An in-situ advanced-epoxy composition is prepared by reacting under heat about 100 parts of a diglycidyl ether of a bis-phenol with 25-50 parts of a bis-phenol, and with 15-75 parts of carboxyl-terminated reactive liquid polymer. This composition is used as an adduct for modifying epoxy coatings and adhesives without final heat curing, and results in dramatically increased impact resistance and enhanced adhesion.
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