Exhibit 10.5

28/04/05

//lzzz1ngfe0

Confidential

DATED: April 28th, 2005

(1)     Northern Technologies International Corporation

(2)     Excor Korrosionsforschung GmbH

(3)     Fibro-NTI Urun Gelistirme Ve Pazarlama Ticaret Anonim

(4)     Acobal SAS

and

(5)     Henkel KGaA

(6)     Henkel Surface Technologies S.A.S

---

SETTLEMENT AGREEMENT AND ASSET PURCHASE

---



THIS AGREEMENTis made the 28 day of April 2005

BETWEEN:-

|(1) | Northern Technologies International   Corporationa   corporation incorporated under the laws of the State of Delaware whose   principal office is at 6680 North Highway 49, Lino Lakes, Minnesota, USA   (NTIC) acting through its duly authorized representatives Gerhard Hahn,   Jacques Manenc and Steven S. Taylorand
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                            
|(2) | Excor Korrosionsforschung GmbHa corporation incorporated under the laws of   Germany and having offices at Magdeburger Str. 58, 01067 Dresden, GERMANY   (Excor); acting through its duly authorized representative Professor Dr.   Georg Reinhard, and                                                                  
|    |                                                                                                                                                                                                                                                                                                                            
|(3) | Fibro-NTI Ürün Gelistirme Ve Pazarlama   Ticaret Anonima   company organized under the laws of Turkey having offices at Karanfil Cad. No: 27, 80620 1. Levent, Istanbul, Turkey, (Fibro-NTI) acting through its duly   authorized representative Dr. Mehmet A. Gencer; and                                               
|    |                                                                                                                                                                                                                                                                                                                            
|(4) | Acobal SASa corporation incorporated under the laws of   France and having offices at ZI le Clos Marquet, 42400 Saint Chamond, FRANCE   (Acobal); acting through its duly authorized representative Jacques   Manencand                                                                                                  
|    |                                                                                                                                                                                                                                                                                                                            
|(5) | Henkel KGaA a company registered under the laws of   Germany and having offices at Henkelstrasse 67, 40191 Duesseldorf, GERMANY   (Henkel); acting through its duly authorized representative Dr. Boris   Tasche.                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                            
|(6) | Henkel Surface Technologies S.A.S,a company registered under the laws of France   and having its offices at 161, rue de Silly, 92100 Boulogne Billancourt,   FRANCE (HST), acting through its duly authorized representative Dr. Boris   Tasche.                                                                         

together the Parties.

RECITALS

|(A) | By deed dated 24 September 2002, NTIC   commenced proceedings in the Civil Court of Nanterre, France, against HST in   respect of the infringement of Community Trade Mark No. 000396176, unfair   competition and breach of confidentiality undertakings.                                                                             
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                        
|(B) | On 24 September 2002 Acobal, the exclusive   licensee of NTIC in France, commenced proceedings in the Civil Court of   Nanterre, France, against HST in respect of breach of Article L.442-6 of the   French Commercial Code and unfair competition.                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                        
|(C) | On 5 May 2003 the Presiding Judge of the   Civil Court of Nanterre ordered that the two sets of proceedings between NTIC   and HST and between Acobal and HST referred to above should be joined and the   joined proceedings transferred to the Civil Court of Paris. These proceedings   are pending before the Civil Court of Paris.

1



|(D) | After the proceedings in France had   commenced, Henkel commenced proceedings for the cancellation of Community   Trade Mark No. 000396176 owned by NTIC in the Office for the Harmonisation of   the Internal Market (OHIM) in Alicante, Spain.                                                                                                                                                                            
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                             
|(E) | Henkel now wishes to dispose of certain of   the assets used by it or its Affiliates for the purpose of the Business (as defined below).                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                             
|(F) | The Parties also wish to settle the proceedings referred to above   subject to and in accordance with the terms of this Agreement.                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                             
|(G) | NTIC is, therefore, willing to waive its asserted entitlement to   damages in the above proceedings on the basis that Henkel is willing to   transfer the said assets to NTIC. Henkel is in return willing to withdraw the   proceedings for the cancellation of Community Trade Mark No 000396176 in the   OHIM, if NTIC and Acobal waive all   and any right relating to the suit pending before the Civil Court of Paris.

THE PARTIES AGREE AS FOLLOWS:-

|1.  | INTERPRETATION AND DEFINITIONS                                                         
|--- | ---------------------------------------------------------------------------------------
|    |                                                                                        
|1.1 | Definitions                                                                            
|    |                                                                                        
|    | In this Agreement the following words and phrases shall have the   following meanings:-

| | Affiliate | means in relation to a party, any body corporate or other legal   entity which:-                                                                                                                                                                                                                                                                                                                                                           
| | ----------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |             |                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |             | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |             |                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |             | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |             |                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |             | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |             |                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |             | In the case of legal entities having stocks   and/or shares, ownership or control shall exist through the direct or   indirect ownership and/or control of more than fifty percent of the voting   shares.  In the case of any other   legal entity, ownership and/or control shall exist through the ability to directly   or indirectly control the management and/or business of the legal entity   through a majority of voting rights;

2



| | Assets         | means the tangible and intangible assets listed in the Purchase   Agreement;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | ---------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | Business Day   | means any day on which banks in the City of Paris are open for   business (excluding Saturdays);                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | Effective Date | means the date on which the ownership to the Business and the Assets   is transferred from Henkel and/or its Affiliates to NTIC and/or the NTIC Joint   Venture Companies as will be defined in the Purchase Agreement;                                                                                                                                                                                                                                                                                                                                               
| |                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | Contracts      | means all the contracts, arrangements and engagements relating either   exclusively to the Business or relating in part to the running of the   Business (only to the extent that they do so relate) to which Henkel or any   of its Affiliates are a party as at the Effective Date and which are current   or unperformed as at the Effective Date including, for the avoidance of   doubt, all licences of intellectual property rights used in or relevant to   the Business or Technology with the exception of standard software contracts,   however, excluding
| |                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |                  | a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |                  | b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |                  | c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |                  | d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |                  | e)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | Customer Lists | means lists of all customers of the Business in the Settlement   Territory;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

3



| | Encumbrance           | means and includes any interest and equity of any person (including   without prejudice to the generality of the foregoing, any right to acquire,   option or right of pre-emption) or any mortgage, charge, pledge, lien,   hypothecation or assignment or any other encumbrance, priority or security   interest or arrangement of whatsoever nature over or in the relevant   property;                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | ----------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | French Action         | means the proceedings details of which are set out in Schedule 1;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | Goodwill              | means the goodwill of the Business including the exclusive right of   NTIC and/or the NTIC Joint Venture Companies to represent itself as carrying   on the Business in continuation of and in succession to Henkel and its   Affiliates, which for the avoidance of doubt, shall not include the name Henkel;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | the Business          | means Henkels and/or its Affiliates business anywhere in the world   relating to the development, manufacture, distribution, sale, supply,   marketing of or otherwise trading in products utilising the Technology;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | Intellectual Property | means any patents, trade marks, service marks, registered designs,   applications for any of those rights, trade and business names (including   Internet domain names and e-mail address names but excluding any name   including the name Henkel), logos, unregistered trade marks and service   marks, copyright and related rights, performers property rights, database   rights, rights in designs, trade dress, inventions, know-how and confidential   information owned by Henkel or its Affiliates in the Settlement Territory in   relation to the Business or the Technology and, without limitation, includes   all trade marks, design rights, patents, patent applications, know-how,   copyright and database rights set out in the Purchase Agreement, together   with the right to sue for past infringements of such rights;
| |                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | Inventory               | means all Product held or owned by Henkel and/or its Affiliates on   the Effective Date for sale in the Business.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

4



| | IP and Goodwill Assignment   | means the assignment of Intellectual Property and Goodwill according   to the Purchase Agreement;                                                                                                                                                                                                                                                                                                                           
| | ------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                |                                                                                                                                                                                                                                                                                                                                                                                                                             
| | Know-How                     | means the know-how assigned to NTIC or the NTIC Joint Venture   Companies according to the Purchase Agreement;                                                                                                                                                                                                                                                                                                              
| |                                |                                                                                                                                                                                                                                                                                                                                                                                                                             
| | NTIC Joint Venture Companies | means the companies set out in Schedule 4;                                                                                                                                                                                                                                                                                                                                                                                  
| |                                |                                                                                                                                                                                                                                                                                                                                                                                                                             
| | OHIM Proceedings             | means the proceedings details of which are set out in Schedule 2;                                                                                                                                                                                                                                                                                                                                                           
| |                                |                                                                                                                                                                                                                                                                                                                                                                                                                             
| | Settlement Territory         | means the world;                                                                                                                                                                                                                                                                                                                                                                                                            
| |                                |                                                                                                                                                                                                                                                                                                                                                                                                                             
| | Product                      | means any product developed using the Technology as part of the   Business;                                                                                                                                                                                                                                                                                                                                                 
| |                                |                                                                                                                                                                                                                                                                                                                                                                                                                             
| | Purchase Agreement           | means the contract(s) to be concluded between Henkel or its   Affiliates and NTIC or the NTIC Joint Venture Companies to assign the part of   the Business belonging to Henkel or the respective Affiliates to NTIC or the   NTIC Joint Venture Companies and whose form has previously been agreed   between the Parties; and                                                                                              
| |                                |                                                                                                                                                                                                                                                                                                                                                                                                                             
| | the Technology               | means post-manufacture non-contact corrosion protection  technologies including, without   limitation, VCI delivery systems such as capsules, films, papers and other   host materials and other systems for protecting industrial and commercial   products against chemical, electrostatic, physical and environmental damage   and corrosion including non-contact barrier protection and scavenger   protection systems.

|1.2 | Construction and Interpretation
|--- | -------------------------------
|    |                                
|    | 1.2.1                          
|    |                                
|    | 1.2.2                          

5



| | 1.2.3 | unless the context shall otherwise require the singular shall include   the plural and vice versa, reference to any gender shall include references   to the other genders and references to persons shall include bodies   corporate, unincorporated associations and partnerships ;
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                                                                                                                                                                                      
| | 1.2.4 | this Agreement includes the Schedules hereto;                                                                                                                                                                                                                                        

|2.  | TERMINATION OF THE PROCEEDINGS AND SETTLEMENT AGREEMENT
|--- | -------------------------------------------------------
|    |                                                        
|2.1 | French Action                                          
|    |                                                        
|    | 2.1.1                                                  
|    |                                                        
|    | 2.1.2                                                  
|    |                                                        
|    | 2.1.3                                                  

|2.2 | OHIM Proceedings
|--- | ----------------
|    |                 
|    | 2.2.1           
|    |                 
|    | 2.2.2           

6



|    | 2.2.3                                                                                                                                                                                                                                                                                                                                                                                                                                                | In addition,   Henkel undertakes not to introduce further proceedings challenging the   validity of Community Trade Mark N° 000396176.  In addition, Henkel undertakes not to assist, procure or incite   any person to do so and guarantees that its Affiliates shall also not do so.                                                     
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                            
|2.3 | Cost of proceedings and damages                                                                                                                                                                                                                                                                                                                                                                                                                     
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    | 2.3.1                                                                                                                                                                                                                                                                                                                                                                                                                                                | Each of the   Parties shall bear all expenses, fees, disbursements and costs that they have   already paid and/or advanced or that they will have to pay for the   introduction and the termination of the aforementioned proceedings and, in   particular, all costs relating to the counsels, lawyers, judicial auxiliaries   and clerks.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                            
|    | 2.3.2                                                                                                                                                                                                                                                                                                                                                                                                                                                | The Parties   undertake not to claim any damages for the termination of the aforementioned   proceedings.  In addition, they   guarantee that their Affiliates and/or Joint Venture Companies will not claim   any damages.                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                            
|2.4 | Settlement Agreement                                                                                                                                                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    | The Parties   recognize that the withdrawal from all of the actions and claims referred to   in paragraph 2.1 and 2.2 above, constitutes reciprocal concessions under   French law, taking into account that NTIC and ACOBAL, in particular, are   directly affected by the OHIM proceedings.                                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    | The Parties   decided to submit this Agreement to article 2044 and following of the French   Civil Code, specially referring to the provisions of the following articles:                                                                                                                                                                                                                                                                           
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    | - Article   2044: a compromise is a contract by which the parties settle an arisen   controversy, or prevent a controversy from arising. That contract must be   made in writing.                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    | - Article   2052:  Compromises have, between the   parties, the authority of res judicata of a final judgement. They may not be   attacked on account of an error of law, nor on account of loss.                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    | This Settlement   Agreement immediately and definitively binds the Parties, whatever will be   the execution of the provisions included in the following articles dealing   with the Asset Purchase.                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|3.  | ASSET PURCHASE                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    | Henkel undertakes to sell  and if Henkel is not the owner shall   procure that its Affiliates sell  without undue delay according to the   national laws of the countries concerned, the Business within the Settlement   Territory with effect from the Effective Date.                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    | Henkel also undertakes and shall procure that its Affiliates shall   from the date of this Agreement initiate the internal legal formalities with   a view to selling the Business. Henkel undertakes to procure that NTIC and/or   the NTIC Joint Venture Companies appointed in each concerned country (or   created to that effect) acquire the Business from Henkel or its Affiliates   within 3 (three) months from the date of this Agreement.

7



|3.1 | Object of the sale
|--- | ------------------
|    |                   
|    | 3.1.1             
|    |                   
|    | 3.1.2             
|    |                   
|    |                   
|    |                   
|    |                   
|    |                   
|    |                   
|    |                   
|    |                   
|    |                   
|    |                   
|    |                   
|    | 3.1.3             

8



28/05/04

| | 3.1.4 | Henkel undertakes   that it shall not, and that it will procure that its Affiliates shall not,   acquire more than 5% of the issued share capital of NTIC at any time in the   future.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                                                                                       
| | 3.1.5 | The Parties hereto understand and agree that the assets of Henkel or   its Affiliates set out below are excluded from the sale and transfer to NTIC:                                  
| |       |                                                                                                                                                                                       
| |       | a)                                                                                                                                                                                    
| |       |                                                                                                                                                                                       
| |       | b)                                                                                                                                                                                    
| |       |                                                                                                                                                                                       
| |       | c)                                                                                                                                                                                    
| |       |                                                                                                                                                                                       
| |       | d)                                                                                                                                                                                    
| |       |                                                                                                                                                                                       
| |       | e)                                                                                                                                                                                    

|3.2 | Employment Matters
|--- | ------------------
|    |                   
|    | 3.2.1             
|    |                   
|    | 3.2.2             

9



| |       | NTIC against all and any reasonable costs, claims, liabilities,   obligations, and expenses arising out of: any persons other than the   Transferred Employees who are or have been at any time prior to the Effective   Date engaged to any extent in the Business; any of the Transferred Employees   before the Effective Date; any obligation to inform and consult   representatives of the Transferred Employees or otherwise in accordance with   article L 122-12 of the French Labour Code; and all accrued holiday pay   entitlements and accrued but unused holiday entitlements of the Transferred   Employees which accrue during any period prior to the Effective Date, as the   case may be.
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | 3.2.3 | Henkel and/or HST will forward in conformity with French law all   necessary documents including the respective Trust Deeds and Employees   Handbooks and forward all necessary and requested declarations to ACOBAL in   order to enable ACOBAL to effect the above transfer of employees.                                                                                                                                                                                                                                                                                                                                                                                                                 
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | 3.2.4 | ACOBAL shall be responsible for any severance benefits, redundancy   costs or any other costs related to the non observance of notice periods or   any financial or other obligation related to the Transferred Employees in   connection with the termination of their employment with ACOBAL in case a   Transferred Employee refuses a modification of its employment contract in   connection with its transfer to ACOBAL, unless HST terminates the employment   due to reasons other than the transfer of the Business to ACOBAL.                                                                                                                                                                     

|3.3 | Assignment of Contracts
|--- | -----------------------
|    |                        
|    | 3.3.1                  
|    |                        
|    | 3.3.2                  
|    |                        
|    | 3.3.3                  
|    |                        
|    |                        

10



| |       | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                  | all and any other Contracts which do not impose a financial   obligation or liabilities exceeding Euros 10,000 (ten thousand) per year   and which exclusively refer to the Business.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | 3.3.4 | Where any consent or agreement of the other party to any of the   Contracts or of any third party is required to enable NTIC or the NTIC Joint   Venture Companies to assume all rights and obligations under and to perform   any Contract or to enable Henkel or its Affiliates to assign or transfer the   benefit or burden of any Contract to NTIC or the NTIC Joint Venture   Companies, the following provisions shall apply:
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |       | a)                                                                                                                                                                                                                                                                                                                                                                                                                                   | Henkel or its Affiliates and NTIC or the NTIC Joint Venture Companies   shall use their respective reasonable endeavours to obtain the consent or agreement   of the other party or any third party to whatever assignment, transfer or   novation is necessary to enable NTIC or the relevant NTIC Joint Venture   Companies to assume all rights and logistics under and to perform such   Contract after completion or, as the case may be, to transfer the benefit and   burden of such Contract to NTIC or the relevant NTIC Joint Venture Companies.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |       | b)                                                                                                                                                                                                                                                                                                                                                                                                                                   | Until the consent or agreement referred to in sub-paragraph a) above   is obtained, NTIC or the relevant NTIC Joint Venture Companies shall, unless   the relevant Contract prohibits it, perform all the obligations of Henkel or   the relevant Henkel Affiliate under such Contract as agent for, or   sub-contractor to, Henkel or such Henkel Affiliate and indemnify Henkel or   the respective Henkel Affiliate in respect of such performance, or, if the   relevant Contract or any provision of a applicable law prohibits NTIC or the   relevant NTIC Joint Venture Companies from acting so or NTIC or the relevant   NTIC Joint Venture Companies cannot be permitted to act as agent and   sub-contractor because of confidentiality obligations, Henkel shall to the   extent it is reasonably able to do so, do or procure the doing by any of the   Henkel Affiliates of all such acts and things as NTIC may reasonably require   to enable due performance of the Contract to provide for NTIC
or the relevant   NTIC Joint Venture Companies the benefits subject to the burdens of the   Contract and NTIC shall indemnify Henkel or the relevant Henkel Affiliate in   respect of all such acts and things. For this purpose, it shall not be   reasonable to require Henkel or any of the Henkel Affiliates to make any   payments unless NTIC or the relevant NTIC Joint Venture Companies have first   paid Henkel or the relevant Henkel Affiliate sufficient cleared funds to make   such payment.
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | 3.3.5 | If a consent cannot be obtained, Henkel or the relevant Henkel   Affiliate shall be deemed to hold the benefit of the relevant Contract on   trust for NTIC or the relevant NTIC Joint Venture Companies, until such time   as consent by the respective party or third party is obtained.                                                                                                                                          

11



|    | 3.3.6                                                                                                                                                                                                                                                                                                                | As regards non-compete, non-disclosure and confidentiality agreements   relating to the Business and/or the Assets, NTIC or the NTIC Joint Venture   Companies shall have the right to assume them or, in each case, to refuse to   assume them, unless such an agreement is listed in the Purchase Agreement.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                               
|3.4 | Transfer of Inventory at the Effective Date                                                                                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                     
|    | The Inventory shall be transferred to ACOBAL or the NTIC Joint   Venture Company in Turkey as appropriate.                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                     
|    | The Parties   have set out a first estimate of the price of the Inventory in clause 3.5 of   this Agreement.  The actual purchase   price for such Inventory shall be calculated by using the same methods and in   the same manner as specified in the relevant Purchase Agreement.                                
|    |                                                                                                                                                                                                                                                                                                                     
|    | Henkel or its Affiliates shall provide the respective invoices for   the Inventory which will be submitted to the applicable national rules and   regulations, notably regarding VAT.                                                                                                                               
|    |                                                                                                                                                                                                                                                                                                                     
|    | The Parties undertake that any Products stored for more than 6 (six)   months without any sale are worthless and shall not be taken into account in   calculating the sum payable under 3.5.1.3 below.  Such Inventory shall nonetheless be transferred to NTIC or the   NTIC Joint Venture Companies.              
|    |                                                                                                                                                                                                                                                                                                                     
|    | NTIC and the NTIC Joint Venture Companies further undertake to be   responsible for ensuring that no raw materials (such as masterbatch or resin)   which are not transferred as part of the Inventory do not fall into the hands   of any third party who may use such materials to produce counterfeit   products.

|3.5 | Purchase Price
|--- | --------------
|    |               
|    | 3.5.1         
|    |               
|    |               

12



| |       | 3.5.1.2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | ACOBAL shall pay:   
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                     
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 3.5.1.2.1           
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                     
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 3.5.1.2.2           
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                     
| |       | 3.5.1.3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Fibro-NTI shall pay:
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                     
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 3.5.1.3.1           
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                     
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 3.5.1.3.2           
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                     
| | 3.5.2 | Should the stock taking as described in Clause 3.4 turn out that the   value of the Inventory exceeds or is lower than the sums attributed above in   clauses 3.5.1.2.2 and 3.5.1.3.2, the net Purchase Price shall be adjusted   accordingly                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                     
| | 3.5.3 | The net Purchase Price shall be paid by NTIC and the NTIC Joint   Venture Companies as set out under Clause 3.5.1to Henkel or its Affiliates   either by means of a wire transfer to bank accounts to be indicated at the   Effective Dates specified in the different Purchase Agreements which will be   concluded in conformity with the national laws concerned.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                     
| | 3.5.4 | It is the intention of the Parties that the Business shall be   transferred to NTIC or the NTIC Joint Venture Companies as a going concern   with effect from the Effective Date and the Parties will use all reasonable   endeavours to secure that the sale is neither treated as a supply of goods   nor a supply of services for the purposes of Value Added Tax. To the extent   that certain transactions are nevertheless subject to Value Added Tax (or   equivalent sales tax), NTIC or the NTIC Joint Venture Companies shall pay   such tax in addition to the net Purchase Price. Such a value added tax will   be due and payable when NTIC or the NTIC Joint Venture Companies shall have received   from Henkel or its Affiliates an invoice issued in accordance with the   applicable local or national regulations. Any other taxes imposed in   connection with the sale and transfer of the Business shall be paid by NTIC   or the NTIC Joint Venture Companies (including but not limited to
stamp and   registration duties in France and in Turkey).
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                     
| | 3.5.5 | Henkel or the respective Henkel Affiliate shall remain responsible   for all taxes (e.g. income tax, Value Added Tax, payroll taxes) inherent to   the Business until the Effective Date and shall indemnify NTIC and the NTIC   Joint Venture Companies in respect of the same.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

13



|3.6 | Non competition clause
|--- | ----------------------
|    |                       
|    | 3.6.1                 
|    |                       
|    |                       
|    |                       
|    |                       
|    |                       
|    |                       
|    |                       
|    | 3.6.2                 
|    |                       
|    | 3.6.3                 
|    |                       
|    | 3.6.4                 

14



|    | 3.6.5           | Without prejudice to sub-clause 3.6.4, if any restriction or   undertaking is found by any court or other competent authority to be void or   unenforceable, the Parties shall negotiate in good faith to replace such void   or unenforceable restriction or undertaking with a valid provision which, as   far as possible, has the same legal and commercial effect as that which is   replaced.                                                                                                                                              
|--- | --------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|3.7 | Indemnification
|    |                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    | 3.7.1           | NTIC undertakes and engages to fully and timely release and indemnify   Henkel respectively the Henkel Affiliates as of the Effective Date from all   and any such obligations and liabilities of the Business:                                                                                                                                                                                                                                                                                                                                  
|    |                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    |                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    |                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    |                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    |                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    | 3.7.2           | Henkel undertakes and engages to fully and timely release and   indemnify NTIC and respectively the NTIC Joint Venture Companies from all and   any claims, law suits, costs and expenses, liabilities and damages arising   out of a breach of any of the warranties granted in Article 3.9 below. In any   case such liability of Henkel shall be limited as further specified in   Article 3.10.                                                                                                                                              
|    |                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    | 3.7.3           | For the avoidance of doubt NTIC and the NTIC Joint Venture Companies   shall have no responsibility for or any liability in respect of any product   liability or other claims made in relation to any Products supplied by or on   behalf of Henkel or its Affiliates prior to the Effective Date to customers   or as part of the Inventory being transferred to NTIC or the NTIC Joint Venture   Companies.  Henkel hereby confirms   that any such Product was manufactured or supplied subject to appropriate   product liability insurance.

|3.8 | Miscellaneous
|--- | -------------
|    |              
|    | 3.8.1        

15



| | 3.8.2 | Henkel and its Affiliates will assist and co-operate with NTIC and   the NTIC Joint Venture Companies, to an extent reasonably requested by NTIC,   in notifying debtors of sold rights and claims and/or in notifying any third   party which holds any title, interest or possession with respect to the   Assets.
| | ----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                                                                                                                                                                                                                     
| | 3.8.3 | Henkel shall hand all documents constituting, representing or   containing the Assets to NTIC without endangering the continuance of the   Business, in the manner and format as agreed upon between the Parties.                                                                                                   

|3.9 | Warranties
|--- | ----------
|    |           
|    | 3.9.1     
|    |           
|    | 3.9.2     
|    |           
|    |           
|    |           
|    |           
|    |           
|    |           
|    |           
|    |           
|    |           
|    |           
|    |           
|    |           

16



| |       | 3.9.2.6                                                                                                                                                                                                                                                                                                                                                                                                                         | Where registered, all registrations, filings and payments of fees   necessary to preserve the rights of Henkel and/ or its Affiliates in the   Intellectual Property have been made and are in good standing, and Henkel and   / or its Affiliates have not done or omitted to do anything which may cause   any of the registered Intellectual Property to lapse prematurely;
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                               
| |       | 3.9.2.7                                                                                                                                                                                                                                                                                                                                                                                                                         | Neither Henkel nor its Affiliates have been notified that any   opposition, cancellation or revocation action or protest has been filed with   any examining authority in relation to any application to register the   Intellectual Property, or existing registration;                                                                                                      
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                               
| |       | 3.9.2.8                                                                                                                                                                                                                                                                                                                                                                                                                         | Henkel is not aware of any fact or matter that could affect the   validity or registerability of the Intellectual Property;                                                                                                                                                                                                                                                   
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                               
| |       | 3.9.2.9                                                                                                                                                                                                                                                                                                                                                                                                                         | Neither Henkel nor its Affiliates have granted to any of their   respective sub-contractors, agents or other contracting parties the right to   use any know-how or intellectual property, relating to the Technology, for   its own benefit or for the benefit of a third party.                                                                                             
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                               
| | 3.9.3 | there are no allegations or proceedings pending or to the best of   Henkels knowledge, threatened, which assert that the development,   manufacture, use or sale of any Product infringes or will infringe third   party rights or which challenge the ownership, validity or enforceability of   the Intellectual Property;                                                                                                  
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                               
| | 3.9.4 | Henkel has made a full and complete disclosure to NTIC of all third   party relationships which to the best knowledge of Henkel having made a   diligent search of appropriate records may affect NTICs full and complete   exercise of rights under this Agreement;                                                                                                                                                          
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                               
| | 3.9.5 | except in the ordinary course of business and under appropriate   confidentiality agreements copies of which have been provided to NTIC, no   disclosure has been made to third parties of any of the confidential   information, Know-How, technical processes, financial or trade secrets or   pricing, customer or supplier lists relating to the Business; and                                                             
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                               
| | 3.9.6 | all documents or other materials in which the Intellectual Property   subsists, and all certificates or other documents evidencing or otherwise   relating to the ownership of such rights, are in the possession, ownership   and control of Henkel, and Henkel is not a party to any confidentiality or   other agreement or subject to any duty which restricts the free use or   disclosure of such documents or materials.
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                               
| | 3.9.7 | Henkel shall procure that any Affiliate that owns any Intellectual   Property shall give the same warranties to NTIC as are contained in clause   3.9.                                                                                                                                                                                                                                                                         
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                               
| | 3.9.8 | Henkel warrants that, in relation to the Assets:                                                                                                                                                                                                                                                                                                                                                                               

17



| |  | 3.9.8.1 | it and/or its Affiliates own all the Assets absolutely as at the   Effective Date.                                                                                                             
| |  | ------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |         |                                                                                                                                                                                                
| |  | 3.9.8.2 | it has not nor have its Affiliates disposed of or agreed to dispose   of or granted or agreed to grant any Encumbrance in respect of any of the   Assets; and                                  
| |  |         |                                                                                                                                                                                                
| |  | 3.9.8.3 | there has been no exercise, purported exercise or claim for   Encumbrance over any of the Assets and there is no dispute directly or   indirectly relating to any of the Assets.               
| |  |         |                                                                                                                                                                                                
| |  | 3.9.8.4 | the Products in the stocks as of the Effective Date comply with the   specifications as defined in the control parameters as defined in the quality   control documentation for finished goods.

|3.10                                                                                                                                                                              | Limitation of liability                    
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------
|                                                                                                                                                                                  |                                            
|                                                                                                                                                                                  | 3.10.1                                     
|                                                                                                                                                                                  |                                            
|                                                                                                                                                                                  | 3.10.2                                     
|                                                                                                                                                                                  |                                            
|3.11                                                                                                                                                                              | Legal Relations prior to the Effective Date
|                                                                                                                                                                                  |                                            
|For the   period between the date of this Agreement and the Effective Date, Henkel   shall assume and procure its Affiliates to assume certain obligations set out   hereinafter:
|                                                                                                                                                                                  |                                            
|                                                                                                                                                                                  | 3.11.1                                     
|                                                                                                                                                                                  |                                            
|                                                                                                                                                                                  | 3.11.2                                     

18



|     | 3.11.3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | prior to the   Effective Date not to sell, transfer, lease, assign or otherwise dispose of a   material part of its undertaking, property or assets relating to the Business   otherwise than in the ordinary and proper course of the Business;                                                                                                                                                                                                                                                                                                                                                                                                                                        
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|     | 3.11.4                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | not to enter   into any contract or transaction except on an arms length basis;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|3.12 | Future Co-operation between the Parties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|     | NTIC and Henkel agree to enter into a co-operation arrangement, in   conformity with all relevant regulations involved (including but not limited   to EU law) between NTIC, the NTIC Joint Venture Companies, and Henkel and the   Henkel Affiliates in respect of:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | the joint development and marketing of, in the case of NTIC and the   NTIC Joint Venture Companies compatible technology and in the case of Henkel   and the Henkel Affiliates, the complementary products or services;                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | research and development in order to increase or enhance the mutual   compatibility;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | introduction by NTIC to Henkel and the Henkel Affiliates of new   technology .                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|     | The purpose of such  cooperation  shall be to create synergies so as to increase
customer   value  in   respect  of  the   product  or  service   lines  of  both
businesses. Such  co-operation is an essential element of this Agreement for NTIC
and the NTIC Joint Venture  Companies and was a material  inducement for them to
enter into this  Agreement.   NTIC and the NTIC Joint Venture  Companies on
the one hand, and Henkel and its Affiliates on the other,  accept the tenet that
despite their reasonable best efforts, there is an inherent entrepreneurial risk
that  the  intended  co-operation  may not  result  in any  economically  viable
technical and/or product  innovation which the Parties can jointly  introduce to
the marketplace on a profitable basis.
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|     | 3.12.1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Subject to the terms of any agreement entered into between the   parties, NTIC and Henkel are prepared to work with each other and to disclose   relevant know-how under appropriate terms of confidence subject to reasonable   royalties or compensation where value is added to Henkel or its Affiliates,   or NTICs and the NTIC Joint Venture Companies, respective ongoing business.   NTIC and Henkel will agree on marketing costs and their allocation between   the parties.  Any agreement will,   therefore, address issues including the use of confidential information, the   ownership of background and foreground intellectual property, and   exploitation rights.
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|     | 3.12.2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | The Parties shall not have entered this Agreement if they had not   seriously believed that a serious and faithful co-operation between   themselves was possible.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Henkel and NTIC shall designate members to a steering committee. The   steering committee shall:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | determine its missions;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

19



| |  | fix its meeting periodicity (depending on the projects and the   regional needs);
| | - | ---------------------------------------------------------------------------------
| |  | decide on the sectors of potential cooperation of such Committees.               

The steering committee shall consist of the following members:

|NTIC                     |  | Henkel                             
|------------------------ |  | -----------------------------------
|                         |  |                                    
|Dr. Mehmet A. Gencer     |  | Dr. Ralf Schelbach                 
|                         |  |                                    
|G. Patrick Lynch (World) |  | Dr. Ralf Schelbach (Business)      
|                         |  |                                    
|Gerhard Hahn (Europe)    |  | Patrick Droniou (Henkel Technology)

|     | Once a specific subject of co-operation is established, the Parties   shall elaborate a list of projects which might be suitable for a cooperation   between Henkel, the Henkel Affiliates, NTIC and/or NTIC Joint Venture   Companies.  The Parties make their   best efforts in order to obtain approval of their respective company within   due time in order to proceed on such specific subject regarding i.e. technical   elements and human competences to be shared and reasonable financial aspects.   The steering committee shall decide on the necessary steps which have to be   taken to implement the listed projects and will establish a regional   committee in as far as it is necessary to implement a project.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|3.13 | Publicity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|     | 3.13.1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|     | 3.13.2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

20



|     | 3.13.3                   | Each Party shall be entitled to issue a press release with the prior   approval of the other party                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|---- | ------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|     |                          | Unless otherwise mandated by law, this Agreement shall not form part   of any public record.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|     |                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|3.14 | Miscellaneous Provisions
|     |                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|     | 3.14.1                   | Each Party undertakes in good faith to implement or make implemented   by its Affiliates and joint venture companies the provisions and/or necessary   or appropriate measures so that this Agreement receives full and entire   effect. To that regard, the Parties shall arrange together if a difficulty   arises concerning the preparation, the conclusion, the execution of one or   several Purchase Agreement(s) concluded under the applicable national   legislation so as the spirit and the word of the hereby Agreement is   respected.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|     |                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|     | 3.14.2                   | NTIC  and  Henkel  regard  all  liabilities  or  obligations  accepted  by their
Affiliates or the NTIC Joint Venture Companies  pursuant to this Agrement or the
Purchase  Agreements as liabilities or obligations  accepted directly by NTIC or
Henkel respectively.   All such liabilities or obligations may therefore be
directly  executed or enforced  against NTIC or Henkel as the case may be. 
Hence, pursuant to the Purchase Agreement, Henkel undertakes to pay to Acobal or
NTIC all sums that Acobal paid to creditors  of HST,  with respect to duly filed
oppositions as set forth by articles L. 141-12 and following, of the French
Commercial  Code,  and are owed by HST to be reimbursed to Acobal but which have
not been  reimbursed  by HST to Acobal  within a thirty (30) day period.  Hence,
pursuant to the Purchase  Agreement,  NTIC undertakes to pay to HST or Türk
Henkel  Kimya  Sanayi  Ve  Ticaret  A.S.all  sums  due for the  transfer  of the
Business,  the Assets,  and the  Inventory  which are owed by Acobal or Fibro-NTI
Urun Gelistirme Ve Pazarlama  Ticaret Anonim but which have not been paid within
a thirty (30) day period.
|     |                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|     | 3.14.3                   | This Agreement may not be modified except in writing signed by duly   authorised representatives of all Parties.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|     |                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|     | 3.14.4                   | Each of the Parties acknowledges that in entering into this Agreement it has not
relied on any representation, warranty or other provision except as expressly
provided in this Agreement or the Purchase Agreement(s and all conditions,
warranties or other terms implied by statute or case law are excluded to the
fullest extent permitted by law.  No Party shall have any claim against any
other in respect of any representation not expressly included in this Agreement
unless such representation was made fraudulently.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|     |                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|     | 3.14.5                   | Failure by any Party to enforce at any time, for any period, any one   or more of the terms or conditions of this Agreement shall not be a waiver of   them or of the right at any time subsequently to enforce all terms and   conditions of this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|     |                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|     | 3.14.6                   | Each provision of this Agreement shall be construed separately and   shall be divisible from this Agreement.    In the event that any provision or any part of any provision of this   Agreement is declared by any Court or other competent authority to be void or   unenforceable by reason of any applicable law, that provision or the relevant   part of that provision shall be deleted and the remaining provisions of this   Agreement shall continue in full force and effect.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

21



| | 3.14.7 | Each Party shall bear the costs and fees of their own counsel   concerning the conclusion and the execution of this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                            
| | ------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | 3.14.8 | The Parties note that the confidentiality agreement attached as   Schedule 5 to this agreement was entered into between NTIC and a French   company CFPI, and that CFPI was subsequently acquired by HST, and that HST   and its employees therefore acquired an obligation of confidence to NTIC at   that time.  As that obligation of   confidence was the subject of the French Action terminated at paragraph 2.1   above, no further action shall be taken by the Parties against each other in   respect of the attached agreement.

* * *

|4.  | General Provisions                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                      
|4.1 | This Agreement and the Purchase Agreements represent the entire   agreement between the Parties in relation to its subject matter and   supersedes all previous agreements and understandings between the Parties.                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                      
|4.2 | The Parties enter into this Agreement for the benefit of all of their   Affiliates with the intention that such Affiliates be entitled to enforce   those rights and obligations under this Agreement which affect them.                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                      
|4.3 | This Agreement  including the provisions dealing with settlement of   the French Action and the OHIM Proceedings  shall be governed by and   submitted to French law.                                                                                                                                                                                                                                              
|    |                                                                                                                                                                                                                                                                                                                                                                                                                      
|4.4 | It is concluded in five original copies in English language.                                                                                                                                                                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                      
|4.5 | In case of any dispute between the Parties and/or their Affiliates   about notably the conclusion, the validity or the execution of the hereby   provisions, it shall be finally settled under the Rules of Arbitration of the   International Chamber of Commerce  ICC by one arbitrator appointed in   accordance with the said Rules. The place of arbitration will be Paris and   the language shall be English.

EXECUTED by the Parties on the date set out at the beginning of this Agreement acting by their duly authorised representatives.

|For Northern Technologies International Corporation |  | For Henkel KgaA
|--------------------------------------------------- |  | ---------------
|                                                    |  |                
|For Excor Korrosionsforschung GmbH                  |  | For Acobal SAS 

22



For Henkel Surface Technologies S.A.S

List of the schedules

|Schedule 1 | French Action                                                  
|---------- | ---------------------------------------------------------------
|           |                                                                
|Schedule 2 | Part   1          OHIM Action                                  
|           |                                                                
|           | Part   2          Cancellation   Letter                        
|           |                                                                
|Schedule 3 | conclusions de désistement daction et dinstance              
|           |                                                                
|           | conclusions dacceptation de désistement daction et dinstance
|           |                                                                
|Schedule 4 | NTIC Joint   Venture Companies                                 
|           |                                                                
|Schedule 5 | CFPI   confidentiality agreement                               

23



Schedule 1

French Action

The proceedings commenced in the Civil Court of Nanterre in France on 24 September 2002 between:

|(i)  | NTIC and Henkel Surface Technologies SA in relation to infringement   of Community trade mark 000396176, unfair competition, and breach of   confidentiality undertakings; and
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                               
|(ii) | ACOBAL S.A.S and Henkel Surface Technologies SA in relation to breach   of Article L.442-6 of the French Commercial Code and unfair competition;                              

which were joined by order of the Civil Court of Nanterre on 5 May 2003 and are now pending before the Civil Court of Paris, France, 3rd Chamber, under the following number of registration: 03/10903.

24



Schedule 2

Part 1 - OHIM Action

The cancellation proceedings in respect of Community Trade Mark 000396176 commenced in the Office for the Harmonisation of the Internal Market in Alicante by Henkel.

Part 2 - Cancellation Letter

Cancellation Division Trade Mark Department Office of Harmonization of the Internal Market Avenida de Europa, 4 E-03008 Alicante

Spain

Dear Sirs

Community Trade Mark Registration 396176 in the name of Northern Technologies International Corporation

Cancellation Application thereto filed by Henkel KGaA (OHIM Ref. 512C)

The Applicant and the Defendant have reached an out of court settlement on the cause of action.  The Applicant therefore withdraws definitively the above cancellation application.

HENKEL KGaA

25



Schedule 3

26



Schedule 4

NTIC Joint Venture Companies

ASEAN: NTI ASEAN LLC Austria: EUROMASCH Maschinen-Handels-Gesellschaft m.b.H.Australia: EXCOR Zerust Pty Ltd. Brazil: Zerust Prevenção de Corrosão Ltda. Canada: EXCOR-ZERUST CANADA CORPORATION China: Tianjin ZERUST Anti-Corrosion Technologies, Ltd. Czech Republic and Slovak Republic : FATRA  NTI, s.r.o.Finland: ZERUST OY France: ACOBAL S.A.S. Germany: EXCOR GmbH and Excor Korrosionsforschung GmbH India: Harita-NTI Ltd.

Japan: Taiyonic Ltd. Korea: Korea
Zerust Co., Ltd. Malaysia: Chong Wah - NTIA Sdn. Bhd. Philippines: NTIA
Zerust Philippines, Inc. Poland: EXCOR Sp. z o.o Russia:
MostNICSingapore: Zerust Singapore Pte. Ltd. Sweden: ZERUST
ABTaiwan: ZERUST-NIC (Taiwan) Corp.Thailand: Specialty-NTIA (Thailand)
Co., Ltd. Turkey: FIBRO-NTI ÜRÜN GELISTIRME VE PAZARLAMA TICARET
ANONIM SIRKETI (FIBRO-NTI A.S.)UK: ZERUST (U.K.) LIMITED US: ZERUST
CONSUMER PRODUCTS, LLC

27



|For and on behalf of           |                     
|------------------------------ | --------------------
|NORTHERN TECHNOLOGY            | /s/ MEHMET A. GENCER
|INTERNATIONAL CORPORATION      |                     
|                               | Signature           
|                               |                     
|                               | Mehmet A. Gencer    
|                               | Name (Print)        
|                               |                     
|                               | President           
|                               | Title (Print)       
|                               |                     
|                               | /s/ STEPHAN TAYLOR  
|                               |                     
|                               | Signature           
|                               |                     
|                               | Stephan Taylor      
|                               | Name (Print)        
|                               |                     
|                               | Director            
|                               | Title (Print)       
|                               |                     
|                               | /s/ GERHARD HAHN    
|                               |                     
|                               | Signature           
|                               |                     
|                               | Gerhard Hahn        
|                               | Name (Print)        
|                               |                     
|                               | Vice President      
|                               | Title (Print)       
|                               |                     
|For and on behalf of           |                     
|Excor Korrosionsforschung GmbH | /s/ GERHARD HAHN    
|                               |                     
|                               | Signature           
|                               |                     
|                               | Gerhard Hahn        
|                               | Name (Print)        
|                               |                     
|                               | GR                  
|                               | Title (Print)       

28



|For and on behalf of Fibro-NTI Urun                     | /s/ MEHMET A. GENCER  
|------------------------------------------------------- | ----------------------
|Gelistirme Ve Pazarlama    Ticaret Anonim               |                       
|                                                        | Signature             
|                                                        |                       
|                                                        | Mehmet A. Gencer      
|                                                        | Name (Print)          
|                                                        |                       
|                                                        | Chairman              
|                                                        | Title (Print)         
|                                                        |                       
|For and on behalf of                                    |                       
|ACOBAL SAS                                              | /s/ JACQUES MANENCAND 
|                                                        |                       
|                                                        | Signature             
|                                                        |                       
|                                                        | Jacques Manencand     
|                                                        | Name (Print)          
|                                                        |                       
|                                                        | President             
|                                                        | Title (Print)         
|                                                        |                       
|For and on behalf of                                    |                       
|HENKEL KgaA                                             | /s/ DR. BORIS   TASCHE
|                                                        |                       
|                                                        | Signature             
|                                                        |                       
|                                                        | Dr. Boris Tasche      
|                                                        | Name (Print)          
|                                                        |                       
|                                                        | Vice President        
|                                                        | Title (Print)         
|                                                        |                       
|                                                        |                       
|For and on behalf of Henkel Surface Technologies S.A.S. | /s/ DR. BORIS   TASCHE
|                                                        |                       
|                                                        | Signature             
|                                                        |                       
|                                                        | Dr. Boris Tasche      
|                                                        | Name (Print)          
|                                                        |                       
|                                                        | Vice President        
|                                                        | Title (Print)         

29