Market Forces and Natural Personal Care September 2008 The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. Home Depot The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. Greener Choices The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. The U.S. Federal Trade Commission (FTC) and the International Standards Organization (ISO) consider this claim to be too vague to be meaningful to consumers. The FTC guidance requires manufacturers to either avoid such terms or substantiate and qualify them to avoid misleading consumers. To comply with the ISO standard for environmental claims (which is voluntary), companies must not use them on their products. The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. “Natural” is… Low Toxicity? Safe for Aquatics? Renewable? Sustainable? Safe? Environmentally Benign? Organic? Biodegradable? Non-irritating? The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. McIntyre Classifications for “Naturally Mild” We have created a product classification method that will assist you in developing consumer products that accurately convey a level of naturalness as well as process-related benefits relevant to environmental health. In other words, we classified our products based on derivation and environmental profile ! The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. Product Classification Organically-Derived Natural & Renewable EcoSensitive SmartDesign The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. Organically Derived Resource Utilization The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. Organically-Derived McIntyre definition: Personal care ingredients derived from NOP organicallycertified feedstocks. These feedstocks are then chemically modified in our plant with natural or synthetic compounds to create the final ingredient. NOP standard: grown, raised, harvested and processed without the use of synthetics, irradiation, chemicals, preservatives, genetically modified organisms or pesticides: e.g. Babassu Oil The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. NOP Labeling Standards for Personal Care Products In order to display the USDA seal, personal care products must meet the same stringent National Organic Program standards as those imposed upon organic food products. Ingredients must be grown, raised, harvested and processed without the use of synthetics, irradiation, chemicals, preservatives, genetically modified organisms or pesticides. Labeling standards are based on the percentage of organic ingredients in a product the same as the NOP organic food criteria. This means that very few PC products qualify for USDA certification. The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. How Green is Your Product? USDA organic labeling standards 100% Organic only organically produced ingredients. USDA Seal OK Organic at least 95% organically produced ingredients. USDA Seal OK Made with organic ingredients at least 70% organically produced ingredients. No USDA Seal Less than 70% organic ingredients: The term “organic” is not allowed. Can Identify organically produced ingredients on the label Newbeauty Magazine Spring-Summer 2008 The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. Organically-Derived Ingredients MackadermTM CEB (Cetyl Babassuate) Mackam® BAB (Babassuamidopropyl Betaine) 100% Vegetable derived 52% Vegetable derived 44% Organic content 52% Organic Content Emulsifier Mild Amphoteric Light, Oily Feel Imparts Lubricious, Silky and Smooth Feel Melts at body temp Stable or a wide pH range Good foamer Increases and stabilizes foam Effective viscosity builder Made from Organically Certified Babassu Oil The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. OASIS March 5, 2008 /Natural Newswire/ — Today, OASIS, the first organic standard for the US beauty and personal care market, will bring clarity to consumer confusion around organic product claims. The only “industry consensus” standard, it has the support of 30 founding members. According to Nutrition Business Journal, the organic beauty and personal care industry has been growing rapidly, at 15% for the past 15 years. At the end of 2007, US sales of organic personal care products approached $9 billion representing approximately 15% of the personal care market. As more and more products claim to be ‘organic’, the potential for consumer confusion also rises. Organic And Sustainable Industry Standards – OASIS - was therefore formed by a group of concerned trade professionals representing the beauty and personal care industry supply chain. It is the first US organic standard for the beauty and personal care industry. The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. Ecocert Ecocert, the largest organic certifier in the EU, has developed standards that are widely used in the EU and other parts of the world. Their main certification is cosmetic ingredients be from renewable resources with a secondary goal that they be from organic agriculture. Some synthetics are allowed such as DMAPA and SMCA to make Betaines. Also allowed are imidazoline derived amphoterics, cationic guar and sulfoacetates. Fragrance components and herbal constituents should be from organic agriculture. The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. Ecocert Organic Calculation 95% of product, including water, must be natural Natural derivatives, like alkyl sulfates, count as natural If a water extract contains more than 5% herb, it all counts as organic Floral waters count as organic At least 10% of the entire formula must be certified organic unmodified plant material At least 95% of the unmodified plant materials must be certified organic The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. Allowable Chemical Processes NOP Organic Hydrolysis, e.g. Wheat Amino Acids Esterification, e.g. Glyceryl Stearate Saponification, e.g. Sodium Cocoate OASIS Everything above plus… Sulfation, e.g. Sodium Coco-Sulfate Hydrogenation, e.g. Hydrogenated Palm Oil Hydrogenolysis, e.g. Hyd. Palm Alcohols The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. Allowable Chemical Processes OASIS (continued) Etherification, e.g. Polyglyceryl Stearate Glycosidization, e.g. Lauryl Glucoside Ecocert Everything above plus… Amphoterics & Betaines Acylated amino-acids, e.g. Lauroyl Glutamates Cationic Guar The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. Natural & Renewable Resource Utilization The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. Natural & Renewable Based A step toward Sustainable Chemistries Allows use of limited resources for other needs Can be calculated two ways Vegetable content of surfactants • For example: 55% the active surfactant Cocamidopropyl Betaine is vegetable derived. “New” Carbon vs “Old” Carbon • For example: 65% of the carbon atoms in the active surfactant Cocamidopropyl Betaine are “new” carbons meaning vegetable derived. The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. McIntyre Definition: Natural & Renewable Personal Care ingredients that are derived from vegetable, renewable resources • • • Vegetable-derived content as a percentage of Total of synthetic (petroleum or mineral) plus vegetable Vegetable content reported in ranges 30-50%, 50-70%, 70-90% and >90% Vegetable content of the solids of the product only This means NaCl counts against us. / The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. O- Na+ Mackol TM CAS-100N O The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. S O O OH Mackamide® CPA O The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. NH www.greenstarproducts.org The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. Other McIntyre Ingredients Mackernium® C14U Guar Hydroxypropyltrimonium Chloride Because this is a natural polymer with an average molecular weight, it is not possible to calculate by atom 85% vegetable derived based on raw material ratios used and % derivatization Mackamer® 120S Hydroxypropyl Guar Because this is a natural polymer with an average molecular weight, it is not possible to calculate by atom Estimated to be 85% vegetable derived Mackpro®Plus Rice-C Cocodimonium Hydroxypropyl Hydrolyzed Rice Protein Because this is based on a natural protein of random amino acids, it is not possible to calculate vegetable content by atom 68% vegetable derived based on raw material ratios use The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. Natural & Renewable Vegetable Content Ranges (based on solids) 30-50% 50-70% 70-90% >90% Mackam Alkyl Mackam Mackine Mackol Fatty Propionates Mackam Amphoacetates Mackam Betaines Mackam Sultaines Mackanate Sulfosuccinates Betaines (from Triglycerides) Mackamine Amine Oxides Mackamide DEA Amides MackproPlus Cationic Proteins Mackaderm Guerbet Esters Amido Amines Acids Mackadet Soaps Mackol Alkyl Glucoside Mackol Alkyl Ether Sulfate Mackester Pearlizing Esters Mackamide MEA Amides Mackaderm Specialty Mackester Emollients Phosphate Esters Mackstat GCM Preservative The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. Shampoo for Normal to Oily Hair McIntyre Formula # 700 Ingredient Water, soft TM Mackol 70NS (Sodium Laureth Sulfate) % by Weight qs to 100 % Solids % Vegetable of Solids 7.0 4.9 2.5 8.0 2.7 1.4 4.0 1.2 0.6 0.8 0.8 0.6 2.2 2.2 2.2 2.0 0.2 0.0 0.2 qs to pH qs to Viscosity as desired 0.1 unknown unknown unknown 0.0 12.1 7.2 60% ® Mackam SFB (Coco/Sunfloweramidopropyl Betaine) ® Mackam 168L (Sodium Lauriminopropionate) Mackamide CPA (Cocamide MIPA) Glycerin ® Mackernium 007S (Polyquaternium-7) Mackstat DM Citric Acid Ammonium Chloride Fragrance, Dye Totals % of Solids that are Vegetable Derived The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. Conditioner for Normal-Oily Hair McIntyre Formula # 701 % Solids % Vegetable Derived Solids 0.5 0.5 0.4 0.25 0.25 0.2 6.0 5.3 4.8 1.5 1.5 1.5 2.0 0.4 0.3 1.0 1.0 0.4 as desired total 9.0 7.6 85% Ingredient % by Wt. Water, soft Mackernium C14U (Guar Hydroxypropyltrimonium Chloride) Mackamer 120S (Hydroxypropyl Guar) Mackconditioner Natural (Cetearyl Alcohol (and) Glyceryl Stearate (and) Stearalk onium Chloride) Mackaderm CEB (Cetyl Babassuate) MackproPlus Rice-C (Cocodimonium Hydroxypropyl Hydrolyzed Rice Protein) Citric Acid, 50% Mackaderm GCP (Phenethyl Alcohol (and) Glyceryl Caprylate) Fragrance, Dye qs to 100 % of Solids that are Vegetable Derived qs to pH 4.5 The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. EcoSensitive Environmental Fate The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. EcoSensitive McIntyre Definition: Personal Care ingredients that are biodegradable and have low aquatic toxicity • Biodegradable defined as: Readily / Ultimately Biodegradable: 60% (or 70%) mineralization in 28 days per OECD standard tests • Low aquatic toxicity defined as: >1 mg/L LC50 on an actives basis The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. Surfactants that Meet EcoSensitive Criteria Alkyldimethylamine Oxides Mackamine C-8, Mackamine C10, Mackamine LO, Mackamine LO-SP, Mackamine C-14, Mackamine MCO, Mackamine SO Anionic Surfactants Mackol CAS-100N, Mackol 70NS, Mackol BFA, Mackadet 40K, Mackadet GB-96 Preservatives Paragon MEPB, Mackstat DM Alkyl Betaines Mackam CB-35, Mackam LAB Alkyl Glucosides Mackol DG Alkanolamides Mackamide C, Mackamide PK, Mackamide S, Mackamide CS, Mackamide CMA, Mackamide LMA Alkylamidopropyl Betaines Mackam DAB, Mackam 35, Mackam 35UL, Mackam 50-UL, Mackam SFB, Mackam DABULS Alkylamidopropylamine Oxides Mackamine CAO, Mackamine FB-48 Amphoacetates Mackam HPL-28, Mackam 1L, Mackam 1C, Mackam HPC-32, Mackam 2C The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. Green Seal Standards Degreasers (GS-34) Suitable for cleaning soils in production and maintenance applications Household Cleaners (GS-08) General-Purpose, Bathroom, Glass, and Carpet Cleaners Industrial & Institutional Cleaners (GS-37)* General-Purpose, Bathroom, Glass, and Carpet Cleaners Industrial & Institutional Floor-Care Products (GS-40) Finishes and Compatible Strippers Industrial & Institutional Hand Cleaners (GS-41) Proposed: Soaps, Cleansers, and Shower Products (GS-44) The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. Mackadet® FHS “Green” Handsoap Concentrate Mackadet FHS is derived from renewable vegetable sources. All components are readily biodegradable and, as used, are not skin sensitizers, skin irritants or aquatic toxins. Mackadet FHS does not contain any sanitizers, has no EDTA/NTA added and contains no significant amount of VOC as defined by 40 CFR §51. Specifications Appearance @ 25°C Color Gardner @ 25°C Solids %, Oven , 105°C Viscosity, cps @25°C pH, 10% aqueous, @ 25°C Clear Liquid Max 2 42.0 – 44.0 Max 6000 5.0 – 6.5 Preservative 0.11% DMDM Hydantoin Typical Properties The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. Mackadet® FHS “Green” Handsoap Concentrate Principal Uses Foam Pump Handsoap Dish Soap 10% – 12% (great feel!) 15% – 20% 50% – 60% Bodywash Shampoo 20% – 30% 15% – 25% Ingredients Ammonium Lauryl Sulfate, Sodium Laureth Sulfate (Any order) Cocamide MEA, Cocamidopropyl Betaine, Decyl Glucoside (Any order) Can match Leading Brand ingredient label & order Regulatory The components of Mackadet FHS are listed on TSCA (US), DSL (Canada), EINECS (EU), ECL (Korea), AICS (Australia), PICCS (Philippines) and China inventories. The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. SmartDesign Conservation The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. McIntyre Definition: SmartDesign Personal Care components and formulation options that offer a process-related benefit relevant to environmental health • Cold Processing = Energy Savings • High Active materials = Reduced Transportation Pollution • Surfactant Concentrates = Energy Savings & Reduced Waste and Disposal • Low Solvent Content = Reduced VOC • Free-Rinsing = Water Conservation • Recycled Packaging = Less Landfill The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. Decreasing Rinse-Off in the Shower by 5 minutes saves…. Standard US shower head water consumption is 2.5 gallons per minute 5 minutes = 12.5 gallons of saving (per person/per day) 365 days per year = 4,562.5 gallons saved per person If 1000 people bought your product: Total saving = 4.56 Millions of Gallons per Year The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. Use of Performance Concentrates or Surfactant Premixes Saves Energy! If 4000 liters of a product incorporating Cocamide MEA (melt temp ~62C) started processing at 25C, it would take 148,000 kilocalories to raise batch to 62C to incorporate the amide. However, if a premix is used at a 1:3 dilution with ambient water, the only ¼ the heat is needed as only ¼ of the composition is heated, i.e. only 37,000 kilocalories are used, a difference of 111,000 kilocalories. 454 grams of coal can create about 3530 kilocalories so the grams of coal saved is 14276 grams or ~14 kilos (~31 lbs) of coal saved for every 4000 liter batch! The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. Energy Savings Component Manufacturing Premix Manufacturing 5 kilos of Coal to heat from 25C to 62C Net savings = 14 kilos of Coal every batch! 19 Kilos of Coal to heat from 25C to 62C 4000L 1000L 1000L + 3000L The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. SmartDesign Performance Concentrates & Surfactant Premixes Mackadet®, Mackpearl®, Mackam® Energy Savings! Reduces inventory of multiple items Drums to Totes/Bulk = Less landfill! Can make many different products from one base Moves some of quality control testing to the supplier Allows for batch adjustments without reheating The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. Mackadet CSB Mackadet CSB is an amide-free surfactant concentrate based on Sodium Coco-Sulfate and other vegetable derived, mild ingredients Eliminates the use of heat and the process of dispersing the Sodium Coco-Sulfate “needles” It is compatible with specialty ingredients such as conditioning agents, vitamins, proteins, and esters. 46% Vegetable derived Sodium Coco-Sulfate, Cocamidopropyl Betaine, Disodium Oleamido MIPA Sulfosuccinate, PEG-6 Caprylic/Capric Glycerides The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. Clear & Natural Shampoo % by Weight Ingredient Water, soft Mackadet® CSB (Sodium Coco-Sulfate, QS 30.0-35.0 Cocoamidopropyl Betaine, Disodium Cocoamphodiacetate, Disodium Oleamido MIPA-Sulfosuccinate, PEG 6 Caprylic/Capric Glycerides) Function Carrier Vegetable derived cleansing agents Mackernium® SFES or CC112P9 (Sunflowerseedamidopropyl / Isostearamidopropyl Ethyldimonium Ethosulfate (and) PEG-9) Citric Acid Sodium Hydroxide, 50% Phenagon® PBD (Phenoxyethanol (and) Benzoic Acid (and) Dehydroacetic Acid) Formula #708 0.65 QS QS 0.7-1.0 Slip Agent/Conditioning agent pH/Viscosity adjust pH/Viscosity Adjust Formaldehyde and Paraben Free Preservative No Noheating heatingrequired required All Allsurfactants surfactantsand andconditioners conditionersare arevegetable vegetablederived derived Formulation Formulationsolids solidsisis46% 46%vegetable vegetablecontent content Formaldehyde-free Formaldehyde-free The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD. Product Classification Organically-Derived Resource Utilization Natural & Renewable Resource Utilization EcoSensitive Environmental Fate SmartDesign Conservation The technical information and suggestions for use herein may be confidential and are believed to be reliable but are not to be construed as warranties, nor a guarantee against patent infringement.®Registered, ™ Trademarks, McIntyre Group, LTD.