In July 2010, the United States Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"). Section 1502 of the Dodd-Frank Act mandates supply chain due diligence and public disclosure related to the sourcing of cassiterite, columbite-tantalite (coltan), gold, wolframite and three specified derivatives: tin, tantalum and tungsten (collectively, "Conflict Minerals"). On August 22, 2012, the Securities Exchange Commission (the "SEC") issued its final rule governing, among other things, due diligence, disclosure and reporting requirements for Conflict Minerals originating in the Democratic Republic of Congo or any of its adjoining countries (collectively, the "DRC Countries") that may be contributing to human rights abuses. Masimo is committed to legal and ethical compliance in all of its business practices and will comply with this legislation, along with the implementing regulations issued by the SEC.
Masimo constantly seeks to source components and materials from companies that share our values regarding human rights, ethics and environmental responsibility. We strive to ensure that all materials used in our products originate from socially and environmentally responsible sources. We do not condone any activity that fuels conflict, leads to serious environmental degradation or violates human rights. Therefore, we commit to refrain from knowingly procuring products or components that contain Conflict Minerals originating in the DRC Countries (unless they are certified as "conflict free"), or for otherwise taking any action that would contribute to the financing of groups responsible for human rights violations.
Masimo recognizes that the problem regarding Conflict Minerals originating in the DRC Countries is not one that can be solved by the efforts of just one company. As such, Masimo supports the efforts of the Electronics Industry Citizenship Coalition (the "EICC") and Global e Sustainability Initiative (the "GeSI") in their determined efforts to assist companies in sourcing "conflict free" minerals for use in their products.
Masimo expects its suppliers to develop internal Conflict Mineral policies, a due diligence framework and systems designed to ensure that components and materials supplied to Masimo are also free from Conflict Minerals originating in the DRC Countries (unless they are certified as "conflict free"). Additionally, we expect suppliers to demonstrate their understanding and support of EICC and GeSI actions, and assert their commitment not to knowingly procure Conflict Minerals from the DRC Countries that are not certified as "conflict free." We also expect our suppliers to fully cooperate with us and to provide Masimo with the information required to support this Conflict Minerals Policy and our related compliance efforts, including providing written updates to Masimo regarding their progress on ensuring the materials provided to Masimo do not contain Conflict Minerals from the DRC Countries that are not certified as "conflict free." As these programs and policies improve, we expect the supply chain of these materials to become more transparent, so that Masimo and its suppliers will be able to better identify the sources of the minerals used in our products. We will reconsider our willingness to partner with any supplier that fails to comply with this Conflict Minerals Policy.