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	Exhibit 1.01

Nautilus, Inc.
Conflict Minerals Report
in Accordance with Rule 13p-1 under the Securities Exchange Act of 1934

This Conflict Minerals Report of Nautilus, Inc. for the calendar year 2020 is presented in accordance with Rule 13p-1 (“Rule 13p-1” or the “Conflict Minerals Rule”) under the Securities Exchange Act of 1934, as amended. Please refer to Rule 13p-1, Form SD and Securities and Exchange Commission Release No. 34-67716 for definitions to the terms used in this Report without definitions. Unless otherwise indicated, the terms “Company”, “Nautilus”, “we”, “us”, and “our” refer to Nautilus, Inc., a Washington corporation, together with its subsidiaries.

In accordance with the Conflict Minerals Rule, we conducted an analysis of our products manufactured during calendar year 2020 and determined that certain of these products contained small or trace quantities of conflict minerals, as that term is defined by Rule 13p-1, due to the presence in certain electronics assemblies obtained from third-party component suppliers for use in our finished goods, of small or trace quantities of tantalum, tin, tungsten, and/or gold (“3TG”), which 3TG minerals were determined to be necessary to the functionality or production of our products. In accordance with Rule 13p-1, we undertook due diligence to determine the status of the conflict minerals present in our products.

Pursuant to the Conflict Minerals Rule, we are required to conduct a good faith reasonable country of origin inquiry (“RCOI”) designed to determine whether any of the 3TG minerals necessary to the functionality or production of our products originated in the Democratic Republic of the Congo (“DRC”) or any adjoining country (collectively, the “Covered Countries”). 

Company Overview and Products

We are focused on developing and marketing consumer fitness equipment and related products under our Nautilus®, Bowflex®,  Schwinn® and JRNY® brands. All of our finished products and product components are produced by third-party manufacturers, who are responsible for the sourcing of raw materials necessary to produce finished products or product components to our specifications. We are therefore several layers removed from the actual mining of conflict minerals. We do not purchase raw ore or unrefined conflict minerals and make no purchases in the DRC or any of the Covered Countries.

Conflict Minerals Due Diligence Program

We value ethical manufacturing practices and are committed to working with our manufacturing partners who share these values. By communicating with our suppliers, we strive to ensure that 3TG minerals that may be used in our products are obtained from  sources that avoid minerals derived from ore mined under conditions of armed conflict and human rights abuses, particularly in the Covered Countries. In doing so, Nautilus follows the framework guidance established by the Organisation for Economic Co-operation and Development (“OECD”) in conducting due diligence to determine whether products include conflict minerals from the Covered Countries.
 
Conflict Minerals Policy

Our Conflict Minerals policy is as follows:

“Under Rule 13p-1 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), conflict minerals are defined as tin, tungsten, tantalum, and gold. All companies required to file reports with the Securities and Exchange Commission under Sections 13(a) or 15(d) of the Exchange Act are required to (1) determine if conflict minerals are present in and necessary to the functionality or production of products the company manufactured or contracted to be manufactured, (2) undertake reasonable efforts to determine if the conflict minerals originated in the Democratic Republic of Congo or adjoining countries, and finally, (3) report on the results of those procedures.”

Our policy is to comply with all disclosure and reporting requirements under Rule 13p-1 of the Exchange Act. 

Supply Chain

All of our products are manufactured by independent factories located outside the United States, and we do not own any manufacturing operations producing products subject to the Conflict Minerals Rule. Many of the products that our third-party manufacturers build are complex and typically include components from several suppliers. In some cases we may not have 

direct contractual relationships with these component suppliers. Therefore, we must rely on our direct suppliers to work with their upstream vendors in order that they may provide us with accurate information about the origin of 3TG minerals included in our products and/or components that we purchase. 

We maintain agreements that incorporate certain specifications with our finished good suppliers. We have communicated our conflict minerals requirements to targeted suppliers, and as we enter into new agreements or renew existing agreements, we will exercise our due diligence to identify the sources of 3TG minerals found in the products we purchase from them.

Due Diligence

Design of Due Diligence

Our due diligence measures have been designed to conform, in all material respects, with the due diligence framework presented by the OECD in the publication OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, Third Edition (© 2016). 

Efforts to Determine Mine or Location of Origin

We continue to develop our corporate management system and communications process with our suppliers to investigate and evaluate the use of conflict minerals. We provided our suppliers guidance on supply chain due diligence and sourcing from conflict-affected and high-risk areas. We required our major suppliers to complete and submit to us the Electronic Industry Citizenship Coalition/Global e-Sustainability Initiative (“EICC-GeSI”) conflict minerals reporting template (“CMRT”) established by the Conflict-Free Sourcing Initiative (“CFSI”). The CMRT was developed to facilitate disclosure and communication of information regarding smelters and refiners that provide material to a manufacturer’s supply chain. It includes questions regarding a company’s conflict-free policy, its engagement with its direct suppliers, a listing of the smelters the company and its suppliers use, the origin of 3TGs included in the supplier’s products, and the supplier’s due diligence. We believe adoption of this form would facilitate a more consistent result in the information we would receive from vendors, and use of the CMRT represents our reasonable best efforts to determine the mines or locations of origin of 3TG minerals in our supply chain.

We have relied on our suppliers responses for information on the sources of Conflict Minerals in the goods they supply us.

Due Diligence Measures Performed

1.Establish Strong Company Management Systems

Nautilus' efforts to assess its supply chain in compliance with the Conflict Minerals Rule includes on-going communications with suppliers and educating our personnel through online materials. We continue to develop a corporate management system and communication process with our suppliers to investigate and evaluate the use of conflict minerals. 
 
Cross-Functional Team

Design of our due diligence framework is the responsibility of a cross-functional team supported by key senior executives and subject matter experts across the company, including operations, procurement, sourcing, product development, engineering, legal and accounting. Our sourcing and procurement organization has the primary responsibility for working with suppliers to obtain information on components that may contain 3TGs and is led by our Operations department. 

Control Systems

In addition to our management structure, our controls include:
•A Conflict Minerals policy related to our sourcing of 3TG minerals and the expectation that our suppliers avoid use of 3TG minerals derived from Covered Countries and requests suppliers to keep and provide records on the source and chain of custody for 3TG minerals used in the manufacturing of our products;
•Centralized project team with senior management support from Finance, Legal, Supply Chain and Product Development departments;
•Assigned personnel to work with suppliers to conduct a RCOI and follow up on due diligence; 
•Initiatives to incorporate our policy into our agreements and purchase orders with our manufacturing and supply partners; and
•Periodic updates, as needed, to executive management and Board of Directors.

2.       Identify and Assess Risk in the Supply Chain

For purposes of complying with the Conflict Minerals Rule, we utilize a risk-based approach which begins with a review of all products with potential presence of 3TG minerals. However, we did not exclude any products based on a determination of whether the 3TG mineral is considered necessary to the functionality or production of the product. Our RCOI was based on identification of the suppliers manufacturing components or finished goods for Nautilus that could contain 3TG minerals. 

Risk areas identified within Nautilus' supply chain and control activities designed to mitigate potential risks are reviewed based on the Conflict Minerals Rule requirements and OECD framework.

Reporting Process 

Our conflict minerals reporting process includes: 

•Identifying components and finished goods that could contain 3TG minerals; 
•Reviewing the bill of materials of our products to identify the component parts that were likely to contain conflict minerals; 
•Compiling a list of manufacturers that provided the component parts which were likely to contain conflict minerals; 
•Sending CMRT and supplemental materials to suppliers of components containing or potentially containing conflict minerals; and
•Reviewing publicly available information on suppliers' websites regarding their corporate policies on conflict minerals and steps or actions that have been or are being taken by the respective suppliers to address the use of conflict minerals in the production of their products.

3.       Design and Implement a Strategy to Respond to Risks

We are continuing the process of designing and implementing a strategy to respond to risks relating to conflict minerals. At this time, we continue our on-going communications with our suppliers in an effort to educate, enhance and improve the quality of responses and disclosures in future reporting periods. Also, we continue regular and ongoing review of our suppliers’ annual data submissions and perform internal reviews in order to identify and mitigate potential risk areas as appropriate.

4.      Carry Out Independent Third Party Audit of Supply Chain Due Diligence at Identified Points in the Supply Chain

We are several layers removed from the actual mining of conflict minerals and do not have a direct relationship with any 3TG mineral smelters and refiners, and as such, do not perform or direct audits of these entities. Nautilus intends to monitor supply chain due diligence opportunities by continuing engagement and communications with our suppliers and vendors.

5.    Report on Supply Chain Due Diligence

Nautilus has determined in good faith that during 2020, we contracted to manufacture products which included 3TG minerals that are necessary to the functionality or production of certain of our products. Based on a RCOI, none of our responding suppliers has disclosed to us that any of such 3TG minerals originated or may have originated in the Covered Countries. However, we do not have sufficient information from our suppliers to conclude whether 3TG minerals used in our products originated in the Covered Countries or whether such conflict minerals were from recycled or scrap sources.

This Conflict Minerals Report constitutes our annual report on our 3TG minerals due diligence and is available on our website www.nautilusinc.com and is filed with the Securities and Exchange Commission on Form SD.

Steps to be Taken to Mitigate Risk

We continue taking steps to improve the due diligence we conduct to further mitigate the risk that the 3TG minerals in our products directly or indirectly finance or benefit armed groups in the Covered Countries: 
•Enhance systems to improve identification and documentation of components and products that may include 3TG minerals; 
•Engage with suppliers to attempt to increase the response rate and improve the content of the supplier survey responses; and
•Incorporate our policy into our agreements and purchase orders with our manufacturing and supply partners.Exhibit 10.19

 

 

 

辽宁省农村土地承包经营权流转合同书

Liaoning Province Rural Land Contract Management
Right Circulation Contract

 

 

甲方:丹东市宽甸县长甸乡四平村十二组

Part A: No.12 Group, Siping Village, Changdian
Town, Kuandian County,Dandong City

姓名:程立达

Name: Lida Cheng

电话:15942527249

Phone Number: 15942527249

乙方:丹东市宽甸县长甸乡苏甸村三组

Part B: No.3 Group, Sudian Village, Changdian Town,
Kuandian County,Dandong City

姓名:丹东宝枫苗木科技有限公司
孟祥烨

Name: Xiangye Meng of Dandong Baofeng Seedling
Technology Co., Ltd.

电话:18741589685

Phone Number: 18741589685

根据农村土地承包法律法规和政策的有关规定,双方本着平等、自愿、有偿的原则,经双方协商一致,订立本合同。

In accordance
with the relevant provisions of the laws, regulations and policies on rural land contracting, the two parties have entered into this contract
after mutual agreement on the principles of equality, voluntariness and compensation.

一、流转土地的基本情况

		l	The Basic Situation of the Transferred Land

甲方愿意以(出租、转包、互换、转让、入股)形式将其承包的位于长甸乡四平村六组的土地(详见下表)承包经营权流转给乙方。

Party A is
willing to transfer its contracted land (see the table below) to Party B in the form of (leasing, subcontracting, swapping, transferring,
shareholding).

Party A is willing to transfer the contracted management
right to Party B in the form of (rental, subcontract, swap, transfer, shareholding) of the land (see the following table for details)
of the contracted land located in No. 12 Group, Siping Village, Changdian Town.

	
    序号

    Number
	
    地块名称

    Name
	
    地类

    Type
	
    数量(亩)

    Area(mu)
	
    价格
    元/亩

    Price(Yuan/Mu)

	1	
    千亩平原

    Thousand mu
    of Plain
	
    旱田

    Dry Farmland
	4.6	450
	 	 	 	 	 
	合计	2070/Yuan/Year

 

二、流转期限及付款方式

		l	Circulation Period and Payment Method

流转期限为10年,自2019年01月01日起至
2028年12月30日止。

The transfer
period is 10 years, from 01/01/2019 to 12/30/2028

三、甲方的权利和义务

 

 

 

 

    	 

    	 

    

 

		l	Party A's Rights and Obligations

1、必须按照合同约定按期将承包地流转给乙方。

The contracted
land must be transferred to Party B on time in accordance with the contract.

2、有权获得土地流转收益的权利,有权按照合同约定的期限到期收回流转土地。

The right
to obtain the income from land transfer and the right to recover the transferred land according to the expiration of the contract period.

3、尊重乙方的生产经营自主权,不得干涉乙方依法进行正常的生产经营活动。

Respect Party
B’s autonomy in production and operation, and shall not interfere with Party B’s normal production and operation activities
in accordance with the law.

4、土地以转包、出租、互换或者其他方式流转的应及时向发包方备案;以转让方式流转的,甲方应当事先向发包方提出转让申请,并经发包方同意;出让方应当具有稳定的非农职业或者有稳定的收入来源;受让方应是从事农业生产经营的农户。

If the land
is transferred by subcontracting, leasing, swapping or other waus, it should be filed with the contracting party in time; for transferring
by way of transfer, Party A should submit an application for transfer to the contracting party in advance and obtain the consent of the
contracting party; the transferor should have a stable non-agricultural occupation or a stable source of income; the transferee should
be a farmer engaged in agricultural production and operation.

5、服从和执行县、乡(鎮)土地利用总体规划。

Obey and
implement county, town overall land use planning.

6、法律,行政法规规定的以及合同约定的其它权力和义务。

Other rights
and obligations stipulated by laws, administrative regulations and contractually agreed.

四、乙方的权利和义务

		l	Party B's Rights and Obligations

1、依法享有生产经营自主权、产品处置权和产品收益权。

Enjoy production
and operation autonomy, product disposal rights, and product revenue rights in accordance with the law.

2、维持土地的农业用途,不得用于非农建设。

Maintain
the agricultural use of the land and not use it for non-agricultural construction.

3、依法保护合理利用土地,不得随意弃耕抛荒,不得损坏农田水利设施,不得给土地造成永久性损害。

Protect the
rational use of land in accordance with the law, and must not abandon farming or wasteland at will, not damage farmland water conservancy
facilities, or cause permanent damages.

4、合同到期时,及时向甲方交还土地。

When the
contract expires, return the land to Party A in time.

5、服从和执行县、乡(镇)土地利用总体规划。

Obey and
implement county, town overall land use planning.

6、法律,行政法规规定的以及合同约定的其他权力和义务。

Other rights
and obligations stipulated by laws, administrative regulations and contractually agreed.

五、其他约定

		l	Other Agreements

1、承包地如依法征收、占用时,本合同自然终止,用地单位所付土地补偿费、安置补助费按国家规定进行分配,青苗补偿费和地上附着物补偿归所有者所有。

 

 

 

 

    	 

    	 

    

 

If the contracted
land is requisitioned and occupied according to law, this contract will naturally terminate, the land compensation fee and resettlement
subsidy paid by the land user will be distributed according to national regulations, and the compensation for young crops and ground attachments
will belong to the owner.

2、国家拔付的种粮补贴和农资综合补贴等各项惠农补贴资金归甲方所有。

The various
agricultural subsidy funds allocated by the country such as grain subsidies and comprehensive agricultural material subsidies shall belong
to Party A.

3、其他需说明的事项。

Other Matters
to be Explained.

4、本合同在履行过程中发生争议,双方可通过调解协商的方式解决;调解不成的,可以向农村土地承包纠纷仲裁机构申请仲裁,也可以向人民法院起诉。

Disputes
arising during the performance of this contract can be resolved by both parties through mediation and negotiation; if mediation fails,
they can apply to the rural land contract dispute arbitration institution for arbitration, or they can file a lawsuit in the people’s
court.

六、违约责任

		l	Responsibility for Breach of Contract

1、因变更或解除本合同使一方遭受损失的,除依法可免除责任外,应由责任方负责赔偿。

If one party
suffers losses due to the modification or termination of this contract, the responsible party shall be responsible for compensation, except
for exemption from liability according to law.

2、甲方不按约定时间交付流转土地、非法干预乙方生产经营活动,乙方有权解除合同,给乙方造成损失的并由甲方向乙方支付赔偿。

If Party
A fails to deliver the land for circulation and illegally interferes with Party B’s production and business activities, Party B
has the right to terminate the contract, and Party A shall pay compensation to Party B if it causes losses to Party B.

3、乙方不按合同约定使用土地,改变土地用途,破坏水利等基本设施或给土地造成永久性损害、不按时支付流转费用的,甲方有权解除合同,给甲方造成损失的由乙方甲向方支付赔偿金。

If Party
B does not use the land as agreed in the contract, changes the use of the land, destroys basic facilities such as water conservancy, or
causes permanent damage to the land, or fails to pay the transfer fees on time, Party A has the right to terminate the contract, and Party
B shall pay compensation to Party A if it causes losses to Party A.

4、《合同法》规定的其他违约责任。

Other liabilities
for breach of contract stipulated in the Contract Law.

七、本合同一式四份,双方各执一份,发包方和乡(镇、街道)农村经营管理部门各备案一份。

This contract
is in quadruplicate, with each party holding one copy, and the contract issuing party and the rural management department of the town
each for the record.

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