause;
-
continue for a period of 12 months if the executives
employment or service relationship with our company terminates as a result of
the executives death, disability or retirement; or
-
continue for a period of three months if the executives
employment or service relationship with our company terminates for any reason,
other than for cause or upon death, disability or retirement.
As set forth in the plan, the term cause
is as defined in any employment or other agreement or policy applicable to the
named executive officer or, if no such agreement or policy exists, means (i)
dishonesty, fraud, misrepresentation, embezzlement or other act of dishonesty
with respect to us or any subsidiary, (ii) any unlawful or criminal activity of
a serious nature, (iii) any intentional and deliberate breach of a duty or
duties that, individually or in the aggregate, are material in relation to the
overall duties, or (iv) any material breach of any employment, service,
confidentiality or non-compete agreement entered into with us or any subsidiary.
As described in more detail under the
heading Post-Termination Severance and Change in Control Arrangements if
there is a change in control of our company, then, under the terms of agreements
evidencing options granted to our named executive officers and other employees
under the plan, all outstanding options will become immediately exercisable in
full and will remain exercisable for the remainder of their terms, regardless of
whether the executive to whom such options have been granted remains in the
employ or service of us or any of our subsidiaries.
The terms of our 2000 plan are
substantially similar to the terms of our 2007 plan.
Post-Termination Severance and Change
in Control Arrangements
All of our named executive officers are
employed at will and are not entitled to any severance or other payments under
an agreement upon their termination of employment with us, whether such
termination is by us without cause or otherwise. In addition, except with
respect to their outstanding stock options which are subject to the terms and
conditions of the plans under which they were granted, none of our named
executive officers have any change in control agreements with us that entitle
them to any payments or benefits upon a change in control of our company.
Under the terms of our stock incentive
plans, options granted under these plans will become fully exercisable upon a
change in control of our company. For purposes of these plans, a change in
control means:
-
the sale, lease, exchange or other transfer of all
or substantially all of our assets to a corporation that is not controlled by
us;
-
the approval by our stockholders of any plan or proposal for
our liquidation or dissolution;
-
certain merger or business combination
transactions;
-
more than 40 percent of our outstanding voting shares are
acquired by any person or group of persons who did not own any shares of
common stock on the effective date of the plan; and
-
certain changes in the composition of our Board of
Directors.
28
RELATED PERSON RELATIONSHIPS AND
TRANSACTIONS
________________
Agreement with Entity Affiliated with
Former Chairman of the Board and Chief Executive Officer
Effective as of May 1, 2006, we entered
into a consulting agreement with Emeritushnic Facilities Company, Inc. (referred
to as EFC), an entity owned by our former Chairman of the Board and Chief
Executive Officer and current Chairman Emeritus, Philip M. Lynch, and certain of
his family members, excluding G. Patrick Lynch, our current President and Chief
Executive Officer, pursuant to which EFC performs certain consulting services to
us, including maintaining communications and relations between us and our joint
venture partners. In consideration for such services, we have agreed to pay EFC
a monthly fee of $25,000 and to reimburse EFC up to a maximum of $180,000 per
year for documented, out-of-pocket expenses reasonably incurred by EFC in the
course of conducting business on our behalf. We also agreed to cover EFC under
our liability insurance to the extent applicable and possible and to provide to
EFC at our expense: (a) an office with e-mail, phone, fax machine, and copier
access, and (b) an administrative support person. Any additional use of our
resources, including but not limited to, people, financial resources, outside
consultants and outside technical service people, is subject to prior approval
of our Chief Financial Officer. The consulting agreement may be terminated by
either party for any reason upon at least 90 days prior written notice to the
other party and may be terminated upon the occurrence of other certain events,
as set forth in the consulting agreement. The consulting agreement also contains
other standard terms, including provisions regarding confidentiality,
non-competition and non-solicitation.
NTIC expects to engage an independent
consultant to examine and to recommend to the Board of Directors of NTIC, or an
appropriate committee of the Board, a compensation or benefit arrangement with
Mr. Philip Lynch, which would replace or supplement the consulting agreement
with EFC. Final terms of such an arrangement, however, have not yet been
finalized.
Effective as of May 1, 2006, we entered
into a termination agreement with Inter Alia Holding Co. pursuant to which we
agreed to mutually terminate that certain Manufacturers Representative
Agreement dated as of October 1, 1976 and as subsequently amended thereafter.
Inter Alia beneficially owns approximately 25.4 percent of our outstanding
common stock and is owned by, among others, our former Chairman of the Board and
Chief Executive Officer and current Chairman Emeritus, Philip M. Lynch, and our
current President and Chief Executive Officer, G. Patrick Lynch.
Director and Executive Officer
Compensation
Please see Director Compensation and
Executive Compensation for information regarding consulting arrangements we
had with two of our directors and the other compensation arrangements with our
directors and executive officers during fiscal 2007.
29
PROPOSAL TWO RATIFICATION OF
SELECTION OF
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
_________________
Selection of Independent Registered
Public Accounting Firm
The Audit Committee of the Board of
Directors has selected Virchow Krause & Company LLP to serve as our
independent registered public accounting firm for the fiscal year ending August
31, 2008. Although it is not required to do so, the Board of Directors is asking
our stockholders to ratify the Audit Committees selection of Virchow Krause
& Company LLP. If our stockholders do not ratify the selection of Virchow
Krause & Company LLP, another independent registered public accounting firm
will be considered by the Audit Committee of the Board of Directors. Even if the
selection is ratified by our stockholders, the Audit Committee may in its
discretion change the appointment at any time during the year, if it determines
that such a change would be in the best interests of our company and its
stockholders.
Representatives of Virchow Krause &
Company LLP will be present at the Annual Meeting to respond to appropriate
questions. They will also have the opportunity to make a statement if they wish
to do so.
Audit, Audit-Related, Tax and Other
Fees
The following table presents the aggregate
fees billed to us by Virchow Krause & Company LLP, our current independent
registered public accounting firm, for the fiscal years ended August 31, 2007
and August 31, 2006.
|
|
Aggregate Amount Billed
by
|
|
|
Virchow Krause & Company LLP
($)
|
|
|
Fiscal
2007
|
|
Fiscal
2006
|
Audit
Fees
(1)
|
|
$80,000
|
|
|
$77,865
|
|
Audit-Related
Fees
(2)
|
|
70,528
|
|
|
38,460
|
|
Tax
Fees
|
|
0
|
|
|
0
|
|
All Other
Fees
|
|
0
|
|
|
0
|
|
____________________
(1)
|
|
These fees consisted of the audit
of our annual financial statements by year, review of financial statements
included in our quarterly reports on Form 10-QSB and other services
normally provided in connection with statutory and regulatory filings or
engagements.
|
|
(2)
|
|
These fees consisted of review of
registration statements and the issuance of consents. The Audit Committee
has considered whether the provision of these services is compatible with
maintaining the independence of Virchow Krause & Company LLP and has
determined that it is.
|
|
Audit Committee Pre-Approval Policies
and Procedures
Rules adopted by the Securities and
Exchange Commission in order to implement requirements of the Sarbanes-Oxley Act
of 2002 require public company audit committees to pre-approve audit and
non-audit services provided by a companys independent registered public
accounting firm. All services rendered by Virchow Krause & Company LLP to
NTIC were permissible under applicable laws and regulations and all services
provided to NTIC, other than de minimis non-audit services allowed under
applicable law, were approved in advance by the Audit Committee in accordance
with these rules. The Audit Committee has not adopted any formal pre-approval
policies and procedures.
30
Board of Directors Recommendation
The Board of Directors unanimously
recommends that our stockholders vote
FOR
ratification of the selection of
Virchow Krause & Company LLP, as our independent registered public
accounting firm for the fiscal year ending August 31, 2008. Unless a contrary
choice is specified on the proxy card, proxies solicited by the Board of
Directors will be voted
FOR
ratification of the selection of Virchow Krause & Company
LLP as our independent registered public accounting firm for the fiscal year
ending August 31, 2008.
31
OTHER MATTERS
________________
Section 16(a) Beneficial Ownership
Reporting Compliance
Section 16(a) of the Securities Exchange
Act of 1934, as amended, requires our directors, executive officers, and all
persons who beneficially own more than 10 percent of the outstanding shares of
our common stock to file with the Securities and Exchange Commission initial
reports of ownership and reports of changes in ownership of our common stock.
Executive officers, directors and greater than 10 percent beneficial owners are
also required to furnish NTIC with copies of all Section 16(a) forms they file.
To our knowledge, based upon a review of
the copies of such reports furnished to us and written representations that no
other reports were required, during the fiscal year ended August 31, 2007, none
of our directors or executive officers or beneficial owners of greater than 10
percent of our common stock failed to file on a timely basis the forms required
by Section 16 of the Exchange Act.
Stockholder Proposals for 2009 Annual
Meeting
Stockholder proposals intended to be
presented in the proxy materials relating to the 2009 Annual Meeting of
Stockholders must be received by us on or before August 14, 2008, unless the
date of the meeting is delayed by more than 30 calendar days, and must satisfy
the requirements of the proxy rules promulgated by the Securities and Exchange
Commission.
Any other stockholder proposals to be
presented at the 2009 Annual Meeting of Stockholders must be given in writing to
our Corporate Secretary and must be delivered to or mailed and received at our
principal executive offices, not less than 90 days nor more than 120 days prior
to the date of the annual meeting of stockholders; provided, however, that in
the event that less than 100 days notice or prior public disclosure of the date
of the annual meeting is given or made to stockholders, notice by the
stockholder to be timely must be so received not later than the close of
business on the 10
th
day following the day on which such notice of
the date of the annual meeting was mailed or such public disclosure was made,
whichever first occurs. The proposal must contain specific information required
by our bylaws, a copy of which may be obtained by writing to our Corporate
Secretary. If a proposal is not timely and properly made in accordance with the
procedures set forth in our bylaws, it will be defective and may not be brought
before the meeting. If the proposal is nonetheless brought before the meeting
and the Chairman of the meeting does not exercise the power and duty to declare
the proposal defective, the persons named in the proxy may use their
discretionary voting with respect to the proposal.
Director Nominations
In accordance with procedures set forth in
NTICs bylaws, NTIC stockholders may propose nominees for election to the Board
of Directors only after providing timely written notice to our Corporate
Secretary. To be timely, a stockholders notice to the Corporate Secretary must
be delivered to or mailed and received at NTICs principal executive offices not
less than 90 days nor more than 120 days prior to the date of the annual meeting
of stockholders; provided, however, that in the event that less than 100 days
notice or prior public disclosure of the date of the annual meeting is given or
made to stockholders, notice by the stockholder to be timely must be so
delivered not less than the close of business on the 10
th
day
following the day on which such notice of the date of the meeting was mailed or
public disclosure was made, whichever first occurs. The notice must set forth,
among other things:
-
the nominees name, age, business address and
residence address;
32
-
the nominees principal occupation or
employment;
-
the class and number of shares of NTIC capital stock which
are beneficially owned by the nominee;
-
signed consent to serve as a director of NTIC;
and
-
any other information concerning the nominee required under
the rules of the Securities and Exchange Commission in a proxy statement
soliciting proxies for the election of directors.
Submissions must be made by mail, courier
or personal delivery. E-mailed submissions will not be considered. The
Nominating and Corporate Governance Committee will consider only those
stockholder recommendations whose submissions comply with these procedural
requirements. The Nominating and Corporate Governance Committee will evaluate
candidates recommended by stockholders in the same manner as those recommended
by others.
Other Business
Our management does not intend to present
other items of business and knows of no items of business that are likely to be
brought before the Annual Meeting, except those described in this proxy
statement. However, if any other matters should properly come before the Annual
Meeting, the persons named in the enclosed proxy will have discretionary
authority to vote such proxy in accordance with their best judgment on the
matters.
Copies of 2007 Annual Report
We will furnish without charge a copy of
our Annual Report on Form 10-KSB for the fiscal year ended August 31, 2007, to
each person who was a stockholder of NTIC as of November 30, 2007 upon receipt
from any such person of a written request for such an Annual Report. Such a
request should be sent to:
Northern Technologies International
Corporation
4201 Woodland Road
Circle Pines, Minnesota
55014
Attention: Stockholder Information
Householding of Annual Meeting
Materials
Some banks, brokers and other nominee
record holders may be participating in the practice of householding proxy
statements and annual reports. This means that only one copy of this proxy
statement or NTICs Annual Report to Stockholders may have been sent to multiple
stockholders in each household. NTIC will promptly deliver a separate copy of
either document to any stockholder upon written or oral request to NTICs
Stockholder Information Department, Northern Technologies International
Corporation, 4201 Woodland Road, Circle Pines, Minnesota 55014, telephone: (763)
225-6637. Any stockholder who wants to receive separate copies of this proxy
statement or NTICs Annual Report to Stockholders in the future, or any
stockholder who is receiving multiple copies and would like to receive only one
copy per household, should contact the stockholders bank, broker, or other
nominee record holder, or the stockholder may contact NTIC at the above address
and phone number.
33
_________________________
Your vote is important. Whether or not you
plan to attend the Annual Meeting in person, vote your shares of NTIC common
stock by the Internet or telephone, or request a paper proxy card to sign, date
and return by mail so that your shares may be voted.
|
By Order of the Board of
Directors
|
|
|
|
Pierre
Chenu
|
|
Chairman of the
Board
|
December 12, 2007
Circle Pines,
Minnesota
34
APPENDIX
NORTHERN TECHNOLOGIES
INTERNATIONAL
CORPORATION
4201 WOODLAND ROAD, P.O. BOX 69
CIRCLE PINES, MN
55014
VOTE BY INTERNET -
www.proxyvote.com
Use the Internet to transmit your voting
instructions and for electronic delivery of information up until 11:59 P.M.
Eastern Time the day before the cut-off date or meeting date. Have your proxy
card in hand when you access the web site and folow the instructions to obtain
your records and to create an electronic voting instruction
form.
ELECTRONIC DELIVERY OF FUTURE
STOCKHOLDER
COMMUNICATIONS
If you would like to reduce the costs
incurred by Northern Technologies International Corporation in mailing proxy
materials, you can consent to receiving all future proxy statements, proxy cards
and annual reports electronically via e-mail or the Internet. To sign up for
electronic delivery, please follow the instructions above to vote using the
Internet and, when prompted, indicate that you agree to receive or access
stockholder communications electronically in future
years.
VOTE BY PHONE - 1-800-690-6903
Use any
touch-tone telephone to transmit your voting instructions up until 11:59 P.M.
Eastern Time the day before the cut-off date or meeting date. Have your proxy
card in hand when you call and then follow the
instructions.
VOTE BY MAIL
Mark, sign and date
your proxy card and return it in the postage-paid envelope we have provided or
return it to Northern Technologies International Corporation, c/o Broadridge, 51
Mercedes Way, Edgewood, NY 11717.
|
|
|
TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK
INK AS FOLLOWS:
|
NRTHN1
|
KEEP THIS PORTION FOR YOUR RECORDS
|
|
|
|
DETACH AND RETURN THIS PORTION ONLY
|
THIS PROXY CARD IS
VALID ONLY WHEN SIGNED AND DATED.
|
NORTHERN
TECHNOLOGIES INTERNATIONAL CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE BOARD RECOMMENDS THAT THE
STOCKHOLDERS VOTE "FOR" ALL SEVEN OF THE NOMINESS FOR DIRECTOR AND "FOR"
PROPOSAL 2.
|
|
|
For
All
|
Withhold
All
|
For All
Except
|
|
To withhold authority to vote for
any individual nominee(s), mark "For All Except" and write the number(s)
of the nominee(s) on the line below.
|
|
|
|
1.
|
Election of Directors:
|
|
|
|
|
|
|
|
|
|
|
01)
Pierre Chenu
02) G. Patrick
Lynch
03) Dr. Donal A. Kubik
04)
Mark J. Stone
05) Dr. Sunggyu Lee
|
06) Dr. Ramani Narayan
07)
Mark M. Mayers
|
|
|
|
o
|
o
|
o
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
|
Against
|
Abstain
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.
|
Ratify the
selection of Virchow Krause & Company LLP as independent registered
public accounting firm for the fiscal year ending August 31, 2008.
|
o
|
o
|
o
|
|
|
|
|
|
|
|
|
|
3.
|
Transact such
other business as may properly come before the meeting.
|
|
|
|
|
|
|
|
|
|
|
|
|
PLEASE
SIGN
exactly as the name appears on this card. When shares are
held by joint tenants, both should sign. When signing as an attorney,
executor, administrator, trustee or guardian, please give full title as
such. If a corporation, please sign in full corporate name by President or
other authorized officer. If a partneship, please sign in partnership name
by authorized person.
|
|
|
|
|
|
|
|
For address changes and/or comments, please check this box and
write them on the back where indicated.
|
o
|
|
|
|
|
|
|
|
|
|
MATERIALS
ELECTION
As of July 1, 2007 SEC rules permit companies to send
you a Notice that proxy information is available on the Internet, instead
of mailing you a complete set of materials. Check the box to the right if
you want to receive a complete set of future proxy materials by mail, at
no cost to you. If you do not take action you may receive only a
Notice.
|
o
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Signature
[PLEASE SIGN WITHIN BOX]
|
Date
|
|
|
|
Signature
(Joint Owners)
|
Date
|
|
|
|
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF
DIRECTORS
NORTHERN TECHNOLOGIES INTERNATIONAL
CORPORATION
ANNUAL MEETING OF STOCKHOLDERS
January 24,
2008
The
undersigned, having duly received the Notice of Annual Meeting of Stockholders
and Proxy Statement, hereby appoints Pierre Chenu and Donald A. Kubik, or either
of them, as proxies, each with the power to appoint his substitute, and hereby
authorizes them to represent and to vote, as designated on the reverse side of
this ballot, all of the shares of common stock of Northern Technologies
International Corporation that the undersigned is entitled to vote at the Annual
Meeting of Stockholders of Northern Technologies International Corporation, a
Delaware corporation, to be held at Northern Technologies International
Corporation Headquarters, 4201 Woodland Road, Circle Pines, Minnesota 55014,
beginning at 4:00 p.m., local time, on Thursday, January 24, 2008, for the
purposes stated on the reverse side, and any adjournment or postponement
thereof.
WHEN
PROPERLY EXECUTED, THIS PROXY WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE
UNDERSIGNED STOCKHOLDER, IF NO DIRECTION IS MADE, THE PROXY WILL BE VOTED FOR
THE ELECTION OF ALL NOMINEES FOR DIRECTOR AND FOR THE APPROVAL OF PROPOSAL 2
AND, IN THE DISCRETION OF THE PROXY HOLDER, ON OTHER MATTERS WHICH MAY PROPERLY
COME BEFORE THE MEETING.
PLEASE MARK, SIGN,
DATE AND RETURN THIS PROXY CARD PROMPTLY USING THE ENCLOSED REPLY
ENVELOPE
|
|
|
Address
Changes/Comments:
|
|
|
|
|
|
|
|
|
(If you noted any Address Changes/Comments
above, please mark corresponding box on the reverse side.)
CONTINUED AND TO BE SIGNED ON REVERSE SIDE
Northern Tech (AMEX:NTI)
Historical Stock Chart
From Jul 2024 to Aug 2024
Northern Tech (AMEX:NTI)
Historical Stock Chart
From Aug 2023 to Aug 2024