Anti-Bribery and Anti-Corruption Policy

Bribery is a criminal offence. It is GovC policy never to offer, pay, solicit or accept bribes or kickbacks or other prohibited payments or activities, whether in cash or any other form of inducement.

This policy applies to GovC, its subsidiaries, and all persons acting on behalf of GovC. Employees and those (including agents and representatives) acting on behalf of GovC must ensure this policy is observed and report any potential breaches of this policy to the Chief Legal Officer or via the GovC helpline referred to in the Code of Business Conduct. GovC will investigate all instances of alleged bribery and will assist the regulatory authorities in any resultant prosecution/investigation.

In complying with all relevant laws in the territories in which we operate, GovC will comply with national laws implementing the OECD Convention on Combating Bribery of Foreign Public Officials.

These laws include the US Foreign Corrupt Practices Act 1977, in so far as it applies to GovC and its US citizen employees. However, the FCPA has some serious limitations in that it:

1. Only prohibits relevant persons from making use of US interstate commerce corruptly, in furtherance of an offer or payment of anything of value to a foreign official, foreign political party or candidate for political office, for the purpose of influencing that person or to secure any improper advantage in order to obtain or retain business.

2. Allows “facilitating” or “expediting payments” (e.g. for hastening review processes) made to government officials as long as such payments are related to routine government business (e.g., processing visas or obtaining permits) providing they are permitted under local law. Such payments are often illegal under local law and this must be checked in every instance.

GovC’s policy is as set out above so a payment in contravention of the Code of Business Conduct or applicable law by or to anyone (and not just to government officials ) is prohibited. Note, in particular, that GovC prohibits the use of “facilitating” or “expediting payments” if such breach local law.

In recent years the US regulators have pursued a number of high profile cases against defence and other companies. Indeed the FCPA was passed following scandals in the 1970s committed by a defence contractor. In some cases the investigations have focused around the use of agents and representatives.

Following international criticism of the existing bribery laws in the UK, and low levels of enforcement in the UK, the UK Government is seeking to pass the Bribery Bill into law in 2009. The Bill provides for:

• Two general bribery offences (one of paying bribes and one of receiving them).

• A specific offence for bribery of foreign public officials.

• A corporate criminal offence of negligently failing to prevent bribery.

If this Bill is passed into law, the corporate offence of negligently failing to prevent bribery could be extremely serious for any company found to have committed such an offence.

For sub-contracts of US government contracts for commercial items, there is no FAR or regulatory prohibition in offering commercially reasonable gratuities to a prime contractor. However, many prime contractors extend prohibitions on accepting gifts and gratuities to their lower tier subcontracts in the execution of such contracts. This policy does not prohibit the following practices providing they are customary in a particular market, are proportionate and are properly recorded:

• Gifts which are in compliance with the Code of Business Conduct.

• Hospitality and travel expenses which comply with this appendix to this policy.

• The use of any recognised fast-track process which is available to all on payment of a fee and is lawful in the relevant territory

• The offer of resources to assist the person or body to make a decision more efficiently provided that they are supplied for that purpose only and provided such is lawful in the relevant territory.

Inevitably, decisions as to what is permissible may not always be easy. If anyone is in doubt as to whether a potential act constitutes bribery or may be of a nature that could embarrass GovC if publicly disclosed, the matter should be referred to your supervisor and via the Divisional President, to the Chief Legal Officer.

Compliance with this policy may be subject to audit.

Payment of travel and lodging expenses incurred by a third party is not prohibited, so long as such expenses are moderate in nature and incurred strictly for the promotion of products or services, or the execution of a contract, and is in compliance with all applicable laws. Authorization for all such payments shall be provided in advance of committing to the expense in accordance with the Corporate Framework.

All meetings must be held in a venue that is modest in nature and conducive to the communication of information. Meetings should be held at business locations whenever possible. Hospitality should be limited to refreshments and/or meals incidental to the main purpose of the meeting and should only be provided to participants in the meeting and not their guests. Such hospitality should be moderate and reasonable, as judged by local standards. No stand-alone entertainment or other leisure or social activities should be provided or paid for by the Company or accepted by employees.

All travel expenses paid or reimbursed by GovC must be approved in writing, ensuring that:

• The travel is for a legitimate business purpose in accordance with this policy and the Code of Business Conduct.

• The expenses are reasonable.

• No friends or family members are travelling at GovC’s expense.

• No stop-over is planned that is not directly connected to the legitimate business purpose of the travel, unless the stop-over is at the expense of the third party and results in no additional cost to GovC.

• Payments for travel expenses must be made directly to the hotel, airline or other service provider whenever possible. If direct payment is not possible, travel expenses may be reimbursed only after GovC has obtained appropriate receipts or equivalent documentation. Tickets that can be converted into cash, in whole or in part, must be avoided whenever reasonably practicable.

• Under no circumstances may cash be given to a third party on the understanding that he or she will arrange his or her own travel.