PEL-AMPH ALP Formulating for Performance While Minimizing Irritation

Manufacturing near Chicago Since 1945 Ability to manufacture 1000 kg to 40 metric tons Alkoxylation Polymerization Ethoxylation Neutralization Propoxylation Quaternization Amidification Saponification Aminomethylation and other Mannich reactions Esterification Hydrosilylation Elé Corporation was founded in 1945 near Midway airport in Chicago. We service many industries such as polyurethane (silicone surfactants & catalysts), metalworking, ag, and personal care. Elé manufactures all our products through a variety of processes. We are skilled at alkoxylation and making silicone polyethers. Elé is uniquely positioned to support our customers from inception, thru scale up to full production. A large number of varied sized reactors allow us to cost effectively make from very small MOQs all the way up to bulk. In addition, we have the ability to tailor products to meet customer needs. We are capable and agile.

Surfactant Selection Surfactants vary widely in their irritation potential. Surfactant Irritation Profile by Charge/Type Nonionic < Amphoteric < Anionic / Cationic However: there are mild choices in each category Careful surfactant choice allows mild formulations without compromising performance Surfactants vary widely in their irritation potential. Nonionic (0) are the least irritating, then amphoteric surfactants (+/-). Anionic (-) and Cationic (+) are the most irritating. Nonionics like the PEL-ALC line, contain: Ethylene Oxide/EO or Polyethylene Glycol/PEGs and/or Propylene Oxide/PO or polypropylene glycol/PPG The more EO/PO, the more mild the surfactant. If looking to move away from PEGs, Amphoterics are a logical mild surfactant choice

Amphoteric Surfactants Types Properties Both positive & negative head charges Relatively mild Typically used as secondary surfactants Good foaming Compatible with most other PC ingredients Amphoacetates Amphopropionates Amino/iminopropionates Betaines Sultaines Amphopropionates<Amphoacetates<Betaines/Sultaines Sulfosuccinates<Carboxylates<Isethionates<Taurates<Sulfates Tertiary Amine salts<Quaternaries<Benzyl Chloride Quats More EO/PO = milder (all classes of surfactants) Manufactured by Elé

PEL-AMPH ALP INCI Name: Arginine Lauraminopropionate Structure: NEW patent pending amphoteric. Contains 10% Arginine Arginine is counter ion to amphoteric molecule ‘lauraminopropionate’ Arginine is 10% and acts as the counter ion to lauraminopropionate

PEL-AMPH ALP (Arginine Lauraminopropionate) Properties Appearance @ 25°C Clear Gardner Color 3 Max Odor Characteristic Solids %, 29.0 – 31.0 pH, as is 9.0 – 10.0 Specific Gravity, @ 25°C 1.03 Sold as 30% solution pH is left high which makes it self preserving (naturally when used in a formula the pH will be lower) No preservative required

PEL-AMPH ALP (Arginine Lauraminopropionate) Features/Benefits Amphoteric Chloride free Compatible with wide variety of personal care ingredients Free of Prop-65 listed chemicals Excellent regulatory profile Conditioning Arginine benefits: Excellent wetting Moisture retention Good foam generation Improved barrier capacity of outermost skin layer Very mild Promotes healing Readily biodegradable Plant derived (86% Renewable Carbon Content) EO/PO free By combining the low irritation potential of an amphoteric surfactant with the soothing and conditioning properties of arginine, an exceptionally mild surfactant is created. Its benefits include ….(see slide) Free of claims…(see slide) The product is about 10% arginine, which provides moisture retention, improves the barrier capacity of skin and is said to promote healing. (we don’t make that a claim)

PEL-AMPH ALP (Arginine Lauraminopropionate) Features/Benefits PEL-AMPH ALP Amphoteric Yes Highly compatible with other ingredients Excellent wetting Good foam generation Very Mild Biodegradable Plant derived (86% Renewable Carbon Content) Excellent regulatory profile Free of: EO/PO, chloride, sulfates, all Prop 65 chemicals Arginine Benefits: moisture retention , improved barrier capacity, reported healing claims

PEL-AMPH ALP (Arginine Lauraminopropionate) Irritation vs. other Amphoterics Compared to other amphoteric surfactants at 10% active solutions and pH 7, PEL-AMPH ALP is seen to be very mild both skin and eyes – comparable to imidazoline derived amphopropionates (such as 2CSF-CG on far left) and 2C (middle). Betaines, in comparison, are primary eye irritants at this concentration.

PEL-AMPH ALP (Arginine Lauraminopropionate) Blender Foam Test Foam Volume Surfactant solutions were prepared at 10 ml in deionized water at 25°C. 100 mL of each solution was placed in an Osterizer and agitated at high speed for 10 seconds. Initial foam volumes and the level of the foam-water interfaces at 5 minutes were recorded. The initial foam height produced by ALP was comparable to or better than other “natural” surfactants and nearly as good as cocamidopropyl betaine. Drainage Drainage is a measure of foam stability and density. The number is the location of the foam/liquid interface after 5 minutes. The lower the number the better. Here, ALP performed equivalently or better than other tested surfactants.

PEL-AMPH ALP (Arginine Lauraminopropionate) Draves Wetting Draves Wetting Test Measures how quickly a surfactant solution ‘wets’ a cotton skein, causing it to sink. Wetting effects how well a surfactant will displace oil from surfaces, how well of a dispersant it will be, and the spreading of formulations. PEL-AMPH ALP, on the far right is seen to be a superior wetting agent.

Excellent Regulatory Profile Listed on most national inventories

PEL-AMPH ALP (Arginine Lauraminopropionate) Formulation Guidelines General Use as secondary surfactant in mild formulations Add to water phase Thickening Like other propionates, does not thicken in response to salt addition Use polymeric thickening agent(s) such as xanthan gum etc. Alternatively, combine with sulfate/sulfonate, and amide to thicken by salt addition PEL-AMPH ALP can be used much the same as other amphoteric surfactants to formulate mild foaming products. It leaves a smooth, soft feel to skin and hair. Add to water phase with other surfactants. Like other propionates, it does not thicken in response to salt addition. It may be thickened using polymeric thickening systems such as cationic guar, xanthan gum, carbomer, etc. Alternatively, it may be thickened in combination with an anionic surfactant, such as a sulfate or sulfonate, along with an alkanolamide with salt addition. In combination with an olefin sulfonate and an amphopropionate or amphoacetate, it may be thicken simply by reducing the pH (typically to 5 – 6).

PEL-AMPH ALP (Arginine Lauraminopropionate) Formulation Guidelines (con’t) Compatible with: Stability Anionic surfactants Best at pH > 5 Cationic surfactants Protect from freezing Nonionic surfactants Store < 30°C Amphoteric surfactants Polymeric thickeners/conditioners Incompatible with: Oxidizing agents PEL-AMPH ALP is compatible with most other personal care ingredients. Avoid using it in the presence of oxidizing agents such as peroxides. Repeated, or prolonged freezing may cause a precipitate to form. It may be heated (up to 80⁰C/176⁰F) for limited periods. Prolonged heating will result in darkening.

PEL-AMPH ALP Foaming Facial Cleanser Ingredient wt% Function   Water 63.2 Carrier PEL-AMPH HPC-32 (Sodium Cocoamphodiacetate) 17 Surfactant Cocamidopropyl Betaine 6 Secondary Surfactant PEL-AMPH ALP (Arginine Lauraminopropionate) 12 PEL-SIL Q-80 (Quaternium-80 & Propylene Glycol) 0.5 Conditioner Phenoxyethanol Preservative Citric Acid .80 pH Adjuster Procedure: Add Water into a vessel with moderate speed mixing while heating to 500C. While heating, add the ingredients one by one with moderate mixing until each addition is homogeneous. Mix for a minimum of 30 minutes. Begin cooling to 450C and add preservative & citric acid. Mix for an additional 10 minutes. Results: Appearance: Clear pH: 6.56 Viscosity: Less than 500 cps Mild conditioning sulfate-free foaming facial cleanser. Abundant, very stable foam with moisturizing properties which leaves a smooth after- feel

PEL-AMPH ALP Clear Conditioning Shampoo Ingredient wt% Function   Water 66.25 Carrier Cocamidopropyl Betaine 9 Secondary Surfactant PEL-AMPH ALP (Arginine Lauraminopropionate) 11 Surfactant Sodium C14-16 Olefin Sulfonate (40%) 4 PEL-AMID CAEE (Coconut Oil Aminoethoxyethanol Amides) 3 Thickener/ Foam Stabilizer Sodium Lauroyl Methyl Isethionate 6 Preservative q.s. Citric Acid 0.25 pH Adjuster Procedure: Add Water into a vessel with moderate speed mixing while heating to 500C. While heating, add the ingredients of one by one with moderate mixing until each addition is homogeneous. Mix for a minimum of 30 minutes. Begin cooling to 450C and add phase C ingredients. Mix for an additional 10 minutes. Results: Appearance: Clear pH: 6.1 Viscosity: 5,400 cps Another sulfate-free formula, this time a conditioning shampoo. In this case, the conditioning is provided solely by PEL-AMPH ALP.

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