<SEC-DOCUMENT>0000897101-16-002442.txt : 20160527
<SEC-HEADER>0000897101-16-002442.hdr.sgml : 20160527
<ACCEPTANCE-DATETIME>20160527122916
ACCESSION NUMBER:		0000897101-16-002442
CONFORMED SUBMISSION TYPE:	SD
PUBLIC DOCUMENT COUNT:		2
<RULE>
<RULE-NAME>13p-1
<ITEM>
<ITEM-NUMBER>1.01
<ITEM-PERIOD>20151231
</ITEM>
</RULE>
FILED AS OF DATE:		20160527
DATE AS OF CHANGE:		20160527

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:		161681132

	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>electro161949_sd.htm
<DESCRIPTION>FORM SD
<TEXT>
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-size: 14pt"><B>UNITED
STATES</B></FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-size: 14pt"><B>SECURITITES
AND EXCHANGE COMMISSION</B></FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-size: 12pt"><B>Washington,
D.C. 20549</B></FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-size: 16pt"><B>Form
SD</B></FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-size: 12pt">SPECIALIZED
DISCLOSURE REPORT</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0; text-align: center; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 16pt">Electro-Sensors,
Inc.</FONT></P>

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

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33%">&nbsp;</TD>
    <TD STYLE="width: 34%">&nbsp;</TD>
    <TD STYLE="width: 33%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt"><B>Minnesota</B></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt"><B>000-09587</B></FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt"><B>41-0943459</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt">(State or Other Jurisdiction</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt">(Commission File No.)</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt">(I.R.S. Employer</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt">of Incorporation)</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt">Identification Number)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt"><B>6111
    Blue Circle Drive Minnetonka, MN</B></FONT></TD>
    <TD STYLE="width: 50%; text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt"><B>55343-9108</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt">(Address of Principal Executive Offices)</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt">(Zip Code)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt"><B>David
    L. Klenk</B></FONT></TD>
    <TD STYLE="width: 50%; text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt"><B>952-930-0100</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt">(Name and telephone number, including area code, of the</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD COLSPAN="2" STYLE="text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif; font-size: 10pt">person to contact in connection with this report)</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"></P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, 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, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">&#9746; <FONT STYLE="font-size: 10pt">&nbsp;Rule 13p-1 under the Securities
Exchange Act (17 CFR 240-13p-1) for the reporting period January 1 to December 31, 2015.</FONT></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left">&nbsp;</P>

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<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left"></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-right: 0; margin-bottom: 0; text-align: left">&nbsp;</P>

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

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

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

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">This Specialized Disclosure Report on Form SD of Electro-Sensors,
Inc. (&ldquo;ESI&rdquo;) for the year ended December 31, 2015 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, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, 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, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, 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, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, 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, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, 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: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

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

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">ESI&rsquo;s Conflict Minerals Report for the reporting period
of January 1 to December 31, 2015 is furnished as Exhibit 1.01 and is also available at the Company&rsquo;s website at <U>www.electro-sensors.com</U>
under About/Investor Information/Corporate Governance.</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

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

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, 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, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, 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, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-align: left">&nbsp;</TD>
    <TD STYLE="width: 50%; text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif"><B>Electro-Sensors, Inc.</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">May 27, 2016</FONT></TD>
    <TD STYLE="border-bottom: Black 0.5pt solid; text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">/s/ David L. Klenk</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">David L. Klenk</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Arial, Helvetica, Sans-Serif">Chief Executive Officer and Chief Financial Officer</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

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<DOCUMENT>
<TYPE>EX-1.01
<SEQUENCE>2
<FILENAME>electro161949_ex1-01.htm
<DESCRIPTION>CONFLICT MINERALS REPORT
<TEXT>
<HTML>
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     <TITLE></TITLE>
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<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: right"><B>Exhibit 1.01</B></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: right; text-indent: 0.5in">&nbsp;</P>

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

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

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center"><B>REPORTING YEAR: 2015</B></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center; text-indent: 0.5in"><B>&nbsp;</B></P>

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

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Arial, Helvetica, 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, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in"><B>&nbsp;</B></P>

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

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, 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, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, 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, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, 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, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in"><B>&nbsp;</B></P>

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

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Arial, Helvetica, 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 100 suppliers
identified as supplying ESI with product in 2015 and subsequently contacted, 77 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, Helvetica, Sans-Serif; margin: 0; text-indent: 45.8pt">&nbsp;</P>

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<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in"><B>&nbsp;</B></P>

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

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">ESI designed its due diligence framework to conform in all material
respects with the framework provided by The Organization 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, Helvetica, Sans-Serif; margin: 0; text-indent: 45.8pt">&nbsp;</P>

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

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

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

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, 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, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">2. Comparing smelters identified in the reporting templates against
the list of smelter facilities which have been identified as &ldquo;conflict free&rdquo; 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, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, 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, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, 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 2015 Conflict Mineral Report and their Conflict Mineral Policy.</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in"><B>&nbsp;</B></P>

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

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, 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 2015 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 2015 found that ESI products containing or utilizing conflict minerals
are DRC conflict undeterminable.</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

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

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

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">The steps that ESI will continue to take in reporting year 2016 to
mitigate the risk that ESI conflict minerals benefit or finance armed groups are as follows:</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, 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 2016;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">2. ESI will again request information and supporting data from each
supplier providing parts to ESI that are subject to 2016 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, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, 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 2016 conflict minerals reporting.</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">4. ESI will provide its Conflict Minerals Policy to new suppliers
as part of its EEIC-GeSI Conflict Minerals Reporting Template based supplier inquiry process for 2016.</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">5. ESI includes 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, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

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

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, 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: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>Conflict Minerals Report</B></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>Exhibit A</B></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>Description of ESI&rsquo;s 2015 Products</B></P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center; text-indent: 0.5in"><B>&nbsp;</B></P>

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

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

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

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

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">Mounting Hardware</P>

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

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">Temperature Sensors</P>

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

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

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

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

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">Vibration Monitors</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">Tilt Switches</P>

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

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0">HazardPRO products</P>

<P STYLE="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

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



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

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