12. COMMITMENTS AND CONTINGENCIES On August 31, 2018, the Compensation Committee of the Board of Directors of the Company approved the material terms of an annual bonus plan for the Companys executive officers as well as certain officers and employees for the fiscal year ending August 31, 2019. For fiscal 2019 as in past years, the total amount available under the bonus plan for all plan participants, including executive officers, is dependent upon the Companys 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). Each plan participants percentage of the overall bonus pool is based upon the number of plan participants, the individuals annual base salary and the individuals position and level of responsibility within the company. In the case of each of the Companys executive officer participants, 75% of the amount of their individual bonus payout will be determined based upon the Companys actual EBITOI for fiscal 2019 compared to a pre-established target EBITOI for fiscal 2019 and 25% of the payout will be determined based upon such executive officers achievement of certain pre-established 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 will be determined by the Companys Board of Directors, upon recommendation of the Compensation Committee, after the completion of the Companys consolidated financial statements for fiscal 2019. There was $450,000 accrued for management bonuses for the three months ended November 30, 2018 compared to $318,000 accrued for management bonuses for the three months ended November 30, 2017. Three joint ventures (consisting of the Companys joint ventures in South Korea, Thailand, and India) accounted for 71.3% and 74.1% of the Companys trade joint venture receivables at November 30, 2018 and August 31, 2018, respectively. From time to time, the Company is subject to various other claims and legal actions in the ordinary course of its business. The Company records a liability in its consolidated financial statements for costs related to claims, including future legal costs, settlements and judgments, where the Company has assessed that a loss is probable and an amount could be reasonably estimated. If the reasonable estimate of a probable loss is a range, the Company records the most probable estimate of the loss or the minimum amount when no amount within the range is a better estimate than any other amount. The Company discloses a contingent liability even if the liability is not probable or the amount is not estimable, or both, if there is a reasonable possibility that material loss may have been incurred. In the opinion of management, as of November 30, 2018, the amount of liability, if any, with respect to these matters, individually or in the aggregate, will not materially affect the Companys consolidated results of operations, financial position or cash flows.