January 7, 2015 The Company Pacific Crest Transformers Inc was started in 2006 when Areva T&D sold the Medford, OR factory to Open Gate Capital. PCT is an engineering-driven manufacturer of Distribution and Small Power Transformers with emphasis on providing solutions for special and demanding transformer applications. Pacific Crest Transformers Inc. is committed to the principles expressed in the UN Global Compact and is concerned for the health of our employees and the effects our manufacturing has on the environment. Pacific Crest Transformers is certified to ISO 9001 since 2000, ISO 14001 since 2003 and OHSAS 18001 since 2005. Pacific Crest Transformers has incorporated Areva’s “Values Charter” issued in September 2004. Statement of support from Jack A. Roberts, Pacific Crest Transformers, Inc CEO: I am pleased to confirm that Pacific Crest Transformers Inc. reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labor, Environment and Anti-Corruption. In this annual Communication 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. We also commit to share this information with our stakeholders using our primary channels of communication. Ten Principles of the United Nations Global Compact Human Rights Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights. “Standards of Business Conduct” Company policy IRI 33 issued in 2001. Human rights “Values Charter” adopted by Company in September 2004. Target: we commit to raising awareness of human rights issues thru official statements sent to suppliers and agents. Principle 2: Make sure they are not complicit in human rights abuses. “Standards of Business Conduct” Company policy IRI 33 issued in 2001. Human rights “Values Charter” adopted by Company in September 2004. Target: we commit to raising awareness of human rights issues thru official statements sent to suppliers and agents. Labor Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining. Human rights “Values Charter” adopted by Company in September 2004. Working Agreement between Pacific Crest Transformers, Inc. and International Brotherhood of Electrical Workers Local Union 659. No violations were reported in 2011 or 2012 or 2013 or 2014. Principle 4: The elimination of all forms of forced and compulsory labor. Human rights “Values Charter” adopted by Company in September 2004. No violations were reported in 2011 or 2012 or 2013 or 2014. Principle 5: The effective abolition of child labor. Human rights “Values Charter” adopted by Company in September 2004. No violations were reported in 2011 or 2012 or 2013 or 2014. Principle 6: Eliminate discrimination in respect of employment and occupation. Human rights “Values Charter” adopted by Company in September 2004. Equal Employment Opportunity policy adopted by Company in 1980. Working Agreement between Pacific Crest Transformers, Inc. and International Brotherhood of Electrical Workers Local Union 659. Certified since 2005 to OHSAS 18001 regarding Health & Safety Management Systems. No violations of this principle in 2011 or 2012 or 2013 or 2014. Environment Principle 7: Businesses should support a precautionary approach to environmental challenges. Company has had an Environmental Health & Safety Policy since April 1980, which was rewritten in March 2003. Certified since 2003 to ISO 14001 regarding Environmental Management Systems. Certified since 2005 to OHSAS 18001 regarding Health & Safety Management Systems. Company has a long term environmental objective to “Reduce, reuse and recycle whenever possible.” Company has a long term environmental objective to “Minimize utility (resource) consumption (electrical power, natural gas, water) & minimize the production of greenhouse gases (from natural gas, propane, welding gas carbon dioxide, and gasses from gas and diesel motors).” Company is participating in an Energy Trust effort to review energy consumption in an effort to reduce the little things that consume power. Principle 8: Undertake initiatives to promote greater environmental responsibility. Company has had an Environmental Health & Safety Policy since April 1980, which was rewritten in March 2003. Certified since 2003 to ISO 14001 regarding Environmental Management Systems. Certified since 2005 to OHSAS 18001 regarding Health & Safety Management Systems. Company has an operational procedure since 2002 related to “Contractor EHS Guidelines”. Company has a long term environmental objective to reduce the use of hazardous materials in the plant and: “Prevent non-essential hazardous materials from being brought into the facility for use. Maintain conditionally exempt status.” Principle 9: Encourage the development and diffusion of environmentally friendly technologies. Company has had an Environmental Health & Safety Policy since April 1980, which was rewritten in March 2003. Certified since 2003 to ISO 14001 regarding Environmental Management Systems. Certified since 2005 to OHSAS 18001 regarding Health & Safety Management Systems. Environmentally friendly transformer fluids used in the manufacture of transformers. Company complies with DOE regulations regarding transformer efficiencies. Anti-corruption Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery. “Standards of Business Conduct” Company policy IRI 33 issued in 2001. Human rights “Values Charter” adopted by Company in September 2004. No violations were reported in 2011 or 2012 or 2013 or 2014.