November 04, 2015

To our stakeholders:

I am please to confirm that VILLAVICENCIO NORTH AMERICAN TRADE COMPANY S.A. DE C.V. reafirms its support of the Ten Principlesof the United Nations Global Compact in the areas of Human Rigths, Labour, Environment and Anti-Corruption.

In this annual Comunication on Progress, we describe our actions to continually improve the integration of the Global Compact and its principles into our business strategy, culture and daily operations. Wealso commit to share this information with our stakeholders using our primary channels of communication.

Sincerly Yours,

Gerardo Macario Villavicencio Gonzalez
President

At VILLAVICENCIO NORTH AMERICAN TRADE COMPANY S.A. DE C.V. , we totally support the UNIVERSAL DECLARATION OF HUMAN RIGTHS in all the ways. We support the respectc of free will to practice the religion, we upport the equal ity of gender, we prevent the child abuse in any way, and we require to our stakeholders and business associates to sign the commitment with the Global Compact and its 10 principles and we commit to participate along with The Danish Institute for Human Rigths ( DIHR) and follow its policies and tools in order to minimize the impacts of adverse business and companies in the planet.

At VILLANORTHAM we have been working at our sphere of work and projects spreding the Global Compact principles including of course Human Rigths area and we have been promoting at the Congress of Mexico the Respect of Human Rigths in their desicion that affects to the whole mexican soiety and visitors . This year we will launch a book touching this subject in Mexico and the World.

We will launch a program of communications addressing to the mexican goverment and to 3 insutries and their chambers of commerce in Mexico ( Energy, Mining and clothing) in order to require respect and do not use of childrens in their projects and respect the oppoprtunities of work to women ( equality of gender) and to be more fair witheir way to measure what is a just salary to their workers.

At VILLANORTHAM we have a code of ethics and make sure our stakeholders, workers and associated companies or cliets follow this code of ethics. If we find some person or entity do not do it so we stop any relationship with such a person or entity. We follow as well through through external audits to the mexican government and to our clients and associates their ethics behavior.

VILLAVICENCIO NORTH AMERICAN TRADE COMPANY S A DE C.V. Totally supports and follow the ILOCORE CONVENTIONS and since the Mexican government has ratified inside the goverment policies and respects the Global Reports our company keeps the following points: - Elimination of all forms of forced or compulsory labour
- Effective abolitions of child labour
- Elimination of discrimination in respect of employment and occupation
- Freedom of association and effective recognition of the rigths and collective bargaining.

At our company we have an statement and code of beahivior of these issues and if one of our stakeholders, or employees or asociates or clients do not respect this principles we separate off any sort of relationship since is not respecting our ethic code in this issue and is not respecting the mexican law.

We regularly check on our company behaviors or look for any claim against this ruegulations of respect and at our clients and asociates. If any brakes the regulations on this principle we cut off any relationship with such person or entity according to the law.

We have a box to cclaim any iregularity in this subject inside the company andwe ask to our employees to check in our visits to the premises of our clients or associates if they see any irregular situation in this matter.

The footprint of VILLAVICENCIO NORTH AMERICAN TRADE COMPANY S.A.D E C.V. is clear since in 2009 when signed the Global Compact commitment we stop to have any relationship with clients that did not respect the environment and we changed our direction of goals and start to support the clean energies and solutions for clean water and enough water for everyone at Mexico. We ask to our employees the use of public transportation setting the example the top executives of the company, avoiding to use personal transportation only and only if it is strectly necessary for long trips or late meetings in our personal or business life.

At our company we have been addressing letters, comments and assistance at the Congress of Mexico and to the City of Mexico about the risks in keep using fossil energfies as oil, carbon and sort type og gases. We have participating at planting trees in forrests around Mexico City and we have participated cleaning water channels and beaches at Mexico and we have a code of Footprint in our company developing ONLY green projects with our clients. We have lost financianly opportunities but we know that this will pay off for the future of our childs and the childs of our childs. We have been participating internationally through the NGO s and ourselves respondig to the world alerts like lossing the polar araesa ( Artic and Antartid) sending letters to the oil and gas industry companies calling to their conscience to stop their bad practices that are killing the Planet Biosphere.

We have been participating at the UN COPS since 2009 at CACUN COP and then verytime we can do it, not always is possible because the costs of it, we so it. We will launch a book to the world in english letting know about the risks of yhe mankind bad attifude against the mother nature and the need to change the model that exist rigth now in the world.

At our company we do understand the risks of a society with corruption. Mexico has suffered very much for it and that is why we have ZERO TOLERANCE with the corruption, inside the company and outside the company.

We have at our company a code of ethics where is VERY CLEAR our policy against Corruption and we applies this code to our employees, clients and asociates. We have signed the ANTI-CORRUPTION COMMITMENT LETTER required for the former Executive Director Georg Kell .

We have an audit taht measures the performance of every stakeholder, employee and clients. If we find any irregularity we start a legal process to audit such irregularity.