El Dorado Chemical Company Disclosure Statement Pursuant to California Transparency in Supply Chains Act

El Dorado Chemical Company (“EDC”) respects and supports the protection of labor and human rights, including efforts to eliminate the practices of forced labor and human trafficking.  EDC is opposed to such practices at all levels of business operations.

EDC supply agreements include a provision requiring suppliers to comply with all applicable federal, state and local laws and regulations with respect to supplier goods and services, which would include laws addressing human trafficking and slavery.  Failure to comply with such provision constitutes a default under the agreement.  EDC expects compliance with the supply agreement and does not therefore engage in verification of product supply chains, conduct audits of suppliers or require suppliers to provide certification with respect to human trafficking or slavery. EDC may terminate a supplier relationship if such supplier fails to meet EDC requirements regarding compliance with laws and regulations.

As a subsidiary of LSB Industries, Inc., EDC provides a Statement of Policy Concerning Business Conduct of LSB Industries, Inc. and Subsidiaries for its employees that requires adherence to all applicable laws, including employment laws, among other matters.  The policy also contains mechanisms for reporting violations and illegal activities. EDC provides training on certain provisions in the policy for its employees and management but does not provide specific training to its employees on mitigating risks associated with human trafficking and slavery.  Failure to comply with this policy may result in disciplinary action, including termination of employment.

Effective December 28, 2011.

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