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<SEC-DOCUMENT>0001104659-10-014399.txt : 20100816
<SEC-HEADER>0001104659-10-014399.hdr.sgml : 20100816
<ACCEPTANCE-DATETIME>20100316093846
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001104659-10-014399
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		3
FILED AS OF DATE:		20100316

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NORTHERN TECHNOLOGIES INTERNATIONAL CORP
		CENTRAL INDEX KEY:			0000875582
		STANDARD INDUSTRIAL CLASSIFICATION:	COATING, ENGRAVING & ALLIED SERVICES [3470]
		IRS NUMBER:				410857886
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0831

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		4201 WOODLAND ROAD
		STREET 2:		PO BOX 69
		CITY:			CIRCLE PINES
		STATE:			MN
		ZIP:			55014
		BUSINESS PHONE:		(763) 225-6601

	MAIL ADDRESS:	
		STREET 1:		4201 WOODLAND ROAD
		STREET 2:		PO BOX 69
		CITY:			CIRCLE PINES
		STATE:			MN
		ZIP:			55014

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	NORTHERN INSTRUMENTS CORP
		DATE OF NAME CHANGE:	19930328
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>

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<body lang="EN-US">

<div style="font-family:Times New Roman;">

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="3" face="Times New Roman">&nbsp;</font></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="3" face="Times New Roman"><img width="224" height="110" src="g63721bci001.gif" alt="GRAPHIC"></font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">March&nbsp;16, 2010</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">VIA
EDGAR AND FACSIMILE</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Securities and Exchange
Commission</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Division of Corporation
Finance</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">100 F Street, N.E.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Washington, D.C. 20549</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Fax:
(703) 813-6968</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.66%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attn:</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.34%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr.&nbsp;John Hartz</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.66%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.34%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Senior
  Assistant Chief Accountant</font></p>
  </td>
 </tr>
</table>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.66%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Re:</font></b></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.34%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Northern Technologies International Corporation</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.34%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Form&nbsp;10-K for the Year Ended August&nbsp;31, 2009</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.66%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.34%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">File
  Number: 1-11038</font></b></p>
  </td>
 </tr>
</table>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dear Mr.&nbsp;Hartz:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This letter is in response
to your letter, dated March&nbsp;4, 2010, to the undersigned as Chief Financial
Officer of Northern Technologies International Corporation (&#147;NTIC&#148;), regarding
NTIC&#146;s annual report on Form&nbsp;10-K for the fiscal year ended August&nbsp;31,
2009.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For your convenience, please
note that your comments are repeated below in italicized type, and the numbered
items below correspond to the number of the corresponding comment set forth in
your letter.&#160; Our responses are provided
below each comment.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Form&nbsp;10-K for the fiscal year ended August&nbsp;31,
2009</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">General</font></u></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><i><font size="2" style="font-size:10.0pt;font-style:italic;">Comment:&#160; In light of the percentage of your
investments to your total assets, please tell us if and how you have considered
whether you meet the definition of an investment company.&#160; Please refer to ASC Topic 946.10.15 and Section&nbsp;3
of the Investment Company Act of 1940.</font></i></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Response</font></i><font size="2" style="font-size:10.0pt;">:&#160;
We supplementally advise the Staff that we believe we do not meet the
definition of an investment company for accounting purposes or within the
meaning of Section&nbsp;3 of the Investment Company Act of 1940.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We note that ASC Topic
946.10.15 requires specific accounting treatment and disclosures for investment
companies.&#160; We note that ASC Topic
946.10.20 defines investment companies as those that invest with plans that
include exit strategies and do not acquire or hold investments for strategic
operating purposes or do not obtain benefits</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">from investees that are
unavailable to non-investor entities that are not related parties to the
investee.&#160; We believe we do not meet the
criteria to be considered an investment company for accounting purposes as we
invest in joint ventures to accomplish strategic operating purposes, namely the
global manufacture and marketing of products containing our corrosion
prevention technologies.&#160; Our historical
experience supports our long-term investment in our joint ventures.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We also believe we are
not an &#147;investment company&#148; within the meaning of Section&nbsp;3 of the
Investment Company Act of 1940 (the &#147;1940 Act&#148;). Section&nbsp;3 of the 1940 Act
provides two definitions of &#147;investment company&#148; that could potentially relate
to our company. Section&nbsp;3(a)(1)(A), a subjective test, applies to those
issuers who intend to be investment companies and who are, or hold themselves
out as being, primarily engaged in the business of investing in securities.
This definition does not apply to us because we are not primarily engaged in
the business of investing in securities, and do not hold our company out as
such.&#160; We historically and consistently
have described our company in our public filings as a corrosion prevention and
management company.&#160; As set forth in our
annual report on Form&nbsp;10-K for the fiscal year ended August&nbsp;31, 2009,
we describe our company as follows:</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;NTIC develops and
markets proprietary environmentally beneficial products and technical services
either directly or via a network of joint ventures and independent distributors
in over 50 countries.&#148;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;NTIC&#146;s primary business
is corrosion prevention.&#148;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;NTIC has been selling
its proprietary ZERUST&#174; and EXCOR&#174; rust and corrosion inhibiting products and
services to the automotive, electronics, electrical, mechanical, military and
retail consumer markets, for over 30 years.&#160;
NTIC also offers worldwide on-site technical consulting for rust and
corrosion prevention issues.&#160; In North
America, NTIC markets its technical services and ZERUST&#174; products principally
to industrial users by a direct sales force and a network of independent
distributors.&#160; NTIC&#146;s technical service
consultants work directly with the end users of NTIC&#146;s products to analyze
their specific needs and develop systems to meet their technical requirements.&#148;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;In addition to this core
business, NTIC has three new businesses that have started recently to generate
revenue: (1)&nbsp;corrosion prevention technology specifically designed for the
oil and gas industry, which NTIC sells both directly and through joint
ventures; (2)&nbsp;a product line of compounds and finished products based on a
portfolio of proprietary bio-plastic technologies marketed under the Natur-Tec&#174;
brand, which NTIC sells directly and through distributors and independent
manufacturer&#146;s sales representatives; and (3)&nbsp;technology and equipment
that converts plastic waste into diesel, gasoline and heavy fractions, which is
exclusively licensed and sold through NTIC&#146;s joint venture Polymer Energy, LLC
in North America and Asia.&#148;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The second definition of &#147;investment
company,&#148; Section&nbsp;3(a)(1)(C), is an objective test and applies to any
issuer that is engaged in the business of investing, owning, holding or</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2<a name="PB_2_012522_5335"></a></font></p>

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<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">trading &#147;investment
securities&#148; having a value in excess of 40% of the issuer&#146;s total assets
(exclusive of Government securities and cash items). For purposes of that
definition, the term &#147;investment securities&#148; excludes, among other items,
securities issued by &#147;majority-owned subsidiaries&#148; of the owner which are not
themselves investment companies.&#160; Section&nbsp;2(a)(24)
of the 1940 Act defines a &#147;majority-owned subsidiary&#148; of a person as &#147;a company
50 per centum or more of the outstanding voting securities of which are owned
by such person, or by a company which, within the meaning of this paragraph, is
a majority-owned subsidiary of such person.&#148;&#160;
As of August&nbsp;31, 2009, we had $26.5 million in total assets.&#160; Of these assets, approximately $14.0 million
represented our investments in our corporate joint ventures.&#160; As disclosed in our annual report on Form&nbsp;10-K
for the fiscal year ended August&nbsp;31, 2009, we participate, either directly
or indirectly through holding companies, in 27 active corporate joint venture
arrangements in North America, South America, Europe, Asia and the Middle
East.&#160; Each of these joint ventures
manufactures and markets finished products in the geographic territory that it
is assigned.&#160; While most of our corporate
joint ventures sell our rust and corrosion inhibiting products and custom
packaging systems, we also have joint ventures that manufacture and market
machinery that converts plastic waste into crude oil and electronic sensing
instruments.&#160; As disclosed in our annual
report on Form&nbsp;10-K for the fiscal year ended August&nbsp;31, 2009, in the
case of most of our corporate joint ventures, we own 50% of the ownership
interest of the joint venture.&#160; None of
our corporate joint ventures are themselves investment companies.&#160; Excluding our investments in our 50% or more
owned corporate joint ventures, our &#147;investment securities&#148; within the meaning
of the 1940 Act constitute less than 40% of our total assets (exclusive of
Government securities and cash items). As a consequence, we believe we are not
an investment company under either definition in Section&nbsp;3 of the 1940
Act.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Finally, we note that an
issuer that otherwise falls within the definition of investment company in Section&nbsp;3(a)(1)(C)&nbsp;of
the 1940 Act, nonetheless, is excluded from the definition of investment
company by Section&nbsp;3(b)(1)&nbsp;of the 1940 Act if the issuer is primarily
engaged, directly or through a wholly-owned subsidiary or subsidiaries, in a
business or businesses other than that of investing, reinvesting, owning,
holding or trading in securities. See SEC v. National Presto Ind.,&nbsp;Inc.,
486 F.3d 305, 312-315 (7th Cir. 2007). The determination of a company&#146;s primary
business is made by application of a five factor test. Id. at 313. Applying
that test to our company, it is clear that we are primarily engaged in the
corrosion prevention and management business as evidenced by our historical
development, our public representations about our business, the day-to-day
activities of our officers and directors, the sources of our income and the
nature of our assets.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Business &#151; Corporate Joint Ventures and Holding
Companies, page&nbsp;2</font></u></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">2.</font></i><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></i><i><font size="2" style="font-size:10.0pt;font-style:italic;">Comment:&#160; We note that your ownership percentage
interest in Polymer Energy LLC is 62.5%.&#160;
Please explain to us how and why you determined that you are not
required to consolidate this entity and tell us the impact that not consolidating
this entity had on your financial statements during each period your interest
exceeded 50%.</font></i></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3<a name="PB_3_012532_5796"></a></font></p>

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<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Response</font></i><font size="2" style="font-size:10.0pt;">:&#160;
We supplementally advise the Staff that although our ownership
percentage in Polymer Energy LLC is 62.5%, Polymer Energy LLC has had limited
activity since its inception in 2003 and the impact of not consolidating the
entity on our consolidated financial statements has been immaterial.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">MD&amp;A &#151; Results of
Operations, page&nbsp;34</font></u></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">3.</font></i><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></i><i><font size="2" style="font-size:10.0pt;font-style:italic;">Comment:&#160; Please revise future annual and quarterly
filings to more fully address the factors that impact demand for your products,
your expectations regarding the improvement in negative trends and your ability
to sustain your operations until that improvement.</font></i></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Response</font></i><font size="2" style="font-size:10.0pt;">:&#160;
As requested, in future annual and quarterly filings we will more fully
address the factors that impact demand for our products, our expectations
regarding the improvement in negative trends and our ability to sustain our
operations until that improvement.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">4.</font></i><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></i><i><font size="2" style="font-size:10.0pt;font-style:italic;">Comment:&#160; Please revise future filings to clarify that
you incurred a loss before income taxes in FY 2009.</font></i></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Response</font></i><font size="2" style="font-size:10.0pt;">:&#160;
As requested, in future filings we will clarify that we incurred a loss
before income taxes in FY 2009.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Liquidity and Capital Resources, page&nbsp;37</font></u></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">5.</font></i><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></i><i><font size="2" style="font-size:10.0pt;font-style:italic;">Comment:&#160; We note your disclosures regarding the
violation of a covenant of your Term Loan and the bank&#146;s right to demand
immediate payment.&#160; In future filings,
please clarify your intentions regarding this loan.&#160; For example, please indicate if you are
attempting to obtain a waiver or refinance the loan, if you expect the bank to
call the loan, how you plan to fund a potential required re-payment of the
loan, and the potential risks and consequences of covenant violations on your
liquidity.</font></i></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Response</font></i><font size="2" style="font-size:10.0pt;">:&#160;
As requested, in future filings we will clarify our intentions regarding
our term loan with National City Bank.&#160;
In such additional disclosure, we will indicate if we are attempting to
obtain a waiver or refinance the loan, if we expect the bank to call the loan,
how we plan to fund a potential required re-payment of the loan and the
potential risks and consequences of covenant violations on our liquidity.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">6.</font></i><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></i><i><font size="2" style="font-size:10.0pt;font-style:italic;">Comment:&#160; Please revise future filings to disclose and
discuss the funding sources for your corporate joint ventures, including their
use of and the availability of borrowings.&#160;
If it is reasonably likely that the exposure to debt by any of your
corporate joint ventures may materially impact their operations and liquidity,
please revise future filings to disclose and discuss those risks and your
ability to address them.</font></i></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Response</font></i><font size="2" style="font-size:10.0pt;">:&#160;
As requested, in future filings we will disclose and discuss the funding
sources for our corporate joint ventures, including their use of and the
availability of </font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4<a name="PB_4_012542_2897"></a></font></p>

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<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">borrowings.&#160; In addition, if it is reasonably likely that
the exposure to debt by any of our corporate joint ventures may materially
impact their operations and liquidity, as requested, in future filings we will
disclose and discuss those risks and our ability to address them.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">7.</font></i><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></i><i><font size="2" style="font-size:10.0pt;font-style:italic;">Comment:&#160; Please revise future annual and quarterly
filings to more fully address the factors that impact changes in working
capital components that materially impact cash flows from operations, for
example, disclose and discuss reasons for changes in receivables and inventory
turnover during each period presented.</font></i></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Response</font></i><font size="2" style="font-size:10.0pt;">:&#160;
As requested, in future filings we will more fully address the factors
that impact changes in our working capital components that materially impact
our cash flows from operations, including reasons for changes in receivables
and inventory turnover during each period presented.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Off-Balance Sheet Arrangements, page&nbsp;38</font></u></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">8.</font></i><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></i><i><font size="2" style="font-size:10.0pt;font-style:italic;">Comment:&#160; Please revise future filings to disclose the
loan guarantee in your commitment and contingency note in your consolidated
financial statements or tell us why you do not believe such disclosure is
required.</font></i></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Response</font></i><font size="2" style="font-size:10.0pt;">:&#160;
As requested, in future filings we will disclose the loan guarantee in
the commitment and contingency note to our consolidated financial statements.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Consolidated Financial Statements</font></u></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Consolidated Statements of Operations, page&nbsp;45</font></u></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">9.</font></i><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></i><i><font size="2" style="font-size:10.0pt;font-style:italic;">Comment:&#160; We note that you include revenues and
expenses related to your corporate joint ventures below the subtotal &#147;North
American Operating Loss.&#148;&#160; Please explain
to us why you believe that your current statement of operations format is
appropriate.&#160; Please also explain to us
the specific nature of and how you determine the amounts of the revenues and
expenses you record under corporate joint ventures and holding companies.&#160; For example, please specifically address why
you believe it is appropriate to exclude all R&amp;D expenses from the North
American operating loss.</font></i></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Response:&#160; We supplementally advise the Staff that we
use the matching principle in our consolidated statements of operations to show
the North American revenue offset by corresponding cost of goods sold and
operating expenses that are attributable to those operations.&#160; The expenses that are incurred in support of
our corporate joint ventures (including employee expenses, travel expense,
consulting expense as well as research and development) are tracked to offset
the equity and technical service fees that we collect from our various
corporate joint ventures.&#160; Regarding
research and development, we are only able to invest in additional research and
development due to the cash that we generate from our joint venture income.&#160; The resulting technology also is
contractually provided to our corporate joint ventures to market and sell in
their respective geographic territories.&#160;
The resulting technology also is available to our North American
operations, </font></p>

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<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">but considering that our
North American net sales represent approximately 10% of our worldwide corporate
joint venture sales, the allocation amount is deemed immaterial.&#160; Additionally, there are expenses allocated to
our North American operations (including Board fees, rent, administration and
general overhead) that could be allocated to the joint venture expenses,
however, they are deemed immaterial.&#160; The
conceptual framework for financial accounting underlies fundamental concepts of
financial reporting.&#160; One of the concepts
is the understandability by the user.&#160;
The concepts link the financial statements to the users, and the related
decisions the users will make.&#160; We create
worldwide sales of our products through our joint venture distribution
channel.&#160; Therefore, the results of the performance
of our corporate joint ventures are a significant component of our
success.&#160; Grouping equity income,
technical fees and joint venture expenses helps the reader of the financial
statements gain a better understanding of how our foreign operations are
performing, and we believe results in more useful information to the
reader.&#160; We believe all relevant
information is disclosed to allow users of our financial statements to
understand the accounting classifications we employ and that our present classifications
allow users to best understand our business and financial results.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notes to the Financial Statements</font></u></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160; Nature of
Business and Significant Accounting Policies, page&nbsp;48</font></u></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">10.</font></i><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></i><i><font size="2" style="font-size:10.0pt;font-style:italic;">Comment:&#160; Please tell us and disclose in future filings
your accounting policy for recording revenue related to fees earned for
technical support and other services provided to corporate joint ventures.&#160; Please clarify the specific nature of the
support and services you provide and when and how you recognize the related
revenue.&#160; Also, please tell us and
disclose in future filings the terms of and your accounting policies for
receivables from corporate joint ventures.&#160;
Please explain to us the nature of each transaction that may give rise
to such receivables, including the distinction between trade corporate joint
venture receivables and technical and other services, corporate joint venture
receivables.&#160; If your net sales under
North American Operations include sales to your corporate joint ventures,
please explain to us why you don&#146;t believe that separate disclosure of such
sales is warranted.</font></i></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Response</font></i><font size="2" style="font-size:10.0pt;">:&#160;
As requested, in future filings we will disclose our accounting policy
for recording revenue related to fees earned for technical support and other
services provided to our corporate joint ventures.&#160; In so doing, we will clarify the specific
nature of the support and services we provide and when and how we recognize the
related revenue. In addition, as requested, in future filings we will disclose
the terms of and our accounting policies for receivables from corporate joint
ventures.&#160; In so doing, we will describe
the nature of each transaction that may give rise to such receivables,
including the distinction between trade corporate joint venture receivables and
technical and other services, corporate joint venture receivables.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We supplementally provide
the Staff the following information to each of the points contained in Staff
Comment No.&nbsp;10 above.</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6<a name="PB_6_012605_7748"></a></font></p>

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<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Please tell us and disclose in
future filings your accounting policy for recording revenue related to fees
earned for technical support and other services provided to corporate joint
ventures.</font></i></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our accounting policy for
recording revenue related to fees earned for technical support and other
services provided to our corporate joint ventures is to recognize revenue
related to support of corporate joint ventures when earned, amounts are
determinable and collectability is reasonably assured.&#160; Under our agreements with our corporate joint
ventures, amounts are earned when product is shipped from corporate joint
venture facilities.&#160; We review the
financial situation of each of our corporate joint ventures to assist in the
likelihood of collections on amounts earned.&#160;
We elect to account for these fees on a cash basis for certain corporate
joint ventures when uncertainty exists surrounding the collections of such
fees.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Please clarify the specific
nature of the support and services you provide and when and how you recognize
the related revenue.</font></i></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The support and services
we provide our corporate joint ventures include consulting, travel, technical
and marketing services to existing joint ventures, legal fees incurred in the
establishment of new joint ventures, registration and promotion and legal
defense of worldwide trademarks, and legal fees incurred in connection with the
filing of patent applications.&#160; Although
this support and these services are continuously occurring, contractual
obligation of payment by our corporate joint ventures related to administrative
services does not occur until the corporate joint ventures ship product from
their facilities, as noted above.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Also, please tell us and disclose
in future filings the terms of and your accounting policies for receivables
from corporate joint ventures.</font></i></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Our accounting policy for
receivables from our corporate joint ventures is as follows:&#160; Accounts receivable from our corporate joint
ventures unpaid after 90 days are considered past due.&#160; We do not accrue interest on past due
accounts receivable.&#160; We review the
credit histories of our corporate joint ventures before extending unsecured
credit. We periodically review amounts due from corporate joint ventures for
collectability, and based on past experience and continuous review of the balances
due have not determined a need for an allowance for doubtful accounts related
to our corporate joint venture receivables.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Please explain to us the nature
of each transaction that may give rise to such receivables, including the
distinction between trade corporate joint venture receivables and technical and
other services, corporate joint venture receivables.</font></i></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Trade receivables from
corporate joint ventures arise from sales we make to our corporate joint
ventures of products and the essential additives (&#147;Masterbatch&#148;) required to
make ZERUST&#174; industrial corrosion inhibiting packaging products
functional.&#160; Receivables for technical
and other services to our corporate joint ventures are </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7<a name="PB_7_012612_141"></a></font></p>

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<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">contractually based on a
percentage of the sales of the joint ventures and are intended to compensate us
for&#160; technical and other services we
provide to our corporate joint ventures as described above, including
consulting, travel, technical and marketing services to existing joint
ventures, legal fees incurred in the establishment of new joint ventures,
registration and promotion and legal defense of worldwide trademarks, and legal
fees incurred in connection with the filing of patent applications.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">If your net sales under North
American Operations include sales to your corporate joint ventures, please
explain to us why you don&#146;t believe that separate disclosure of such sales is
warranted.</font></i></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Net sales under our North
American Operations include sales to our corporate joint ventures.&#160; We disclosed the percentage of our net sales
to our corporate joint ventures in Note 13 to our consolidated financial
statements, which represented 13.4% of our net sales for the fiscal year ended August&nbsp;31,
2009 and 12.3% of our net sales for the fiscal year ended August&nbsp;31, 2008.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Income Taxes, page&nbsp;49</font></u></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">11.</font></i><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></i><i><font size="2" style="font-size:10.0pt;font-style:italic;">Comment:&#160; We note your disclosure that valuation
allowances are established when necessary to reduce deferred tax assets to the
amount expected to be realized.&#160; Please
confirm to us and revise future filings to clarify, if appropriate, that you
record a tax valuation allowance when you determine it is more likely than not
that some portion or all of your deferred tax assets will not be realized.&#160; Also, please tell us and consider disclosing
in MD&amp;A in future filings, how you determined your deferred tax assets are
realizable.</font></i></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Response</font></i><font size="2" style="font-size:10.0pt;">:&#160;
As requested, we hereby confirm and will clarify in future filings that
we record a tax valuation allowance when we determine based on all available
evidence it is more likely than not that some portion or all of our deferred
tax assets will not be realized.&#160; In
addition, as requested, in future filings we will disclose in the &#147;Management&#146;s
Discussion and Analysis&#148; section how we determine that our deferred tax assets
are realizable.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We supplementally advise
the Staff that we determined based on all available evidence, including
historical data and projections of future results, that it is more likely than
not that all of our deferred tax assets, except for our foreign tax credit
carryforward and Minnesota state research and development credit carryforwards,
will be fully realized.&#160; Based on
historical data and future projections, we determined that it is more likely
than not that our deferred tax asset related to foreign tax credit
carryforwards will not be realized due to insufficient federal taxable income
within the carryforward period and the fact that for ordering purposes the
foreign tax credit carryforwards are not allowed to be used until after any current
year foreign tax credits are utilized.&#160;
In addition, based on historical data and future projections, we
determined that it is more likely than not that our deferred tax asset related
to Minnesota state research and development credit</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8<a name="PB_8_012620_7608"></a></font></p>

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<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">carryforwards will not be
realized due to insufficient Minnesota sourced taxable income within the
carryforward period.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Deferred Joint Venture Royalties, page&nbsp;50</font></u></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">12.</font></i><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></i><i><font size="2" style="font-size:10.0pt;font-style:italic;">Comment:&#160; Please explain to us and revise future
filings to clearly disclose how you determine the amount of technical and
support fees you defer for the Company sponsored conference.</font></i></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Response</font></i><font size="2" style="font-size:10.0pt;">:&#160;
As requested, in future filings we will clearly disclose how we
determine the amount of technical and support fees we defer for our Company
sponsored conference.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We supplementally advise
the Staff that the amount of technical and support fees we have deferred is
based on an estimate of the amount we expect to spend every three years to hold
the conference, which is currently $288,000.&#160;
This estimate is based on historical experience, current conditions and
intentions of management. In 2009, which would have been the third year since
the last conference, we did not think it was prudent or a good use of our then
existing cash balances to hold the conference since we were in a loss position
at the time and were trying to conserve our cash resources.&#160; We are planning to hold the conference in the
fall of 2010 or spring of 2011, and expect to spend approximately the same
amount that has been accrued currently. We do not anticipate deferring any
additional technical and support fees until after the next conference in the
fall of 2010 or spring of 2011 is held.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">6. Investments in Corporate Joint Ventures, page&nbsp;52</font></u></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><i><font size="2" style="font-size:10.0pt;font-style:italic;">Comment:&#160; With a view to enhanced disclosures in future
filings, please address the following:</font></i></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt 58.3pt;text-align:left;text-indent:-22.3pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></i><i><font size="2" style="font-size:10.0pt;font-style:italic;">Provide us additional information
related to the relative size and variability of the corporate joint ventures
included in your summarized financial information.&#160; If any of your corporate joint ventures were
individually significant during any period, please tell us what consideration
you have given to providing separate summarized financial information for each
such corporate joint venture.</font></i></p>

<p align="left" style="margin:0in 0in .0001pt 58.3pt;text-align:left;text-indent:-22.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt 58.3pt;text-align:left;text-indent:-22.3pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></i><i><font size="2" style="font-size:10.0pt;font-style:italic;">Explain to us how you determine
and eliminate profits on sales to your corporate joint ventures.</font></i></p>

<p align="left" style="margin:0in 0in .0001pt 58.3pt;text-align:left;text-indent:-22.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt 58.3pt;text-align:left;text-indent:-22.3pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></i><i><font size="2" style="font-size:10.0pt;font-style:italic;">Explain to us when and how you
assess that your investment in each corporate joint venture is not impaired.</font></i></p>

<p align="left" style="margin:0in 0in .0001pt 58.3pt;text-align:left;text-indent:-22.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt 58.5pt;text-align:left;text-indent:-22.5pt;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></i><i><font size="2" style="font-size:10.0pt;font-style:italic;">Tell us your effective ownership
interest in your Austrian joint venture before and after the sale to your
German joint venture.&#160; Help us understand
how you determined the amount of the gain you recorded and the appropriateness
of recognizing that gain.</font></i></p>

<p align="left" style="margin:0in 0in .0001pt 58.5pt;text-align:left;text-indent:-22.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Response</font></i><font size="2" style="font-size:10.0pt;">:&#160;
We supplementally provide the Staff the following information to each of
the bulleted points contained in Staff Comment No.&nbsp;13 above:</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9<a name="PB_9_012934_7091"></a></font></p>

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<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Provide us additional information
related to the relative size and variability of the corporate joint ventures
included in your summarized financial information.&#160; If any of your corporate joint ventures were
individually significant during any period, please tell us what consideration
you have given to providing separate summarized financial information for each
such corporate joint venture.</font></i></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We note that smaller
reporting company registrants are required to follow Rule&nbsp;8-03 of SEC
Regulation S-X for equity method investees.&#160;
If significance tests are met for any individual or combination of
investees, summarized financial data for all investees in the registrant&#146;s
annual financial statement footnotes should be provided.&#160; Minimum disclosures include: current and
noncurrent assets and liabilities; redeemable stock and noncontrolling
interests; revenues; gross profit; income from continuing operations; and net
income.&#160; We believe this information is
appropriately reflected in note 6 of our consolidated financial statements.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Explain to us how you determine
and eliminate profits on sales to your corporate joint ventures.</font></i></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Sales made to our
corporate joint ventures are contractually done at a small mark-up that is
allowed solely to offset our administrative cost in selling various
products.&#160; Therefore, there are no
material profits that need to be eliminated.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Explain to us when and how you
assess that your investment in each corporate joint venture is not impaired.</font></i></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Periodically, we evaluate
our investments in corporate joint ventures for impairment and assess the
future cash flow projections to determine if there are any going concern
issues.&#160; If an investment it determined
to be impaired, a reserve is created to reflect the impairment on our financial
results.&#160; If a series of operating losses
by a corporate joint venture or other factors indicate a decrease in the value
of the investment has occurred that is other than temporary, losses are
recognized in addition to those resulting from the application of equity method
accounting. Other factors used in this determination include turnover of
corporate joint venture management, losses of significant customers and interaction
with management by board representatives and our management support team.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Tell us your effective ownership
interest in your Austrian joint venture before and after the sale to your
German joint venture.&#160; Help us understand
how you determined the amount of the gain you recorded and the appropriateness
of recognizing that gain.</font></i></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In our fiscal year ended August&nbsp;31,
2008, we recognized a gain on the sale of our 50 percent ownership interest in
our Austrian joint venture to our German joint venture in the amount of
$172,767.&#160; Our ownership interest in our
German joint venture is 50 percent.&#160; The
gain was determined as the excess of cash received over our equity investment
immediately prior to the sale.&#160; We
determined that recording the gain on the sale was appropriate because we
determined that common control between the entities </font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10<a name="PB_10_012946_455"></a></font></p>

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<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">did not exist for
accounting purposes.&#160; In our fiscal year
2008, we noted that Statement on Financial Accounting Standards No.&nbsp;141
stated that the acquisition of some or all of the noncontrolling interests in a
subsidiary is not a business combination.&#160;
Furthermore, in our fiscal year 2008, we noted that Emerging Issues Task
Force 02-5 noted that common control exists between separate entities if an
enterprise holds more than 50 percent of the voting interest of each
entity.&#160; We recognized the gain on the
sale of our Austrian joint venture because we did not have a controlling
interest in either joint venture.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">13. Geographic and Segment Information, page&nbsp;57</font></u></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">14.</font></i><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></i><i><font size="2" style="font-size:10.0pt;font-style:italic;">Comment:&#160; It is not clear to us if the geographic and
segment disclosures include any of the results associated with your corporate
joint ventures which are material to your financial statements.&#160; Please explain to us what is included and
excluded from your current disclosures and why you believe they are adequate.</font></i></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Response</font></i><font size="2" style="font-size:10.0pt;">:&#160;
We supplementally advise the Staff that only the sales of our North
American operations are included in the geographic and segment
information.&#160; Although our sales to our
corporate joint ventures are included in our net sales and the related
disclosures, the sales of our corporate joint ventures to other parties are not
included.&#160;&#160; We believe this adequately
discloses the geographic and segment make-up of our consolidated net sales. Our
corporate joint ventures represent distribution channels of our product outside
of the United States and all material sales of our corporate joint ventures
result from sales of our ZERUST&#174; industrial corrosion inhibiting packaging
products.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">16. Income Taxes, page&nbsp;60</font></u></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">15.</font></i><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></i><i><font size="2" style="font-size:10.0pt;font-style:italic;">Comment:&#160; Please tell us and clarify in future filings
the nature of the asset valuation reserves included in non-current deferred tax
assets.&#160; Also, please revise future
filings to follow the guidance in ASC Topic 740.10.50.&#160; In this regard, it appears to us that you may
have netted valuation allowances in your disclosures.</font></i></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Response</font></i><font size="2" style="font-size:10.0pt;">:&#160;
Asset valuation reserves included in non-current deferred tax assets
consist of GAAP and income tax basis differences in partnership investments and
intangible assets. As requested, we will clarify the nature of our asset
valuation reserves included in non-current deferred tax assets in future
filings.&#160; In addition, as requested, we
will follow the guidance in ASC Topic 740.10.50 and disclose valuation
allowances recognized for deferred tax assets separately in future filings.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We supplementally advise
the Staff that our deferred tax asset for research and development credits
includes a $159,000 valuation allowance recognized for certain state research
and development credits that has been netted in our disclosure. As noted in our
response to Staff Comment No.&nbsp;2 above, based on historical data and future
projections, we determined that it is more likely than not that our deferred
tax asset related to Minnesota state research and development credit
carryforwards will not be realized due to insufficient Minnesota sourced
taxable income within the carryforward period.&#160;
We </font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11<a name="PB_11_012953_4141"></a></font></p>

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<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">will follow the guidance
in ASC Topic 740.10.50 and disclose this valuation allowance separately in
future filings.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 9A (T)&nbsp;Controls and Procedures, page&nbsp;65</font></u></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">16.</font></i><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></i><i><font size="2" style="font-size:10.0pt;font-style:italic;">Comment:&#160; We note that &#147;NTIC maintains disclosure
controls and procedures . . . that are designed to reasonably ensure . . .&#148;&#160; If appropriate, please confirm to us, and
modify your disclosures in future filings to clearly indicate that your
Disclosure Controls and Procedures are designed to provide reasonable
assurance.&#160; This comment is also applicable
to your November&nbsp;30, 2009 Form&nbsp;10-Q.</font></i></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Response</font></i><font size="2" style="font-size:10.0pt;">:&#160;
We hereby confirm to the Staff of the Division of Corporation Finance,
Securities and Exchange Commission, that we maintain disclosure controls and
procedures (as defined in Rules&nbsp;13a-15(e)&nbsp;and 15d-15(e)&nbsp;under
the Securities Exchange Act of 1934, as amended) that are designed to provide
reasonable assurance that information required to be disclosed by us in the
reports that we file or submit under the Securities Exchange Act of 1934, as
amended, is recorded, processed, summarized and reported, within the time
periods specified in the Securities and Exchange Commission&#146;s rules&nbsp;and
forms and that such information is accumulated and communicated to our
management, including our principal executive officer and principal financial
officer, or persons performing similar functions, as appropriate to allow
timely decisions regarding required disclosure.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As requested, in future
filings, we will clarify that our disclosure controls and procedures are
designed to provide reasonable assurance that information required to be
disclosed by us in the reports that we file or submit under the Securities
Exchange Act of 1934, as amended, is recorded, processed, summarized and
reported, within the time periods specified in the Securities and Exchange
Commission&#146;s rules&nbsp;and forms and that such information is accumulated and
communicated to our management, including our principal executive officer and
principal financial officer, or persons performing similar functions, as appropriate
to allow timely decisions regarding required disclosure.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">17.</font></i><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></i><i><font size="2" style="font-size:10.0pt;font-style:italic;">Comment:&#160; We note your conclusion that NTIC&#146;s
disclosure controls and procedures were effective to provide reasonable
assurance &#147;that material information relating to NTIC and its consolidated
subsidiaries is made known to management, including NTIC&#146;s Chief Executive
Officer and Chief Financial Officer, particularly during the period when NTIC&#146;s
periodic reports are being prepared.&#148;&#160;
Please confirm to us and revise future filings to clarify, if true, that
your officers concluded that NTIC&#146;s disclosure controls and procedures were
effective to provide reasonable assurance that the information required to be
disclosed in the reports they file or submit under the Exchange Act is
accumulated and communicated to management, including your chief executive
officer and chief financial officer, to allow timely decisions regarding
required disclosure.&#160; This comment is
also applicable to your November&nbsp;30, 2009 Form&nbsp;10-Q.</font></i></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Response</font></i><font size="2" style="font-size:10.0pt;">:&#160;
We hereby confirm to the Staff of the Division of Corporation Finance,
Securities and Exchange Commission, that our management, with the participation
of our </font></p>

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<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">chief executive officer
and chief financial officer, evaluated the effectiveness of our disclosure
controls and procedures pursuant to Rule&nbsp;13a-15 under the Exchange Act and
that based on management&#146;s evaluation, our chief executive officer and chief
financial officer concluded that, as of each of August&nbsp;31, 2009 and November&nbsp;30,
2009, our disclosure controls and procedures were effective to provide
reasonable assurance that information required to be disclosed by us in the
reports that we file or submit under the Exchange Act is recorded, processed,
summarized and reported within the time periods specified in the SEC&#146;s rules&nbsp;and
forms, and that such information is accumulated and communicated to our
management, including our chief executive officer and chief financial officer,
as appropriate, to allow timely decisions regarding required disclosure.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As requested, in future
filings, we will clarify that our management, with the participation of our
chief executive officer and chief financial officer, evaluated the
effectiveness of our disclosure controls and procedures pursuant to Rule&nbsp;13a-15
under the Exchange Act and that based on management&#146;s evaluation, our chief
executive officer and chief financial officer concluded that, as of the end of
the period covered by such report, our disclosure controls and procedures are effective
to provide reasonable assurance that information required to be disclosed by us
in the reports that we file or submit under the Exchange Act is recorded,
processed, summarized and reported within the time periods specified in the SEC&#146;s
rules&nbsp;and forms, and that such information is accumulated and communicated
to our management, including our chief executive officer and chief financial
officer, as appropriate, to allow timely decisions regarding required
disclosure.&#160; In the event that we
determine that our disclosure controls do not meet the level of effectiveness
required, we will disclose it as such and make the immediate changes to correct
the items that are deemed ineffective, and if disclosures need to be made, we
will do so.</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">18.</font></i><i><font size="1" style="font-size:3.0pt;font-style:italic;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></i><i><font size="2" style="font-size:10.0pt;font-style:italic;">Comment:&#160; Additionally we note your disclosure
regarding the lack of segregation of duties here and in your November&nbsp;30,
2009 Form&nbsp;10-Q.&#160; Please explain to
us why you have included this disclosure and clarify for us how the lack of
segregation of duties impacted the evaluation of the design and effectiveness
of your disclosure controls and procedures.</font></i></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .5in;text-align:left;text-indent:0in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Response</font></i><font size="2" style="font-size:10.0pt;">:&#160;
We supplementally advise the Staff that the lack of segregation of
duties we discussed in our annual report on Form&nbsp;10-K for the fiscal year
ended August&nbsp;31, 2009 and in our quarterly report on Form&nbsp;10-Q for
the fiscal quarter ended November&nbsp;30, 2009 did not impact our evaluation
of the design and effectiveness of our disclosure controls and procedures or
the previous conclusions of our chief executive officer and chief financial
officer that our disclosure controls and procedures were effective as of August&nbsp;31,
2009 and November&nbsp;30, 2009.&#160; We
further supplementally advise the Staff that we intend to omit such language in
future filings.</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">* * * * *</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In connection with this response, Northern
Technologies International Corporation acknowledges that:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Northern Technologies International Corporation</font><font size="2" style="font-size:10.0pt;"> is responsible
for the adequacy and accuracy of the disclosure in the filing;</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Staff comments or changes to
disclosure in response to Staff comments do not foreclose the Commission from
taking any action with respect to the filing; and</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Northern Technologies International Corporation </font><font size="2" style="font-size:10.0pt;">may not assert
Staff comments as a defense in any proceeding initiated by the Commission or
any person under the federal securities laws of the United States.</font></p>

<p align="left" style="margin:0in 0in .0001pt .75in;text-align:left;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">After you have had an
opportunity to review the above response to your comment, please call me at
(763) 225-6637 to discuss any further questions or comments you might have
concerning the responses contained in this letter.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Very truly yours,</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="50%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman"><img width="145" height="82" src="g63721bei001.gif"></font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Matthew
  C. Wolsfeld, CPA</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief
  Financial Officer and Corporate Secretary (principal financial officer and
  principal accounting officer)</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">cc:</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mark
  J. Stone, Audit Committee Chair, NTIC</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amy
  E. Culbert, Oppenheimer Wolff&nbsp;&amp;
  Donnelly LLP</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Scott
  Riser, Baker Tilly Virchow Krause, LLP</font></p>
  </td>
 </tr>
 <tr>
  <td width="6%" valign="top" style="padding:0in 0in 0in 0in;width:6.66%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="93%" valign="top" style="padding:0in 0in 0in 0in;width:93.34%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Michael McGee, Baker Tilly
  Virchow Krause, LLP</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14<a name="PB_14_013137_3736"></a></font></p>

<div align="left" style="margin:0in 0in .0001pt;text-align:left;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='14',FILE='C:\JMS\105947\10-6372-1\task3994193\6372-1-be.htm',USER='105947',CD='Mar 16 06:47 2010' -->


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