Exhibit 1.02
Exhibit 1.02 to GigOptix Form SD for the reporting period from January 1 to December 31, 2013
Conflict Minerals Report
Design of Conflict Minerals Program - Our conflict minerals program is in conformity with the Organisation for Economic Co-operation and Development Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, Second Edition, and related Supplements on Tin, Tantalum and Tungsten and on Gold (collectively, “OECD Guidance”), specifically as it relates to our position in the minerals supply chain as a “downstream” purchaser. Summarized below are the design components of our conflict minerals program as they relate to the five-step framework set forth in the OECD Guidance.
| I. | Establish strong company management systems |
| a. | Operate an internal “Conflict Minerals” team led by our Corporate Quality Department to implement our Conflict Minerals Sourcing Policy, which is posted on our website at www.gigoptix.com. Regularly review such implementation efforts with our Chief Executive Officer (“CEO”) and senior management. |
| b. | Implement a supply chain system of controls and transparency through the use of due diligence tools created by the Conflict-Free Sourcing Initiative (“CFSI”) which includes the Conflict Minerals Reporting Template (“CMRT”), a supply chain survey designed to identify the smelters and refiners that process the necessary conflict minerals contained in our product. |
| c. | Incorporate requirements related to conflict minerals in our standard template for supplier approval process so that current and future suppliers are obligated to comply with our policies on conflict minerals, including participation in a supply chain survey and related due diligence activities. |
| d. | Incorporate requirements related to conflict minerals in our standard template for supplier approval process so that current and future suppliers are obligated to comply with our policies on conflict minerals, including participation in a supply chain survey and related due diligence activities. |
| e. | Maintain records relating to our conflict minerals program in accordance with our record retention guidelines. |
| f. | Enable employees and suppliers to report any concerns relating to our conflict minerals program. |
| II. | Identify and assess risks in our supply chain |
| a. | Identify direct suppliers that supply products to GigOptix that may contain conflict minerals. |
| b. | Conduct a supply chain survey using the CMRT, requesting direct suppliers to identify smelters and refiners and country of origin of the conflict minerals in products they supply to GigOptix. |
| c. | Contact direct suppliers that do not respond to the supply chain survey by a specified date, requesting their responses. |
| d. | Compare smelters and refiners identified by the supply chain survey against the list of facilities that have received a “conflict free” designation from the Conflict Free Smelter Program (“CFSP”) or other independent third party audit program, which designations provide country of origin and due diligence information on the conflict minerals sourced by such facilities. |
| e. | Document country of origin information for the smelters and refiners identified by the supply chain survey. |
| III. | Design and implement a strategy to respond to identified risks |
| a. | Design and adopt a risk management plan that includes due diligence reviews of suppliers, smelters and refiners that may be sourcing or processing conflict minerals from the Covered Countries which may not be from recycled or scrap sources |
| b. | Implement a risk mitigation response plan to monitor and track suppliers, smelters and refiners identified as not meeting the requirements set forth in our Conflict Minerals Sourcing Policy or contractual requirements to determine their progress in meeting those requirements. |
| c. | Perform risk mitigation efforts to bring suppliers into conformity with our Conflict Minerals Sourcing Policy and contractual requirements, which efforts may include working with direct suppliers to consider an alternative source for the necessary conflict minerals. |
| d. | Provide progress reports to our CEO and senior management summarizing our risk mitigation efforts. |
| e. | When required by the Rule, obtain an independent private sector audit of this Report. |
| IV. | Support the development and implementation of independent third party audits of smelters’ and refiners’ sourcing |
| a. | Support development and implementation of due diligence practices and tools such as the CMRT through encouraging use of the tool throughout the supply chain. |
| b. | Support third party audits of supply chain by using the Smelter and Refiner lists as an integral part of our reporting. |
| V. | Report on supply chain due diligence |
| a. | Publicly communicate our Conflict Minerals Sourcing Policy on our company website at www.gigoptix.com |
| b. | Report annually on our supply chain due diligence activities by publicly filing with the SEC. |
Due Diligence
In October of 2012, GigOptix adopted the tools of the Electronic Industry Citizenship Coalition, Incorporated and Global e-Sustainability Initiative (EICC-GeSI) for conflict minerals. Our Conflict Minerals Policy was established and published on our company website at www.gigoptix.com.
GigOptix implemented the requirement on our entire supply chain to use the EICC-GeSI template to identify smelter and mining source information for the tin, tantalum, tungsten and gold in the items supplied to GigOptix. This information is required regardless of whether the supplier is subject to the SEC requirements directly.
We sent 92 letters to our entire Approved Vendors List (AVL) requesting the completed EICC-GeSI template. We learned that the conflict mineral reporting process does not apply to many of our vendors that provide services such as test or packaging that does not involve supplying any metals. We ended up with 58 responses which we combined into our company level reporting. We used this report, compiled in Version 1 of the EICC-GeSI Conflict Minerals Reporting template, to send to our customers from which we were requesting this reporting.
In June of 2013, GigOptix updated to template version V2.02. Version 2.02 enabled the EICC Smelter ID for most smelters to be readily available. This Smelter ID enables GigOptix to readily determine which smelters are “active” in the EICC-GeSI Conflict-Free Smelter Program (CFSP) and which ones are compliant Conflict-Free Smelters.
Active Smelters & Refiners
Smelters and refiners are identified as Active in the Conflict-Free Smelter Program once they submit signed Agreement for the Exchange of Confidential Information (AECI) and Auditee Agreement contracts. If a smelter or refiner that has been identified as Active is deemed by the CFSP to not be progressing toward an audit, gap closure, or re-audit for more than 90 days, that smelter or refiner will be removed from the Active list. A company that is unresponsive for 45 days will be removed from the Active list.
Conflict-Free Smelters and Refiners
These lists includes the names, locations and links to conflict minerals policies of all smelters or refiners that are compliant with the relevant Conflict-Free Smelter Program assessment protocols. There is a separate list for tantalum, tin and tungsten smelters and gold refiners.
In December of 2013, when requested by customers, GigOptix segregated reporting at the product line level for our HX product line.
In January 2014, GigOptix began a complete recycle of the entire process to prepare for SEC filing of 2013 results. We assembled a team to review the entire AVL and categorize for vendors that supply metals and to identify vendors by GigOptix product line. This categorization enables us to provide complete EICC-GeSI Conflict Minerals Reporting templates to our customers by product line.
98% of the 45 GigOptix vendors that supply metal have responded with completed EICC-GeSI templates. GigOptix has compiled all inputs into a company level template using EICC-GeSI Conflict Minerals Reporting template version 2.03a using the EICC-GeSI Conflict Minerals Reporting tools.
As a result of our due diligence, GigOptix has found no DRC conflict minerals in the supply chain, but less than 100% of the smelters and refiners have been deemed compliant with the relevant Conflict-Free Smelter Program assessment protocols by the EICC-GeSI.
Product Description
Since conflict minerals are necessary to the functionality or production of our products, and less than 100% of the smelters and refiners have been deemed compliant, we are required to provide a description of these products, the facilities used to process the necessary conflict minerals in those products, if known, the country of origin of the necessary conflict mineral in those products, if known, and the efforts to determine the mine or location of origin with the greatest possible specificity.
During this reporting period, we identified the following products that may contain necessary conflict minerals:
| · | 40Gb/s, 100Gb/s and 400Gb/s Drivers and TIAs for fiber-optic telecommunications and data-communications networks. |
| · | High performance MMIC solutions that enable next generation wireless microwave systems up to 90GHz. |
| · | Custom ASIC and Structured ASIC products. |
Facilities, country of origin and efforts to determine the mine or location of origin with the greatest possible specificity:
GigOptix required all of our supply chain to report all smelter and mining source information for the tin, tantalum, tungsten and gold in the items supplied to GigOptix. Since we have a multi-tiered supply chain, this required our vendors to flow the requirement through the chain until each smelter or refiner was identified.
Table 1 below lists the facilities which, to the extent known, processed the necessary conflict minerals in GigOptix products.
| Metal | Smelter or refiner Facility Name | |
| Gold | Aida Chemical Industries Co. Ltd. | |
| Gold | Allgemeine Gold- und Silberscheideanstalt A.G. | |
| Gold | Almalyk Mining and Metallurgical Complex (AMMC) | |
| Gold | AngloGold Ashanti Mineração Ltda | |
| Gold | Argor-Heraeus SA | |
| Gold | Argor-Heraeus SA | |
| Gold | Asahi Pretec Corp | |
| Gold | Asahi Pretec Corporation | |
| Gold | Asaka Riken Co Ltd | |
| Gold | Asarco | |
| Gold | Aurubis AG | |
| Gold | Bangko Sentral ng Pilipinas (Central Bank of the Philippines) | |
| Gold | Caridad | |
| Gold | Chimet SpA | |
| Gold | Chugai Mining | |
| Gold | Codelco | |
| Gold | Daejin Indus Co. Ltd | |
| Gold | DaeryongENC | |
| Gold | Do Sung Corporation | |
| Gold | Dowa | |
| Gold | Enthone | |
| Gold | Heimerle + Meule GmbH | |
| Gold | Heraeus Ltd Hong Kong | |
| Gold | Heraeus Precious Metals GmbH & Co. KG | |
| Gold | Heraeus USA | |
| Gold | Hwasung CJ Co. Ltd | |
| Gold | Ishifuku Metal Industry Co., Ltd. | |
| Gold | Johnson Matthey Inc | |
| Gold | Johnson Matthey Limited | |
| Gold | JX Nippon Mining & Metals Co., Ltd | |
| Gold | Kennecott Utah Copper | |
| Gold | Kennecott Utah Copper LLC | |
| Gold | Kojima Chemicals Co. Ltd | |
| Gold | Korea Metal Co. Ltd | |
| Gold | La Caridad | |
| Gold | LS-Nikko Copper Inc | |
| Gold | Materion | |
| Gold | Matsuda Sangyo Co. Ltd | |
| Gold | Metalor Technologies (Hong Kong) Ltd | |
| Gold | Metalor Technologies SA | |
| Gold | Metalor USA Refining Corporation | |
| Gold | Mitsubishi Materials Corporation | |
| Gold | Mitsui Mining and Smelting Co., Ltd. | |
| Gold | Navoi Mining and Metallurgical Combinat | |
| Gold | Nihon Material Co. LTD | |
| Gold | Ohio Precious Metals | |
| Gold | Ohio Precious Metals LLC. | |
| Gold | Orelec | |
| Gold | Rand Refinery (Pty) Ltd | |
| Gold | Royal Canadian Mint | |
| Gold | Sabin Metal Corp. | |
| Gold | SAMWON METALS Corp. | |
| Gold | Shandong Zhaojin Gold & Silver Refinery Co. Ltd | |
| Gold | So Accurate Refining Group | |
| Gold | Solar Applied Materials Technology Corp. | |
| Gold | Sumitomo Metal Mining Co. Ltd. | |
| Gold | Sumitomo Metal Mining Co., Ltd. | |
| Gold | Tanaka Kikinzoku Kogyo K.K. | |
| Gold | The Refinery of Shandong Gold Mining Co. Ltd | |
| Gold | Tokuriki Honten Co. Ltd | |
| Gold | Torecom | |
| Gold | Umicore Precious Metal Refining | |
| Gold | Umicore SA Business Unit Precious Metals Refining | |
| Gold | United Precious Metal Refining, Inc. | |
| Gold | Valcambi SA | |
| Gold | Western Australian Mint trading as The Perth Mint | |
| Gold | Xstrata Canada Corporation | |
| Gold | Yokohama Metal Co Ltd | |
| Gold | Yunnan Copper Co. Ltd | |
| Gold | Zhongyuan Gold Smelter of Zhongjin Gold Corporation | |
| Gold | Zijin Mining Group Co. Ltd | |
| Tantalum | Duoluoshan | |
| Tantalum | Exotech Inc. | |
| Tantalum | F&X | |
| Tantalum | Global Advanced Metals | |
| Tantalum | H.C. Starck GmbH | |
| Tantalum | H.C. Starck Group | |
| Tantalum | Hi-Temp | |
| Tantalum | Kemet Blue Powder | |
| Tantalum | Mitsui Mining & Smelting | |
| Tantalum | Ningxia Orient Tantalum Industry Co., Ltd. | |
| Tantalum | RFH | |
| Tantalum | Solikamsk Metal Works | |
| Tantalum | Taki Chemicals | |
| Tantalum | Tantalite Resources | |
| Tantalum | Telex | |
| Tantalum | Ulba | |
| Tantalum | Zhuzhou Cement Carbide | |
| Tin | ALPHA | |
| Tin | An Xin Xuan Xin Yue You Se Jin Shu Co. Ltd. | |
| Tin | Baoshida Swissmetall | |
| Tin | CFC Cooperativa dos Fundidores de Cassiterita da Amazônia Ltda. | |
| Tin | CHINA TIN SMELTER CO.LTD | |
| Tin | CNMC (Guangxi) PGMA Co. Ltd. | |
| Tin | Cookson | |
| Tin | Cooper Santa | |
| Tin | Coopersanta | |
| Tin | CV Duta Putra Bangka | |
| Tin | CV JusTindo | |
| Tin | CV Makmur Jaya | |
| Tin | CV Nurjanah | |
| Tin | CV Serumpun Sebalai | |
| Tin | CV United Smelting | |
| Tin | EM Vinto | |
| Tin | Fenix Metals | |
| Tin | Fenix Metals Sp. Z o.o. | |
| Tin | Funsur | |
| Tin | Gebrueder Kemper GMBH | |
| Tin | Geiju Non-Ferrous Metal Processing Co. Ltd. | |
| Tin | GEJIU GOLD SMELTER MINERALS CO.,LTD | |
| Tin | GEJIU YUNXIN COLORED ELECTROLYTIC CO.,LTD | |
| Tin | Gejiu Zi-Li | |
| Tin | Gomat-e-K. | |
| Tin | GUANGXI CHINA TIN GROUP CO.,LTD | |
| Tin | Huichang Jinshunda Tin Co. Ltd | |
| Tin | Jean Goldschmidt International | |
| Tin | Jiangxi Nanshan | |
| Tin | Ketabang | |
| Tin | Laibin China Tin Smelting Co., Ltd. | |
| Tin | Linwu Xianggui Smelter Co | |
| Tin | Linwu Xianggui Smelter Co. Ltd | |
| Tin | Liuzhou China Tin | |
| Tin | Malaysia Smelting Corp | |
| Tin | Malaysia Smelting Corporation (MSC) | |
| Tin | Metahub Industries Sdn. Bhd. | |
| Tin | Metallo Chimique | |
| Tin | Mineração Taboca S.A. | |
| Tin | Minmetals Ganzhou Tin Co. Ltd. | |
| Tin | Minsur | |
| Tin | Mitsubishi Materials Corporation | |
| Tin | Novosibirsk Integrated Tin Works | |
| Tin | OMSA | |
| Tin | PT Alam Lestari Kencana | |
| Tin | PT Artha Cipta Langgeng | |
| Tin | PT Babel Inti Perkasa | |
| Tin | PT Babel Surya Alam Lestari | |
| Tin | PT Bangka Kudai Tin | |
| Tin | PT Bangka Putra Karya | |
| Tin | PT Bangka Timah Utama Sejahtera | |
| Tin | PT Bangka Tin Industry | |
| Tin | PT Belitung Industri Sejahtera | |
| Tin | PT BilliTin Makmur Lestari | |
| Tin | PT Bukit Timah | |
| Tin | PT DS Jaya Abadi | |
| Tin | PT Eunindo Usaha Mandiri | |
| Tin | PT Fang Di MulTindo | |
| Tin | PT HP Metals Indonesia | |
| Tin | PT Koba Tin | |
| Tin | PT Mitra Stania Prima | |
| Tin | PT Refined Banka Tin | |
| Tin | PT Sariwiguna Binasentosa | |
| Tin | PT Stanindo Inti Perkasa | |
| Tin | PT Sumber Jaya Indah | |
| Tin | PT Tambang Timah | |
| Tin | PT Timah | |
| Tin | PT Timah Nusantara | |
| Tin | PT Tinindo Inter Nusa | |
| Tin | PT Yinchendo Mining Industry | |
| Tin | Richard Stenzhorn GmbH | |
| Tin | Sundwigger Messingwerk | |
| Tin | Thaisarco | |
| Tin | The Miller Company | |
| Tin | White Solder Metalurgia | |
| Tin | Yunnan Chengfeng | |
| Tin | Yunnan Tin Company Limited | |
| Tungsten | A.L.M.T. Corp. | |
| Tungsten | ATI Tungsten Materials | |
| Tungsten | Chaozhou Xianglu Tungsten Industry Co Ltd | |
| Tungsten | China Minmetals Nonferrous Metals Co Ltd | |
| Tungsten | Chongyi Zhangyuan Tungsten Co Ltd | |
| Tungsten | Dayu Weiliang Tungsten Co., Ltd. | |
| Tungsten | Fujian Jinxin Tungsten Co., Ltd. | |
| Tungsten | Ganzhou Grand Sea W & Mo Group Co Ltd | |
| Tungsten | Ganzhou Seadragon W&Mo Co.,Ltd. | |
| Tungsten | Ganzhou sinda W&Mo Co.,Ltd | |
| Tungsten | Global Tungsten & Powders Corp | |
| Tungsten | H.C. Starck Group | |
| Tungsten | HC Starck GmbH | |
| Tungsten | Hunan Chenzhou Mining Group Co | |
| Tungsten | Hunan Chun-Chang Nonferrous Smelting & Concentrating Co., Ltd. | |
| Tungsten | Hunan Chun-chang Non-ferrous Smelting & Concentrating Co., Ltd. | |
| Tungsten | Japan New Metals Co Ltd | |
| Tungsten | Jiangxi Rare Earth & Rare Metals Tungsten Group Corp | |
| Tungsten | Jiangxi Tungsten Industry Co Ltd | |
| Tungsten | Jiangxi Tungsten Industry Group Co Ltd | |
| Tungsten | Kennametal Inc. | |
| Tungsten | KYORITSU GOKIN CO., LTD. | |
| Tungsten | Plansee | |
| Tungsten | Tejing (Vietnam) Tungsten Co Ltd | |
| Tungsten | Wolfram Bergbau und Hütten AG | |
| Tungsten | Wolfram Company CJSC | |
| Tungsten | Xiamen Tungsten Co Ltd | |
| Tungsten | Zhuzhou Cemented Carbide Group Co Ltd | |
Countries of origin of the conflict minerals these facilities process are believed to include: Argentina, Australia, Belgium, Brazil, Canada, Chile, China, China, DRC, Ethiopia, Indonesia, Japan, Katanga, Mozambique, New Guinea, Peru, Poland, Russia, Rwanda, Thailand, USA, Zimbabwe.
Future Due Diligence Measures
During the reporting period for the calendar year ending December 31, 2014, we are continuing to engage in the activities described above in “Design of Conflict Minerals Program” and “Due Diligence.” In our efforts to attain a conflict-free supply chain for our products, we intend to continue to contact our suppliers and require our entire supply chain to identify smelter and mining source information for the tin, tantalum, tungsten and gold in the items supplied to GigOptix.
