California Transparency in Supply Chains Act

Effective January 1, 2012, the California Transparency in Supply Chains Act of 2010 requires retailers and manufacturers doing business in California to disclose efforts to eradicate slavery and human trafficking from its direct supply chain. Hydrite Chemical Co. is committed to conducting business in an ethical manner and in compliance with the laws of the jurisdictions in which we do business. The following paragraphs are intended to satisfy the disclosure requirements of the California Transparency in Supply Chains Act of 2010.

Hydrite engages in a verification of its product supply chains to evaluate and address the risks of human trafficking and slavery. Hydrite accomplishes this using internal resources and does not engage a third party to conduct this verification. Hydrite suppliers are required to acknowledge receipt of Hydrite's documentation which states that suppliers shall not and do not use any indentured or forced labor, slavery, servitude or any other practice that could encourage human trafficking. Hydrite does not require suppliers to certify that materials incorporated into products sold by Hydrite comply with laws addressing human trafficking and slavery.

Hydrite reserves the right to conduct informal audits of its suppliers to evaluate their compliance with the California Transparency in Supply Chains Act. These audits may be conducted from time to time by Hydrite employees in connection with regular visits to supplier facilities, which will be generally scheduled ahead of time. At this time, Hydrite does not plan to use independent third party paries to conduct formal audits of its suppliers. If Hydrite determines that a supplier does not conform with the California Transparency in Supply Chain Act, Hydrite will terminate its relationship with such supplier unless such supplier takes immediate action to cure its non-compliance to the California Transparency in Supply Chains Act,

Hydrite intends to develop a plan to provide training on slavery and human trafficking, including training on mitigating related risks in supply chains, to employees and management with direct responsibility for supply chain management.