Ethics and legal compliance Dab values its reputation of integrity, and consequently expects all its organisations to operate within the frame of our Dab purpose and values. We believe that honesty and integrity are accepted practices in all cultures. While we accept that customs may vary from one country to another, and morals differ, it is the Group’s desire to conduct our business with honesty and integrity. Compliance with laws and rules Dab strives to strictly observe its own as well as local national and international legislation including decision of the UN Security Council. To support this legal compliance it is the intention of Group Management and the responsibility of each General Manager to ensure that all agreements (signed or not signed),conduct and procedures are in compliance with the Dab Policy and relevant local, national, and international legislation. If the laws and rules in some cases are unclear and difficult to interpret or if new kinds of agreements are entered into, it is the responsibility of the signers to seek clarification and approval from Group Management. Communication between Management and the Board The Chairman of the Board must be informed of any matters, which may have significant impact to the reputation of Dab. Bribery Any payment or granting of valuable advantages to persons employed by customers or payments to any other persons not employed by Dab including public officers paid with the intention to obtain an advantage in gaining orders or other advantages to Dab will provided that receiving such payment constitute a breach of the receivers duties be considered a violation of Dab policy, international treaties, and most laws around the world. It is the intention of Group Management and the responsibility of the General Manager that directors, managers, and employees of Dab do not participate in any such activities. In particular it is the intention of Group Management and the responsibility of the General Manager that directors, managers, and employees of Dab : — do not agree to enter into any arrangement or agreement containing commission or any other type of monetary reward including gifts to persons employed by Dab, customers or suppliers; — do not make any payments to public officers that are not required by law or a written and signed agreement with the public authorities; — will only pay out commission to agents or similar service providers on the basis of a written agreement containing a detailed job description; — do not make any prepayments of commission. 02/10 Entertainment and gifts It is the intention of Group Management and the responsibility of the General Manager that directors, managers, and employees agree not to receive any entertainment or gifts from current or potential customers or suppliers that could influence the ability to make an independent decision in the sole interest of Dab. Group Management is to approve receipt of any gift or entertainment, which in the international public eye will be considered improper or substantial. If declining gifts is considered disrespectful and in conflict with local customs, acceptance of such gifts must have prior approval by the Chairman of the Board. 03/10 Fair and lawful competition Dab is among the leading pump producers in the world. Hence Dab is subject to specific restrictions to secure open and fair competition. To support legal compliance in competition law issues it is the intention of Group Management and the responsibility of each General Manager to ensure that all agreements (signed or not signed), conduct, and procedures are in compliance with national and relevant international legislation. Any agreement that could be in conflict with this policy must be evaluated by the Group General Counsel and changed in accordance with the instructions from Group General Counsel. Furthermore it is the intention of Group Management and the responsibility of the General Manager that no person in the Dab company managed by the General Manager discusses,exchanges, compares, informs, or in any way agrees with competitors on prices or terms in general. Any violation of the said legislation and policy may result in severe fines from Competition Law Authorities and in severe loss of good reputation. Group Management will hence treat any violation with utmost gravity. 04/10 Conflict of interest It is a violation of this policy for any director, manager, employee, and immediate family member to have interests in any competing companies, or companies with which Dab has a significant business relationship. Any other interest, which might be in conflict with this Code of Conduct, must be agreed upon in writing with Group Management and the Chairman of the Board. This includes: — Ownership or significant financial interest in any company, which is competing with Dab, or any company being a major customer or supplier to Dab. — Being a director, manager, employee, partner, consultant, or representative of any company which is competing with Dab, and/or being a major customer or supplier to Dab. — Any other situation where business with and through family members is involved. — Circumstances which give the director, manager, employee, or family member a benefit directly or indirectly. — Special deals or agreements with companies which directly or indirectly provide a benefit to the employee not specified in the employee’s contract with Dab. — Situations where the director’s, manager’s, employee’s loyalty and/or integrity towards Dab are compromised. 05/10 Confidentiality From time to time, Dab employees have access to the company’s technical and marketing information. Confidential information belongs to Dab, and each employee has an obligation to preserve its confidentiality. Revealing confidential information to outside organisations, or using it directly or indirectly for personal benefit, is a violation of the Law and this Code of Conduct. This confidentiality is to be maintained both during and after employment. 06/10 Acceptable accounting Accounting practices in each company must adhere to Dab Group Accounting Standards, local and national legislation, and generally accepted accounting standards and controls. The accounts, budget proposals, economic evaluations of projects, etc. must reflect presented data and facts correctly. All the assets of the company must be registered in the General Ledger of the company. 07/10 Human rights Dab supports and respects the protection of internationally proclaimed human rights. It is the intention of Group Management and the responsibility of the General Manager that the Dab company managed by the General Manager supports and respects the protection of internationally proclaimed human rights as well as ascertains that the Dab company managed by the General Manager is not complicit in human rights abuses. 08/10 Labour rights Dab supports and respects the ILO Declaration on Fundamental Principles and Rights at Work, and it is hence the intention of Group Management and the responsibility of the General Manager that the Dab company managed by the General Manager upholds the freedom of association and the effective recognition of the right to collective bargaining;ensure the elimination of all forms of forced and compulsory labour; ensure the effective abolition of child labour; and ensure the elimination of discrimination in respect of employment and occupation. 09/10 Environment Dab supports and respects the Rio Declaration on Environment and Development, and it is hence the intention of Group Management and the responsibility of the General Manager that the Dab company managed by the General Manager supports a precautionary approach to environmental challenges; undertakes initiatives to promote greater environmental responsibility; and encourages the development and diffusion of environmentally friendly technologies. 10/10 Political contributions Dab does not support contributions to any political party or any political candidate. Exceptions must have prior written approval of Group Management.