RoHS

NK complies with the European Reduction of Hazardous Substances Directive 2015/863 (RoHS 3) which restricts the use of various hazardous substances, the most common of which is lead, in the manufacture of electronic instruments and other electrical equipment. Based on our own internal analyses, vendor supplied analyses, and/or material certifications of the raw materials used in the manufacture of our products, NK confirms that the Covered NK Products comply with RoHS regulations and do not exceed the allowable limits for lead, mercurcy, cadmium, hexavalent chromium, polybrominated biphenyls (PBB), polybrominated diphenyl ethers (PBDE), Bis(2-ethylhexyl)phthalate (DEHP), butyl benzy phthalate (BBP), dibutyl phthalate (DBP) and diisobutyl phthalate (DIBP).

NK's Declaration of RoHS Compliance

REACH

The European Regulation on the Registration, Evaluation, Authorisation and Restriction of Chemicals, (REACH) was enacted in June of 2007, and is designed to consolidate various pieces of legislation within Europe and improve the level of information available on chemical usage within the supply chain. REACH was adopted to improve the protection of human health and the environment from risks that can be posed by chemicals. REACH identifies more than 200 chemicals of concern on the Substances of Very High Concern Candidate List. Manufacturers are required to notify customers when any of their articles contain >0.1% of Substances of Very High Concern (SVHC). NK confirms that the Covered NK Products contain none of the SVHC substances listed on the SVHC Candidate List. The current SVHC Candidate List can be viewed online at echa.europa.eu/candidate-list-table. NK will continue to monitor our processes and vendors and any changes to the REACH legislation and SVHC Candidate List.

NK's Declaration of REACH Compliance

WEEE

NK confirms that all Covered NK Products are marked with the "wheelie bin" symbol in compliance with the European Waste Electrical and Electronic Equipment Directive 2002/96/EC (WEEE). This mark indicates that within EU member states the Covered NK Products must not be disposed of as unsorted municipal waste and must instead be returned to local electronic waste collection and recycling providers. Any customers wishing to dispose of any Covered NK Product should contact an NK reseller located within their country for more information. To locate an NK reseller, visit the dealer page at any of the above listed Web URL's or contact NK at the contact information provided therein. Customers may also contact NK directly at techsupport@nkhome.com for more information about disposal arrangements. NK commits to properly recycle and dispose of all Covered NK Products returned to NK at the end of their life.

NK's Declaration of WEEE Compliance

CALIFORNIA PROPOSITION 65

WARNING: Use of the Covered NK Products can expose you to chemicals, including lead and lead compounds, which are known to the State of California to cause cancer and bisphenol A (BPA), and phthalates DINP and/or DEHP, which are known to the State of California to cause birth defects or other reproductive harm.

Can I Trust that the Covered NK Products are Safe Despite this Warning?

In 1986, California voters approved the Safe Drinking Water and Toxic Enforcement Act known as Proposition 65 or Prop 65. The purpose of Proposition 65 is to ensure that people are informed about exposure to chemicals known by the State of California to cause cancer, birth defects and/or other reproductive harm. A company with ten or more employees that operates within the State of California (or sells products in California) must comply with the requirements of Proposition 65. To comply, businesses are: (1) prohibited from knowingly discharging listed chemicals into sources of drinking water; and (2) required to provide a "clear and reasonable" warning before knowingly and intentionally exposing anyone to a listed chemical. Proposition 65 mandates that the Governor of California maintain and publish a list of chemicals that are known to cause cancer, birth defects and/or other reproductive harm. The Prop 65 list, which must be updated annually, includes over 1,000 chemicals, including many that are commonly used in the electronics industry.

Although the manufacturing processes for the Covered NK Products are "lead-free" and compliant with both RoHS 3 and REACH as outlined above, as with virtually all consumer electronics products, it remains possible that trace amounts of lead below the RoHS and REACH reporting levels could be found in components or subassemblies of the Covered NK Products. Bisphenol A (BPSA) could conceivably be present in minute amounts in plastic housings, lenses, labels or adhesives, and DEHP & DINP (phthalates) could possibly be found in PVC wire coatings of cables, housings, carrying cases, and power cords. Unlike RoHS and REACH, Prop 65 does not establish a specific threshold for reporting on the substances of concern and instead sets forth a much less definitive standard requiring that the business demonstrate with certainty that there is "no significant risk" resulting from exposure.

With respect to carcinogens, the "no significant risk" level is defined as the level which is calculated to result in not more than one excess case of cancer in 100,000 individuals exposed over a 70-year lifetime. In other words, if you are exposed to the chemical in question at this level every day for 70 years, theoretically, it will increase your chances of getting cancer by no more than 1 case in 100,000 individuals so exposed. With respect to reproductive toxicants, the "no significant risk" level is defined as the level of exposure which, even if multiplied by 1,000, will not produce birth defects or other reproductive harm. In other words, the level of exposure is below the "no observable effect level," divided by 1,000. (The "no observable effect level" is the highest dose level which has not been associated with observable reproductive harm in humans or test animals.) Proposition 65 does not clarify whether exposure is to be measured only in normal operation, or in the event of misuse such as intentionally damaging, incinerating or consuming a Covered NK Product or component and NK has not attempted to evaluate the level of exposure.

A Proposition 65 warning means one of two things: (1) the business has evaluated the exposure and has concluded that it exceeds the "no significant risk level"; or (2) the business has chosen to provide a warning simply based on its knowledge about the presence of a listed chemical without attempting to evaluate the exposure. The California government has itself clarified that "The fact that a product bears a Proposition 65 warning does not mean by itself that the product is unsafe." The government has also explained, "You could think of Proposition 65 more as a ‘right to know' law than a pure product safety law."

While using the Covered NK Products as intended, we believe any potential exposure would be negligible or well within the "no significant risk" range. However, to ensure compliance with California law and our customers' right to know, we have elected to place the Proposition 65 warning signs on the Covered NK Products.

For further information about California's Proposition 65, please visit oehha.ca.gov/prop65/background/p65plain.html.

NK's Proposition 65 Warning Statement

CONFLICT MINERALS

NK hereby declares that the Covered NK Products are, to NK's knowledge and belief, manufactured without the use of columbite-tantalite (coltan), cassiterite, gold, wolframite and the derivatives tantalum, tin and tungsten ("Conflict Minerals") originating from the Democratic Republic of Congo (the "DRC") and adjoining countries (the "Conflict Region").

The Covered NK Products contain component parts, including capacitors, resistors, sensors, microprocessors, displays, circuit boards and injection molded cases that may contain various metals – including tantalum, tin, tungsten and gold – that have the potential to be Conflict Minerals originating from the DRC and adjoining countries sold to perpetuate fighting and human rights abuses.

In the U.S., Section 1502 of the 2010 Dodd-Frank Act requires companies to file an annual special disclosure with the U.S. Securities and Exchange Commission beginning in 2014 indicating if their products include metals sourced from the Conflict Region. While the NK Companies are not required to file disclosures with the SEC, NK supports the goal of the 2010 Dodd-Frank Act and the related U.S. Securities and Exchange Commission rule that promotes transparency and consumer awareness regarding the use of Conflict Minerals and seeks to cut direct and indirect funding of armed groups engaged in conflict and human rights abuses in the Conflict Region.

NK does not source any components or materials from the Conflict Region, nor does NK source any Conflict Minerals in their raw state for any purpose whatsoever. Furthermore, NK does not knowingly source any components or products containing Conflict Minerals or their derivatives. However, while NK takes very seriously its obligation not to support or contribute to the violence and human rights violations associated with the mining of the identified minerals in the Conflict Region, we have no choice but to rely upon the due diligence of our component manufacturers, suppliers and distributors to ensure that the metals contained in our component parts do not contain Conflict Minerals. NK sources products and components exclusively from reputable domestic and international distributors and manufacturers, with the great majority of components being purchased from Arrow Electronics and Avnet Electronics. We have attached Conflict Minerals Statements from these two suppliers confirming their commitment to work throughout their supply chain to ensure that the specified metals are being sourced only from (1) mines and smelters outside the Conflict Region or (2) mines and smelters within the Conflict Region which have been certified by an independent third party as "conflict free."

NK is committed to supply chain initiatives and overall corporate social responsibility and sustainability efforts that work towards a conflict-free supply chain. We have surveyed the majority of our suppliers to ensure they have a conflict minerals policy in place and require our suppliers to likewise support these efforts and make information on the origin of their product components easily accessible.

NK's suppliers are expected to establish their own conflict minerals policies, due diligence frameworks and management systems that are designed to prevent conflict minerals originating from the DRC or an adjoining country, to the extent that they benefit groups committing human rights violations, from being included in the products sold to NK. In the event NK determines that a supplier has failed to develop and implement reasonable steps to comply with this policy, NK reserves the right to take appropriate actions, which may include discontinuing the business relationship with the supplier.

Information provided herein concerning the substance content of the Covered NK Products represents NK's knowledge and belief as of the date that it is provided based upon certifications by NK's suppliers regarding the raw materials used in the manufacture of the Covered NK Products. NK makes no representation or warranty as to the accuracy of information provided by third parties. NK has taken and continues to take reasonable steps to obtain representative and accurate information.

NK's Conflict Minerals Declaration

NK's Conflict Minerals Compliance Report

Arrow Electronics Conflict Minerals Statement

AVNET Electronics Conflict Minerals Statement

NDAA SECTION 889 TELECOMMUNICATIONS EQUIPMENT

On July 10, 2020, the interim rule implementing Section 889(a)(1)(B) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Pub. L. No. 115-232) was released by the U.S. Government's Federal Acquisition Regulatory Council. Section 889 prohibits the U.S. Government from buying (as of August 2019)—or contracting with an entity that uses (as of August 2020)—telecommunications equipment or services produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities) or, in certain cases, telecommunications or surveillance equipment or services produced by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate of those entities). The interim rule addresses the new prohibition on use of the banned telecommunications equipment and services and clarifies the prohibition on buying such equipment that went into effect in 2019. The rule is not limited to end products produced by those companies; it also covers most telecommunications components from those companies that are incorporated into end products. The prohibition and the interim rule for Section 889(a)(1)(B) become effective on August 13, 2020.

For the purposes of this Declaration, covered telecommunications equipment or services" has the meaning provided in the clause 52.204-25, Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment.

1. NK represents that the NK Companies DO NOT provide covered telecommunications equipment or services as a part of the Covered NK Products and Services offered to the Government in the performance of any contract, subcontract, or other contractual instrument.
2. NK further represents that the NK Companies DO NOT USE covered telecommunications equipment or services, or any equipment, system or service that uses covered telecommunications equipment or services, as part of the covered NK Products and Services.

Information provided herein is based upon reasonable inquiry and NK's knowledge and belief as of the date this representation. NK has taken and will continue to take reasonable steps to obtain representative and accurate information concerning the telecommunications equipment content of its products.

NK's Telecommunications Equipment Declaration

SLAVERY AND HUMAN TRAFFICKING STATEMENT

BACKGROUND

On March 26, 2015, The Modern Slavery Act 2015 was passed into law in the United Kingdom. This law requires all business entities that carry on a business, or part of a business, in any part of the United Kingdom to prepare and publish a slavery and human trafficking statement for each financial year of the organization. The law also creates the obligation to report on steps taken during the financial year to ensure that slavery and human trafficking is not taking place in any part of its supply chain or in any part of its own business. NK has business entities operating in the UK, therefore NK abides by this law.

SCOPE

This policy applies to NK’s global business operations. Employees whose responsibilities relate to the sourcing of parts, components, materials and services are informed and are expected to assist our compliance with these requirements, associated legislation, and regulations. This policy is reviewed annually, and changes are incorporated accordingly.

OUR COMMITMENT

We respect the environment, the communities in which we operate, and our employees’ human rights, and we oppose corruption. Therefore, we are committed to conducting our worldwide business operations in a manner that complies with applicable laws and regulations. We are also committed to taking steps to ensure that slavery and human trafficking is not taking place in any part of our supply chain or in any part of our business. This Statement reflects the current scope of NK’s efforts in this respect.

DEFINITIONS

NK is committed to supporting the principles of the United Nations Global Compact ("UNGC") which are based on The Universal Declaration of Human Rights:

1. Support and respect the protection of internationally proclaimed human rights.
2. Ensure the company is not complicit in human rights abuses.
3. Uphold the freedom of association and the effective recognition of the right to collective bargaining.
4. Uphold the elimination of all forms of forced and compulsory labor.
5. Uphold the effective abolition of child labor.
6. Eliminate discrimination in employment and occupation.
7. Support a precautionary approach to environmental challenges.
8. Undertake initiatives to promote greater environmental responsibility.
9. Encourage the development and diffusion of environmentally friendly technologies.
10. Work against corruption in all its forms, including extortion and bribery.

Under the UNGC, Human rights are the same as labor rights; human trafficking and slavery assessments adopt UNGC assessment approach and definitions:

• "Supply Chain": Entities with which the enterprise has a direct or indirect business relationship and which either (a) supply products or services that contribute to the enterprise's own products or services or (b) receive products or services from the enterprise.
• "Due Diligence": Due diligence in the context of human rights comprises an ongoing management process designed to support the organization in meeting its responsibility to human rights. A human rights due diligence process should include assessing actual and potential human rights impacts, integrating and acting upon the findings, tracking responses and communicating how impacts are addressed.
• "Human Rights Risk": Any risks that a business’s operations may lead to one or more adverse human rights impacts.
• "Adverse Human Rights Impact": An adverse impact occurs when an action removes or reduces the ability of an individual to enjoy his or her human rights. A human rights impact may be actual or potential. Adverse impacts may be caused by an enterprise through its own activities; may be contributed to by an enterprise either directly or indirectly through an outside entity or may be caused by someone with whom the entity does business and is linked to the entities own operations, products or services.
• "Worker": Workers include direct employees, temporary workers, migrant workers, student workers, contract workers, and any other person(s) providing labor and employment services to entities in the supply chain.

OUR EXPECTATIONS

NK expects our suppliers not to be involved in forced, bonded (including debt bondage) or indentured labor, involuntary prison labor, slavery or trafficking of persons of any age at any tier of the supply chain. This includes transporting, harboring, recruiting, transferring or receiving persons by means of threat, force, coercion, abduction or fraud for labor or services. Suppliers, as employers or agents, may not hold or destroy employees’ identification or immigration documents, such as government-issued identification, passports or work permits, unless the holding of work permits is required by law.

Employers may not restrict workers’ freedom of movement in the facility or entering or exiting company-provided facilities. All work must be voluntary and workers shall be free to terminate their employment and leave work at any time. Employers and agents may not use misleading or fraudulent practices during the recruitment of employees. As part of the hiring process, workers must be provided with a written employment agreement in their native language that contains a description of terms and conditions of employment and the hazardous nature of the work, prior to the worker departing from his or her country of origin. Workers must not be required to pay employers’ or agents’ recruitment fees or other related fees for their employment. If any such fees are found to have been paid by workers, such fees must be repaid to the worker.

We expect our suppliers to have a compliance plan in place to ensure that human trafficking and forced labor are not used and that risks of worker exploitation are mitigated. We will continue to promote and encourage our suppliers to take steps to ensure that slavery and human trafficking is not taking place in any part of our supply chain or in any part of their businesses. We expect our suppliers to conduct due diligence on their respective supply chains and to assist us with our compliance with these rules.

To the extent that a supplier refuses to cooperate with our compliance efforts, we may reconsider our supply arrangement and implement remedies available to us.

OUR ACTIONS

• Wherever possible, NK sources products and services from suppliers in the United States and other countries deemed to have a low risk of modern slavery on the Global Slavery Index and actively avoids sourcing products and services from countries deemed to have a moderate to high risk of modern slavery.
• NK maintains long relationships with its suppliers and, wherever possible, visits them in person to confirm their practices are in line with NK’s policies.
• NK sources products and services directly from their producers and avoids resellers who are not well-established and operating under their own clearly published modern slavery policies and statements.
• NK ensures its employees involved in sourcing of parts, components, and materials are trained in our policies and understand they are expected to assist our compliance with these requirements.

NK is developing processes to further expand our due diligence with respect to ensuring that slavery and human trafficking is not taking place in our supply chain including the following:

• Requiring our suppliers to sign a declaration confirming their compliance with this policy and/or to provide a copy of their own Slavery and Human Trafficking Statement.
• Where appropriate, educating our suppliers on the importance of this policy and identifying the products and countries at highest risk of including slavery and human trafficking.

REPORTING CONCERNS

Interested parties may communicate issues regarding NK’s supply chain via email to ethics@nkhome.com or by calling +1 (610) 447-1555 and leaving an anonymous report.

NK's Slavery and Human Trafficking Statement

ANTI-CORRUPTION POLICY

NK is engaged in business activities around the world, some of which may involve contact with officials and representatives of non-U.S. governments or of companies owned in whole or in part by non-U.S. governments. Corruption is the willingness to act dishonestly in return for money or other gains. By wrongly benefitting a few individuals who abuse their power or position, it creates unfair competition, damages innovation, and undermines integrity. Because of the damage that corruption does to the public good, it is illegal around the world.

NK is committed to compliance with United States Foreign Corrupt Practices Act ("FCPA"), the UK Bribery Act, and all other anti-corruption laws of all countries and territories in which we operate or market products (collectively, "Anti-Corruption Laws"). NK has in place a written Anti-Corruption Policy governing all NK employees and third-party business associates. We require our officers, directors, and employees to conduct business in accordance with the letter, spirit, and intent of all relevant laws and to refrain from any illegal, dishonest, or unethical conduct. We also require our employees who are aware of suspected violations or potential violations of applicable laws to advise senior management and cease further interactions with the party in question.

NK, its officers, directors, employees, agents, and distributors acting on behalf of NK , wherever located, shall not offer, pay or give, promise to pay or give, or authorize the payment or giving of any money or anything of value, directly or indirectly to any foreign official.

In addition, NK and all NK officers, directors, employees, partners, third parties, and agents shall not make any such offering or payment to any person knowing or having reason to believe that all or part of it could be used to make a corrupt payment to a foreign official.

In addition, it is the policy of NK to not do business with persons or entities appearing on the U.S. Specially Designated Nationals and Blocked Persons ("SDN") List. SDNs are persons with whom U.S. companies may not deal. Typically, SDNs have an economic or political relationship to a U.S.-sanctioned country but may be located outside that country.

NK screens every Distributor located in or selling to countries with a low Corruption Perception Index score or know to be selling to foreign governments to ensure that no owner, senior officer or employee involved in selling the NK Products appears on the SDN List. NK also requires all Distributors to certify that they will comply with anti-bribery laws.

EXPORT REGULATION COMPLIANCE

it is NK's policy to conduct its business in accordance with U.S. export and sanctions regulations, including but not limited to the Export Administration Act of 1979, as amended, the Export Administration Regulations, the International Emergency Economic Powers Act, the Arms Export Control Act, the International Traffic in Arms Regulations, Executive Orders of the President regarding embargoes and restrictions on trade with designated countries and Sanctioned Persons, the embargoes, restrictions and regulations administered by OFAC, the antiboycott regulations administered by the U.S. Department of Commerce and the U.S. Department of the Treasury (collectively, "Export Regulations").

Accordingly, NK requires that all resellers of the Covered NK Products ("NK Distributors"), consultants and contractors certify that neither they nor any officers, employees, directors, or partners thereof, is (i) a person or entity listed on the Specially Designated Nationals and Blocked Persons List ("SDN List") administered by the Office of Foreign Assets Control ("OFAC") (ii) any person or entity identified on OFAC's List of Foreign Sanctions Evaders pursuant to Executive Order 13608; (iii) any person or entity identified as blocked by OFAC pursuant to Executive Order 13599; (iv) an entity owned or controlled by any such person or entity identified in paragraphs (i) through (iii) of this paragraph; or (v) any person or entity listed on the Entity List or Denied Persons List maintained by the Bureau of Industry and Security of the U.S. Department of Commerce (each of the persons or entities identified at (i) through (v) of this paragraph, a "Sanctioned Person"). NK also requires that all NK Distributors also represent and warrant to NK that they shall not export, re-export or transfer any Covered NK Products in violation of Export Regulations.

Without limiting the generality of the foregoing, Covered NK Products provided shall not be, directly or indirectly, sold, leased, assigned, transferred, conveyed or in any other manner disposed of in any country or region subject to comprehensive United States sanctions or embargo (as of the date of this addendum, Cuba, the Crimea Region of Ukraine, Iran, North Korea, or Syria) or to a Sanctioned Person.