Renewable Phenalkamide Epoxy Curing Agents for High Performance & Cost-effective Solvent-free Coatings Hong Xu, Mengjiu Chen Cardolite Corporation Oct. 27th, 2015

Contents Background CNSL technology Phenalkamide technology Solvent-free phenalkamides – LITE 3040 – LITE 3060 Conclusions

Greener Coating Environmental awareness Stringent regulations Low VOC High solids/solvent free Higher bio-content Non-toxic Cost efficient Excellent performance CNSL technology

CNSL Distillation Various products Cashew Nut Cardanol CNSL technology

Benefits of both worlds Fast cure Extended overcoat Surface tolerance Flexibility Low viscosity Phenalkamine Technology Phenalkamide Technology Polyamide Technology Long potlife Water resistance Color stability Corrosion protection Cost effective Low temperature cure A new category of renewable epoxy curing agents designed to provide coating formulators with the benefits of both polyamides and phenalkamines in ONE PRODUCT.

Naturally Great Phenalkamides use natural, renewable, non-food chain CNSL as their core building block. Low viscosity, solvent free and compatibility with a broad range of epoxy resins help formulate high solids coatings with lower VOC Meet stringent environment and health regulations without compromising quality

LITE 3040 Cure properties Film appearance Early water resistance Flexibility Mechanical properties Intercoat adhesion Corrosion protection

Solvent free Polyamide Typical Properties Properties LITE 3040 Solvent free Polyamide Color (Gardner) ≤ 11 Viscosity, cps 4,000 - 6,000 11,560 Amine value (mg KOH/g) 370 - 410 AHEW (theoretical) 118 97 Recommended use level (phr) 50 – 70 (55 recommended) 50 - 70 Gel time @ 55phr (min) 110 158

Hardness Development with Epon 828 Much faster hardness development at lower temperature and high humidity

Film appearance @ 10°C & 92% RH Solvent-free Polyamide LITE 3040 Better film and compatibility with liquid epoxy resin

Solvent-free Polyamide Flexibility Systems Mandrel Bend Direct impact (lbs) Reverse impact Solvent-free Polyamide 1/8”, good 150 80 LITE 3040 90 60 Epon 828 system, phr=55 30 minutes induction time WFT =5 mils over CRS 7 days RT cure Good flexibility

Early Water Resistance #12 = 8 hrs Solvent-free Polyamide LITE 3040 Better early water resistance 30 minutes induction time WFT = 8 mils over CRS panels Water drops close to every hour (starting at point 1) Cured at 25°C

Mechanical Properties LITE 3040 Tensile strength (Mpa) 44.2 Flexural strength (Mpa) 97 Compressive strength (Mpa) 77 Elongation (%) at break 10.8 Water absorption (%) 0.79

Intercoat adhesion @ RT 5B Polyamide LITE3040 1day 14day 10day 7day 3day First white layer: polyamide/LITE3040 primer, different dry time @ RT Second black layer: PU topcoat, 1 day dry time @ RT before tape adhesion tests Very good intercoat adhesion at RT cure condition

Intercoat adhesion @ 5˚C 0B 4B 3B 1B Polyamide LITE3040 1day 14day 10day 7day 3day First white layer: polyamide/LITE3040 primer, different dry time @ 5˚C Second black layer: PU topcoat, 3 days dry time @ 5˚C before tape adhesion tests Much better intercoat adhesion properties at low temperatures

Good corrosion protection Salt Spray @ 500 hr, ~150µm DFT Solvent-free Polyamide LITE 3040 Good corrosion protection

LITE 3040 Faster cure and hardness development Better film appearance at extreme conditions Superb early water resistance Balanced mechanical properties Very good intercoat adhesion Good corrosion protection

LITE 3060 Cure properties Color stability Adhesion over different substrates Corrosion protection Adhesion over dry/wet concrete blocks

Polyamidoamine adduct Typical Properties Properties LITE 3060 Polyamidoamine adduct #1 #2 Color (Gardner) ≤ 10 Viscosity, cps 500 - 1,000 700 - 2,000 450 - 1,300 Amine value (mg KOH/g) 450-490 250 - 290 280 - 320 AHEW (theoretical) 104 115 Recommended use level (phr) 55 ~60 Gel time @ 55phr (mins) 35-55 78 50 Solvent No Benzyl alcohol

Faster dry time with liquid epoxy resin Cure time with DER 331 Faster dry time with liquid epoxy resin No induction time, WFT=8mils

Hardness Development @ 5˚C Much faster hardness development at low temperature

100% solids formulation – Base #A Material Base #A DER 331 (BisA type epoxy resin) 35.5 UL 513 (diluent) 6.2 DISPERBYK 111 (dispersant) 1.4 TIPURE R-706 (pigment) 6.7 Zeosphere G600 (filler) 16.9 Wollastonite 10ES (filler) 17.5 Cimbar EX (filler) 15.7 BYK 085 (defoamer) 0.03 BYK 361 N (leveling agent) 0.05 Total base 100.00 Polyamidoamine #1 / Necires EPX-L2 23.3/11.7 Polyamidoamine #2 /Necires EPX-L2 LITE 3060/Necires EPX-L2 21.2/10.6 %vol NVM 100 %PVC 20.5 Amine/Epoxy 1.00

100% solids formulation – Base #B Material Base #B DER 353 (BisA/F diluted epoxy) 42.1 DISPERBYK 111 (dispersant) 1.7 Nicron 302 Talc 8.4 Wollastonite 10 ES (filler) 7.4 Imsil A-25 silica (filler) 15.4 TIPURE R-706 (pigment) 13.7 Cimbar EX (filler) 10.5 BYK 085 (defoamer) 0.2 BYK 358 N (leveling) 0.6 Total base 100.00 Poly A #1/#2/#3/#4 24.8 LITE 3060 22.6 %vol NVM 100 %PVC 21.2 Amine/Epoxy 1.00

Color Stability Good color stability

Better gloss retention and no chalking

Panel images Much better gloss retention No surface chalking After 168 hrs QUV A exposure PolyA #1 PolyA #2 LITE 3060 ΔE = 7.13 20° = 1.4 60° = 8.1 85° = 27.9 ΔE = 10.72 20° = 1.3 60° = 11.3 85° = 49.4 ΔE = 9.79 20° = 58.4 60° = 91.9 85° = 94.9 Much better gloss retention No surface chalking

Good anti-corrosion performance Salt spray – 2000 hrs PolyA #1 PolyA #2 LITE 3060 Good anti-corrosion performance Base #A system 20 minutes induction time DFT = ~ 9 mils over SA2.5 panels 7 days RT cure

Modified Polyamidoamines Typical Properties Properties LITE 3060 Modified Polyamidoamines #3 #4 Color (Gardner) ≤ 10 Viscosity, cps 500 - 1,000 200 -400 900 - 1,900 Amine value (mg KOH/g) 440 - 480 333 290 - 350 AHEW (theoretical) 104 115 Recommended use level (phr) ~55 ~60 Gel time @ (mins) 48 57.7 100 Benzyl alcohol Free

Adhesion over rusted panel Rusted S-36 panels 5B 5B 5B PolyA #3 PolyA #4 LITE 3060 Base #B system 20 minutes induction time WFT = 6 mils over rusted S-36 panels 7 days RT cure Good adhesion to rusted panels

Good adhesion to CRS panels Adhesion over CRS 4B 3B 5B PolyA #3 PolyA #4 LITE 3060 CRS panels Base #B system 20 minutes induction time WFT = 6 mils over CRS 7 days RT cure Good adhesion to CRS panels

Adhesion over Al alloy panel AA 2024 T3 5B 5B 5B PolyA #3 PolyA #4 LITE 3060 Base #B system 20 minutes induction time WFT = 6 mils over AA 2024 T3 7 days RT cure Good adhesion to AA 2024 T3 substrate

Shore D tests PolyA #3 PolyA #4 LITE 3060

Quick walkability development in first day at 25°C Shore D @ 25˚C Walk on Poly A #3 Poly A #4 LITE 3060 Quick walkability development in first day at 25°C Base #B 20 mins induction time Al pan, sample weight = 8 g

Quick walkability development at low temperature Shore D @ 10˚C + 92%R.H. Walk on Poly A #3 Poly A #4 LITE 3060 Quick walkability development at low temperature Base #B 20 mins induction time Al pan, sample weight = 8 g

Quick walkability development at low temperature Shore D @ 5˚C Walk on Poly A #3 Poly A #4 LITE 3060 Quick walkability development at low temperature Base #B 20 mins induction time Al pan, sample weight = 8 g

Concrete Dry concrete blocks: stored at RT and ~50%R.H. conditions before applying a coating. RT cure. Damp concrete blocks: submersed in tap water for 24 hours, then removed from water bath. Use a paper towel to remove the standing water before applying a coating, RT cure. Wet concrete blocks: submersed in tap water for 24 hours, placed in a basin with tap water level under 1/2 inch from the block surface. Use a paper towel to remove the standing water before applying a coating. The coated blocks remained in water during the curing period.

Pull off tests over concretes High strength concrete blocks: Dry and Wet concrete blocks Flooring primer: Base #B + curing agents with 20 mins induction Applications: Drawn down via WFT = 25 mils Cure conditions: 7 days @ RT (wet concretes in water basin) Pull off tests: PosiTest AT-A automatic adhesion tester

Pull off adhesion after 7 day cure, MPa Base #B system Pull off adhesion after 7 day cure, MPa Dry concrete blocks Wet Failure mode Poly A #2 4.9 3.5 Concrete failure Poly A #3 5.2 Poly A #4 4.8 4.3 LITE 3060 3.9 Concrete failure Good adhesion on wet and dry concrete substrates, failure mode is on concrete blocks

LITE 3060 Low viscosity for 100% solids formulation Fast cure and hardness development especially at low temperatures Excellent early walkability Good color and gloss stability Superb adhesion over different substrates Excellent adhesion over dry/wet concrete blocks

Novel phenalkamides LITE 3040 & LITE 3060 Low viscosity & benzyl alcohol free Non-toxic labeling Fast cure and hardness development Good early water resistance Superb adhesion over different type substrates and PU topcoat Enable true solvent-free formulations without compromising quality

Thank you! Any questions?