XML 116 R19.htm IDEA: XBRL DOCUMENT v2.4.0.8
Note 13 - Commitments and Contingencies
 9 Months Ended
May 31, 2013
Commitments and Contingencies Disclosure [Text Block]  
Commitments and Contingencies Disclosure [Text Block]
13. 
COMMITMENTS AND CONTINGENCIES

On August 31, 2012, the Board of Directors of the Company, upon recommendation of the Compensation Committee of the Board of Directors, approved the material terms of an annual bonus plan for the Company’s executive officers and certain officers and employees for the fiscal year ending August 31, 2013.  For fiscal 2013 as in past years, the total amount available under the bonus plan will be up to 25% of the Company’s earnings before interest, taxes and other income, as adjusted to take into account amounts to be paid under the bonus plan and certain other adjustments (Adjusted EBITOI), assuming the achievement of at least a minimum Adjusted EBITOI, which is traditionally 70% of a budgeted target Adjusted EBITOI for fiscal 2013, as proposed by the Compensation Committee and approved by the Board of Directors annually.  For each plan participant, 50% of the amount of the participant’s individual bonus payout will be determined based upon the participant’s individual allocation percentage of the total amount available under the bonus plan and 50% of the participant’s payout will be determined based upon the participant’s achievement of certain pre-established but more qualitative individual performance objectives.  The payment of bonuses under the plan are discretionary and may be paid to executive officer participants in both cash and shares of NTIC common stock, the exact amount and percentages of which will be determined by the Company’s Board of Directors, upon recommendation of the Compensation Committee, after the completion of the Company’s consolidated financial statements for fiscal 2013.  There was $580,000 for management bonuses accrued for nine months ended May 31, 2013 compared to a management bonus accrual of $1,058,045 for the nine months ended May 31, 2012.

The Company leases property with future lease payments as follows: fiscal 2013 - $59,625; fiscal 2014 - $59,500 and thereafter - $0.

Three joint ventures accounted for 67.1% and 55.3% of the Company’s trade joint venture receivables at May 31, 2013 and August 31, 2012, respectively.

From time to time, the Company is subject to various claims and legal actions in the ordinary course of its business.  The Company is not currently involved in any legal proceeding in which the Company believes, based on information currently available, that there is a reasonable possibility of a material loss.