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Code Number: 2742 INCI Name: Cocos Nucifera (Coconut) Fruit Extract INCI Status: Conforms REACH Status: Complies CAS Number: 81-31-8 EINECS Number: 232-282-8 topical + tropical fractionated coconut lipids functional active + luxurious sensorial experience antioxidant, film-forming, moisturizing, soothing BACKGROUND First it was coconut milk, then coconut water, and now coconut oil and I think a big part of the recent popularity is that it s natural, not synthetic, which is so appealing, says Francesca Fusco, MD, a dermatologist at Wexler Dermatology in NYC. Most commonly, cosmetic companies have incorporated coconut water into their lines hoping to capitalize on this trend. However, the truth is, topically applied coconut water, or milk, does not enhance moisturization or provide protection to the skin, scalp or hair. Coconut oil is now making its mark in the personal care market as the more effective alternative to mineral oil. The combination of antioxidant, anti-inflammatory, hydrating, and barrier protection properties make this oil definitively unique. Much like coconut oil, fractionated coconut lipids are composed of saturated fats and medium chained triglycerides ideal for reinforcing the skin s barrier, trapping water thus moisturizing the skin in addition to reducing inflammation. SCIENCE Active Concepts has selectively fractionated coconut lipids to create a multifuctional ingredient,. The key to restoring the skin s barrier function is normalizing the epidermal lipids. is ideal for this due to its high concentration of Medium Chain Triglycerides (MCTs), and non-estrogenic phytosterols. Unlike other triglycerides, MCTs are metabolized much more efficiently than Long Chain Triglycerides (LCTs). The result of this being laser-like attention focused on MCTs. Origin: Botanical Processing: GMO Free No Ethoxylation No Irradiation No Sulphonation Additives: Preservatives: None Antioxidants: None Other additives: None Solvents Used: N/A Appearance: Opaque Paste Soluble/ Miscible: Oil Soluble Ecological Information: 86.65% Biodegradability Microbial Count: <1 opg, No Pathogens Suggested Use Levels:.5-5.% Suggested Applications: Improves Barrier Function, Moisturizes, Film-Forming, Enhances Product Feel, Sensorial, Antioxidant, Reduces Transepidermal Water Loss Benefits of : Enhances Aesthetics of Final Formulas Intense Moisturizing Benefits Perceivable Sensorial Attributes Improved Barrier Function Antioxidant Protection MCTs are more efficiently metabolized than LCTs because they are able to cross the double mitochondrial membrane rapidly and do not require carnitine in order to continue on the metabolic pathway. This quick metabolic conversion of MCTs into cellular energy increases the absorption of vitamins, minerals, Version#5/9.15.16/ Form7 page 1/5

and amino acids. Additionally, the eventual conversion of MCTs into essential fatty acids allows for normalization of the epidermal lipids. Application of demonstrates the utility of this approach via rapid and efficacious hydration. BENEFITS As a multifunctional ingredient, endows the skin and hair with a silky texture sans the feel of an oily or greasy residue. When incorporated in personal care products, seals in moisture and delivers critical macronutrients. By implementing the coconut s hydration retention strategy into skin and hair care formulations, we can capitalize on the undeniable and immediately perceivable benefits such as reduction in Transepidermal Water Loss, intense moisturization, and the sensorial experience that accompanies as it assimilates with the skin transforming it into a luxuriously soft, hydrated surface. EFFICACY DATA To demonstrate decreased Transepidermal Water Loss and the increase in skin moisturization, Active Concepts conducted a three week study in which an untreated control, a base lotion (Cetaphil Moisturizing Lotion for All Skin Types), and a test lotion (2.% + Base Lotion) were evaluated. Ten (M/F) panelists between the ages of 23-45 were asked to apply the materials specified to sites on their volar forearms, twice daily. Initial and weekly measurements were taken using the DermaLab Corneometer. Following the base line readings, measurements were recorded again after 24 hours, one week, two weeks, and three weeks. When compared to the base lotion, was shown to decrease Transepidermal Water Loss by 6.% better than the base lotion after 24 hours and 15.% better than the base lotion after three weeks. In comparison the the untreated site, the test lotion (2.% + Base Lotion), decreased TEWL 19.% better at the end of three weeks. Results indicate that is capable of reducing TEWL, promoting moisture retention. Decrease in Transepidermal Water Loss -2 T = 1 week 2 week 3 weeks -4 Percent (%) Decrease -6-8 -1-12 -14-16 -18-2 Experimental (2.% in Base Lotion) Untreated Control Base Lotion Figure 1. Percent decrease in TEWL when using and the base lotion compared to the untreated control. Version#5/9.15.16/ Form7 page 2/5

TEWL Comparison Over Time Percent (%) Reduction 2 18 16 14 12 1 8 6 4 2 T = 24 1 week 2 week 3 weeks Experimental vs. Base Lotion 16 14 Figure 2. Percent TEWL reduction comparing in a base lotion vs. the base lotion. Another in-vivo study was conducted over the course of three weeks to evaluate s ability to increase moisturization. Ten (M/F) subjects between the ages of 23-45 participated in the study. A DermaLab Corneometer was used to measure the moisture levels on the subject s volar forearms. The Corneometer is an instrument that measure the amount of water within the skin. Baseline measurements were taken on day one of the study. Following initial measurements, all subjects were to apply 2 mg of the positive control and test material to the denoted area on their respective forearms, twice a day for three weeks. The test material consisted of 2.% + Base Lotion and the positive control (base lotion) used was Cetaphil Moisturizing Lotion for All Skin Types. Increase in Moisturization Percent (%) Increase 12 1 8 6 4 2 T = 24 hrs 1 week 2 weeks 3 weeks Experimental (2.% in Base Lotion) Untreated Control Base Lotion Figure 3. Percent increase in skin moisturization as measured on three test sites. After 24 hours, the test material increased skin moisturization by 161.% and increased moisturization by 129.% when the site was measure again at the end of three weeks. After 24 hours, the base lotion only increased skin moisturization by 125.% and by a less impressive 9.% at the end of three weeks. Version#5/9.15.16/ Form7 page 3/5

Percent (%) Difference Moisturization Comparison Between Sites 18 168 16 138 14 122 12 18 1 8 6 4 29 31 35 33 2-3 -2-2 T = 24 hrs 1 week 2 week 3 week Experimental vs. Base Lotion Figure 4. Percent difference in moisturization between test sites. When compared to the untreated site after 24 hours, the test material (2.% + Base Lotion) moisturized the skin 168.% better. After three weeks, the test material (2.% AcquaSeal Coconut + Base Lotion) was 18.% more effective in moisturizing the skin than no treatment at all. When evaluated after 24 hours, the test material (2.% + Base Lotion) site was 29.% more moisturized than the positive control site. After three weeks, the test material still yielded impressive results proving to be on average 33.% more effective in moisturizing the skin than the base lotion alone. 7 Moisture Regression Experimental Treatment vs. Untreated 6 Percent (%) Difference 5 4 3 2 1-1 -2 T = T = 24 Hours T = 1 Week T = 2 T = 3 T = 4 T = -24 Hours T = -1 Week T = -2 Figure 5. Moisture Regression. Version#5/9.15.16/ Form7 page 4/5

Furthermore, when examining the moisture levels on the skin after application of test materials stopped, it was determined that is capable of sustaining increased skin moisturization when compared to the skin site that remained untreated through the duration of the study. After 24 hours, the site testing 2.% + Base Lotion was approximately 56.7% more moisturized than the site which received no treatment. After one week, the experimental test site was still yielding moisturization results that were 65.88% better than the untreated site. Additionally, in comparison to the site tested with the base lotion alone, the site treated with 2.% + Base Lotion moisturized the skin 25.1% better after 24 hours and was still 28.38% more effective in moisturizing the skin when reading were taken one week after the applications of both test materials Results indicate that is capable of reducing TEWL, increasing moisture levels, thus enhancing the overall health and integrity of the skin both initially and overtime at low levels in a base lotion. Tropical and Topical, coconut is one of the most rapidly growing memes in the consumer market. By coupling consumer perception with proven efficacy and superior texture, is an effective answer to the demanding personal care and cosmetic market. References: 1) St-Onge MP, et al. Greater rise in fat oxidation with medium-chain triglyceride consumption relative to long-chain triglyceride is associated with lower initial body weight and greater loss of subcutaneous adipose tissue, Intl J of Obesity & Related Metabolic Disorders, 23 Dec;27(12):1565-71. 2) Prior IA, et al. Cholesterol, coconuts, and diet on Polynesian atolls: The Pukapuka & Tokelau Is studies, Amer J of Clinical Nutrition, 198; 34:1552-1561. Active Concepts, LLC Lincolnton, NC. USA www. activeconceptsllc.com Office: +1 (74) 276 71 info@activeconceptsllc.com Active Concepts S.r.l. Milano ITALY www.activeconcepts.it Tel +39 2 936719 info@activeconcepts.it Active Concepts LLC, Asia Kaohsiung, Taiwan www.activeconceptsllc.com Tel + 886 735999 josephyeh@activeconceptsllc.com Information contained in this technical literature is believed to be accurate and is offered in good faith for the benefit of the customer. The company, however, cannot assume any liability or risk involved in the use of its chemical products since the conditions of use are beyond our control. Statements concerning the possible use of our products are not intended as recommendations to use our products in the infringement of any patent. We make no warranty of any kind, expressed or implied, other than that the material conforms to the applicable standard specification. Freedom from patent infringement is not implied. All information is for investigative purposes only. page 5/5