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Trivia about the corrosion of iron Corrosion is an oxidation of iron or other metals and requires a presence of oxygen, an electrolyte and water. The known red rust is the result of intermediate reactions of iron hydroxide with oxygen. 2 Fe + O2 + 2 H20 -> 2 Fe (OH)2 2 Fe (OH)2 + ½ O2 + H2O -> 2 Fe (OH)3 Fe (OH)3 -> FeO(OH) + H2O 2 FeO(OH) + O2 -> Fe2O3 + H2O Illustration of corrosion of iron with NaCl solution: Source: Prof. Dr. Bertram Reinhold, Audi AG page 3 of 36

Ways to protect metal? Passive anti-corrosion pigments (barrier effect, increased diffusion path): E.g. Disc-shaped pigments like Iron-Glimmer, Calcium-silicate. Some of these fillers have a tendency to dissociate into bivalent cations; therefore the binder requires a stable polymer, due to possible interactions of bivalent cations with the particle s surface charge. To counteract these cations the polymer needs more surfactant and surface charge, hence it will be less water resistant. Active anti-corrosion pigments: Zinc dust (donator-anode), zinc chromate (passivation), zinc phosphate (precipitation), red led (saponification with alkyd resins) or nitrite salts (reducing agent -> flash rust protection). Analog to the passive anti-corrosion pigments the active pigments can also dissociate into bi- or multivalent cations, weakening the binders polymer stabilization. Labelling of these phosphates or oxides are also an issue and cans have to be classified with the phrase H 410: Very toxic to aquatic life with long lasting effects. To get the full potential of phosphate pigments the polymer needs to have certain hydrophilic properties to ensure electro chemical reactions between the pigment with the metal surface. page 4 of 36

Source: Heubach page 5 of 36

Binders with water barrier effect due to extreme hydrophobic and compact polymer matrix: Alberdingk AC 2403, 2K PU- and epoxy systems Illustration of particle size of Alberdingk AC 2403 and a conventional multi phase acrylic binder page 6 of 36

Right choice of dispersing agents Dispersing agents have a huge influence on the corrosion protection properties of the coating and the wrong agents can ruin the results of even the best performing binders. Very hydrophobic dispersing agents are the right choice for anti corrosion paints. page 7 of 36

Corrosion categories according to DIN EN ISO 12944 Category corrosion stress Corrosivity Corrosion protection class Duration of protection [years] Recommended min. DFT [µ] Condensation of moisture [h] Neutral salt spray fog [h] Examples C1 insignificant very low, very low aggressivity, interior short 2-5 70 - - middle 5-15 70 - - long >15 70 - - interior only, isolated buildings (60% rel. hum.) C2 light low, light aggressivity, exterior/ interior short 2-5 80 48 - middle 5-15 120 48 - long >15 160 120 - low polluted atmosphere, dry climate, e.g. rural areas C3 medium medium, moderate aggressivity, exterior/ interior short 2-5 120 48 120 middle 5-15 160 120 240 long >15 200 120 480 urban and industrial atmosphere mit moderate SO2-pollution C4 strong high, strong aggressivity, exterior/ interior short 2-5 160 120 240 middle 5-15 200 240 480 long >15 240-280 480 720 Industrial areas and coast atmosphere with moderate salt concentration C5-I very strong (industry) very high, high aggressivity, exterior/ interior short middle 2-5 5-15 200 240-280 240 480 480 720 Industrial areas with high rel. hum. and long >15 320 720 1440 aggressive atmosphere C5-M very strong (marine water) very high, marine climate, exterior/ interior short 2-5 200 240 480 middle 5-15 240-280 480 720 long >15 320 720 1440 Coast and off-shore areas with high salt concentration page 8 of 36

Important test norms for corrosion protection coatings: DIN EN ISO 12944-6 DIN EN ISO 4628-2 DIN EN ISO 4628-3 DIN EN ISO 4628-4 DIN EN ISO 4628-5 Paints and varnishes Corrosion protection of steel structures by protective paint systems. Part 6: Laboratory performance test methods Paints and varnishes - Evaluation of degradation of coatings - Designation of quantity and size of defects, and of intensity of uniform changes in appearance Part 2: Assessment of degree of blistering Paints and varnishes - Evaluation of degradation of coatings - Designation of quantity and size of defects, and of intensity of uniform changes in appearance - Part 3: Assessment of degree of rusting Paints and varnishes - Evaluation of degradation of coatings - Designation of quantity and size of defects, and of intensity of uniform changes in appearance Part 4: Assessment of degree of cracking Paints and varnishes - Evaluation of degradation of coatings - Designation of quantity and size of defects, and of intensity of uniform changes in appearance Part 5: Assessment of degree of flaking For further information about test methods and interesting facts about the topic corrosion we can recommend the detailed brochure Korrosionsschutz von Stahlbauten durch Beschichtungssysteme of Verband der deutschen Lack- und Druckfarbenindustrie and Bundesverband Korrosionsschutz e.v. Web-link: http://www.lackindustrie.de/publikationen_/seiten/uebersichtsseite.aspx page 9 of 36

Choices of Alberdingk binders for anti corrosion paints ALBERDINGK AC 2403 ALBERDINGK AC 2360 ALBERDINGK AC 2435 VP ALBERDINGK SC 48 Binder Solids [%] MFFT [ C] Type of binder Properties AC 2403 47 16 AC 2435 VP 44 30 AC 2360 47 0 SC 48 50 14 multi phase single phase multi phase single phase best possible corrosion protection, very good adhesion on various substrates. Suited for low DFT applications. Recommended with Asconium anti corrosion additives binder with outstanding wet adhesion, good corrosion protection. Recommended with Asconium anti corrosion additives very good corrosion protection. Compatible with Zn pigments economic binder with good water resistance and adhesion, soft film. Compatible with Zn pigments Primer Binder Type of polymer DTM PVC < 25 PVC 25-35 PVC > 35 AC 2403 multi phase X X O - AC 2435 VP single phase X X X O AC 2360 multi phase X X O - SC 48 single phase - O X X X = recommended O = suitable - = not suitable page 10 of 36

Formulation PVC corrosion protection concept DFT achieved NSST hours corrosion category suggested DFT for the achieved corrosion category FP 2403/45 11 Asconium 60 µm 1440 C5-I long 320 µm FP 2403/44 22 Asconium 80 µm 1440 C5-I long 320 µm FP 2403/30 35 Asconium 150 µm 720 C5-I long 320 µm FP 2435/01 22 Asconium 100 µm 480 C4 long / C5-I middle 240-280 µm FP 2360/01 22 Asconium 100 µm 720 C4 long / C5-I middle 240-280 µm FP 48/02 30 Zn-pigments 150 µm 720 C4 long / C5-I middle 240-280 µm FP 48/04 35 Asconium 200 µm 1000 C4 long / C5-I middle 240-280 µm Adhesion to metal: Formu-lation Gardobond OC Gardobond HDG/3 Gardobond 26S 6800 OG Q- Panel R ACT steel Sand blaste d steel Zinc phosphated steel Aluminum Zinc plated steel FP 2403/25 Gt 1 Gt 1 Gt 1 Gt 1 Gt 0 Gt 0 Gt 1 Gt 1 Gt 0 FP 2403/25 without Asc. 142 DA Gt 3 Gt 2 Gt 2 Gt 1 Gt 1 Gt 0 Gt 1 Gt 1 Gt 0 FP 2403/28 Gt 0 Gt 1 Gt 1 Gt 0 Gt 0 Gt 0 Gt 1 Gt 1 Gt 0 FP 2435/01 Gt 1 Gt 1 Gt 0 Gt 1 Gt 0 Gt 0 Gt 1 Gt 5 Gt 0 FP 2360/01 Gt 5 Gt 1 Gt 0 Gt 2 Gt 0 Gt 0 Gt 0 Gt 5 Gt 0 FP 48/01 Gt 0 Gt 0 Gt 0 Gt 0 Gt 0 Gt 0 Gt 0 Gt 0 Gt 0 FP 48/04 Gt 1 Gt 0 Gt 0 Gt 1 Gt 2 Gt 0 Gt 1 Gt 1 Gt 0 * Gt 0 = best / Gt 5 = worst page 11 of 36

Multi layer systems Some applications require a multi layer system, containing corrosion protection basecoat and a topcoat: for unique specifications of the end user for special colour shades or gloss levels if the corrosion base coat is soft or if it has poor mechanical resistance to improve the chemical resistance, e.g. versus solvents, oils, acids and lyes Topcoat: FP 27401-12 FP 84-18 based on: ALBERDINGK AC 27401 ALBERDINGK UC 84 page 12 of 36

Formulation Proposal FP 2403-45 anti-corrosion coating, PVC approx. 11%, solids approx. 50% Pos. Raw Material Amount Product Supplier 1 Water (deion.) 2.50 2 Edaplan 490 1.00 dispersing agent Münzing Chemie 3 AMP 90 0.02 neutralizing agent Angus 4 Byk 024 0.10 defoamer BYK Chemie 5 Kronos 2190 15.00 pigment Kronos Titan Disperse with high shear rate for 10 min, then proceed with pos. 6 15 6 Water (deion.) 5.60 7 Alberdingk AC 2403 68.90 acrylic dispersion Alberdingk Boley 8 Byk 024 0.15 defoamer BYK Chemie 9 BYK 349 0.18 wetting agent BYK Chemie 10 Asconium-142DA* 1.90 corrosion inhibitor Ascotec 11 AMP 90* 0.15 neutralizing agent Angus 12 Water (deion.)* 1.90 13 Optifilm Enhancer 300 1.50 co-solvent Eastman 14 Ascotran-H10 0.50 flash rust inhibitor Ascotec 15 Tafigel PUR 60 solution (10 % PUR 60: 20 % Dowanol DPM: 70 % water) 0.60 rheology modifier Münzing Chemie Total 100.00 * Premix pos. 10 & 11 and add pos. 12 under stirring. Add the Asconium-142DA blend within a timeframe of 10 min to the base. The blend should be transparent. Don t add the blend if it has changed to a cloudy liquid Corrosion Class: C5-I long (@60µm DFT) Test report: see pages 29-34 page 13 of 36

Formulation Proposal FP 2403-45 anti-corrosion coating, PVC approx. 11%, solids approx. 50% page 14 of 36

Formulation Proposal FP 2403-44 anti-corrosion coating, PVC approx. 21.8% Pos. Raw Material Amount Product Supplier 1 Water (deion.) 5.30 2 Edaplan 490 1.20 dispersing agent Münzing Chemie 3 AMP 90 0.02 neutralizing agent Angus 4 Byk 024 0.10 defoamer BYK Chemie 5 Kronos 2190 17.70 pigment Kronos Titan 6 Calcilit Super 7.50 filler Alpha Calcit Disperse with high shear rate for 10 min, then proceed with pos. 7 16 7 Water (deion.) 3.50 8 Alberdingk AC 2403 57.90 acrylic dispersion Alberdingk Boley 9 Byk 024 0.15 defoamer BYK Chemie 10 BYK 349 0.18 wetting agent BYK Chemie 11 Asconium-142DA* 1.90 corrosion inhibitor Ascotec 12 AMP 90* 0.15 neutralizing agent Angus 13 Water (deion.)* 1.90 14 Optifilm Enhancer 300 1.50 co-solvent Eastman 15 Ascotran-H10 0.50 flash rust inhibitor Ascotec 16 Tafigel PUR 60 solution (10% PUR60: 20% Dowanol DPM: 70% water) 0.50 rheology modifier Münzing Chemie Total 100.00 * Premix pos. 11 & 12 and add pos. 13 under stirring. Add the Asconium-142DA blend within a timeframe of 10 min to the base. The blend should be transparent. Don t add the blend if it has changed to a cloudy liquid. Corrosion Class: C5-I long (@80µm DFT) page 15 of 36

Formulation Proposal FP 2403-44 anti-corrosion coating, PVC approx. 21.8% page 16 of 36

Formulation Proposal FP 2403-30 anti-corrosion coating, PVC approx. 35%, solids approx. 56% Pos. Raw Material Amount Product Supplier 1 Water (deion.) 8.00 2 Edaplan 490 1.20 dispersing agent Münzing Chemie 3 AMP 90 0.05 neutralizing agent Angus 4 Byk 024 0.10 defoamer BYK Chemie 5 Kronos 2190 5.00 pigment Kronos Titan 6 Durcal 5 27.50 filler Omya Dispers with high shear rate for 10 min, then proceed with pos. 7 16 7 Water (deion.)* 4.00 8 Alberdingk AC 2403 46.70 acrylic dispersion Alberdingk Boley 9 Byk 024 0.10 defoamer BYK Chemie 10 BYK 345 0.10 wetting agent BYK Chemie 11 Water (deion.)* 2.00 12 AMP 90* 0.15 neutralizing agent Angus 13 Asconium-142DA* 2.00 corrosion inhibitor Ascotec 14 Optifilm Enhancer 300 1.50 co-solvent Eastman 15 Ascotran-H10 1.00 flash rust inhibitor Ascotec 16 Tafigel PUR 60 solution (10% PUR 60: 10% BG: 80% water) 0.60 rheology modifier Münzing Chemie Total 100.00 page 17 of 36

Formulation Proposal FP 2435-01 anti-corrosion coating, PVC approx. 22%, solids approx. 53% Pos. Raw Material Amount Product Supplier 1 Water (deion.) 7.30 2 Edaplan 490 1.20 dispersing agent Münzing Chemie 3 AMP 90 0.05 neutralizing agent Angus 4 Byk 024 0.10 defoamer BYK Chemie 5 Kronos 2190 17.70 pigment Kronos Titan 6 Calcilit Super 7.50 filler Alpha Calcit Dispers with high shear rate for 10 min, then proceed with pos. 7 15 7 Alberdingk AC 2435 VP 59.10 acrylic dispersion Alberdingk Boley 8 Byk 024 0.20 defoamer BYK Chemie 9 BYK 349 0.10 wetting agent BYK Chemie 10 Water (deion.)* 1.90 11 AMP 90* 0.15 neutralizing agent Angus 12 Asconium-142DA* 2.00 corrosion inhibitor Ascotec 13 Optifilm Enhancer 300 1.50 co-solvent Eastman 14 Ascotran-H10 0.80 flash rust inhibitor Ascotec 15 Tafigel PUR 60 solution (10% PUR 60: 10% BG: 80% water) 0.40 rheology modifier Münzing Chemie Total 100.00 * Premix pos. 10 12 and add it to the base under stirring. Corrosion Class: C4-I long / C5-I middle (@100µm DFT) page 18 of 36

Formulation Proposal FP 2435-01 anti-corrosion coating, PVC approx. 22%, solids approx. 53% page 19 of 36

Formulation Proposal FP 2360-01 anti-corrosion coating, PVC approx. 22%, solids approx. 54% Pos. Raw Material Amount Product Supplier 1 Water (deion.) 7.40 2 Edaplan 490 1.20 dispersing agent Münzing Chemie 3 AMP 90 0.05 neutralizing agent Angus 4 Byk 024 0.10 defoamer BYK Chemie 5 Kronos 2190 17.70 pigment Kronos Titan 6 Calcilit Super 7.50 filler Alpha Calcit Dispers with high shear rate for 10 min, then proceed with pos. 7 15 7 Water (deion.) 2.30 8 Alberdingk AC 2360 57.90 acrylic dispersion Alberdingk Boley 9 Byk 024 0.30 defoamer BYK Chemie 10 BYK 349 0.10 wetting agent BYK Chemie 11 Water (deion.)* 1.00 12 AMP 90* 0.15 neutralizing agent Angus 13 Asconium-142DA* 2.00 corrosion inhibitor Ascotec 14 Optifilm Enhancer 300 1.00 co-solvent Eastman 15 Ascotran-H10 0.80 flash rust inhibitor Ascotec 16 Tafigel PUR 60 solution (10% PUR 60: 10% BG: 80% water) Total 100.00 * Premix pos. 11 13 and add it to the base under stirring. Corrosion Class: C4-I long / C5-I middle (@100µm DFT) page 20 of 36

Formulation Proposal FP 2360-01 anti-corrosion coating, PVC approx. 22%, solids approx. 54% page 21 of 36

Formulation Proposal FP 48-02 anti-corrosion coating, iron oxide red PVC approx. 30%, solids approx. 54% Pos. Raw Material Amount Product Supplier 1 Alberdingk SC 48 40.00 acrylic dispersion Alberdingk Boley 2 Water (deion.) 11.05 3 Pigment preparation 41.50 see next page 4 Optifilm Enhancer 300 1.00 co-solvent Eastman 5 Byk 024 0.40 defoamer BYK Chemie 6 Byk 349 0.10 substrate wetting agent BYK Chemie 7 Ascotran H-10 0.50 flash rust inhibitor Ascotec 8 Ammonia (25%) 0.80 neutralizing agent 9 Resydrol AX 237 W/70 BG 4.00 epoxy-alkyd resin Allnex 10 Borchi OXY-Coat 1101 0.05 drier OMG Borchers 11 Tafigel PUR 40 0.60 rheology modifier Münzing Chemie Total 100.00 Adjust the ph value of the finalized paint with Ammonia to 8.5. Corrosion Class: C4-I long / C5-I middle(@150µm DFT) page 22 of 36

Formulation Proposal FP 48-02 pigment preparation Pos. Raw Material Amount Product Supplier 1 Water (deion.) 7.00 2 Edaplan 490 0.80 dispersing agent Münzing Chemie 3 BYK 024 0.10 defoamer BYK Chemie 4 Butyl Glycol (BG) 3.00 co-solvent BASF 5 Bayferrox 130 M 9.00 pigment Lanxess 6 Micro Talc AT 1 3.00 filler Mondo Minerals 7 Calcilit Super 10.60 filler Alpha Calcit 8 Heucophos ZPO 7.00 9 Heucorin RZ 1.00 Total 41.50 anti-corrosion pigment anti-corrosion pigment Heubach Heubach Dispers with high shear rate for 10 min. page 23 of 36

Formulation Proposal FP 48-04 anti-corrosion coating, iron oxide red PVC approx. 37%, solids approx. 56% Pos. Raw Material Amount Product Supplier 1 Water (deion.) 8.00 2 Edaplan 490 1.20 dispersing agent Münzing Chemie 3 AMP 90 0.05 neutralizing agent Angus 4 Byk 024 0.10 defoamer BYK Chemie 5 Bayferrox 130 M 5.00 pigment Lanxess 6 Durcal 5 27.50 extender Omya Disperse with high shear rate for 10 min, then proceed with pos. 7 16 7 Water (deion.) 8.10 8 Alberdingk SC 48 43.90 acrylic dispersion Alberdingk Boley 9 Byk 024 0.30 defoamer BYK Chemie 10 BYK 349 0.10 wetting agent BYK Chemie 11 Water (deion.)* 1.00 12 AMP 90* 0.15 neutralizing agent Angus 13 Asconium-142DA* 2.00 corrosion inhibitor Ascotec 14 Optifilm Enhancer 300 1.00 co-solvent Eastman 15 Ascotran-H10 0.80 flash rust inhibitor Ascotec 16 Tafigel PUR 61 solution (50% in Dowanol DPM) 0.60 rheology modifier Münzing Chemie Total 100.00 *Premix pos. 11 13 and add it within a time frame of 5 minutes to the base under stirring. Corrosion Class: C4-I long / C5-I middle (@200µm DFT) page 24 of 36

Formulation Proposal FP 48-04 anti-corrosion coating, iron oxide red PVC approx. 35%, solids approx. 56% page 25 of 36

FP 2403/45 11% PVC FP 2403/44 22% PVC FP 2403/30 35% PVC FP 2360/1 22% PVC FP 2435/1 22% PVC FP 48/2 30% PVC FP 48/4 35% PVC hours NSST/DFT Technology Information Performance level: NSST hours / Layer thickness 1600 30 1400 25 1200 1000 20 800 15 600 10 400 200 5 0 0 achieved NSST hours required DFT [µm] performance-level The performance level is a quotient of achieved NSST hours and the dry film thickness. In this comparison Alberdingk AC 2403 is by far unmatched in corrosion protection and performs very well in low PVC formulations. With Alberdingk AC 2403 you are able to achieve very long protection at very low dry film thickness. page 26 of 36

FP 2403/45 11% PVC FP 2403/44 22% PVC FP 2403/30 35% PVC FP 2360/1 22% PVC FP 2435/1 22% PVC FP 48/2 30% PVC FP 48/4 35% PVC performance-level cost/performance-index Technology Information Cost/Performance Index: Performance-level / Coating costs 30 12 25 10 20 8 15 6 10 4 5 2 0 0 performance-level cost/performance-index The cost/performance-index is a quotient of the performance-level and the paint cost. Even though the formulations with Alberdingk AC 2403 are more costly than the other formulations it shows the best cost/performance-index. For low cost formulations Alberdingk SC 48 is a very interesting alternative with good performance (FP 48/04) page 27 of 36

-costs [%] Technology Information Conclusion Today s challenge of Paint producers are cost efficient solutions at a very high level of quality. AC 2403 is a prominent example for a high quality dispersion which combines all these advantages with the objective target of high corrosion protection performance at a maximum of efficiency. Schematical cost calculation for a 1000 m² corrosion protection renovation project: 100 90 80 70 60 50 40 30 20 10 0 conventional water-based coating AC 2403 based coating personnel costs scaffolding costs paint selling price downtime costs ALBERDINGK AC 2403 advantages at a glance: less working hours, due to 1 coat system less downtime, due to 1-coat system reduced scaffolding costs primer and topcoat are combined in one single coating higher security due to a maximum of corrosion protection performance eco-friendly (water-based, without Zn 2+ -ions), low VOC less weight due to lower dry film thickness page 28 of 36

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Alberdingk Boley GmbH Düsseldorfer Str. 53 47829 Krefeld Germany Tel +49 2151 528-0 Fax +49 2151 573643 info@alberdingk-boley.de www.alberdingk-boley.de