<SEC-DOCUMENT>0000897101-14-000765.txt : 20140530
<SEC-HEADER>0000897101-14-000765.hdr.sgml : 20140530
<ACCEPTANCE-DATETIME>20140530110821
ACCESSION NUMBER:		0000897101-14-000765
CONFORMED SUBMISSION TYPE:	SD
PUBLIC DOCUMENT COUNT:		2
<RULE>
<RULE-NAME>13p-1
<ITEM>
<ITEM-NUMBER>1.01
<ITEM-PERIOD>20131231
</ITEM>
</RULE>
FILED AS OF DATE:		20140530
DATE AS OF CHANGE:		20140530

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ELECTRO SENSORS INC
		CENTRAL INDEX KEY:			0000351789
		STANDARD INDUSTRIAL CLASSIFICATION:	INDUSTRIAL INSTRUMENTS FOR MEASUREMENT, DISPLAY, AND CONTROL [3823]
		IRS NUMBER:				410943459
		STATE OF INCORPORATION:			MN
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		SD
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-09587
		FILM NUMBER:		14878352

	BUSINESS ADDRESS:	
		STREET 1:		6111 BLUE CIRCLE DR
		CITY:			MINNETONKA
		STATE:			MN
		ZIP:			55343-9108
		BUSINESS PHONE:		9529300100

	MAIL ADDRESS:	
		STREET 1:		6111 BLUE CIRCLE DR
		CITY:			MINNETONKA
		STATE:			MN
		ZIP:			55343
</SEC-HEADER>
<DOCUMENT>
<TYPE>SD
<SEQUENCE>1
<FILENAME>else141992_sd.htm
<DESCRIPTION>FORM SD
<TEXT>
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<P STYLE="margin: 0"></P>

<P STYLE="font: 14pt Arial,sans-serif; margin: 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 14pt Arial,sans-serif; margin: 0; text-align: center"><B>SECURITITES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 12pt Arial,sans-serif; margin: 0; text-align: center"><B>Washington, D.C. 20549</B></P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 16pt Arial,sans-serif; margin: 0; text-align: center"><B>Form SD</B></P>

<P STYLE="font: 16pt Times New Roman,serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Arial,sans-serif; margin: 0; text-align: center">SPECIALIZED DISCLOSURE REPORT</P>

<P STYLE="font: 11pt Times New Roman,serif; margin: 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 11pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 16pt Arial,sans-serif; margin: 0; text-align: center"><B>Electro-Sensors, Inc.</B></P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0 0 12pt; text-align: center">(Exact Name of Registrant as Specified in Charter)</P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 1.5pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 10pt">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 33%; font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font: 10pt Arial,sans-serif"><B>Minnesota</B></FONT></TD>
    <TD STYLE="width: 33%; font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font: 10pt Arial,sans-serif"><B>000-09587</B></FONT></TD>
    <TD STYLE="width: 34%; font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font: 10pt Arial,sans-serif"><B>41-0943459</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font: 10pt Arial,sans-serif">(State or Other Jurisdiction</FONT><BR>
<FONT STYLE="font: 10pt Arial,sans-serif">of Incorporation)</FONT></TD>
    <TD STYLE="font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font: 10pt Arial,sans-serif">(Commission File No.)</FONT></TD>
    <TD STYLE="font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font: 10pt Arial,sans-serif">(I.R.S. Employer</FONT><BR>
<FONT STYLE="font: 10pt Arial,sans-serif">Identification Number)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font: 10pt Arial,sans-serif"><B>6111
    Blue Circle Drive Minnetonka, MN</B></FONT></TD>
    <TD STYLE="width: 50%; font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font: 10pt Arial,sans-serif"><B>55343-9108</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font: 10pt Arial,sans-serif">(Address of Principal Executive Offices)</FONT></TD>
    <TD STYLE="font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font: 10pt Arial,sans-serif">(Zip Code)</FONT></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="width: 60%; border-collapse: collapse; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif; text-align: center; width: 50%"><FONT STYLE="font: 10pt Arial,sans-serif"><B>David L. Klenk</B></FONT></TD>
    <TD STYLE="font-family: Times New Roman,serif; text-align: center; width: 50%"><FONT STYLE="font: 10pt Arial,sans-serif"><B>952-930-0100</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="font-family: Times New Roman,serif; text-align: center; padding-bottom: 12pt"><FONT STYLE="font: 10pt Arial,sans-serif">(Name and telephone number, including area code, of the </FONT><BR>
<FONT STYLE="font: 10pt Arial,sans-serif">person to contact in connection with this report)</FONT></TD></TR>
</TABLE>
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<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">Check the appropriate box to indicate the rule pursuant to which this form is
being filed, and provide the period to which the information in this form applies:</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0"><FONT STYLE="font-family: MS Gothic">&#9746;</FONT><FONT STYLE="font-family: Arial,sans-serif">
<FONT STYLE="font-size: 10pt">Rule 13p-1 under the Securities Exchange Act (17 CFR 240-13p-1) for the reporting period January
1 to December 31, 2013.</FONT></FONT></P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0"><B>SECTION 1 &ndash; CONFLICT MINERALS DISCLOSURE</B></P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">ITEM 1.01 CONFLICT MINERALS DISCLOSURE AND REPORT</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">This Specialized Disclosure Report on Form SD of Electro-Sensors, Inc. (&ldquo;ESI&rdquo;)
for the year ended December 31, 2013 is presented to comply with Rule 13p-1 under the Securities Exchange Act of 1934 (&ldquo;Rule&rdquo;).
The Rule was adopted by the Securities and Exchange Commission (&ldquo;SEC&rdquo;) to implement reporting and disclosure requirements
related to &ldquo;conflict minerals&rdquo; as directed by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
(&ldquo;Dodd-Frank Act&rdquo;). &ldquo;Conflict Minerals&rdquo; are defined by the SEC as columbite-tantalite (coltan), cassiterite,
gold, wolframite, or their derivatives, which are limited to tantalum, tin, and tungsten. The Rule imposes certain reporting obligations
on SEC registrants whose products contain conflict minerals that are necessary to the functionality or production of their products
(such minerals are referred to as &ldquo;necessary conflict minerals&rdquo;), excepting conflict minerals that, prior to January
31, 2013, were located &ldquo;outside of the supply chain&rdquo; (as defined in the Rule). For products which contain necessary
conflict minerals, the registrant must conduct in good faith a reasonable country of origin inquiry designed to determine whether
any of the conflict minerals originated in the Democratic Republic of the Congo (&ldquo;DRC&rdquo;) or an adjoining country, collectively
defined as the &ldquo;Covered Countries&rdquo;. If, based on such inquiry, the registrant knows or has reason to believe that any
of the necessary conflict minerals contained in its products originated or may have originated in a Covered Country and knows or
has reason to believe that those necessary conflict minerals may not be solely from recycled or scrap sources, the registrant must
conduct due diligence as a method to conclude if the necessary conflict minerals contained in those products did or did not directly
or indirectly finance or benefit armed groups in the Covered Countries. Products which do not contain necessary conflict minerals
that directly or indirectly finance or benefit armed groups in the Covered Countries are considered &ldquo;DRC conflict free&rdquo;.
Numerous terms in this Form SD are defined in the Rule, the instructions to Form SD, <FONT STYLE="background-color: white">and
the </FONT> SEC Release relating to the Rule (Release No. 34-67716 dated August 22, 2012). Unless otherwise defined in this Form
SD or the attached Conflict Minerals Report, such terms have the meanings ascribed to them in these sources.</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">The report presented herein is not audited as the Rule provides that if a registrant&rsquo;s
products are &ldquo;DRC conflict undeterminable&rdquo; in a transition period, the Conflict Mineral Report is not subject to an
independent private sector audit.</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">ESI has determined that certain Conflict Minerals, tantalum, tin, tungsten, and
gold, are necessary to the functionality or production of the products ESI manufactures or contracts to manufacture.</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">ESI conducted a reasonable country of origin inquiry regarding Conflict Minerals
utilized in its products. That reasonable country of origin inquiry was designed to determine whether those Conflict Minerals present
in ESI products originated in the Covered Countries or arose from recycled or scrap sources. That reasonable country of origin
inquiry revealed that ESI is unable to determine if necessary conflict minerals used in our products originated from the Covered
Countries, but ESI has no reason to believe that its necessary Conflict Minerals may have originated in the Covered Countries.</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">Accordingly, ESI exercised due diligence regarding the source and chain of custody
of its necessary Conflict Minerals through utilization of a nationally recognized due diligence framework, as more particularly
described in ESI&rsquo;s Conflict Minerals Report furnished with this Form SD as Exhibit 1.01.</P>

<P STYLE="font: 12pt Arial,sans-serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">ITEM 1.02 EXHIBIT</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">ESI&rsquo;s Conflict Minerals Report for the reporting period of January 1 to
December 31, 2013 is furnished as Exhibit 1.01 and is also available at the Company&rsquo;s website <U>at www.electro-sensors.com</U>
under About/Investor Information/Corporate Governance.</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">SECTION 2 &ndash; EXHIBITS</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">Exhibit 1.01 &ndash; Conflict Minerals Report as required by Items 1.01 and 1.02
of this Form.</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the duly authorized undersigned.</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0; text-align: left">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 51%; font-family: Times New Roman,serif; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 49%; font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font-family: Arial,sans-serif"><B>Electro-Sensors, Inc.</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman,serif; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif; text-align: left"><FONT STYLE="font-family: Arial,sans-serif">May 30, 2014</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font-family: Arial,sans-serif">/s/ David L. Klenk</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font-family: Arial,sans-serif">David L. Klenk</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-family: Times New Roman,serif; text-align: left">&nbsp;</TD>
    <TD STYLE="font-family: Times New Roman,serif; text-align: center"><FONT STYLE="font-family: Arial,sans-serif">Chief Executive Officer and Chief Financial Officer</FONT></TD></TR>
</TABLE>
<P STYLE="font: 12pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman,serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Arial,sans-serif; margin: 0"><B>&nbsp;</B></P>

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<DOCUMENT>
<TYPE>EX-1.01
<SEQUENCE>2
<FILENAME>else141992_ex1-01.htm
<DESCRIPTION>EXHIBIT 1.01
<TEXT>
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<P STYLE="font: 10pt Arial,sans-serif; margin: 0; text-align: right"><B>Exhibit 1.01</B></P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0; text-align: right">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman,serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0; text-align: center"><B>ELECTRO-SENSORS, INC.</B></P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0; text-align: center"><B>CONFLICT MINERALS REPORT</B></P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0; text-align: center"><B>REPORTING YEAR: 2013</B></P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0"><B>NOTE REGARDING DEFINED TERMS</B></P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">Unless otherwise defined in this Conflict Minerals Report, terms used in this
Conflict Minerals Report have the meanings ascribed to them by Rule 13p-1 adopted under the Securities Exchange Act of 1934 (&ldquo;Rule&rdquo;),
the instructions to Form SD, <FONT STYLE="background-color: white">and the </FONT>Securities and Exchange Commission Release relating
to the Rule (Release No. 34-67716 dated August 22, 2012).</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0"><B>COMPANY OVERVIEW</B></P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">Electro-Sensors, Inc. (&ldquo;ESI&rdquo; or the &ldquo;Company&rdquo;) designs
and manufactures several different types of monitoring systems that measure actual production and operation rates, as well as systems
that regulate the speed of related machines in the production process.</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">Several of our products contain conflict minerals due to the presence of such
minerals in parts obtained from suppliers, contract manufacturers, or from the utilization of conflict minerals in the manufacturing
processes employed by ESI or our manufacturers.</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">ESI is not a vertically integrated manufacturer and instead relies on the purchase
of higher level assemblies and products. ESI is several levels removed from the actual mining of conflict minerals. ESI does not
make purchases of raw ore or unrefined conflict minerals. ESI has a Conflict Minerals Policy that is available on its website at
<u>www.electro-sensors.com</u> under About/Investor Information/Corporate Governance. Adoption
and communication of this Conflict Minerals Policy is part of the Company&rsquo;s due diligence and supply chain outreach effort
relating to conflict minerals.</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0"><B>&nbsp;</B></P>


<P STYLE="font: 10pt Arial,sans-serif; margin: 0"><B>REASONABLE COUNTRY OF ORIGIN INQUIRY</B></P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">Subsequent to ESI&rsquo;s initial assessment that certain supplier parts likely
contain conflict minerals, ESI conducted a reasonable country of origin inquiry to determine which ESI-utilized parts contain conflict
minerals and whether such conflict minerals originated in the Democratic Republic of the Congo or an adjoining country (collectively,
the &ldquo;Covered Countries&rdquo;). ESI contacted each of its relevant suppliers and asked them to provide information on (1)
the conflict minerals contained in each of the parts supplied by that supplier and (2) the source of the conflict minerals, including
smelter/refinery information and location of mines. Each supplier was asked to complete the Electronic Industry Citizenship Coalition
Global e-Sustainability Initiative (EICC-GeSI) Conflict Minerals Reporting Template. Of the 115 suppliers identified as supplying
ESI with product in 2013 and subsequently contacted, 72 replied with some conflict minerals data. Due to the unresponsiveness of
certain suppliers and the incompleteness of certain responses received, ESI is unable to determine if conflict minerals are present
in certain of its products, as well as conflict minerals utilized in the production of certain supplier parts, originated from
the Covered Countries, but ESI has no reason to believe that our necessary Conflict Minerals may have originated in the Covered
Countries.</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Arial,sans-serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0"><B>DUE DILIGENCE - STANDARD UTILIZED</B></P>

<P STYLE="font: 10pt Courier New; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">ESI designed its due diligence framework to conform in all material respects
with the framework provided by The Organisation for Economic Co-operation and Development (OECD) Due Diligence Guidance for Responsible
Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (including the related supplements applicable to particular
conflict minerals), an internationally-recognized due diligence framework.</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0"><B>DUE DILIGENCE - PROCESS</B></P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">The ESI due diligence exercise included:</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">1. Submitting the EICC - GeSI Conflict Minerals Reporting Template to each supplier
of parts. That template provided a standardized method for ESI use in the collection of representations, statements and data from
suppliers relative to the presence, use, source and chain of custody of conflict minerals in supplier parts that are incorporated
in ESI products for sale to end-use customers.</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">2. Comparing smelters identified in the reporting templates against the list
of smelter facilities which have been identified as &quot;conflict free&quot; by the EICC-GeSI Conflict Free Sourcing (CFS) program.
The CFS program is a voluntary program whereby an independent third party evaluates smelter procurement activities to determine
whether a smelter has sufficiently demonstrated that all materials processed by that smelter originated from sources that do not
directly or indirectly finance or benefit armed groups in the Covered Countries.</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">3. In numerous instances ESI received, after repeated inquiries, conflicting
or incomplete information regarding those facilities utilized to process necessary conflict minerals in supplier parts, as well
as insufficient information regarding the mine(s) or source(s) of origin of those conflict minerals. Nevertheless, each supplier
response was evaluated and, where possible, validated to determine sufficiency, accuracy or completeness of its response. For each
supplier&rsquo;s response, ESI subsequently assessed whether the conflict minerals identified, or those conflict minerals that
may not have been identified, were consistent with the nature and characteristics of the supplied part. For each supplier response
that was insufficient, potentially inaccurate or incomplete, ESI contacted that supplier for follow up, sometimes contacting certain suppliers
on multiple occasions.</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">4. In some instances, ESI did not receive a response from a vendor. These vendors
were contacted numerous times and still did not respond. ESI then researched the vendor&rsquo;s website for information about conflict
minerals, including but not limited to their 2013 Conflict Mineral Report and their Conflict Mineral Policy.</P>


<P STYLE="font: 10pt Arial,sans-serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0"><B>DUE DILIGENCE - RESULTS</B></P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">Due to the number of supplier responses that were determined to be uncertain
or unknown relative to the question of sourcing of raw materials, ESI&rsquo;s due diligence efforts in 2013 were unable to precisely
determine whether or not all supplier parts in its supply chain contain necessary conflict minerals or, in the alternative, utilized
conflict minerals in their manufacture, that either financed or benefited, directly or indirectly, armed groups in the Covered
Countries. As such, ESI&rsquo;s due diligence in 2013 found that ESI products containing or utilizing conflict minerals are DRC
conflict undeterminable.</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Arial,sans-serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0"><B>RISK MITIGATION - IMPROVEMENT PROGRAM</B></P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">The steps that ESI will take in reporting year 2014 to mitigate the risk that
ESI conflict minerals benefit or finance armed groups are as follows:</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">1. ESI will continue to work with suppliers who provided incomplete or insufficient
information or who did not respond in an effort to obtain complete and accurate information in 2014;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">2. ESI will again request information and supporting data from each supplier
providing parts to ESI that are subject to 2014 reporting requirements by utilizing the EEIC-GeSI Conflict Minerals Reporting Template;
and will pursue a completed template response that identifies material down to the smelter and mine.</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">3. ESI will again follow its due diligence process to review and validate supplier
responses that are obtained in support of ESI 2014 conflict minerals reporting.</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">4. ESI will provide its Conflict Minerals Policy to suppliers as part of its
EEIC-GeSI Conflict Minerals Reporting Template based supplier inquiry process for 2014.</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">5. ESI has included a conflict minerals clause in its purchase order standard
terms and conditions for future suppliers or renewals by existing suppliers.</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>



<P STYLE="font: 10pt Arial,sans-serif; margin: 0"><B>PRODUCT DESCRIPTION</B></P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">A list of product families used in ESI&rsquo;s hazardous monitoring systems for
which ESI solicited supplier information regarding conflict mineral content or conflict mineral used in production is attached
as Exhibit A.</P>

<P STYLE="font: 12pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Arial,sans-serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>


<P STYLE="font: 10pt Arial,sans-serif; margin: 0; text-align: center"><B>Conflict Minerals Report</B></P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0; text-align: center"><B>Exhibit A</B></P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0; text-align: center"><B>Description of ESI&rsquo;s 2013 Products</B></P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0"><U>Product Family</U></P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">Shaft Speed Switches</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">Shaft Speed Sensors</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">Mounting Hardware</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">Shaft Speed Pulse Generators</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">Temperature Sensors</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">Hazard Monitoring Systems</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">Slide Gate, Valve, and Angle Sensors</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">Signal Conditioners and Interface</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">Tachometers, Counters, and Displays</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">Vibration Monitors</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">Tilt Switches</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">Motor Drive Controllers</P>


<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">All of the above product families may contain one or more of the Conflict Minerals.</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial,sans-serif; margin: 0"></P>

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<P STYLE="font: 10pt Arial,sans-serif; margin: 0">&nbsp;</P>





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