California Supply Chains Act Disclosure

Disclosure under the California Transparency in Supply Chains Act

On January 1, 2012, the California Transparency in Supply Chains Act of 2010, codified at California Civil Code Section 1714.43 (the "Act"), took effect in the State of California. The Act is designed to increase the amount of information made available by manufacturers and retailers regarding their efforts (if any) to address the issues of slavery and human trafficking in their direct supply chains.

Given the countries where its suppliers are predominantly located, as well as the nature of most of the components, materials and parts supplied for its products, Arrow International does not believe that its supply chain presents a significant risk of slavery and human trafficking. Therefore, while Arrow International has not undertaken any of the specific actions enumerated in Sections (c)(1) through (5) of the Act, it recognizes and respects all labor and employment laws, including those relating to slavery and human trafficking, wherever Arrow International does business.

Charitable gaming is a heavily regulated industry. As a manufacturer and supplier of charitable gaming products, Arrow International is required to obtain, and maintain, licenses from the respective states, provinces and other venues where it does business. In order to maintain these licenses, and therefore remain in business, Arrow International must operate in compliance with all applicable laws. Arrow International expects its suppliers to likewise comply with all applicable laws, including those relating to slavery and human trafficking. To further insure compliance with the Act, on a going-forward basis Arrow International will include a provision in each written contract with a supplier requiring such supplier to certify that it is in compliance with applicable laws relating to slavery and human trafficking.