Bob Parker AGC Chemicals October 29, 2014

1. “Recent Discoveries in FEVE Fluoropolymer Resin Technology – Performance Beyond Weatherability” Bob Parker AGC Chemicals October 29, 2014

2. Recent Discoveries in FEVE Technology Outline: • Explanation of FEVE polyol technology • Summary of FEVE resins and their properties • Exposure testing of FEVE resin formulations • Corrosion resistance testing • Chemical Resistance Testing • Moisture Permeability Testing • Summary

3. Recent Discoveries in FEVE Technology Fluoroethylene Vinyl Ether (FEVE) Resins FLUORINATED SEGMENTS: Weatherability, chemical resistance VINYL ETHER SEGMENTS: Gloss, solubility, crosslinking

4. Recent Discoveries in FEVE Technology Characteristics of FEVE Fluoropolymer Resins: • Ambient Cure • Allows field applications at ambient temperatures • OH Functionality - Crosslinkable with hardeners • Solvent Soluble • Conventional application techniques • Wide range of gloss • Fluoropolymer Segments • UV Resistance • Corrosion resistance • Chemical and solvent resistance

5. Recent Discoveries in FEVE Technology Markets for FEVE resin-containing coatings: • Architectural Coatings for commercial buildings • Industrial Maintenance Coatings for water towers, bridges, and assorted metal and concrete structures • Aerospace coatings • Applications in Marine environments

6. Recent Discoveries in FEVE Technology Commercial Types of “FEVE” Polyol Resins: • Solvent soluble resins – uses organic solvents for viscosity reduction; predominantly cured with isocyanates; available as resin solutions or as 100% solid resins 2) Water-based dispersion – carboxyl modification of FEVE resin to obtain stable dispersion in water

7. Recent Discoveries in FEVE Technology Commercial Types of “FEVE” Polyol Resins: 3) Water-based emulsion – use vinyl ether macromonomers containing polyoxyethylene (EO) units to create stable emulsion

8. Recent Discoveries in FEVE Technology QUV-B Weatherometer Exposure Testing

9. Recent Discoveries in FEVE Technology QUV-A Weatherometer Exposure Testing

10. Recent Discoveries in FEVE Technology Sunshine Weatherometer Exposure Testing (Carbon Arc)

11. Recent Discoveries in FEVE Technology EMMAQUA Testing (Outside Test Fence – Arizona)

12. Recent Discoveries in FEVE Technology South Florida Test Fence Exposure

13. Recent Discoveries in FEVE Technology Corrosion Resistance Test of FEVE Coatings: LOCATION: Suruga Bay Marine Test Station (offshore) LENGTH OF TEST: 16 years COATINGS SYSTEMS ON TEST: 1) Zinc-rich primer / Epoxy Midcoat / Acrylic Urethane Topcoat 2) Zinc-rich primer / Epoxy Midcoat / Fluorourethane Topcoat THICKNESS OF COATING: PRIMER = 3 mils / MIDCOAT = 6 mils / TOPCOAT = 1 mil(25 microns)

14. Recent Discoveries in FEVE Technology Measurement of Total Erosion of the Topcoat

15. Recent Discoveries in FEVE Technology EDX (Energy Dispersive X-Ray Microanalysis) BLUE: Chloride GREEN:Coating System RED:Metal SEM Scan of cross section Of Coating System (after 16 year exposure)

16. Recent Discoveries in FEVE Technology AFTER 15 YEARS INITIAL SEM Scan of Zinc-rich Primer

17. Recent Discoveries in FEVE Technology 2000 Hours of B117 Salt Spray testing (Panels primed with 3 mils of 2K Epoxy) 2K Polyurethane on the left (1 Coat) 2K Fluoro-urethane on the right (1 Coat)

18. Recent Discoveries in FEVE Technology 2000 Hours of B117 Salt Spray testing (Panels primed with 3 mils of 2K Epoxy) 2K Polysiloxane on the left (1 Coat) 2K Fluoro-urethane on the right (1 Coat)

19. Recent Discoveries in FEVE Technology Chemical Resistance Testing The following testing is immersion testing. The coated test panels are fully immersed in the chemical/solvent and observed for any changes in their appearance

20. Recent Discoveries in FEVE Technology The test coating is a gloss white 2-pack fluorourethane. • *Failure is defined as one of these changes in the dry film: • The appearance of blisters • Gloss reduction • Total paint film degradation

21. Recent Discoveries in FEVE Technology The test coating is a gloss white 2-pack fluorourethane. • *Failure is defined as one of these changes in the dry film: • The appearance of blisters • Gloss reduction • Total paint film degradation

22. Recent Discoveries in FEVE Technology 4 Hour Spot Test – 98% Sulphuric Acid Panel #2 – 3-4 mils of Epoxy primer 5-6 mils of FEVE-based clear coating Coating remained intact Panel #1 – 3-4 mils of Epoxy Primer Coating dissolved immediately

23. Recent Discoveries in FEVE Technology Moisture Permeability Testing • Following ASTM Test Method E96 or D1653 • Measuring the amount of water vapor transmitted through the film of the cured coating • Unit of measurement is grams of water vapor per cm² per hour • There is a correlation between the amount of moisture permeability of the coating and the degree of corrosion of the substrate

24. Recent Discoveries in FEVE Technology *medium crosslink density resin **grams of water vapor per cm² per hour

25. Recent Discoveries in FEVE Technology Summary FEVE resin technology is an alternative choice for exterior coatings, both pigmented coatings and clearcoats. They possess some interesting properties that expand the list of formulating tools which can be used in the pursuit of high-performance industrial maintenance coatings. FEVE resin technology can be easily incorporated into many standard solvent-based and water-based formulations.