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ORGANIZATION,MANAGEMENTANDCONTROLMODELPURSUANTTOLEGISLATIVEDECREE231/2001

OF

BonattiS.p.A.

Updatedon2August2017

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TABLEOFCONTENTS

1.  LEGISLATIVEDECREE231/2001ANDCORPORATELIABILITYOFCOMPANIES ............ 3 

1.1.IntroductiontocorporateliabilityofCompaniesandEntities ....................................... 3 

1.2.Sanctions ................................................................................................................................... 8 

1.3.TheexemptionresultingfromtheadoptionandimplementationofanOrganization,ManagementandControlModel ...................................................................... 10 

2.  GUIDELINESDRAWNUPBYINDUSTRYASSOCIATIONS .................................................... 12 

2.1.TheConfindustriaGuidelines ............................................................................................. 12 

2.2.TheANCECodeofConduct ................................................................................................... 13 

3.  BONATTI'SORGANIZATION,MANAGEMENTANDCONTROLMODEL ............................. 14 

3.1.Bonatti'sactivities ................................................................................................................. 14 

3.2.AdaptingBonattitotheprovisionsoftheDecree,withaviewtoongoingimprovement ................................................................................................................................. 15 

3.3.ThecurrentversionoftheModel ....................................................................................... 15 

3.4.ThecomponentsofBonatti'sModel ................................................................................... 20 

4.  THEORGANIZATIONALSYSTEM ............................................................................................ 23 

4.1.Corporategovernance .......................................................................................................... 23 

4.2.Bonatti'sorganizationalstructure ..................................................................................... 24 

4.3.Ingeneral,theorganizationalsystemwithregardtoworkplacehealthandsafetyandsecurity .................................................................................................................................... 30 

5.  THESYSTEMOFPOWERSANDMANDATES.......................................................................... 33 

5.1.Generalprinciples ................................................................................................................. 33 

5.2.ThestructureofthesystemofpowersandmandatesadoptedbytheCompany ..... 33 

6.  THEBONATTIPROCEDURALSYSTEM ................................................................................... 34 

7.  MANAGEMENTCONTROLANDCASHFLOWMANAGEMENT ............................................. 35 

8.  THECONTROLSYSTEMFORWORKPLACEHEALTHANDSAFETYANDFORSECURITY  36 

8.1.Workplacehealthandsafetymanagementsystem ........................................................ 36 

8.2.Healthandsafetymonitoring .............................................................................................. 40 

8.3.Thespecificcharacteristicsofthecorporatesecuritymanagementsystem ............. 41 

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9.  THEENVIRONMENTALMANAGEMENTSYSTEM.................................................................. 43 

10.  BONATTI'SSUPERVISORYBODY ............................................................................................ 45 

10.1.AppointmentandcompositionoftheSupervisoryBoardandprerequisitesformembers ......................................................................................................................................... 46 

10.2.ThedutiesandpowersoftheSupervisoryBoard ......................................................... 47 

10.3.RegulationsgoverningtheSupervisoryBody ............................................................... 49 

10.4.InformationflowsinvolvingtheSupervisoryBody ...................................................... 49 

11.  THEBONATTICODEOFETHICS ............................................................................................. 53 

11.1.TheadoptionoftheCodeofEthics ................................................................................... 53 

11.2.TheaddresseesoftheCodeofEthics ............................................................................... 54 

11.3.DisseminationofandtrainingintheCodeofEthics .................................................... 55 

11.4.Fundamentalethicalvalues .............................................................................................. 56 

11.5.Rulesofconduct................................................................................................................... 57 

11.6.InformationflowstotheSupervisoryBody ................................................................... 59 

11.7.ImplementationofandverificationofcompliancewiththeCodeofEthics ............ 60 

12.  THEBONATTIDISCIPLINARYSYSTEM .................................................................................. 60 

12.1.CreationandadoptionoftheDisciplinarySystem ....................................................... 60 

12.2.StructureoftheDisciplinarySystem ............................................................................... 61 

13.  COMMUNICATIONANDTRAINING ......................................................................................... 63 

13.1.CommunicationandinvolvementconcerningtheModel ........................................... 63 

13.2.TrainingandeducationabouttheModel ....................................................................... 64 

13.3.ViolationsoftheModel ...................................................................................................... 65 

14.  UPDATINGTHEMODEL ............................................................................................................ 65 

 

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1.  LEGISLATIVEDECREE231/2001ANDCORPORATELIABILITYOFCOMPANIES

1.1.IntroductiontocorporateliabilityofCompaniesandEntities

The Italian Legislature, in implementation of the mandate pursuant to Law No. 300 of 29September 2000, with Legislative Decree No. 231, issued on 8 June 2001 (hereinafter alsoreferred toas the"Decree"), layingdown"Provisionsgoverning thecorporate liabilityof legalpersons,companiesandassociations, including thosewithout legalpersonality", adapted Italianregulations on the liability of legal persons to complywith certain International ConventionspreviouslysignedbytheItalianState1.

The Legislature therefore, putting an end to an intense doctrinal debate, superseded theprinciple according to which societas delinquere non potest2, by introducing, in relation toentities3(hereinafteralsoreferredtocollectivelyas"Entities"andindividuallyasan"Entity"),aregimeofcorporateliability(which,fromapracticalpointofview,isactuallytantamounttocriminalliability)intheeventthatcertainspecificoffencesarecommitted,intheinterestsortotheadvantageoftheEntity,by,asspecifiedinArticle5oftheDecree:

i) individualswhoperformrepresentation,directorialormanagerialfunctionswithinthe Entity or within an organizational unit of the Entity that has financial andfunctionalautonomy,aswellasindividualswhoareresponsible,eitherofficiallyorde facto, for the management and control of the Entity ( individuals in seniorpositions);

ii) individuals who are subject to the management or supervision of one of theindividualsmentionedinpointi)(individualsinsubordinatepositions).

Withregardtothemeaningoftheterms"interests"and"advantage",theMinisterialReportthataccompaniestheDecreegivestheformertermasubjectivemeaning,referringtothewilloftheactualperpetrator(naturalperson)oftheoffence4,whereasitgivesthelattertermanobjectivemeaning,referringtotheactualoutcomesoftheperpetrator'sactions:thereferenceistocasesin which the perpetrator of the offence, despite not acting directly in the Entity's interests,neverthelessbringsaboutanadvantagefortheEntity5.

                                                            

1Specifically: theBrusselsConventionof26July1995ontheprotectionoffinancial interests;theBrusselsConventionof26May1997onthefightagainstcorruptioninvolvingofficialsoftheEuropeanCommunitiesorofficialsofMemberStatesoftheEuropeanUnion; the OECD Convention of 17 December 1997on combating bribery of foreign public officials in international businesstransactions.TheLegislatureratified,withLaw146/2006,theConventionandprotocolsoftheUnitedNationsagainsttransnationalorganizedcrimeadoptedbytheGeneralAssemblyon15November2000andon31May2001.

2BeforetheDecreewasissued,acompanycouldnotassume,incriminalproceedings,theroleoftheaccused.Infact,itwasbelievedthatArticle27oftheConstitution,whichsetsforththeprincipleofthepersonalityofcriminalliability,preventedacompanyand,therefore,a"non‐personal"party,frombeingchargedwithacrime.TheCompanycouldthereforebeheldcivillyliablefordamagecaused by an employee, or, pursuant toArticles 196 and 197 of the Italian Criminal Code, in the event of the insolvency of theconvictedemployee,forthepaymentofafineorpenalty.

3 That is, entities with legal personality, companies and associations, including those without legal personality; the State, localauthorities,non‐economicpublicauthoritiesandbodiesthatperformactsofconstitutionalsignificanceareexcluded.

4Specifically,theactualperpetratoroftheoffencemusthaveactedwiththegoalofachievingaspecificinterestoftheEntity.

5Seepara.Theobjectivechargingcriteriaof theMinisterialReport:“ […]Itshouldbeaddedthatareferencetothe interestsoftheentitycharacterizestheconductoftheindividualasdistinctly subjective,andthatanexanteverification"issufficient";ontheother

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However,specificallywithregardtounintentionalHealthandSafetyoffences,itisunlikelyforthe injury or death of the worker to express the interests of the Entity or to constitute anadvantagefortheEntity.

Insuchcases, therefore, the interestsoradvantageshould insteadrefertotheactionscarriedout by means of the failure to observe the precautionary regulations. Thus, the interests oradvantageof theEntity couldbe found in cost savingson safety, carryingout activitiesmorequickly or increasing productivity, whilst sacrificing the adoption of accident‐preventionmeasures.

TheCompanyisthereforenotliable,byexpresslegislativeprovision(Article5,paragraphII,ofthe Decree), if the aforementioned individuals acted exclusively in theirown interestsorthoseofthirdparties.

It should be pointed out that not all the offences committed by the aforementioned personsinvolve the corporate liability of the Entity, since only some specific types of offence areidentifiedassignificant6.

BelowisabriefoverviewofthecategoriesofsignificantoffencespursuanttotheDecree,withmoredetailsprovidedunderAnnexAtothisGeneralPart.

Thefirsttypeofoffencewhich,pursuanttotheDecree,resultsinthecorporateliabilityoftheEntity,isthatofoffencescommittedagainstGovernmentAuthorities,whicharedetailedinArticles24and25oftheDecree.

Article25‐bisof theDecree– introducedbyArticle6ofLawNo.409of23September2001–describestheoffencesoffalsifyingmoney,publicbondsordutystampedpapers.

AnotherimportanttypeofoffenceresultinginthecorporateliabilityoftheEntityiscorporatecrimes,acategorythat isgovernedbyArticle25‐terof theDecree,aprovision introducedbyLegislativeDecreeNo.61of11April2002,whichidentifiesthefollowingcases,asamendedbyLawNo.262of28December2005.

Article 25‐terwas subsequently amended byLawNo.190of6November2012 (the "Anti‐corruption Law"), which expanded the set of offences covered by the Decree to include theoffence of corruption between private parties pursuant to Article 2635, paragraph III, of theItalianCivilCode.

The reforms continued and, with Law No. 7 of 14 January 2003, Article 25‐quater wasintroduced, which further expanded the scope of applicability of corporate liability to coverterrorismoffencesandcrimesthataimtosubvertthedemocraticorder,asprovidedforbytheCriminalCodeandbyspeciallaws.

                                                                                                                                                                                         hand,theadvantage,whichtheentitymaybenefitfromeveniftheindividualhasnotactedinitsinterests,alwaysrequiresanexpostverification”.

6Itshouldalsobetakenintoconsiderationthatthe"catalogue"ofoffencesdeemedsignificantpursuanttotheDecreeiscontinuallyexpanding.WhileontheonehandthereisabigpushfromEuropeanbodies,ontheother,atthenationallevel,numerousdraftlawshavebeenpresentedwiththeaimofincludingadditionalcasesintheDecree'sscopeofapplication.

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Subsequently, LawNo. 228 of 11August 2003 introducedArticle 25‐quinquies, in relation towhichtheEntityisliableforthecommissionofoffencesagainsttheindividual.

Law 62/2005, knownas the "EULaw", andLaw262/2005, or the "SavingsProtectionLaw",furtherexpandedtherangeofsignificantoffencespursuanttotheDecree.Article25‐sexieswasintroduced,relatingtomarketabuseoffences).

Law No. 7 of 9 January 2006 went on to introduce Article 25‐quater.1 of the Decree, whichprovides for corporate liability in theeventofcasesof femalegenitalmutilationpractices(Article583‐bisoftheCriminalCode).

Subsequently,LawNo.146of16March2006,whichratified theConventionandprotocolsoftheUnitedNationsagainsttransnationalorganizedcrimeadoptedbytheGeneralAssemblyon15November2000andon31May2001,providedfortheliabilityofEntitiesforanyoffencesofatransnationalnature.

Anoffence isconsideredassuchwhen,duringtheexecutionof theact:anorganizedcriminalgroupwas involvedandthereareprovisions fortheapplicationofasanctionofat least foursyears'imprisonment,inadditiontootherlocalsanctions,ifitwascommittedinmorethanoneState; itwascommitted inoneStatebuthashadsignificantconsequences inanotherState; itwas committed in a single State but a substantial part of its preparation, planning ormanagementandorganizationtookplaceinanotherState;itwascommittedinoneState,butanorganizedcriminalgroupinvolvedincriminalactivitiesinmorethanoneStatewasinvolved.

ArevolutionaryreformwasintroducedbyLaw123/2007‐laterreplacedbyLegislativeDecreeNo.81of9April2008(hereinafteralsoreferred toas the"ConsolidatedActonHealthandSafety”) ‐ in the form of Article 25‐septies of the Decree, which provides for the liability ofEntitiesforoffencesofinvoluntaryhomicideandinvoluntaryinjuriesofaseriousorlife‐threateningnature,committedasaresultofviolatingtheregulationsontheprotectionofhealthandsafetyintheworkplace.

LegislativeDecree231/2007introducedArticle25‐octiesoftheDecree,pursuanttowhichtheEntity is liable for the commission of offences involving receiving stolen goods, moneylaundering andmakinguseofmoney,assetsorbenefitsofunlawfulprovenance (Article648‐teroftheCriminalCode).Rationemateriae,bywayofanexceptiontothechronologyofthiscategory,itshouldbepointedoutthatLawNo.186of15December2014expandedtherangeofoffencespursuanttoArticle25‐octiesbyintroducingintotheCriminalCodetheoffenceofself‐laundering.

Lastly,LawNo.48of18March2008,introducedArticle24‐bisoftheDecree,whichextendstheliabilityofEntitiestocertaincybercrimeoffences.

LawNo.94of15July2009,layingdownprovisionsonpublicsafety,introducedArticle24‐terand,therefore,theliabilityofEntitiesforthecommissionoforganizedcrimeoffences7.

                                                            7Organizedcrimeoffenceswerepreviouslysignificant,forthepurposesoftheDecree,onlyifofatransnationalnature.

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Law No. 99 of 23 July 2009, laying down provisions for the development andinternationalization of companies, aswell as in relation to energy, expanded the instances offalsification offences provided for by Article 25‐bis of the Decree, adding certain offencesrelatingtotheprotectionofindustrialproperty.

ThesamelegislativeinterventionintroducedArticle25‐bis.1,whichprovidesfortheliabilityofEntities for offences against industry and commerce, as well as Article 25‐novies, whichprovidesfortheliabilityofEntitiesforcopyrightviolationoffences.

Withregardtotheprotectionofcopyright,offencesareprovidedforandpunishedbyArticles171, paragraph I, a‐bis) andparagraph III, andArticles171‐bis, 171‐ter, 171‐septies and171‐octies,ofLawNo.633of22April1941.

Furthermore,Article4ofLawNo.116of3August2009introducedArticle25‐decies,pursuanttowhichtheEntity isdeemedliable forthecommissionoftheoffenceprovidedforbyArticle377‐bisoftheCriminalCode,thatis,theoffenceofincitementnottomakedeclarationsortomakefalsedeclarationstojudicialauthorities.

In implementation of EU Directive 2009/52/EC, Italy issued Legislative Decree 109/2012,which, inter alia, sanctioned the insertion of Article 25‐duodecies, which, under the title”Employment of third‐country citizenswhose residence is illegal", punishes employerswho hire foreign workers without a residency permit, stipulating that: "in relation to thecommissionoftheoffencepursuanttoArticle22,paragraph12‐bis,ofLegislativeDecreeNo.286of 25 July 1998, the entity shall be issuedwith a fine of between 100 and 200 units, up to amaximumof€150,000".

Legislative Decree 121/2011 introduced into theDecree Article 25‐undecies,which extendedthecorporateliabilityofEntitiestoso‐calledenvironmentalcrimes,ortotwooffencesrecentlyintroduced into the Criminal Code (Articles 727‐bis and 733‐bis), as well as to a series ofoffencesalreadyprovidedforbythe"EnvironmentCode"(LegislativeDecree152/2006)andbyotherspecialregulationsfortheprotectionoftheenvironment(Law150/1992,Law549/1993,LegislativeDecree202/2007).Thelegislationonenvironmentalprotectionwasaddedtowiththe significant reform introduced by Law No. 68 of 22 May 2015, laying down "Provisionsconcerningcrimesagainsttheenvironment",whichexpandedtherangeofoffencespursuanttoArticle 25‐undecies of the Decree, by introducing the offences of "environmentalpollution"(Article452‐bisoftheCriminalCode)and"environmentaldisaster"(Article452‐quateroftheCriminalCode),whichapplywhethertheacts inquestionwerecommittedwilfullyorthroughnegligence (Article 452‐quinquies of the Criminal Code), the offence of "trafficking anddumpinghighly radioactivematerial" (Article 452‐sexies of theCriminal Code.) and, lastly,offences related to "environmental crime organizations, including mafia associations"(Article452‐octiesoftheCriminalCode).

For completeness, it should also be stated that Article 23 of the Decree punishes failure toobserveprohibitivesanctions,whichhappens if,pursuant to theDecree,anEntity is issuedwith a prohibitive sanction or precautionarymeasure and, in spite of this, the Entity fails tocomplywiththeobligationsorprohibitionsimposed.

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1.2.Sanctions

IfthepersonsindicatedinArticle5oftheDecreebecomeliableforoneoftheoffencespursuanttoAnnexAofthisspecialpart,theEntitycouldincurwide‐rangingsanctions.

Article9oftheDecreedefinesthevariousadministrativesanctionsasfollows:

I. monetarysanctions;

II. prohibitivesanctions;

III. requisition;

IV. publicationofthejudgment;

Fromageneralpointofview,itshouldbenotedthattheascertainingoftheEntity'sliability,aswellasthedeterminationofwhetherandtowhatextentasanctionshouldbeapplied,aretheresponsibility of the criminal judge in the proceedings relating to the offences for whichcorporateliabilityisatissue.

TheEntityisdeemedliablefortheoffencesidentifiedpursuanttoArticles24etseq.(withtheexceptionofthecasescoveredinArticle25‐septies),evenifsaidoffenceswereonlyattempted.In such cases, however, themonetary andprohibitive sanctions are reducedby betweenonethirdandonehalf.

Pursuant to Article 26 of the Decree, the Entity is not liable when it wilfully obstructs theperformanceoftheactionortherealizationoftheevent.

I.  Monetarysanctions

MonetarysanctionsaregovernedbyArticles10,11and12oftheDecreeandapplyinallcasesin which the Entity's liability is acknowledged. These sanctions are applied in "units", in anumberno lower than 100 andno greater than 1,000,while the amount of eachunit rangesfromaminimumof€258.33toamaximumof€1,549.37.ThejudgedeterminesthenumberofunitsbasedontheindicatorsidentifiedpursuanttoArticle11,whiletheamountoftheunit issetbasedontheeconomicandfinancialconditionsoftheEntityinvolved.

II.  Prohibitivesanctions

Prohibitive sanctions can be issued only in the cases compulsorily provided for and only forcertainoffences,andtheyconsistof:

abanontheperformanceofactivities;

the suspension or revocation of authorizations, licences or concessions required tocommittheoffence;

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a ban on negotiating with Government Authorities, except in order to obtain theprovisionofapublicservice;

exclusionfromtaxbreaks,financing,grantsorsubsidies,andthepossiblerevocationofthosealreadygranted;

abanonadvertisinggoodsandservices.

Aswithmonetarysanctions,thetypeanddurationofprohibitivesanctionsaredeterminedbythe criminal judge involved in the proceedings for offences committed by natural persons,takingintoaccountthefactorsdescribedinmoredetailinArticle14oftheDecree.Inanycase,prohibitive sanctionshave aminimumduration of threemonths and amaximumdurationoftwoyears.

Oneof themost interestingaspectsofprohibitivesanctions is that theycanbeapplied to theEntityeitheruponcompletionofthetrialand,therefore,onceitsguilthasbeenestablished,orasaprecautionarymeasure,i.e.when:

a) thereareseriousreasonstobelievethattheEntityisliableforanadministrativeoffenceconstitutingacrime;

b) specific,reasonedelementsemergethatsuggesttheexistenceofaconcretedangerthatoffences may be committed of the same kind as that which is the subject of theproceedings;

c) theEntityhasmadeasignificantgain.

III.  Requisition

Therequisitionofthevalueorprofitderivedfromtheoffenceisanobligatorysanctionresultingfromanyconviction(Article19).

IV.  Publicationofthejudgment

The publication of the judgment is a possible sanction, which implies the application of aprohibitivesanction(Article18).

Lastly,forcompleteness,itshouldbenotedthattheJudicialAuthoritiesmayalsoorder:a)theprecautionaryseizureoftheitemspermittedtoberequisitioned(Article53);b)theprotectiveseizureof theEntity'smoveable and immoveableassets, if there is justified reason tobelievethattheguaranteesforpaymentofthemonetarysanction,thelegalfeesorothersumsowedtotheStatearelackingorhavebecomeinvalid(Article54).

If the seizure, having been carried out as an equivalent to requisitionpursuant toArticle 19,paragraph 2, concerns companies or assets, including securities, shares or cash and cashequivalents,evenifconsigned,thelegallyappointedcustodianshallallowthecorporatebodiestouseandmanagesaidassetsexclusively inordertoguaranteethecompany'scontinuityanddevelopment,exercisingsupervisorypowersandreportingthemattertothe legalauthorities.

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In theeventofviolationof theaforementionedpurpose, theLegalAuthorities shalladopt theconsequentprovisionsandmayappointanadministratortoexerciseshareholders'powers.

1.3.TheexemptionresultingfromtheadoptionandimplementationofanOrganization,ManagementandControlModel

TheLegislature,inArticles6and7oftheDecree,recognizesspecificformsofexemptionfromthecorporateliabilityofEntities.

Specifically,Article6,paragraphI,stipulatesthat,intheeventthattheoffencesareattributabletopersonsinaseniorposition,theEntitymustnotbeconsideredliableifitcanprovethat:

a) it adopted and implemented, prior to the commission of the offence, anOrganization,Management and ControlModel (hereinafter also referred to simply as the "Model")suitableforpreventingoffencesofthekindcommitted;

b) it setupan independentbodywithautonomouspowers tooversee the functioningofand compliance with the Model and to update it (hereinafter also referred to as the"SupervisoryBody","SB"or"Body");

c) theoffencewascommittedbydeceptivelycircumventingthemeasuresprovidedforintheModel;

d) thesupervisioncarriedoutbytheSBwasnotlackingorinsufficient.

The structural features that constitute a suitably preventiveModel are identified inArticle6,paragraphIIofwhichstipulatesthattheEntitymust:

I. identifytheactivitieswithinthecontextofwhichoffencesmaybecommitted;

II. setupspecificprotocolsaimedatplanningtheformationandimplementationoftheEntity'sdecisionsinrelationtotheoffencestobeprevented;

III. identify procedures for managing the financial resources required to preventoffences;

IV. setforthobligationsconcerningreportingtotheSB;

V. introducea suitabledisciplinary system for sanctioning the failure to complywiththemeasuresindicatedbytheModel.

In the case of persons in subordinate positions, however, the adoption and effectiveimplementationof theModelmeanthat theEntitywillberequiredtoassume liabilityonly inthe event that the offence occurred as a result of the failure to fulfil management andsupervisoryobligations(combinedprovisionsofparagraphsIandIIofArticle7).

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Paragraphs III and IV of Article 7 help to define additional characteristics that constitute asuitablypreventiveModel.Specifically:

- the Model must provide for appropriate measures both to guarantee theperformance of the Entity's activities in compliance with the law and topromptly discover situations of risk, taking into consideration the type ofactivitiescarriedoutandthenatureandsizeoftheorganization;

- theeffectiveimplementationoftheModelrequiresaperiodicinspectionandtheamendment of theModel, if significant violations of the provisions of law arediscoveredor if importantorganizationalorregulatorychangesaremade; theexistence of a suitable disciplinary system is also of significance (a conditionalreadyprovidedforbylettere),subArticle6,paragraphII).

Formally speaking, the adoption and effective implementation of aModel is is an option forEntities, rather than an obligation; theymaydecidenot to complywith the provisions of theDecree,withoutincurringanysanctionwhatsoeverforthatreasonalone.

In actual fact, however, the adoption and effective implementation of a suitable Model isessential for Entities in order to be able to benefit from the exemption provided for by theLegislature.

Itisalsoimportanttobearinmind,aboveall,thattheModelshouldnotbeseenasastatictool,but instead should be thought of as a dynamic device that allows an Entity, by means ofaccurate, targeted implementation over time, to eliminate any shortcomings that it was notpossibletoidentifywhentheModelwasfirstcreated.

1.3.1. In particular, the exemption resulting from the Model with regard to (unintentional)workplacehealthandsafetyoffences

SpecificallywithregardtotheModel'sbeingsuitablypreventive inrelationto(unintentional)workplace health and safety offences, reference should be made to Article 30 of LegislativeDecree No. 81 of 9 April 2008, which, in this respect, stipulates that: ‘’an organization andmanagementmodel capableofoffering exemption from the corporate liabilityof legalpersons,companies and associations, including thosewithout legal personality, pursuant to LegislativeDecreeNo. 231 of 8 June 2001,must be adopted and effectively implemented, guaranteeing acorporatesystemforthefulfilmentofalllegalobligationsrelatingto:

a) compliancewithtechnicalandstructuralstandardsoflawrelatingtoequipment,facilities,workplaces,andchemical,physicalandbiologicalagents;

b) activitiesrelating toriskassessmentand theconsequentarrangementofpreventiveandprotectivemeasures;

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c) organizational activities, such as emergencies, first aid, contractmanagement, periodicsafetymeetingsandconsultationofworkers'safetyrepresentatives;

d) healthsurveillanceactivities;

e) workers'informationandtrainingactivities;

f) supervisory activities concerningworkers' compliancewith procedures and instructionsforworkingsafely;

g) theacquisitionofdocumentationandcertificatesthatarerequiredbylaw;

h) periodicchecksontheapplicationandeffectivenessoftheproceduresadopted’’.

AlsopursuanttoArticle30:‘’Theorganizationandmanagementmodelmustprovideforsuitablesystemsforrecordingthatactivitieshavetakenplace.Inanycase,theorganizationmodelmust,asrequiredpursuanttothenatureandsizeoftheorganizationandthetypeofactivitiescarriedout,establish a functional structure that allocates the technical responsibilities and the powersnecessary toverify,assess,manageandmonitorrisk,aswellasadisciplinarysystemcapableofsanctioningnon‐compliancewiththemeasuressetoutinthemodel.Theorganizationmodelmustalsoprovide forasuitablesystem formonitoringthe implementationofthemodelandensuringthat, over time, the conditions remain in place to make the measures adopted suitable. Theorganizationmodelmustbereviewedandpossiblyamendedwheneversignificationviolationsofthe rules onworkplace hygiene and accident prevention are discovered, orwhen changes takeplacewithintheorganizationanditsactivitiesasaresultofscientificandtechnologicalprogress”.

Lastly,theprovisioninquestionestablishesanabsolutepresumptionofcompliancewiththeaforementioned requirements of preventive suitability insofar as it stipulates that:“corporate organizationmodels defined as compliantwith the UNI‐INAIL guidelines for aworkplacehealthand safetymanagement system (HSMS)of28 September2001orwithBritishStandardOHSAS18001:2007arepresumedtobecompliantwiththerequirementssetforthinthisArticleforthecorrespondingparts”.

2.  GUIDELINESDRAWNUPBYINDUSTRYASSOCIATIONS

2.1.TheConfindustriaGuidelines

PursuanttotheprovisionsofArticle6,paragraphIII,oftheDecree,theModelscanbeadoptedbasedonthecodesofconductdrawnupbyindustryassociationsthatrepresenttheEntitiesandcommunicatedtotheMinistryofJustice,whichmaymakeobservations,ifnecessary.

The first such association to drawup a guiding document for the preparation ofmodelswasConfindustria,which, inMarch2002, issued its guidelines,whichwere subsequentlypartially

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amendedandupdatedinMay2004,thenagaininMarch2008andmostrecentlyinMarch2014(hereinafteralsoreferredtoasthe"Guidelines")8.

Inshort,theGuidelinessuggest:

mappingcorporateareasatriskandactivities inthecontextofwhichoffencesmaybecommittedviaspecificoperatingprocedures;

identifying and arranging specific procedures aimed at planning the formation andimplementationofthecompany'sdecisionsinrelationtotheoffencestobeprevented,making a distinction between preventive protocols with regard to wilful andunintentionaloffences;

appointing a Supervisory Bodywith autonomous powers of initiative andmonitoringandanadequatebudget;

identifying specific obligations for staff to report to the Supervisory Body about keycorporatemattersand,inparticular,activitiesconsideredrisky;

identifyingspecificobligationsfortheSupervisoryBodytoreporttoseniormanagementandthecorporatebodies;

adopting a Code of Conduct that identifies the corporate principles and guides thebehaviouroftheModel'saddressees;

adopting a suitable disciplinary system for sanctioning the failure to complywith theprinciplessetoutintheModel.

The Confindustria Guidelines therefore constitute an essential starting point for the correctformationoftheModel.

2.2.TheANCECodeofConduct

The Italian National Association of Construction Companies (hereinafter referred to as the“ANCE”) ‐ to which Bonatti S.p.A. belongs via its membership of the corresponding regionalassociation ‐ has drawn up and gradually updated a Code of Conduct for Construction Firms(hereinafter referred toas the “CodeofConduct”),whichconstitutesanessential foundationforthedefinition,structuring,monitoringandupdatingofthemodelsofcompaniesthatbelongtotheassociation.

AsinthecaseoftheGuidelines,theCodeofConducthasalsobeenapprovedbytheMinistryofJustice, which, with a note of 20 December 2013, signed by the Justice Affairs Department,

                                                            8All versionsof theConfindustriaGuidelineswere subsequentlydeemedadequateby theMinistryof Justice (with regard to the2002Guidelines, see the “Ministryof JusticeNote”of4December2003and,with regard to the2004and2008updates, see the“MinistryofJusticeNote”of28June2004andthe“MinistryofJusticeNote”of2April2008),withthe2014versionhavingbeenapprovedwiththe"MinistryofJusticeNote”of21July2014.

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declaredthe2013versionoftheCodeofConducttobe:“suitableforthefulfilmentofthepurposesetforthpursuanttoArticle6,paragraph3,ofLegislativeDecree231/2001”.

Inbrief, theCodeofConduct identifies the followingaspectsasbeingamongthe fundamentalelementsfortheconstructionofasuitableorganization,managementandcontrolmodel:

1. identificationofactivitiesinvolvingariskofcommittingoffences(themanagementbodymustberesponsiblefordrawingupandadoptingadocumentidentifyingtheactivitiesand risk factors,whichmust contain a clear indicationof the connectionbetween theorganizational processes or sectors typical of sensitive activities and the significantcriminaloffencespursuanttoLegislativeDecreeNo.231of2001)

2. protocols for the formation and implementation of decisions (the management bodymustadoptapreventivecontrolsystemthatisstructured,foreachactivitypotentiallyatrisk, into specific protocols for the formation and implementation of the entity'sdecisions,inrelationtotheoffencestobeprevented)

3. financial resources management procedures (the management body must identify,based on the potential ways of committing the offences, precise protocols for themanagement of financial resources that are capable of preventing the commission ofsuchoffences)

4. reporting obligations (the management body must identify specific protocols thatprovide for the obligation to report to the Supervisory Body any events that mayhighlightdeficiencieswithinorviolationsofthemodel)

5. disciplinary system (the entity must introduce a suitable disciplinary system forsanctioningthefailuretocomplywiththemeasuresindicatedinthemodel)

6. supervisorybody(theentitymustsetupaninternalbody,withautonomouspowersofinitiative and monitoring, to which it assigns the task of continually overseeing theeffective functioning of and compliance with the organization models, as well asupdatingthem)

TheCodeofConductalsovaluescertifiedmanagementsystems,suchasthesafetymanagementsystem, certified in accordance with standard BS OHSAS 18001:2007 by an accreditedcertification body, and the environmental management system, certified in accordance withstandardISO14001:2004,deemingmanyoftheoperatingrequirementssetoutintheCodeofConducttohavebeenfulfilledwhensuchcertificationshavebeenissued(seeparagraph14oftheCodeofConduct).

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3.  BONATTI'SORGANIZATION,MANAGEMENTANDCONTROLMODEL

3.1.Bonatti'sactivities

BonattiS.p.A.(hereinafteralsoreferredtosimplyas"Bonatti"orthe"Company")isanItaliancompany that is one of the world's leading operators in the engineering, feasibility,construction, management and maintenance of facilities in the oil & gas and energy sector.Founded as a small firm in 1946 by the engineer Saul Bonatti, the Company today has over6,000employeesandoperatesbothinItalyandinnumerousothercountries,including:Algeria,Saudi Arabia, Canada, Egypt, Greece, Iraq, Libya,Mexico,Mozambique, Kazakhstan, Romania,SpainandtheUnitedStates.

TheCompanyprovidesitsservicestotheleadingdomesticandinternationaloilcompanies,andalsooperates inthestrategicsectorof long‐rangetransportationofhydrocarbons(gasandoilpipelines)throughthesynergiesitdevelopswiththeworld'sbiggestcompanies.

Lastly, Bonatti also provides engineering, feasibility and construction services in sectorsincludingmajorengineeringworksandcivilinfrastructure,creatingprojectsforvariousclientsinboththepublicandprivatesectors.

TheCompany'smission is to forgeandconsolidatedeeprelationshipsof trustwith its clientsandpartners,helpingtomaximizetheirprofitsbysupplyingthebestpossibleservicestomeettheirneeds.

3.2. Adapting Bonatti to the provisions of the Decree, with a view to ongoingimprovement

As of 29 October 2004, Bonatti hasmade an effort to adapt to the provisions of the Decree,creating aModel that fulfils the adequacy and effectiveness criteria required pursuant to theregulationsandtoindustrybestpractice.

The Model has undergone continuous revisions and updates in light of the organizationaland/or regulatory changes that have taken place over the years, with a view to seeking theongoingimprovementoftheCompany'smanagement,organizationandcontrolsystem.

ThemostrecentupdateoftheModeldatesbackto2016.Thisversion,whichincorporatedtheindicationsof the latesteditionof theCodeofConduct (the2013version,whichwasdeemedsuitable by the Ministry of Justice), also brought together the protocols suggested by theConfindustria Guidelines, as well as a series of additional monitoring and control measures,which,inacertainway,reorganizedtheCompany'ssecurityprocesses,bringingthemintolinewiththemostup‐to‐dateconceptsinthefield.

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3.3.ThecurrentversionoftheModel

Thecurrentversionof theModel,whichhasbeenupdatedasdescribedbelow,wasapprovedwitharesolutionoftheBoardofDirectors.

TheoutcomeofalltheworkcarriedoutisdescribedinthedocumentsentitledGeneralPartandSpecialPart(hereinafterreferredtocollectivelyasthe"SummaryDocument").

3.3.1. Preparatory work for updating the Model. The new risk mapping and risk assessmentactivities

The effective implementation of theModel involves, as explained above,making the effort tocontinuallyimprovealloftheorganization,managementandcontrolprotocolsthatmakeuptheModel.

In order to respond to this requirement, Bonatti needed to carry out a new risk assessment,aimedbothatrecognizingthemappingrelatingtotheoffencesalreadycoveredbytheSpecialPartsoftheModel(withthenecessaryadditionsfollowingthereorganization),andatassessingthe existing risks with regard to the new types of offence introduced more recently by theLegislature.

Initspursuitofthisgoal,inSeptember2016theCompanylaunchedanin‐depthoverhaulofitsrisk mapping and risk assessment activities, conducting a critical analysis of the entirecorporateorganizationalstructureandofitsinternalcontrolsystem,withaviewtoevaluatingits effectiveness at preventing the commission of all offences that, in accordance with theprovisionsoftheDecree,wouldgiverisetotheEntity'sliability.

Tothatend,aWorkingGroupwascreated,madeupofbothinternalstaff(theHeadoftheLegalDepartment and the Corporate Quality Manager) and specialist external parties (aninternationallawfirmwithprovenexperienceinthesector,supportedbyexpertsincorporateprocesscontrolsystemsandbyhealth,safety,environmentandsecurityconsultants).Basedonaconsolidatedmethodologyand following themostrecentbestpractices, theWorkingGroupsubjected Bonatti's organizational and corporate structure to a specific, in‐depth riskassessment.

As suggested by industry associations, the analysis started with the specific mapping andinventoryofallcorporateactivities(knownasriskmapping).

Thiswas carriedoutbyexaminingcorporatedocumentationandcasehistories, aswell asbypreparingpreliminaryquestionnairesandchecklists forassessingtheadequacyof thecontrolsysteminplace.Subsequently,anumberofinterviewswereheldwiththestaffinvolved(morethan20peoplewereinterviewed)andtheoutcomesoftheinterviewswerediscussedwiththepersonsconcerned.

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Oncethisworkhadbeencompleted,therefore,thefollowingwereidentified:

the areas “at risk of offence”, i.e. those areas of the Company and/or corporateprocesses in relation towhich itwas deemed, in light of themapping outcomes, thattherewasatheoreticalriskofcommittingoffencesofthekindindicatedbytheDecree,whichweretheoreticallyattributabletothetypeofactivitycarriedoutbytheCompany;

withregardtooffencesagainstGovernmentAuthoritiesandtheoffenceof"corruptionbetweenprivateparties",the“instrumental’’areas,i.e.theareasthatmanagefinancialinstrumentsand/oralternativesthatmayfosterthecommissionofoffencesintheareas“atriskofoffence’’;

in the context of each area "at risk of offence", the “sensitive” activities, i.e. thoseactivities whose performance is related to the risk of committing offences, and thecorporatedepartmentsandpositionsinvolved.

For each area at risk, therefore, the Working Group identified those activities that couldtheoreticallybeconsideredwaysofcommittingtheoffencesinquestion.

The Working Group then observed and analysed the corporate controls, inspecting theorganizationsystem,thesystemofpowersandmandates,themanagementcontrolsystem,andthewiderangeofproceduresinplaceandconsideredsignificantforthepurposesoftheanalysis(theas‐isanalysisphase),aswellassubsequentlyidentifyingareasforimprovement,withtheformulation of suggestions and plans of action for the implementation of the principles ofcontrol(thegapanalysis).

3.3.2.Riskassessmentconcerningsafety,securityandtheenvironment

TheWorkingGrouphasalso,withsupportfromspecialistcorporateemployeesandconsultants,conductedaspecificriskassessmentofBonatti'sorganizationalstructurefromtheperspectiveofworkplacehealthandsafety(hereinafteralsoreferredtoas"WHS").

Theassessmentactivitieswerenotsimplylimitedtoconsideringsafetyrisks(i.e.risksrelatingto factorswithin the production process and the organization of thework that can result insituationsof riskordanger toworkers'healthy and safety in relation to thevariousworkingenvironmentstakenintoconsideration),butalsoextendedtoassessingsecurityrisks(i.e.risksrelating to threats to workers' security attributable to factors outside of the Company'sorganizationandproductionprocess).

Lastly, the risk assessment extended to assessing risks of an environmental nature, inconsiderationoftheoffencescoveredbyArticle25‐undeciesoftheDecree.

Referring to thematters described in detail in Special Part I of the Summary Document, thefollowing sub‐paragraphs will summarize the main activities that characterized the riskassessment,withregardtotheareasofSafety,SecurityandtheEnvironment.

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3.3.2.1.Safety

AssuggestedbytheGuidelines,theanalysiswasconductedontheentirecorporatestructure(aswellasinconsiderationofthevariouslocalstructuresandwithregardtothevariousoperatingsites),since,withregardtotheoffencesofhomicideandinvoluntaryinjuriesofaseriousorlife‐threateningnaturecommittedasaresultofviolatingtheregulationsontheprotectionofhealthandsafety in theworkplace, it isnotpossible toruleoutanysphereofactivityapriori,giventhatsuchoffencescaninvolveallcomponentsoftheCompany.

Theriskassessmentactivitieswerebrokendownasfollows:

a) identification of sites characterized by the potential risk of violation of or non‐compliancewithsafetyrules,whichmaydirectlyorindirectlyinvolvethecommissionoftheoffencesprovidedforbyArticle25‐septiesoftheDecree;

b) analysisoftheadequacyoftheinternalcontrolsystemforsafety;

c) identificationoftheactionstobetakentoimprovetheaforementionedinternalcontrolsystemand/ortoadapttotheregulationsonsafety;

d) establishanorderofinterventionprioritiesrelatingtothesitesunderanalysis.

Inmoredetail,theinterventionmethodologyconcerned:

1. theanalysisof significant safetydocumentation (including thepreviousversionof theModel,organigrams,missionstatements,procedures,riskassessmentdocuments,etc.)in order to correctly identify the safety organigram, the duties of the senior andsubordinatefunctionsand,asmuchaspossible,thecoherenceandcompletenessoftheoutcomesoftheriskanalysisconductedpreviously;

2. interviewswith staff in key roleswithinworkplace health and safety; this phasewassupported by the preparation and use of dedicated checklists aimed at organicallygatheringdetailedinformationaboutthecontrolsystemcurrentlyinplace;

3. the analysis and evaluation of the organization and control systems in force forprocessesdeemedsensitive inrelation to theoffencesunderexamination,particularlythe practices and procedures of the integrated management system, the specificdocumentsforworkplacesafetyandthecorporateregistrationdocuments;

4. the allocation of an adequacy level (or "prevention level") to the protocols foroverseeing processes currently in place aimed at the prevention of the offences inquestion;

5. withregardtoanyareasofweaknessidentified,anindicationofpossiblesupplementaryandpreventivemeasurestobeimplementedinrelationtothoseprovidedfor,aswellasanindicationofanymonitoringtoolstobeadopted.

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Lastly, the Working Group reviewed the compliance of the Health and Safety ManagementSystem (hereinafter the “HSMS”) with the requirements provided for by British StandardOHSAS18001:2007.

3.3.2.2.Security

Asmentioned above, the risk assessment activities also involved assessing security risks (i.e.risks relating to threats toworkers' security attributable to factors outside of theCompany'sorganizationandproductionprocess9).

Specifically, the assessment activities conducted in order to update the Company's Modelconcerned:

1)  Theanalysisofallsignificantsecuritydocumentation:

The Organization, Management And Control Model pursuant to Legislative Decree231/01,Rev.7;

TheCompany'ssecurityprocedures,whichcanbebrokendownasfollows:

a)  TheGoldenRules,whichsetoutBonatti'ssecuritypolicyandobjectives.

b)  The Silver Guidelines on Security, which define the key principles of the securityprocess,governphasesandactivitiesofthesub‐processesrelatingtothesecurityprocess,andidentifytherolesandresponsibilitiesofthevariouspersonsinvolvedinthesecurityprocess.

c)  The Procedure for carrying out security assessments, which has the followingobjectives:

•toactasapracticalguideforsecurityassessmentactivities;

• to define the information to be acquired in preparation for inspections for a securityassessment;

•todefinethecontentoftheend‐of‐activityreports.

d)  The Procedure for the definition of reporting and assessment activities relating tosecurity events, in order todemonstrate thedetailedprocedures for reporting andmanagingsecurityevents.

e)  TheProcedurefortheprotectionofassetsandpeopleinhigh‐riskareas.

Thepurposeoftheprocedureistoprovidetheguidelinestobefollowedinordertoguaranteethe security of individuals on assignment abroad and/or on business trips, focusing on theminimum requirements for asset security. It follows an in‐depth analysis of the selection,

                                                            9Unlikesafetyrisks,securityrisksarerisksthatarenotinherentintheworkactivitiesand,sincetheyareexternal,aredefinedas"atypical".

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preparation andprotection of the sites located in high‐risk areas. SecurityRiskAssessment ‐OperatingProcedures

Thepurposeof theprocedure is to illustrate thedetailedprocedures and tools tobeused inordertocarryoutanassessmentofsecurityrisks.

f)  TheProcedurefortheassessmentandmanagementofsecuritythreats

The purpose of the document is to illustrate the process and procedures for assessing andmanagingsecuritythreats.Thisactivityispartoftheriskassessmentprocess,uponconclusionofwhichtheCorporateRiskEvaluationDocument(CRED)isdrawnuppursuanttoLegislativeDecree81/08.

g)  TheProcedureforexecutingevacuationplans

h)  Preventionandmanagementoffalseimprisonment

C.  TheCRED;

D.  Theorganigrams;

E.  ThepowersandmandatesgrantedtotheSecurityManagerandtheBranchManagers

2)  Interviews with the Security Manager and the SB by means of a dedicated checklistaimedatorganicallygatheringdetailedinformationaboutthecontrolsystemcurrentlyinplace.

Oncethisactivityhadbeencompleted,itwasthereforepossibletoidentifythecontrolsystemadoptedby theCompany, aimed atmitigating security risk and identifyingpossible areas forimprovement.

3.3.2.3.Environment

Theenvironmentalriskassessmentdifferedslightly fromtheaspects illustratedabove in thattheWorkingGroup,inlinewithindustrybestpractices,conducteditsanalysisstartingfromtheenvironmentaloffencessetforthinArticle25‐undeciesoftheDecree.From this perspective, the Working Group therefore re‐examined all environmentallysignificantprocessesinthelightofthecompletelistofoffencessetforthintheaforementionedArticle.Theworkingmethodology described abovewith reference to the safety risk assessmentwasalsousedinthiscase(analysisofimportantdocumentation,interviewswithkeystaffmembers,analysisandevaluationoftheorganizationandcontrolsystemsinforceforprocessesdeemedsensitive).TheWorking Group also identified the currentmeasures aimed at preventing environmentaloffences, and estimated the degree of coverage (or “level of prevention”) provided by thecontrolsysteminplacewithintheCompany.TheGroup'sactivitiesalsoinvolveddefiningactions,inlightofanyweaknessesidentified,tobetakentoimprovethecontrolsystemandriskpreventionmeasures.

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3.4.ThecomponentsofBonatti'sModel

TheSummaryDocumentoftheModelismadeupofaGeneralPartandaSpecialPart.

The General Part contains the protocols listed below (hereinafter also referred to as the"Protocols"),whichformthestructureoftheModel:

a) theorganizationalsystem;

b) thesystemofpowersandmandates;

c) themanualandcomputerizedprocedures;

d) thecashflowandmanagementcontrolsystem;

e) the control system for workplace health and safety (operating management andmonitoring)andforsecurity;

f) the system for environmental management and compliance with the regulatoryprovisionsinthatarea;

g) theCodeofEthics;

h) theDisciplinarySystem;

i) the communication and involvement of staff concerning the Model, as well as theirtrainingandeducation.

The General Part also contains a summary of the provisions of the document "Articles ofAssociationoftheSupervisoryBoard",whichsetsouttherulesgoverningtheSBandconstitutesanintegralpartoftheModel.

TheSpecialPartisbrokendowninto14subdivisions:

SpecialPartA,relatingtooffencesagainstGovernmentAuthorities;

SpecialPartB,relatingtoITandunlawfuldataprocessingoffences;

SpecialPartC,relatingtooffencesassociatedwithorganizedcrime;

Special Part D, relating to offences against industry and commerce (and otherspertainingtocommercebutclassifiedas"currencycounterfeiting"offences),aswellasthoseinvolvingindustrialproperty;

SpecialPartE,relatingtocorporatecrimes;

SpecialPartF,relatingtotheoffenceofcorruptionbetweenprivateparties;

SpecialPartG,relatingtooffenceswithterroristaimsorwiththepurposeofsubvertingthedemocraticorder;

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SpecialPartH,relatingtooffencesagainsttheindividual;

SpecialPartI,relatingtotheoffencesof involuntaryhomicideandinvoluntaryinjuriesofaseriousorlife‐threateningnaturecommittedasaresultofviolatingtheregulationsontheprotectionofhealthandsafetyintheworkplace;

SpecialPartL,relatingtotheoffencesofreceivingstolengoods,moneylaunderingandmakinguseofmoney,assetsorbenefitsofunlawfulprovenance;

SpecialPartM,relatingtocopyrightviolationoffences;

SpecialPartN,relatingtotheoffenceofincitementnottomakedeclarationsortomakefalsedeclarationstojudicialauthorities;

SpecialPartO,relatingtoenvironmentalcrimes;

Special Part P, relating to the offence of employing third‐country citizens whoseresidenceisillegal.

SpecialPartQ,relatingtotheoffenceofTransnationalcrime

Followingthemethodologicalapproachexplainedabove,theSpecialPartsindicate:

i) theareasdeemed"atriskofoffence"and"sensitive"activities;

ii) the corporate departments and/or services and/or offices that operatewithin theareas“atriskofoffence”or“sensitive”activities;

iii) theoffencesthatcouldtheoreticallybeperpetrated;

iv) the areas considered "instrumental" (with regard to offences against GovernmentAuthorities and to corruption between private parties), as well as the personsoperatingwithinsaidareas;

v) the type of controls in place on the individual areas "at risk of offence" and"instrumental"areas;

vi) theprinciplesofconduct tobeobserved inorder toreducetheriskofcommittinganyoffences.

SpecialPartI,inparticular,indicates:

a) theexistingriskfactorsinherentintheCompany'sbusinessactivities;

b) Bonatti'sorganizationalstructureintermsofWHSandsecurity;

c) thebenchmarkprinciplesandrulesfortheCompany;

d) the duties and tasks of each category of person operating within Bonatti'sorganizationalstructureintermsofWHSandsecurity;

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e) theroleoftheSupervisoryBodywithregardtoWHS;

f) theprinciplesthatformthebasisofcorporateWHSprocedures.

This SummaryDocument is also accompaniedbydocuments that represent certainProtocolsand therefore supplement and clarify the Company's organization, management and controlframework, suchas theCodeofEthicsand theDisciplinarySystem,aswellas the “ArticlesofAssociationoftheSupervisoryBoard”,discussedabove.

These documents, together with all the provisions (whether formalized or attributable toconsolidatedandobservedoperatingpractices)thatgoverntheorganization,managementandregulation of the Company, as well as its various corporate processes, constitute the ModeladoptedpursuanttotheDecree.

4.  THEORGANIZATIONALSYSTEM

BonattihasestablishedanorganizationalsystemthatwasconceivedtoenabletheCompanytoimplementthestrategiesandachievetheobjectivessetoutpursuanttoitscorporatepurpose.

Bonatti's structure was created bearing in mind the need to endow the Company with anorganizational framework capable of guaranteeing the utmost operating efficiency andeffectiveness,bothinItalyandabroad.

4.1.Corporategovernance

Bonattihasoptedforthe"traditional"system.

In accordancewith the provisions of Italian commercial law, Bonatti's corporate governancesystemiscurrentlystructuredasfollows:

Shareholders'Meeting

TheShareholders'Meetingiscompetenttopassresolutions,inbothordinaryandextraordinarysessions, on matters reserved for it pursuant to the law or the Company's Articles ofAssociation.

ThemajorityofthesharecapitaliscurrentlyheldbyBonattiHoldingS.r.l.andParmalatS.p.A.,whileBonattiS.p.A.itself,throughitstreasuryshares,isaminorityshareholder.

BoardofDirectors

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The Board of Directors is vested with the broadest powers for the administration of theCompanyandthe implementationandachievementof thecorporatepurpose,excludingthosepowers that the lawreserves for theShareholders'Meeting.TheBoardofDirectors thereforehas,interalia,thepowertodefinetheCompany'sstrategicdirectionandthepowertoverifytheexistenceandeffectivenessoftheCompany'sorganizationalandadministrativestructure.

TheBoard is currentlymadeupof fourdirectors, twoofwhomhave assumed the respectiverolesofChairmanandVice‐Chairman.

BoardofStatutoryAuditors

The Board of Statutory Auditors is made up of three standing members and two alternatemembers.TheBoardisresponsibleforoverseeing:

o compliancewiththelawandtheArticlesofAssociation;

o observanceoftheprinciplesofgoodadministration;

o the adequacy of the Company's organizational structure, internal controlsystemandaccountingadministrationsystem, includingwithregard to thereliabilityofthelattertoaccuratelyrepresenttheCompany'saffairs.

ExternalAuditor

Theexternalauditof theCompany'saccountsmustbeperformedbyan independentauditingfirmthatisincludedintheregisterofauditors.

4.2.Bonatti'sorganizationalstructure

The Company's organizational structure was designed to guarantee, on the one hand, theseparationofduties,rolesandresponsibilitiesbetweentheoperatingandcontroldepartments,and,ontheotherhand,theefficiencyandcost‐effectivenessofthecorporateprocesses.

Bonatti's organizational structure is headed by the Board of Directors, which, in accordancewith the provisions of law and the Articles of Association, is responsible for managing theCompany.Thelevel‐oneorganigram10oftheorganizationalstructureisasfollows:

ChairmanoftheBoardofDirectorsTheChairmanoftheBoardisresponsibleforthelegalrepresentationandordinarymanagementoftheCompany.TheChairmanisalsovestedwiththepowersbrieflysummarizedbelow,basedonspecificresolutionsoftheBoard:

                                                            10Detailsofthelevel‐twoorganigrams,includingthehierarchyofroles,canbefoundinthecorporatedocumentation(procedures,organigrams, organizational charts and job descriptions). In order to immediately clarify the role and responsibilities of eachindividualwithin thecorporatedecisionmakingprocess,Bonattihasdevelopedbothadetailed systemof first‐andsecond‐levelorganigramsandadetailedorganigram,whichdescribesandexplainstheroleandresponsibilitiesofthevariousdepartmentsandsub‐departments.Theabovedocumentationspecifies,interalia,boththeareasintowhichthecorporateactivitiesarebrokendown,andthehierarchyofrolesoftheindividualcorporatedepartments.

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o to represent and act for the Company in calls for tenders, auctions and publicprocedures;

o torepresentandactfortheCompanyincontractarrangementsandagreementsforsupplies;engineering,procurement,constructionandcommissioning(EPCC)works;concessions; project financing; and lease agreements, with public and privateclients;

o togovernanyaspectsrelatedtocorporatesalesandacquisitions;

o togovernanyaspectsrelatedtotheCompany'sfinancialmanagement;

o togovernanyaspectsoftheCompany'scommercialactivities,includingatthecross‐borderlevel;

o to represent and promote initiatives in the Company's interests in the legal andjudicialareas.

TheChairmanoftheBoardhasalsobeenidentifiedastheEmployerpursuanttoLegislativeDecree81/2008,forallworkactivitiesinItaly.

Vice‐Chairmanof theBoardofDirectorsTheVice‐Chairman is vestedwith thepowersbrieflysummarizedbelow,basedonspecificresolutionsoftheBoard:

o togovernanyaspectsrelatedtocorporatesalesandacquisitions;

o togovernthehumanresourcesemployedwithintheCompany;

o togovernanyaspectsrelatedtotheCompany'sfinancialmanagement;

o togovernanyaspectsoftheCompany'scommercialactivities,includingatthecross‐borderlevel;

o to represent and promote initiatives in the Company's interests in the legal andjudicialareas.

WithintheCompanyhierarchy,theChairmanandVice‐ChairmanoftheBoardarereportedtobythefollowingCorporateDepartments:

HUMANRESOURCESDepartment: this department is involved in defining the corporatestrategy, guaranteeing adequate coverage and oversight of the key positions for theCompany's strategic evolution. The department also gets the best out of the staff'sexperience,expertiseandabilities,makingimprovementsandbringingthemintolinewiththestrategicobjectives.Itisactivelyinvolvedinmanagingstaffinkeypositions,ratherthandeveloping "potential", and monitors their motivation, competence, experience andefficiency, defines succession plans rather than growth plans, and develops training andevaluation tools and processes. It defines governance rules with regard to staffmanagement, guides and coordinates the activities of the HR departments of Local

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CompaniesandSubsidiaries,andisresponsiblefordefiningstandardcosts.Thedepartmentis also responsible for carrying out adequate general planning in relation to the staffrequired by the Business Units (hereinafter also referred to as the "BU"; see below), byplanningforeachproject;inparticular,itmustensureprojectcoverageintermsofquality,siteentrytimesandemploymentduration.IfthenecessarystaffarenotavailablewithintheCompany,itrecruitsthemeitherbydirecthireorthroughanagency.Thedepartmentcanbebrokendownintothefollowingsub‐departments:

o TrainingandDevelopment

o OrganizationandHRGovernance

o RecruitingStaffandDataBank

o PersonnelAdministrationandHRGeneralServices

o HRCoordination

o TravelOffice

ADMINISTRATION, FINANCE AND CONTROLLING Department: this department isresponsibleforsourcingthefinancialresourcesneededtosupporttheCompany'soperatingactivities and growth, defining and maintaining the control model, monitoring theCompany's economic and financial performance, and overseeing the planning, budgetingandreportingprocesses.Itisalsoresponsibleforthecorporate,administrative,accounting,fiscalandlegalmanagementoftheCompanyandofthespecial‐purposecompaniesinwhichBonattiS.p.A.holdsacontrollingstake,aswellasfordrawinguptheconsolidatedfinancialstatements.Itisactivelyinvolvedintheprocessesofplanning,managementandcontrolofthe financial resources, cash flows (inflows/outflows) and insurable risks. Lastly, itcoordinates the activities of the Administration departments of the companies that fallwithin the Company's scope, monitoring and supporting the Branches, Subsidiaries andLocalCompanies.Thedepartmentcanbebrokendownintothefollowingsub‐departments:

o Controlling

o FinanceandTreasury

o Accounting

o AFCOverseas

o Affiliates

o ICT

o Legal

STRATEGIC SOURCING/PROCUREMENT Department: the department's mainresponsibility is toguaranteeand improve thequalityof thegoodsandservicesprocured

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for the Company at the centralized and peripheral levels, verifying the levels of serviceprovidedby suppliers and acting to reduce the total costs of procurement. It is thereforeresponsiblefordefiningstrategicprioritiesforprocurement,monitoringsupplymarketsbyevaluating and identifying potential suppliers in lower‐cost countries, analysing thecharacteristics of the procurement process, defining procurement policies and strategies,anddevelopingoperatingplansforeachproductfamily.Itisresponsibleforresearchingandimplementing procurement programmes and synergies. The department also carries outprocurementoperatingactivitieswithinBonatti'sscopeofcompetence,providingapossibleservice to the otherBonatti companies (Branches and secondaryheadquarters). It is alsoresponsible for project procurementmanagement,with the task ofmonitoring the entiresupplychainflow,fromtheissuanceofthepurchaseordertothedeliveryofthematerialsonsite.Thedepartmentcanbebrokendownintothefollowingsub‐departments:

o ProcurementEPC/ProjectMaterial

o ProcurementOverseas

o ProcurementCoordination/Expediting

LOGISTICDepartment:thisdepartmentprovidesaproactiveservicefortheBU,ensuringcompliance in terms of times, procedures and quality with regard to the physical andregulatorystatusofthematerials,vehiclesandequipmentsthataredeliveredonsite,withaviewtooptimizingtheoverallcostandonthebasisoftheinvestmentdecisionsmadebytheCompanymanagement.ThedepartmentcriticallyanalysestheneedsexpressedbytheBU,planningtheavailabilityofresourcesandidentifyingthosemostsuitabletomeettheneedsofthesitefortheentiredurationoftheproject.Itsometimesmakeschangestotheusageofsaidresourcesbasedontheprogressmadeandanyproblemsthatmayarise. Itagreesoninvestments for the yearwith the BudgetDepartment, implementing the choices deemedmostappropriatefromtimetotime.TheLogisticDepartmentisalsoinchargeofshipmentsofmaterials and vehicles directly fromBonatti Italia to sites and operating bases both inItaly and abroad, aswell asmanaging the storage of consumable and buildingmaterials.Lastly, it alsomanages theCompany's vehicle fleet. Thedepartment can be brokendownintothefollowingsub‐departments:

o EquipmentPlanning

o LogisticCoordinator

o ShippingDepartment

o EquipmentTechnicalDepartment

QUALITY&HSEDepartment: this department is responsible not only for providing theCompanywithadequatequalityandHSEprocedures,butalso for guidingandmonitoringthe on‐site execution of these procedures; it is therefore responsible for training anddevelopingthestaffthatwilloccupytherolesofQualityManagerandHSEManageronthe

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various sites. Specifically, the department is broken down into two sub‐departments inchargeofmanaging:

o Quality, which is responsible for supporting the definition and implementation ofthequalitymanagementstrategy,helpingthedepartmentstoimposeandmaintainasystemaimedatguaranteeingcompliancewiththecertificationsandregulationsinforce;

o HSE, which is responsible for overseeing and supporting the definition andimplementation of the corporate strategy on Health, Safety and the Environment,ensuring the updating, distribution, application and monitoring of the corporateprocedures on the environment, workers' health and workplace safety, incompliancewiththecertificationsandregulationsinforce.

COMMERCIALDepartment: the organizational structure of this departmentwas createdto:

o build a diversified, flexible structure that can support the activities of BU withdifferentresponsibilitiesandactivities;

o keep a focus on operational commercial activities and a prospective vision of thedevelopmentofthebusiness;

o develop effective coordination between all actors within the commercial process(the commercial management, BU, countries, Subsidiaries), so as to be able togeneratesynergiesacrossclientsandmarkets.

ThedepartmentthereforeconsistsofaseriesoforganizationalunitsthatrelatetooneormoreBUandreporttotheChairman.

It shouldbepointedout thatBonatti's structureconsistofanorganizationalsystembasedonvariousBUSINESSUNITS("BU").TheorganizationalstructureoftheBUisdefinedbasedonastandard model, which is customized for the individual BU based on their respectivepeculiarities. The construction BU (Pipelines, Civil Infrastructure, Plant Construction) oftenadoptdifferentmanagementproceduresfortheQuality,HSEandContractAdministratorareasthanthoseprovidedforinthestandardstructure.

INTERNAL AUDIT Department: this department is responsible for evaluating thecompleteness, functionality, reliability and adequacy of the internal control and riskmanagement system, in relation to the nature of the corporate processes taken intoconsiderationandtotheleveloftherisksassessed,aswellastheneedforittobeadapted,includingthroughsupportandconsultancyactivities fortheothercorporatedepartments,as well as for the Board of Statutory Auditors and the Supervisory Body. The AuditDepartment checks, both on an ongoing basis and in relation to specific needs and incompliance with international standards, the functioning and suitability of the internalcontrol and risk management system, through audit plans approved by the Board ofDirectorsandbasedonastructuredprocessofanalysisandprioritizationofthemainrisks.

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KNOWLEDGEMANAGEMENTDepartment:thisdepartmentisresponsiblefordefining,incollaboration with the various Group owners, the Company's knowledge managementstrategy and ensuring that it is implemented effectively; it identifies the distinct (implicitand explicit) knowledge and expertise within the Company and seeks to transfer,disseminate and share these as much as possible within the corporate organization; itmonitors the sources of corporate knowledge by mapping networks of relations,stakeholders and communities of practice that generate expertise and best practices; itmanages the corporate knowledge management system and defines its guidelines,processes, standards and content formats; lastly, the department defines the functionalguidelinesandcharacteristicsofcomputerizedandotherknowledgemanagementsystems.

4.2.1.Organizationatthelocallevel:CountriesandBranches

The organizational structure is also organized at Country level (in relation to the States inwhichtheCountryoperates,seepara.3.1.above),definedbasedonastandardmodel,whichiscustomized for the individual Countries based on their respective peculiarities. The "Typical"Country structure is designed to reflect that of the Company, with a Staff department thatreports to the Governance department, as well as Commercial and Operations departments.Sincecorporategovernance fallswithin theremitof theCompanyheadquarters, theCountry‐levelstructuredoesnothaveallthedepartmentsthatBonattihas,anditsStaffmainlyoccupyoperationalroles.AsregardstheotherGovernancedepartments,ICTandLogisticsreporttotheOperationManager, since their local activities are essentially of an operational nature, andtheyaregenerallylocatedneartotheOperatingBases.

While the "Typical" structure is generally preferable, Bonatti permits some alternativeconfigurations thereof,whichmay be adopted in the various Countries in order to adapt theorganizationtocontext‐specificsituations,ortocontingentproductionorcommercialneeds.

Specifically, in Countries where the Company operates via production sites, it has set upBranches11; while they are not distinct legal persons, the Branches are corporate structureswithcompletefinancial,technicalandfunctionalautonomy.

Themanagerial responsibility foreach individualBranch isassigned toaBranchManager,anexecutiveand/orwhite‐collarworkerwiththenecessaryrequirementsofprofessionalismandexperiencetoassumetherole.

Inbrief,theBranchManagers‐whocanlegallyrepresentBonattiindealingswiththirdpartiesinthecountryinwhichtheBranchoperatesandhavethepowertocarryoutallordinaryactsofadministration ‐ are entrusted, pursuant to a resolution of the Board of Directors, with thefollowingkeyfunctions:

                                                            11 As at the approval date of this Model, Bonatti's Branches are located in: Libya, Algeria, Kazakhstan,Mexico, Romania,Mozambique,IraqandSaudiArabia.

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managingallactivitiesoftheBranchand,inparticular,includingthroughappointeesand/orproxies,makingalloperationalmanagementchoices;

overseeing,with support from theCorporatedepartments (seeabove), all administration,humanresources,procurementandcommercialactivities;

guaranteeing compliance with the administrative, fiscal and legal procedures andrequirementsthatenabletheCompanytoactinfullcompliancewithlocallegislation;

governingcompaniesregisteredunderlocallaw,wheresuchcompaniesexist;

establishing andmaintaining institutional relationswith authorities, local entities, clientsandcompanies;

contributing,eitherdirectlyorbysupportingthecompetentCorporatedepartments,tothedevelopmentofcommercialactivities;

ensuring that the necessary reports flow between the Branch and the Company's centralheadquarters;

guaranteeing,viatheHumanResourcesandProcurementdepartmentsandincollaborationwithOperationManagement, that theactivities are carriedoutwith a view todevelopinglocalcontent;

cooperatingwiththeOperationManageronoperational,logisticalandstaffissues.

4.3.Ingeneral,theorganizationalsystemwithregardtoworkplacehealthandsafetyandsecurity

4.3.1.Safety

In consideration of the Company's complex organizational structure, its internationaloperationsandthesignificantriskstowhichitsworkforceisexposed(giventhepeculiaritiesofthe production sectors inwhich the Company operates), Bonatti has implemented a cutting‐edgeorganizationalsystemtodealwithsafetyissues.

TheCompanyaims todiversify roles,dutiesand responsibilities in relation to theCompany'sregional organizational structure and to the specific areas of risk taken into consideration.WhilemoredetailscanbefoundinSpecialPartIoftheSummaryDocument,generallyspeaking,the Company's safety management system primarily involves the persons indicated by theregulations,inaccordancewiththeprovisionsofLegislativeDecree81/2008,i.e.:

- Employers;

- SafetyExecutives;

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- Managers;

- the Head of the Prevention and Protection Service (hereinafter referred to as the"HPPS");

- FirstAidOfficers(hereinafteralsoreferredtoas"FAO");

- FireSafetyOfficers(hereinafteralsoreferredtoas"FSO");

- theWorkers'Health,SafetyandEnvironmentRepresentative(hereinafteralsoreferredtoasthe"WHSER");

- theOccupationalHealthPhysician;

- Workers;

- personsoutsideof theCompanywhocarryoutsignificantactivities in termsofhealthandsafety.

ThedutiesandresponsibilitiesoftheaforementionedpersonswithregardtosafetyareformallydefinedinaccordancewithBonatti'scorporatesafetyorganigram,particularlywithreferencetothespecificfiguresoperatinginthisarea.

4.3.1.1.Inparticular,theHSEorganizationalsystematCountrylevel

Aswehaveseen,BonattiispresentinanumberofCountriesviaitsBranches,which,thoughnotseparatelegalentities,dohaveorganizational,operationalandfinancialautonomytocarryouttheir various production activities. These Branches therefore act as production units withfinancial,technicalandfunctionalautonomy,pursuanttoLegislativeDecree81/200812.

Inordertoguaranteetheconstantandcorrectapplicationoftheregulationsdesignedtoprotectworkplacehealthandsafety(LegislativeDecree81/2008)andofthosedesignedtoprotecttheenvironment at the local level, the Bonatti Board of Directors has awarded the title of"Employer"toallBranchManagers, inrelationtotherespectiveCountriesforwhichtheyareresponsible, specifying in particular that the legal obligations pursuant to Article 17 ofLegislativeDecree81/2008mustbefulfilledpersonally,andexpresslyrulingoutthepossibilityofdelegatingthefulfilmentofsaidobligationstothirdparties13.

                                                            12Article2ofLegislativeDecree81/2008definesa"productionunit"as“aplantorstructurededicatedtotheproductionofgoodsortheprovisionofservices,withfinancial,technicalandfunctionalautonomy".Aproductionunitisidentifiedasanyautonomousstructureof the companywhich, in termsof its functionandpurpose, is capableofperforming , in fullor inpart, theactivityofproductionofgoodsorservicesofsaidcompany(ofwhichitformsanorganizationalcomponent);however,thisexcludesanylesserbodieswhich,despitehavingadegreeofautonomy,haveapurposethatismerelyinstrumentaltotheproductivepurposesofthecompany(CivilCourtofCassation,LabourDivision,21‐07‐2000,No.9636,CivilCourtofCassation,LabourDivision,14‐06‐1999,No.5892).

13Article2ofLegislativeDecree81/2008stipulatesthattheemployeristheowneroftheemploymentcontractinplacewiththeworkeror, inanycase, thepersonwho,according to the typeandstructureof theorganization in thecontextofwhich theworker

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With regard to the work, including aspects relating to workplace health and safety and theprotectionoftheenvironment,theCompanyexpresslyidentifiestherelevantdutiesandpowersto be carried out, including through persons that report to the Branch Managers, with theexceptionofthosedutiesthatcannotbedelegatedpursuanttoArticle17ofLegislativeDecree81/2008. In addition to the power to hire and fire staff and the obligation to fulfil all legalrequirements relating to employment contracts, it is specified that the BranchManagers/Employers must exercise all duties and powers allocated to the employer for theprotectionofworkplacehealthandsafetyand for thehealthandsafetyof theworkers,beingvestedwith thebroadest economic autonomy, tobe exercisedwithoutmonetary limit, for allinterventionsdeemedappropriateandnecessary14.

Withoutprejudicetotheprovisionsonfulfillingtheobligationtoperformariskassessmentattemporary and mobile sites, each employer is responsible for drawing up the documentprovidedforbyArticles17and28ofLegislativeDecree81/2008.

4.3.2.Security

The“SecurityOrganigram”isenhancedbythepresenceoftheCorporateSecurityManager,atthe central level, andof theCountrySecurityManagers andSiteSecurityExperts for eachindividual Country; these are figures of proven skill and experience who are assigned, inaccordancewithahierarchicallystructuredsystemofpowersandmandates,organizationalandmanagerialresponsibilitiesinrelationtoaspectsofcorporatesecurity.

Theyareresponsibleforassessing,monitoringandcontainingtheriskstoworkplacehealthandsafety generated by factors outside of the organization of work and the production process,pursuanttotheprovisionsoftheUNI10459‐2015guidelines.

Specifically,amongotherduties,theCorporateSecurityManager(hereinafterreferredtoasthe"CSM"):

• implements the security policies, strategies and programmes defined by the seniorcompany/organizationmanagementwithaviewtoachievingtheestablishedgoals;

• definesthecontrolandauditsystemsinordertoverifytheeffectivenessandefficiencyofthesecurityprogrammes;

• for activities in foreign Countries, makes use of security staff (Country SecurityManagersandSiteSecurityExperts)who,thoughremainingpartoftheOrganizational

                                                                                                                                                                                         carriesouttheiractivities,isresponsiblefortheorganizationitselforfortheproductionunit,insofarastheyexercisedecisionmakingandspendingpowers.”

14TheCaseLawhasclarified that, inorder toassumetheroleof "employer"ofaproductionunit, is isnecessary that"theentitymanagedbytheperson inquestion,whilstremaininganoffshootofthecompany,has itsowndistinctphysiognomy,presents itsownfinancial statementsand canpass resolutions, in conditionsof relative independence,on thedistributionof the resourcesavailable,therebyimplementingtheorganizationaldecisionsdeemedmostsuitedtoitsfunctionalandproductivecharacteristics”.TheCourtofCassationalsostatesthatthe“significantautonomy”thattheproductionunitmusthave“mustalsobeexpresslyprovidedforintheArticlesofAssociationofthebusinessorcompany”(CourtofCassation,Division.IV,No.45068of22/11/2004).

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Structure of the Corporate Security Manager (professional family), report to theirrespectiveoperationalchainofhierarchy;

• launchesinvestigationstoverifyorcombatinternalorexternalthreats;

• interacts ‐ in coordination with the Branches ‐ with the national security bodiesresponsible for economic intelligence, security and public order, as part of thepartnership between the public and private sectors (relations with embassies, theDepartmentof InformationSecurity, the Internal IntelligenceandSecurityAgencyandtheExternalIntelligenceandSecurityAgency).

TheCountrySecurityManagersandSiteSecurityExpertsareresponsibleforthesecurityoftheCompany'shumanresourcesandtangibleandintangibleassets,withintheirrespectiveareasofcompetence. They fulfil all internal and external regulatory obligations and support theCorporate departments in the development of an organizational structure for security thatclarifiesalldutiesandrelativeresponsibilities.

5.  THESYSTEMOFPOWERSANDMANDATES

5.1.Generalprinciples

TheBoardofDirectorsofBonattihasawardedfunctionalmandatesandpowersofsignature,inaccordancewithacarefullydefinedsystemoforganizationalandmanagerialresponsibilities.

The level of autonomy and the power of representation assigned to the various holders ofpowers andmandates within the Company are always identified. These are established in amannerthatisconsistentwiththehierarchicalleveloftherecipientofthepowerormandate,withinthelimitsofwhatisnecessaryfortheperformanceofthedutiesandtaskscoveredbythemandate.

5.2.ThestructureofthesystemofpowersandmandatesadoptedbytheCompany

The system of powers andmandates currently in forcewithin Bonatti is consistentwith theframeworkthatemergesfromthecorporateorganigram,sinceitreflectssaidorganigramwhilstalsosupplementingit,totheextentthatmaybenecessaryinordertoassignpowersordutiestopersonswhodonotoccupyseniorroles.

The Company's Board of Directors has formally granted broad mandates and powers ofmanagement to the Chairman and Vice‐Chairman. Special powers have also been issued tocorporate departments with specific levels of authorization, in line with the principles offunctionalandhierarchicalgraduality.

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PowersandmandatesarethereforegenerallyformalizedthroughnotarizeddeedsandrecordedatthecompetentBusinessRegisterOffice.

Eachofthesedeedsofdelegationandissuancesofpowersofsignaturethereforeprovidesthefollowinginformation:

1) delegatingpartyandsourceoftheirpowerofdelegationormandate;

2) delegatee, with an explicit reference to the function assigned to them and to theconnectionbetweenthepowersandmandatesgrantedandtheorganizationalpositionheldbythedelegatee;

3) scope, i.e. a list of the types of activities and deeds for which the power/mandate isgranted. These activities and deeds form part of and/or are related to theresponsibilitiesanddutiesofthedelegatee.

Thesystemofmandatesandpowersofsignature,asoutlinedabove, isconstantlyappliedandregularlymonitoredasawholeand,wherenecessary,updatedinlightofchangesmadetothecorporatestructure,withaviewtomakingitasconsistentaspossiblewiththehierarchicalandfunctional organization and the needs of the Company. Individual updates are also madefollowingchangestotheduties/role/jobofan individual,asareperiodicupdatesthat involvetheentiresystem.

Thepowersandmandates inplacewithinBonattiareadequatelycollatedandorganized,andare available to theCompany'sdepartments and to thirdparties that request them (once theCompanyhasverifiedthatagenuineinterestexists).

6.  THEBONATTIPROCEDURALSYSTEM

In the performance of its business operations, Bonatti has developed a complex system ofmanual and computerized procedures aimed at governing the performance of its corporateactivities,whilstcomplyingwiththeprinciplessetoutbyboththeGuidelinesandtheCodeofConduct.

Morespecifically,themanualandcomputerizedprocedurescreatedbytheCompanyconstitutetherules tobe followedwithin thecorporateprocesses inquestion,aswellassettingout thecontrolstobeimplementedinordertoguaranteethecorrectness,effectivenessandefficiencyofthecorporateactivities.

Thisproceduralsystemisbasedonthefollowingstructuralprinciples:

- segregationoffunctions:involvementofseveralpersons,inordertoachieveadequateseparationofdutiesbymeansofthecross‐checkingoffunctions;

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- documentationand tracingofactivities:measures aimed at guaranteeing that eachoperation,transactionandactionisverifiable,documented,coherentandcongruous;

- documentationofmonitoringactivities:adoptionofmeasuresaimedatdocumentingthecontrolscarriedoutinrelationtotheoperationsand/oractionsperformed.

The Company also makes use of advanced IT systems, which constitute a "guide" to theproceduresforcarryingoutcertaintransactionsandguaranteeahighlevelofstandardizationandcompliance,sincetheprocessesaremanagedbyapplicationsapprovedpriortothereleaseofthesoftware.

ThevariousspecialpartsthatmakeuptheSummaryDocument,withregardtothe individualat‐risk and/or instrumental areas taken into consideration,will illustrate the contents of thevariousproceduralmeasures,which formpartof the structureof themonitoringand controlsystemadoptedbytheCompany.

7.  MANAGEMENTCONTROLANDCASHFLOWMANAGEMENT

Bonatti's management control and budget system (hereinafter also referred to simply as"Management Control") is designed to implement a system for managing economic andfinancial resources characterized by the verifiability and traceability of spending and theefficiencyandcost‐effectivenessofthecorporateactivities.

TheManagementControlisbasedonthefollowingkeyprinciples:

- Definition of the budget: clearly, systematically and comprehensibly defining theresourcesavailabletotheindividualcorporatedepartmentsandthescopewithinwhichsaidresourcescanbeused, through theplanninganddefinitionof thebudget,bothatthecentrallevelandwithinthevariousBusinessUnitsandregionalstructuresthroughwhichtheCompanyoperates;

- Identification of deviations and finalization: identifying any deviations from theplanssetoutinthebudget,analysingthecausesthereofandreportingtheoutcomesofthese evaluations to the appropriate levels of the hierarchy so that the necessaryadjustmentinterventionscanbemadeviathefinalization.

In order to achieve the aforementioned objectives, the processes in place for the strategicdefinitionofthebudgetguarantee:

thecontributionofseveral individualsresponsible fordefiningtheavailableresourcesand areas of spending, at both the central and peripheral levels, with a view toguaranteeing the constant presence of intersecting controls and checks on a singleprocess/activity,aimed,interalia,atensuringanadequatesegregationoffunctions;

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theadoptionofcorrect,standardizedproceduresformakinginitiativesascost‐effectiveaspossible,soastoguaranteethepossibilityofcomparingtheeconomicvaluesofthedifferentcorporatedepartments.

Thebudgetissubjecttosystematicreviewsduringthecourseoftheyear.

During the finalization phase, constant checks are carried out to ensure that the expensesactuallyincurredareconsistentwiththeresourcesallocatedduringplanning.

Using a system of economic indicatorsmakes it possible tomonitor any deviations from thebudgetdataintermsofcostsandrevenues,byconductingananalysisoftherelativecausesandthecorrectivemeasurestobeimplemented.

TheCompanydefinesandmonitorsbudgets,usageanddeviationsthroughmultipleanalyses,aswellasthroughreportingtothemanagement.

8.  THE CONTROL SYSTEM FOR WORKPLACE HEALTH AND SAFETY AND FORSECURITY

8.1.Workplacehealthandsafetymanagementsystem

The protection of health and safeguarding of safety in the workplace are not merely keyprinciples that are priorities for the Company, but structural and essential elements of theentirecorporateorganizationalstructureadoptedbyBonatti.

To that end, the Company has adopted as cutting‐edgeHSMS in compliancewith the highestnationalandinternationalstandardsand,inparticular,withtheOHSAS18001:2007Guidelines(hereinafter also referred to simply as the “OHSAS Guidelines”) published by the BritishStandardInstitute.

ThecomplianceofBonatti'sHSMSwiththeOHSASGuidelineshasbeenprogressivelycertified,since 2006, by one of the world's most renowned and authoritative certification companies.Thesecertifications,whichareattachedtothedocumentationthatformsanintegralpartofthisModel,arefullyreferencedinthisSummaryDocument.

ItshouldbepointedoutthatthecertificationsofcompliancecoveralltheCompany'speripheralsitesandtheBUthatoperateinthevariousCountries.

TheadoptionofthisHSMShasenabledBonattitoobtainsignificantrecognitionthatundeniablyattests to theCompany's commitment to successfullyprotectingworkplacehealth and safety,especially on foreign sites, thanks to a profusion of means and resources that few othercompaniescanmatch.

Suchrecognitionincludes:

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theSafetyMilestoneAward,forhavingcompleted1millionhoursofworkwithoutanyaccidents,between1October2004and31October2007,aspartofthemanagementofthegeneralmaintenanceserviceattheMellitahgascompressionplantinLibya;

theSafetyMilestoneAward,forhavingcompleted1millionhoursofworkwithoutanyaccidents,between1March2006andAugust2007,aspartof themanagementof thegeneralmaintenanceserviceattheMellitahplantinLibya;

the SafetyMilestone Award, achieved on 1 July 2008, for having completed 3millionhoursofworkwithoutanyaccidents,ontheprojectrelatingtotheplantatKashaganinKazakhstan;

a letter of commendation from Wintershall Libya dated 4 December 2008, for thecommitment and the results achieved by the employees of Bonatti in managing theshutdownprocessfortheplantatNakshlainLibya;

theHSEAward,forhavingcompleted,intotal,10millionhoursofsafeworkaspartofthemanagementoftheentireLibyanBranch;

theHSEAwardin2009,fortheProductionEnhancementprojectcompletedwithoutanyaccidentsattheMellitahcomplexinLibya;

theSafetyMilestoneAward,forhavingcompleted1millionhoursofworkwithoutanyaccidents for five consecutive years (October 2004 ‐ October 2009) during themaintenance and operational assistance activities at the gas compression station atMellitah,Libya;

the Achievement for having completed the "Facilities Shutdown forMaintenance andProjects"operationsin2009withoutanyaccidentsatasiteinLibya;

theAchievement forhavingcompletedayearofwork(2008‐2009)atasite inLibyawithoutanyaccidents;

thePrixSHE(Sécurité‐Hygiène‐Environnement)forhavingcompleted500,000hoursofworkwithout any accidents at a site in Alrar (Algeria) betweenOctober 2009 andOctober2010;

CertificatesofAchievement forhavingcompletedengineeringworks(5millionhours)andmechanical works (7million hours) without any accidents at a site in Kashagan(Kazakhstan)in2011;

CertificatesofRecognition forhavingcompleteda totalof1millionand500thousandhoursofrestructuringworkattwodifferentsitesinSaudiArabia(AbuAli;UthmaniyahandShedgum)in2011;

recognitionforhavingcompleted9millionand500thousandhoursofworkwithoutanyaccidentsattheKarachaganaksite(Kazakhstan)inthedecadefrom2001to2011;

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the Gold Banner Award, for extraordinary compliancewith theHSE rules of a site inSaudiArabiabetweenOctober2012andApril2013;

the Certificate of Recognition for having completed 10million hours ofworkwithoutanyaccidentsatarefineryatYanbu,SaudiArabia;

theHSEMilestoneAwardforhavingcompleted939,458hourswithoutanyaccidentsatthesiteofthe"ElOro‐Mazatlán"projectinMexico,duringthecourseof2014;

the Safety Milestone Award, achieved in June 2015, for having completed 1,300,000hourswithoutanyaccidentsatthesiteofthe"ElOro‐Mazatlán"projectinMexico;

the "RecognitionAward ‐ FutureGrowth Project" for having been ranked at level "A"during the assessment of its health, environment and safety systemmanagement for2015;

theSafetyAwardforhavingcompletedtwoyearsofworkwithoutanyaccidentsatthesiteofthe"TempaRossa"project,achievedon28April2017;

theSafetyMilestoneAwardforhavingcompleted1millionhoursofworkwithoutanyincidentsoraccidentsatthesiteoftheTuxpan‐TulaProject(Mexico),achievedinApril2017.

Bonatti'sHSMSessentiallyconsistsofthefollowingstructuralmeasures:

SafetyPolicy,i.e.thedefinitionanddisseminationoftheguidingprinciplesandrulesofconduct for theprotectionofworkers'healthandsafety,whichmustbe implementedandobservedwithintheCompany;

Riskanalysisanddefinitionofgoals,whichconsistsprimarilyofcontinuallyupdatingthe Risk Assessment Document (hereinafter referred to as the “RAD”) through theidentificationofhazards,theeffectiveevaluationofthedegreeofrisk,andthedefinitionofmonitoringmeasuresandareasforimprovement;

Roles, responsibilities and resources allocated, i.e. the identification of theindividuals subject to the obligations and guarantees that constitute the “safetyorganigram”andtheallocationofresourceswithwhichtocarryouttheirduties;

Information and training activities, i.e. the set of activities related to thedissemination among the corporate population of the fundamental concepts ofworkplace health and safety, as well as the provision of training and education ofvarying kinds, according to the type of person subject to the safety obligations inquestion;

Emergency preparation and response, i.e. the definition of procedures forrespondingtoemergencysituationsandactionsaimedatcontainingtheconsequences

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ofsuchsituations,whichmustbesubject toperiodicreviews, including in the lightofsimulations;

Ongoing improvement, which is implemented, inter alia, through systematicconsultation, joint participation and collaboration between the various corporatefiguresinvolvedinsafetymanagement,includingthroughperiodicdiscussionsaimedatcontinuouslyimprovingtheHSMS.

While more details can be found in Special Part I of this Summary Document, it should bepointed out that Bonatti's Safety Policy includes a “STOPWORKPOLICY”. This is a generalprovision that allocates to each worker the power and the responsibility to immediatelyinterrupttheirworkwhenevertheybelievethatitisbeingconductedinanunsafemannerorwheneverfactorsemergethatcouldgiverisetodangeroussituations,withoutfearofincurringanyretaliationordisciplinaryconsequencesasaresultoftheinterruptionofthework.

TheimplementationoftheHSMSateachofitsnationalandinternationaloperatingsitesenablesBonattito:

- identifyandassessrisks;

- identify adequate prevention and protectionmeasures for the risks identified,with aview toeliminating said risksor,where this isnotpossible,minimizingand thereforemanagingthem,inrelationtotheknowledgeacquiredbasedontechnicalprogress;

- minimizethenumberofworkersexposedtorisks;

- defineadequatecollectiveandindividualprotectionmeasures,bearinginmindthattheformermusthavepriorityoverthelatter;

- monitorworkers'healthaccordingtospecificrisks;

- planitspreventionstrategy,targetingasystemthatcoherentlyintegratesthetechnicaland productive conditions of the Company with the influence of factors related toworkingenvironmentandtheorganizationofwork,andsubsequentlytoimplementtheinterventionsplanned;

- guarantee adequate training, education, communication and involvement of theaddressees of the Model, within the limits of their respective roles, duties andresponsibilities,withregardtoWHSmatters;

- regularlymaintainworking environments, equipment,machinery and facilitieswith aview to maintaining safety equipment in compliance with the manufacturers'instructions.

Theoperatingproceduresforthepreciseperformanceoftheactivitiesandtheachievementoftheobjectivesdescribedabovearedefinedandformalizedinacomplexstructureofcorporateprocedures and operating instructions drawn up by the Company, in consideration of the

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peculiaritiesof thevarious sitesandCountrieswhere itoperates, and in accordancewith theregulationsinforceonriskpreventionandwithinternationalbestpractices.

Thisproceduralsystemguaranteesadequatetraceabilityoftheprocessesandactivitiescarriedout.

Asystemofinformationflowsisalsoinplace,whichallowsinformationtocirculatewithintheCompany,withaviewtobothpromoting the involvementandawarenessofalladdresseesofthe Model, within the limits of their respective roles, duties and responsibilities, andguaranteeing timely and adequate proof of any deficiencieswithin or violations of theModelitself,aswellasthenecessaryinterventionstoupdateit.

8.2.Healthandsafetymonitoring

TheCompany'sHSMSissubjecttoacontrolsystemimplementedontwolevels.

The first level of monitoring applies to all persons who operate within the organizationalstructureoftheCompany,andinvolves,interalia:

- self‐monitoringbytheworkers,who,incompliancewiththeSTOPWORKPOLICY,mustboth:correctlyuseallworkequipment,dangerousmaterialsandsubstances,meansoftransport, and safety and protection equipment provided, scrupulously following theeducationtheyhavereceived;andimmediatelyreportanydeficiencieswithinsaidtoolsandequipment,aswellasanydangeroussituationofwhichtheybecomeaware;

- thedirectandconstantinvolvementofcorporatefigureswithspecificdutiesrelatingtoworkplace health and safety (e.g. Employers, Executives, Managers, HPPS and, asdescribed in more detail below, Security Managers and Security Experts), whointervene, inter alia, with regard to: a) periodic and systematic supervision andmonitoringoffulfilmentoftheobligationsoflawandofthecorporateWHSprocedures;b) reporting any deficiencies and problems to the employer; c) identification andassessment of corporate risk factors; d) preparation of the preventive and protectivemeasures implemented and covered in the Risk Assessment Document, as well ascontrolsystemsforsuchmeasures;ande)proposalofworkers'trainingandeducationprogrammes,aswellascommunicationwithandinvolvementofworkers.

TheCompany'sSupervisoryBodyisresponsibleforoverseeingthesecondleveloftheHSMS.

In fact, the SB is also tasked with monitoring the entire prevention system adopted by theCompanyfortheprotectionofworkers'healthandsafety.ThistaskwasassignedtotheSBdueto its suitability to ensure objectiveness and impartiality in its activities, as well as itsindependencefromtheworksectorsubjecttoinspection.

ToallowtheSupervisoryBodytocarryoutitsmonitoringeffectively,itiscompulsorytosendtheSBacopyofanyreportsonworkplacehealthandsafety,pursuanttotheinformationflowsdescribedinparagraph10.4.

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TheresultsofthemonitoringareconsideredbytheSBforthepurposesofpossiblysubmitting,totheBoardofDirectorsortotheothercompetentcorporatedepartments:

proposals to update the Model, including the prevention system adopted by theCompany and the corporate procedures, due to any inadequacies or significantviolationsidentified,oranychangestotheCompany'sorganizationalstructure;

reportsofanyviolationsoftheModeland/ortheCodeofEthicsidentified.

8.3.Thespecificcharacteristicsofthecorporatesecuritymanagementsystem

Thepeculiaritiesof the sector inwhich theCompanyoperates and its involvement in certainCountries, characterizedby considerablepolitical instability andahigh crime rate,mean thatBonatti has had to develop an advanced corporate securitymanagement system (hereinafteralsoreferredtosimplyasthe"SMS").

Withintheworkplacehealthandsafetymanagementsystem,theSMSrelatesinparticulartotheassessment,measurement,monitoring and containment ofworkplace health and safety risksarisingfromfactorsoutsideoftheorganizationofworkandtheworkingprocess.

Inmoredetail, the term"security risk" refers to theprobability thatagiven threat (linked toterrorismorcrimeor,moregenerally,connectedtoissuesofapoliticalorethicalnature)maygiverisetoconsequencesforworkers'healthandsafety15.

In consideration of the specific nature of the topic, the SMS, though an integral part of theworkplace health and safety management system, involves autonomous methodologies,competencies,rolesandmeasures.

WhilemoredetailscanbefoundinSpecialPartIoftheSummaryDocumentandinthespecificsectionoftheRAD,thesecuritymanagementsystemcanbebrieflysummarizedasfollows.

Bonatti'ssecurityprocessisstructuredonthebasisoftheDemingcycle,soastoguaranteetheongoingimprovementofitsmanagementactivities.Thisconsistsoffoursub‐processes:

planning;

implementationandfunctioning;

monitoringandcorrectiveactions;

reviewofmanagement.

                                                            15 In the security field, it ismore accurate to speak of "threats", rather than "dangers"; threats are a subcategory of risks. It is"atypicalevents"thattriggerthreats,i.e.thoseactsthatarecarriedoutintentionallyinordertocausedamage.Theseinclude(butarenotlimitedto)terrorism,sabotage,theftandrobbery;thethingtheyallhaveincommonisthattheyalloriginateoutsideoftheworkingprocess.

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Specifically, thegeneralprocedureunderlying theassessmentandmitigationof security riskscanbebrokendowninto:

characterizationofassets;

definitionofcriticalareas,processesandassets;

analysis of the local context, or: analysis of the internal environment; analysis of thepublic security environment; assessment of the political and social environment;assessmentof theadministrativeenvironment;analysisof theterritorialenvironment;classificationoftheculturalandethicalenvironment;

identificationofthespecificsecurityriskbyanalysingthreats(terrorism;crime;politics;ethics)andassessingvulnerabilities(viachecklists);

identificationof thecontextualsecurityriskbyassessingthe impactofsecurityeventson the production unit/organizational structure and assessing the probability ofsecurityevents;

identificationandassessmentoftheoverallsecurityrisk;

definitionofanimprovementplan;

creation/updatingofoperatingprocedures.

Theprocessofassessingandmitigatingsecurityrisksmustbesystematicanddocumented insuchawayastomaintainthetraceabilityoftheactionstaken.Theassessmentofsecurityriskscannot be static and based on the regulations in force at the time of the initial assessment;rather,itshouldbeadynamicprocessthatisconstantlybeingupdated.

This process, which is overseen by the various Employers, as described in more detail inparagraph 4.3., involves the Corporate SecurityManager, the Country SecurityManagers andtheSiteSecurityExperts,aswellasadditionalSecuritySpecialistsfromoutsideoftheCompany.

ForeachCountryinwhichBonattioperates,aCountryThreatAssessmentisdrawnup,whichessentiallyconsistsofformslistingtheexistingthreatlevelsineachindividualCountry.

The Country Threat Assessment provides the user with a precise assessment of a series offactors,whichcanbebrokendownintofourmacro‐categoriesofthreat:

Terrorist;

Criminal;

Political;

Ethical.

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The terrorist, criminal and political threat categories form the basis of the assessment ofsecurity threats, whereas ethical threats do not fall under this assessment, but constitute anindicatorthatistakenintoaccountandassessedaspartoftheriskanalysisprocess.

Lastly,theassessmentprovidesasummaryoftheoverallthreatlevelintheCountryandofthevarioustypesofthreattakenintoconsideration.

Thesecurityriskanalysisthereforeleadstoaweightedassessmentthatidentifiestheneed,orotherwise,toprocesstheriskandthevariouslevelsofprocessingdeemednecessary.Thisleadsto the "security risk mitigation" phase; this phase can result in the decision to undertakeadditional, more in‐depth analyses, giving rise to assessment activities, or to the launch ofspecificsecurityinterventions/projects.

Thesecurityriskanalysisisupdatedeachtimethereisasignificantchangetothevulnerabilityandthreatparameters,aswellasfollowingsignificantsecurityincidents.

At the corporate level, the Corporate Security Manager is responsible for implementing themitigation plan, in accordance with the implementation procedures described in the SilverGuidelinesonSecurity.

Theadoptionofcodesofconductandgoodpracticescanalsocontributetotheimplementationoftheprogramme.

InresponsetothethreatslistedintheCountryThreatAssessment,whichcouldaffectworkerswhencarryingouttheirduties,improvement/mitigationmeasuresareidentifiedforeachtypeofrisk,foreachindividualcountry.

At the local level, the Country Security Managers/Site Security Experts are responsible forimplementing the improvement/mitigation plans, in accordance with the corporate securitypolicies/proceduresapprovedandissuedatthecorporatelevel,whichrepresenttheminimumstandardofreferencewhenreviewing/drawingupthesecurityproceduresadoptedbyBonattiineachCountryinwhichitoperates.

If new technologies are introduced, the improvement plansmust take into consideration theinformation,educationandtrainingneedsoftheworkersconcerned.

9.  THEENVIRONMENTALMANAGEMENTSYSTEM

Respect for and protection of the environment and the surrounding area, as well as thepreventionofpollution,arekeyvaluesforBonatti'sorganizationalstructure,whichisaimedatsystematicallymonitoringtheenvironmental impactsof itsactivities,constantly improving itsenvironmentalperformance,andverifyingcompliancewiththerelevantlegislation.

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Tothatend,theCompanyhasadoptedanEnvironmentalManagementSystem(hereinafteralsoreferred to as the “EMS”) that complies with the highest international standards and, inparticular,withtheISO14001:2004Guidelines(hereinafteralsoreferredtosimplyasthe“ISO14001Guidelines”).ThissystemisintegratedwiththeHealthandSafetyManagementSystemto form an IntegratedManagementSystem concerning aspects related to the protection ofworkers'healthandsafetyandoftheenvironment.

The compliance of Bonatti's EMS with the ISO 14001 Guidelines has been progressivelyvalidatedbyoneoftheworld'smostrenownedandauthoritativecertificationcompanies.

Inbrief,whilemoredetailscanbefoundinSpecialPartOofthisSummaryDocument,Bonatti'sEMS is also structured on the basis of the Deming cycle, and can be broken down into thefollowingcomponents;

EnvironmentalPolicy;

planning;

implementationandfunctioning;

monitoringandcorrectiveactions;

reviewofmanagement.

In particular, with regard to the Environmental Policy, the Company defines the followingobjectivesaspriorities;

monitoringandreductionofwastegenerated;

monitoring and reduction,where possible, of consumption of energy,methane,wateranddiesel;

monitoringandreduction,wherepossible,ofchemicalproducts,particularlythosethataredangerous;

monitoring of indirect environmental aspects related to the provision of services andproductsbyexternalsuppliers.

The effective implementation of the EMS ensures that all aspects of the environment areprotected(water,air,emissions,wastemanagement,preventionofpollution,preventionoftherisk of significant incidents with a potential environmental impact, etc.). Specifically, theCompanymakessureto:

implementallnecessaryactivitiesandappropriatemeasures,dependingonexperience,techniqueandthepeculiaritiesofthework,topreventharmfulordangeroussituationsforworkers,thirdparties,theenvironment,flora,fauna,biodiversityandthelandscape,identifyinganyriskfactorsandeliminatingthem;

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ensure that theperformanceof all corporate activities takesplace in compliancewiththeregulations,policiesandproceduresonenvironmentalprotection;

ensurethatallwastecollection,transportation,recoveryanddisposaltakesplacewiththerequiredauthorizations,and incompliancewith theproceduresand limits setouttherein;

ensurethecorrectfillingoutofwasteidentificationforms,compulsoryrecordsandtheloading/unloading log for incoming and outgoing waste, or, in any case, correctmanagement of the IT system formonitoring the traceability of saidwaste and of alladministrativedocumentationrequiredpursuanttotheapplicablelaws(theitemslistedabovearepurelyexamplesandarenotexhaustive);

ensure that all atmospheric emissions and discharges of water are handled correctlyand,inanycase,incompliancewiththeapplicablelegalprovisions;

intervenewheneveritbecomesawareofadangeroussituationfortheenvironment;

beresponsibleforcompliancewithfiresafetyrulesandrulesonthesafetyofbuildings,plantsandanyother resourcesusedby theCompany, taking careof theordinaryandextraordinary maintenance of the aforementioned assets and implementing allappropriatemeasures,dependingonexperience,techniqueandthepeculiaritiesofthework, to prevent harmful or dangerous situations for workers, third parties, theenvironment,flora,fauna,biodiversityandthelandscape;

assess the environmental impact of the technical interventions/investments to becarriedout;

ensure the issuance, dissemination, updating and correct application of the rules,proceduresandregulationsinforceonenvironmentalprotection.

10.  BONATTI'SSUPERVISORYBODY

TheBoardofDirectorsofBonatti,byapprovingtheModel,alsoapprovedthedocumententitled"ArticlesofAssociationoftheSupervisoryBody",whichformsanintegralpartoftheModelandgovernsthekeyaspectsoftheSupervisoryBody,including:

numberofmembersandcompositionoftheSB;

appointmentproceduresanddurationofmembership;

reasonsforineligibilityandrevocationoftheSBandofindividualmembers;

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prerequisites and procedures for revoking the mandate of the SB and of individualmembers;

dutiesandpowersoftheSB;

resourcesallocatedtotheSB;

informationflows:a)fromtheSBtocorporatebodiesandstaff;b)totheSB;

ethicalrulesgoverningtheSB'sactivities;

responsibilitiesoftheSB'smembers.

Whilemore details can be found in the document approved by the Board of Directors, therefollowsabriefoverviewofsomeoftheaspectsmentionedabove.

10.1. Appointment and composition of the Supervisory Board and prerequisites formembers

Bonatti'sSBisacollegiatebodymadeupof3(three)members,morespecifically:

a) aprofessionalfromoutsidetheCompanywithexpertiseandprovenexperienceinriskmanagement, internalcontrolsystems,andaudittechniquesandmethodologies, intheroleofChairman;

b) aprofessionalfromoutsidetheCompanywithexpertiseandprovenexperienceinlegalmattersandbusinesslaw,particularlywithregardtothecriminalliabilityofcollectiveentities;

c) the head of the Company's Knowledge Management department, with specificknowledge of the Company's know‐how and of all the information and regulationsnecessarytoguaranteetheeffectivenessandefficiencyofcorporateprocesses.

Theaforementionedselection is in linewith thesuggestionsput forward in theConfindustriaGuidelines16; in fact, all members of Bonatti's SB possess, as a whole, all the skills andknowledgerequiredtounderpinthecorrectandeffectiveactivitiesoftheSupervisoryBody.

TheallocationofthefunctionsofSBmemberstopersonsfromoutsidetheCompanyalsohelpstoguaranteetheSB'sautonomyandindependence.

TheSBmembersareappointedby theBoardofDirectors (hereinafteralso referred toas the"BoD").

                                                            16Seepages59etseq.oftheConfindustriaGuidelines.

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With the same resolution, theBoardofDirectors establishes the compensationpayable to SBmembersforthemandateassignedtoeachone.

Thecomposition,dutiesandpowersoftheSBarepromptlycommunicatedtotheCompanybypublishingthisdocumentonthecorporateinternetanddisplayingitinaplacewithinCompanypremisesthatisaccessibletoall.

TheprerequisitesthattheSB,assuch,mustpossessandthatmustcharacterizeitsactivitiesareasfollows:

autonomyandindependence:theseprerequisitesrefertotheSupervisoryBodyassuchandcharacterize itsactivities.To thatend, it is stipulated that theSBshouldnothaveany operational duties, which, by forcing it to participate in Company decisions oractivities,couldcompromiseitsobjectivityofopinion;

professionalism: understood as all the know‐how, tools and techniques necessary toperformtheinspectionandconsultancyactivitiesassignedtotheSB;

continuityofaction:inordertoguaranteetheeffectiveandongoingimplementationofthe Model, the SB is allocated an adequate budget and sufficient resources, and isdedicatedexclusively,onafull‐timebasis,tosupervisoryactivities;

integrity and absence of conflicts of interests: to be understood in the same terms as thoseprovided for by the Law with regard to directors and members of the Board of StatutoryAuditors.

10.2.ThedutiesandpowersoftheSupervisoryBoard

InaccordancewiththeprovisionsofArticle6,paragraphI,oftheDecree,theSBistaskedwithoverseeingthefunctioningofandcompliancewiththeModelandupdatingit.

Generallyspeaking,therefore,theSBhasthefollowingduties:

1) verifyingandsupervisingtheModel,i.e.:

o certifyingtheadequacyoftheModel,i.e.itssuitabilitytopreventtheoccurrenceofunlawfulconduct,andtoprovetheperformanceofanysuchconduct;

o guaranteeingtheeffectivenessoftheModel,i.e.thecompatibilityofactualconductwiththatformallyprovidedforintheModel;

o monitoringcorporateactivity,aswellasthefunctionalityoftheentirepreventivesystemadoptedbytheCompany;

2) supervisingtheupdatingoftheModel,i.e.:

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o promoting,wherenecessary,theupdatingoftheModelbyproposingtotheBoD(oranycompetentcorporatedepartment)thatitberevised,inordertoimproveitsadequacyandeffectiveness,includinginconsiderationofanyregulatoryinterventionsand/orchangestothecorporateorganizationalstructureoractivity,and/oranysignificantviolationsoftheModelthathavebeenidentified;

3) supervisinginformationandtrainingabouttheModel,i.e.:

o promotingandmonitoringinitiativesaimedatfosteringthedisseminationoftheModeltoallpartiesrequiredtocomplywithitsprovisions(hereinafteralsoreferredtoasthe"Addressees");

o promotingandmonitoringinitiatives,includingcoursesandcommunications,aimedatpromotingadequateknowledgeoftheModelbyallAddressees;

o respondingpromptly(includingbypreparingdedicatedopinions)torequestsforclarificationand/orconsultancyfromcorporatedepartmentsorstaff,orfromadministrativeandcontrolbodies,ifconnectedand/orrelatedtotheModel;

4) managinginformationflowsfromandtotheSB,i.e.:

o periodicallyexaminingandassessingallinformationpertainingtothestructuralaspectsonwhichthemonitoringandcontrolsystemisbased;

o examiningandassessingallinformationand/orreportsreceivedrelatingtocompliancewiththeModel,includingwithregardtosuspectedviolationsthereof;

o informingthecompetentbodies,asspecifiedbelow,abouttheactivitiesithascarriedout,theoutcomesthereofandtheactivitiesithasplanned;

o reportingtothecompetentbodies,throughtheappropriateprocedures,anyviolationsoftheModelandthepersonsresponsible;

o inrelationtochecksbyinstitutionalparties,includingGovernmentAuthorities,providingthenecessaryinformationalsupporttoinspectionbodies.

Inordertocarryoutthedutiesassignedtoit,theSupervisoryBodyisvestedwithallthepowersitneedstoaccuratelyandefficientlysupervisethefunctioningofandcompliancewiththeModel,withoutanyexceptions.

Forexample,theSBisentitled,includingthroughtheresourcesatitsdisposal:

o toconduct,includingwithoutnotice,allchecksandinspectionsdeemednecessaryforthepurposesofthecorrectperformanceofitsduties;

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o tofreeaccesstoalloftheCompany'sdepartments,archivesanddocuments,withouttheneedforauthorizationorpriorconsent,inordertoobtainanyinformation,dataordocumentationdeemednecessary;

o wherenecessary,tointerviewstaffwhocanprovideusefulinformationorindicationsabouttheperformanceoftheCompany'sactivitiesoraboutanyfaultsorviolationsoftheModel;

o tomakeuse,underitsownsupervisionandresponsibility,ofhelpfromalltheCompanystructuresorfromexternalconsultants;

touse,foranypurposenecessaryforthecorrectperformanceofitsduties,thefinancialresourcesallocatedbytheBoD.

10.3.RegulationsgoverningtheSupervisoryBody

Inadditiontotheprovisionsofthedocumententitled"ArticlesofAssociationoftheSupervisoryBody"approvedby theBoardofDirectors, theSB,onceappointed,drawsup itsown internalregulations,aimedatgoverningconcreteaspectsandprocedurespertainingtotheperformanceofitsactivities,includingwithregardtoitsorganizationalandoperationalsystem.

Specifically,theseinternalregulationsmustgovernthefollowingaspects:

thetypeofinspectionandsupervisoryactivitiescarriedoutbytheSB;

thetypeofactivitiesrelatedtotheupdatingoftheModel;

activitiesrelatedtothetasksofinformingandtrainingtheaddresseesoftheModel;

themanagementofinformationflowsfromandtotheSB;

thefunctioningandinternalorganizationoftheSB(e.g.conveningandquorumtopassresolutions,minutingofmeetings,etc.).

10.4.InformationflowsinvolvingtheSupervisoryBody

TheSBmustbepromptlyinformedbyallcorporatepersons,aswellasbythirdpartiesrequiredto observe the provisions of the Model, of any news relating to the existence of possibleviolationsoftheModel.

A.Event‐driveninformationflows

InformationthatmaypertaintoanactualorpotentialviolationoftheModel,includingbutnotlimitedtothefollowing,mustbecommunicatedtotheSBimmediately:

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1) anyorders receivedbya superiorandconsidered tobecontrary to thelaw,theinternalregulationsortheModel;

2) anyrequests fororoffersofmoney,gifts(exceedingamodestvalue)orother benefits originating from or directed at government officials,providersofapublicserviceorprivateparties;

3) any significant deviations from the budget or expenditure anomaliesarising from authorization requests during the finalization stage of theManagementControlprocess;

4) anyomissions,errorsorfalsificationsintheaccountsorinthestorageofthedocumentationonwhichtheaccountingrecordsarebased;

5) orders and/or announcements issued by the criminal investigationauthoritiesoranyotherauthoritiesthatmayconductinvestigationsthatdirectly or indirectly concern the Company, its employees or themembersofitsCorporateBodies;

6) requests for legal assistance made to the company by employeespursuanttotheNationalLabourContract,intheeventoftheinitiationofcriminalproceedingsagainstthelatter;

7) updates relating to disciplinary proceedings under way and to anysanctionsissued,orthereasonfortheirdismissal;

8) any information concerning retaliatory, discriminatory or harmfulbehaviourtowardsanyonewhoreportsaviolationoftheModeloroftheinternalregulationsingoodfaith;

9) any reports not promptly dealt with by the competent departmentsconcerning either inadequacies or deficiencies in the workplace, workequipmentortheprotectiveequipmentprovidedbytheCompany,oranyotherdangeroussituationrelatedtoworkplacehealthandsafety;

10) any security event thatmay endangerorharm thehealth and safety ofBonattiStaff,eitherinItalyorabroad;

11) any significant change invulnerability and threatparameters, includingfollowingsignificantsecurityincidents;

12) any actual or potential violation of environmental regulations or of therelevantproceduresissuedbytheCompany;

13) any deviation identified in the offer evaluation process comparedwiththeprovisionsset forth incorporateproceduresorwithpredeterminedcriteria;

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14) informationrelatingtotheexistenceofanactualorpotentialconflictofinterestswiththeCompany;

15) any problems concerning public calls for tenders (or those of publicsignificance) at the international/national/local level in which theCompany has participated, as well as any problems relating to anycontractsobtainedfollowingprivatenegotiations;

16) any communications from theExternalAuditor concerning aspects thatmayindicateafailingintheinternalcontrols;

17) any accidents or illnesses resulting in an inability to perform one'sordinarydutiesforaperiodofatleast40days;

18) problems arising from level‐one control activities carried out by thevarious corporate departments involved in areas at risk of criminaloffence;

19) reportson inspectionscarriedoutbyGovernmentOfficialsorProvidersofaPublicService.

The reporting and information obligations also apply to all staff operating in the foreignbranchesoftheCompany.

B. Periodicinformationflows

InformationrelatingtotheCompany'sactivitiesthatmaybeofsignificancewithregardtotheSB'sperformanceof itsdutiesmustbe reported to itperiodically, according to the frequencyindicatedforeachinformationflow,includingbutnotlimitedtothefollowing:

20) updates relating to organizational changes or changes to the corporateproceduresinforce(biannual);

21) updatestothesystemofpowersandresponsibilities(biannual);

22) agendaofmeetingsoftheBoardofDirectors(biannual);

23) listofanypubliccallsfortenders(orthoseofpublicsignificance)attheinternational/national/locallevelinwhichtheCompanyhasparticipated(biannual);

24) documentsrelatingtotherequestfor,disbursementofanduseofpublicfunds(biannual);

25) listofanygiftsanddonationsgiventopublicparties(biannual);

26) periodicreportingonworkplacehealthandsafetyand,inparticular,theminutes of the periodic meeting pursuant to Article 35 of LegislativeDecree 81/2008 (annual); report on the annual spending/investment

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budget drawn up in order to take the necessary and/or appropriatemeasures for improvement in terms of safety; all data relating toworkplaceaccidentsonCompanypremises(annual);

27) alldatarelatingtoworkplaceaccidentsonCompanypremises(annual);

28) anyupdatestotheCRED(annual);

29) reports by the occupational health physician of anomalous situationsidentifiedduringperiodicorscheduledvisits(biannual);

30) periodic audits performed by certification bodies on the integratedmanagement system concerning the aspects of health, safety,environmentandsecurity(e.g.OHSAS180001andISO14001)(annual);

31) audits‐whethercarriedoutinternallyorviaconsultants‐concerningtheaspectsofhealth,safety,environmentandsecurity,whicharecarriedoutatboththecentralizedandtheperipherallevelinallforeignbranchesofBonatti(biannual);

32) audits related to areas of risk, instrumental areas and/or sensitiveactivities,aspertheModel(biannual);

33) financial statements, accompanied by explanatory notes, as well as thehalf‐yearstatementofassetsandliabilities(biannual);

34) tasks assigned to the External Auditor other than the Company audit(biannual);

35) communications from theBoardof StatutoryAuditors and theExternalAuditorrelatingtoanyproblemsthatarise,evenifresolved(biannual).

The reporting and information obligations described above must also be performed, where

applicable,bytheCompany'sBranchManagers.

TheSB,duringthecourseofinvestigativeactivitiesresultingfromareport,mustactinsuchawayastoensurethatthepersonsinvolvedarenotthesubjectofretaliation,discriminationorany form of penalization, and shall therefore protect the confidentiality of thewhistleblower(withoutprejudicetotheapplicabilityofanylegalobligationsthatstipulateotherwise).

Inorder to facilitatereporting to theSBbypersonswhobecomeawareofactualorpotentialviolationsoftheModel,theCompanyhassetupappropriatededicatedcommunicationchannelsand, specifically, a dedicated email address (odv@bonatti.it). Reports may also be sent inwriting,includinganonymously,tothefollowingaddress:OrganismodiVigilanzaBonattiS.p.A.,ViaAlfredBernhardNobel,2/A,43122Parma(PR).

ThesamechannelsofcommunicationarealsousedfortheinformationreferredtounderpointsAandBabove.

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As regards the SB's reporting to the corporate bodies, it should be pointed out that the SBreportstotheBoardofDirectorsandtheBoardofStatutoryAuditorsinwriting,onahalf‐yearlybasis.

Thereportingactivitiesinvolve,inparticular:

asummaryoftheactivitiescarriedoutbytheSB;

anyissuesorproblemsthathavearisenduringthecourseofitssupervisoryactivities;

the necessary or possible corrective actions to be taken in order to guarantee theefficiencyandeffectivenessof theModel,aswellas thestateof implementationof thecorrectiveactionsresolveduponbytheBoardofDirectors;

theidentificationofanyconductthatisnotinlinewiththeModel;

the identification of organizational or procedural deficiencies that could expose theCompanytothedangerofthecommissionofsignificantoffencespursuanttotheDecree;

anyfailuretocollaborateordeficientcollaborationbythecorporatedepartmentsintheperformanceofitsinspectionand/orinvestigationduties;

inanycase,anyinformationdeemedusefulinorderforthecompetentbodiestobeabletopassurgentresolutions.

Inanycase,theSBmayaddresstheBoardofDirectorsinsituationsofurgency,orwheneveritdeems it necessary for the purposes of the effective and efficient performance of the dutiesassignedtoit.

SuchmeetingsmustbeminutedandcopiesoftheminutesmustbekeptattheSB'soffices.

11.  THEBONATTICODEOFETHICS

11.1.TheadoptionoftheCodeofEthics

In order to both improve and safeguard the ethical aspects of its business activities, whenupdating the Model, the Company also updated its Code of Ethics, which sets forth all theprinciplesandrulesofconducttowhichthoseoperatingintheBonatticorporateenvironmentare subject. All shareholders, directors, statutory auditors, external auditors, executives,employeesandexternalcollaborators(consultants,agents,serviceproviders)mustcomplywiththeCodeofEthicswhencarryingoutthetasksanddutiesassignedtothem.

The linchpin of the Company's ethos is total observance of the national laws in force,international regulations and the rules of the countries in which it operates, as well as thecompliance of its operations with the principles of fair competition, decency and good faith,

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whilst respecting the legitimate interests of all stakeholders: clients, shareholders, citizens,employees,suppliers,commercialpartners,etc.

In addition tonational regulations, given that a largepart ofBonatti's activities takeplace inforeign countries, this Code of Ethics places a special emphasis on the international anti‐corruptionprinciplesestablishedbyboththeOECDConvention17,whichcameintoforceon15February1999,andtheForeignCorruptPracticesAct(hereinafterreferredtoasthe"FCPA")18.

Bonatti'sCodeofEthicsalsocomplieswiththeprinciplessetout:

intheConfindustriaGuidelines,updatedinMarch2014;

in the Code of Conduct for Construction Firms, updated inDecember 2013, drawnup by theItalianNationalAssociationofConstructionCompanies(hereinafterreferredtoas"ANCE"),towhichBonattisubscribes19.

Bonatti's Code of Ethics was adopted by a resolution of its Board of Directors and, as of itsapproval,shouldbeconsideredbindingforanypersonoperatingfortheCompany,asspecifiedbelow. The Codemay be amended and supplemented only by an additional resolution of theBoardofDirectors,whichmaycomeaboutonthebasisofsuggestionsandindicationsfromtheCompany'sSupervisoryBody.

11.2.TheaddresseesoftheCodeofEthics

TheCodeofEthicsisbindingforallthedirectors,statutoryauditorsandthefirmmandatedtoaudit the Company (hereinafter referred to respectively as the "Directors", the "StatutoryAuditors"andthe"ExternalAuditor"), forall itsemployees, includingseniorandnon‐seniorexecutives and staff operating at its branches (hereinafter referred to as "Staff"), and for allthosewho, despite not being employees of theCompany, operate directly or indirectly for it,such as agents, collaborators of any kind, consultants, suppliers and commercial partners(hereinafterreferredtoas"Third‐PartyAddressees").

All theAddressees are required to complywithand,with regard to their respective remit, toensurecompliancewiththeprinciplescontainedintheCodeofEthics.

UndernocircumstancesshalltheclaimtobeactingintheinterestsoftheCompanyjustifytheadoptionofconductcontrarytothatsetoutintheCodeofEthics.

TheCodeshouldalsobeattheheartoftheCompany'sactivitiesabroad,whilstdulyrespectinganyregulatory,socialoreconomicdifferencesthatmayexist.

                                                            17ApprovedbytheItalianParliamentwithRatificationLawNo.300of29September2000.

18 Lawpassedby theUSCongress in1977and subsequently amended in1988and1998,whichprohibits thebribery of foreignofficialsbyUScompaniesinanattempttoobtainorretaincontracts.

19On20December2013, theCodeofConduct forConstructionFirmswas found tobe suitable andadequateby theMinistry ofJustice,JusticeAffairsDepartment‐Directorate‐GeneralofCriminalJustice.

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TheStaff'scompliancewiththerulesoftheCodeshouldbeconsideredanessentialpartoftheircontractual obligationspursuant toArticle2104of the ItalianCivilCode.Theviolationof therulesoftheCodebyanyemployeemayconstituteanon‐fulfilmentoftheprimaryobligationsoftheiremploymentcontractoradisciplinaryoffence,withalllegalconsequences.

Specifically, a violation of the rules of this Code of Ethics that is considered be particularlyseriousshallalsoharmtherelationshipoftrustwiththeCompany,andmayleadtodisciplinaryanddamagecompensationmeasures,withoutprejudice,foremployees,tocompliancewiththeprocedures set out in Article 7 of the Statute of Workers' Rights, collective bargainingagreementsandanycorporateregulations.

11.3.DisseminationofandtrainingintheCodeofEthics

The Code of Ethics is disseminated internally and is available to all Third‐Party Addressees.Specifically,theCompanymakessureto:

distributetheCodetoallmembersoftheCorporateBodiesandtoallStaff,bothinItalyandabroad;

displaytheCodeinaplacewithintheCompanyheadquartersthatisaccessibletoall;

publishtheCodeontheCompanywebsite;

provide help with the interpretation and clarification of the provisions of the Code,including by providing a translation of the Code into all necessary languages (e.g.English,French,Spanish,Russian,RomanianandPortuguese);

setupsystemstomonitorknowledgeandobservanceoftheCodeofEthics.

Any amendments to the Code of Ethics, as duly resolved upon by the Board of Directors(possiblyupontherecommendationoftheSupervisoryBody),shallbepromptlycommunicatedwithintheCompanytoallAddressees.

WithregardtoThird‐PartyAddressees,theCompanyalsomakessuretoinformsuchpartiesofthecommitmentsandobligationsimposedbytheCodeofEthicsandtodemandthatsaidpartiescomplywith them, via publication on the Company's official website, aswell as through theregular introduction of contractual clauses and/or the signing of declarations aimed atformalizing the commitment to complywith theModel and the Code of Ethics and at settingforthcontractualsanctionsfortheviolationofsaidcommitment.

The Supervisory Body (hereinafter referred to as the "SB" or the "Body"), which wasestablishedpursuanttotheDecreeandisresponsibleformonitoringtheimplementationoftheModel, promotes and oversees training initiatives concerning the principles of the Code ofEthics,whosecontentandstructurevaryaccordingtotheroleheldbyandtheresponsibilitiesassignedtothestaffmembersinquestion.

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Thetrainingwillbemoreintenseandindepthforpersonsclassifiedas"senior"bytheDecree,andforthoseoperatingin"atrisk"areas,pursuanttotheModel.

Below is a summary of the principles, rules of conduct, communication obligations, andproceduresfortheimplementationofandmonitoringofcompliancewiththeCodeofEthics.Itshouldbeborneinmind,however,thatthecompleteprovisionsgoverningtheseaspectscanbefoundintheCodeofEthicsinitsentirety,whichconstitutesanintegralpartoftheModel.

11.4.Fundamentalethicalvalues

The Company has defined and formalized the fundamental ethical values that all Addresseesmustbearinmindwhencarryingouttheiractivities.

Morespecifically,thekeyethicalvaluesadoptedbytheCompanyconcernthevaluesandareasofactivitylistedbelow:

Responsibilityandcompliancewithapplicablelaws

Decency

Impartiality

Integrity

Honesty

Transparency

Efficiency

Faircompetition

Protectionofprivacy

Spiritofservice

Valueofhumanresources

Rejectionofcorruption

Protectionoftheenvironmentandthecommunity

Relationswithassociations,unionorganizationsandpoliticalparties

Relationswithinternationaloperators

Rejectionofanyformofterrorism

Protectionoftheindividual

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Protectionofhealthandsafetyintheworkplace

Protectionofsecurity

Rejectionofcriminalorganizations

Compliancewithregulationsonindustrialandintellectualpropertyrights

Cooperationwiththeauthorities

UseofITandelectronicsystems

Decencyandaccountingtransparency

Oppositiontomoneylaundering

11.5.Rulesofconduct

TheCompanyhasreservedadedicatedsectionoftheCodeofEthicsfortherulesofconductthatmustbeobservedinallbusinessactivities,indicatingtherulesandprinciplesofconducttobefollowedforeachcategoryofAddressee.

11.5.1.RulesofconductformembersofCorporateBodies

TheCorporateBodiesofBonatti, outof awarenessof their responsibilitiesand in compliancewiththelaw,arerequiredtoobservetheprovisionsoftheCodeofEthics,basingtheactivitiestheycarryoutinpursuitoftheCompany'sprofitandgrowthonthevaluesofhonesty,integrity,fairness, decency, respect for people and rules, and collaboration with the other seniorcomponentsoftheCompany.

Specifically,themembersoftheCorporateBodiesarerequiredto:

adopt conduct based on autonomy, independence and decency vis‐à‐vis publicinstitutions, private parties, economic associations, political parties and any othernationalorinternationaloperator;

behavewithloyaltytowardstheCompany;

guarantee assiduous and informed participation in meetings and activities of theCorporateBodies;

evaluatesituationsofconflictofinterestsorincompatibilityofduties,rolesorpositions,bothoutsideandwithintheCompany,refrainingfromcarryingoutactionsconstitutingaconflictofinterestsaspartoftheiractivities;

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makeprudentuseoftheinformationthatcomesintotheirpossessionasaresultoftheirpost, refraining from taking advantage of their position to gain personal benefits,whetherdirectorindirect.Allexternalcommunicationactivitiesmustcomplywiththelawsandpracticesof conduct, andmustbe carriedout in suchaway as to safeguardsensitiveinformationandtradesecrets;

complywithand,withregardtotheirrespectiveremit,ensurecompliancewiththerulesofconductsetforthforStaff,asdetailedinthenextparagraph.

11.5.2.RulesofconductforStaff

Staffmustensurethattheirconduct,inbothinternalandexternalrelations,complieswiththenational and international regulations in force, as well as with the principles and rules ofconduct issuedbythe industryassociationstowhichBonattibelongs,whichare implementedwithintheCompany'sactivities.

Inanycase, Staffmust complywith theprinciplesexpressed in theCodeofEthics, aswell aswith the rules of conduct set out below, whilst always complying with the Model and thecorporateprocedures in force, includingwheresuchmeasuresentailcompliancewithstricterrulesthanthoseprovidedforatthelocallevelbylaws,regulations,rulesandpractices.

SpecificallywithregardtocompliancewithandtheeffectiveimplementationoftheModel,Staff,consideredasawhole,mustinanyevent:

refrain from adopting conduct that is contrary to the rules set forth by this Code ofEthics;

avoid adopting, causing or contributing to the execution of conduct that is likely toconstituteanyoftheoffencescoveredbytheDecree;

providesupporttotheSupervisoryBodyinthecourseofitsinspectionandsupervisoryactivities,byprovidinganyinformation,dataandupdatesitrequests;

make,vis‐à‐vistheSB,thecommunicationsprovidedforbythisCode;

report to the SB any faults or violations of the Model and/or the Code of Ethics, inaccordancewiththeprovisionsofthisCodeandoftheModel.

In consideration of the above, Staff are required to comply with the principles and rules ofconductspecificallyset forth in theCodeofEthics(whichcontains the fulldetails thereof),asindicatedbelow:

Conflictofinterests

Grantingofdonationsandgifts

Relationswithgovernmentofficialsorprovidersofapublicservice

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Corruptionbetweenprivateparties

Relationswithclientsandsuppliers

Participationincallsfortendersandnegotiationswithpublicorprivateparties

Confidentiality

DiligenceintheuseofCompanyproperty

Protectionofsharecapitalandcreditors

Health,safetyandenvironment

Security

Rulesforcombatingmoneylaunderingandterrorism

UseofITsystems

11.5.3.  RulesofconductforThird‐PartyAddressees

In addition to the Corporate Bodies and Staff, the Code of Ethics also applies to Third‐PartyAddressees.ThistermisunderstoodtorefertopersonsoutsideoftheCompanywhooperate,eitherdirectlyorindirectly,fortheCompany(e.g.agents,collaboratorsofanykind,consultants,suppliersorcommercialpartners).

Third‐PartyAddressees,liketheotherparties,areobligedtocomplywiththeprovisionsoftheModelandtheCodeofEthicsand,inparticular,withthekeyethicalprinciplesandtherulesofconductsetforthforStaff,totheextentthattheyareapplicable.

InordertoguaranteecompliancewiththeprovisionsofthisCodeandoftheModel,dedicatedclausesaimedatsanctioningthefailuretocomplywiththeModelortheCodeofEthicsshallbeinserted into contracts and letters of appointment, as described in more detail in theDisciplinarySystem.

11.6.InformationflowstotheSupervisoryBody

TheAddresseesoftheCodeofEthicsmustfulfilspecificobligationsconcerningreportingtotheSB,particularlywithregardtopossibleviolationsoflawsorregulations,theModel,theCodeofEthicsorinternalprocedures.

CommunicationstotheSBcanbemadebyemailorinwriting.

Inanyevent,theSBshallmakeanefforttoensurethatthepersonmakingthecommunication,ifidentified or identifiable, is not the subject of retaliation, discrimination or any form of

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penalization, and shall therefore protect their confidentiality (without prejudice to theapplicabilityofanylegalobligationsthatstipulateotherwise).

11.7.ImplementationofandverificationofcompliancewiththeCodeofEthics

The Supervisory Body of Bonatti is responsible for monitoring the implementation of andcompliancewiththeModelandtheCodeofEthics.

TheviolationoftheprinciplesandrulesoftheCodeofEthicsshallresult intheapplicationofthe sanctions set forth in the Disciplinary System, which constitutes an integral part of theModel.

TheCodeofEthicsalsoexpresslystipulatesthatanyactionsorconductthatviolatetheModelortheCodeofEthicsmustbeimmediatelyreportedtotheSupervisoryBody,eveniftheincidentinquestionrelatesonlytothedangerofaviolation.

TheCompanyhassetupsuitablededicatedchannelsofcommunicationinordertofacilitatetheprocessofreportingtotheSB.

More specifically, a dedicated email address (odv@bonatti.it) has been set up to receive anyreportsconcerning failure tocomplywith theprovisionsof thisCode.Thisemailaddresswillalso be used to receive anonymous reports, i.e. those inwhich it is not possible to trace theidentityofthesender.

Reports can also be made in writing by sending a dedicated communication (which can beanonymous, if desired) toOrganismodiVigilanzadiBonatti, ViaAlfredBernhardNobel, 2/A,43122Parma(PR).

Specific rules are also set forth in order to prevent retaliatory conduct towards anyonewhoreportsviolationsoftheCodeofEthicsortheModel,oranyunlawfulconduct.

12.  THEBONATTIDISCIPLINARYSYSTEM

12.1.CreationandadoptionoftheDisciplinarySystem

Pursuant toArticles6and7of theDecree, theModelcanbedeemedtohavebeeneffectivelyimplemented,forthepurposesofrulingouttheCompany'sliability,ifitprovidesforasuitabledisciplinarysystemforpunishingfailuretocomplywiththeprovisionssetouttherein.

Bonatti has therefore adopted a disciplinary system (hereinafter also referred to as the"Disciplinary System") that is primarily aimed at punishing the violation of the principles,rulesandmeasuresprovidedforintheModelandtherelativeProtocols,incompliancewiththe

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rulesprovidedforbytheapplicablenationalcollective labouragreements,aswellasthelawsandregulationsinforce.

This Disciplinary System punishes both violations of theModel and of the relative Protocolscommitted by persons in "senior" positions (i.e. individuals who perform representation,directorialormanagerialfunctionswithintheCompanyorwithinanorganizationalunitoftheCompanythathasfinancialandfunctionalautonomy,orindividualswhoareresponsible,eitherofficiallyordefacto,forthemanagementandcontroloftheEntity)andviolationsperpetratedby persons who are subject to management or supervision carried out by others, or whooperateinthenameand/oronbehalfofBonatti.

In accordance with the provisions of the Confindustria Guidelines, the establishment of adisciplinary procedure and the application of the relative sanctions exclude the possibleestablishment and/or outcome of any criminal proceedings relating to conduct deemedsignificantforthepurposesoftheDisciplinarySystem.

12.2.StructureoftheDisciplinarySystem

While the fulldetails canbe found in theDisciplinarySystemdocument in itsentirety,whichconstitutes an integral part of the Model, a summary of Bonatti's Disciplinary System isprovidedbelow.

In accordancewith the provisions of the Decree, Bonatti has adopted a Disciplinary System,which is delivered either electronically, via computer or in paper format to the individualsidentifiedasAddressees,aswellasbeingpublishedontheCompany'swebsiteanddisplayedatthe Company headquarters in a place that is accessible to all, so as to guarantee that all theAddresseesidentifiedbelowarefullyfamiliarwithit.

Bonatti'sDisciplinarySystemconsistsoffourchapters.

Chapter One identifies the persons subject to the application of the sanctions provided for,brokendownintofourdifferentcategories:

1) Directors,StatutoryAuditorsandindividualsoperatingfortheExternalAuditor;

2) Other"Senior"individuals;

3) BonattiEmployees;

4) Third‐PartyAddressees.

ChapterTwo,afterhavingexplainedthatallconduct(whetheractionsoromissions,intentionalorunintentional) likelytoharmtheeffectivenessof theModelasatool forforpreventingtheriskofcommittingsignificantcrimesforthepurposesoftheDecreeconstitutesaviolationoftheModel, goes on to list possible violations, broken down into four different categories, gradedaccordingtoincreasingseriousness.

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Inparticular,foralltheSpecialParts(exceptthePartrelatingtoWorkplaceHealthandSafety),thefollowingconductissignificant:

1) violationscommitted in thecontextof "sensitive"activitieswithin the"instrumental"areas identifiedintheModel,providedthatnoneoftheconditionsprovidedforundernumbers3and4belowapplies;

2) violationscommittedinthecontextof"sensitive"activitieswithintheareas"atriskofoffence" identified in the Model, provided that none of the conditions provided forundernumbers3and4belowapplies;

3) violationsoftheModelthatarelikelytoincorporatetheveryfact(objectiveelement)ofoneofthecrimesprovidedforintheDecree;

4) violations of the Model aimed at committing one of the crimes provided for in theDecree or, in any case, the existence of the danger of the Company's liability beinginvokedpursuanttotheDecree.

Possibleviolationsconcerningtheareaofworkplacehealthandsafetyarealsodiscussed,againbeinggradedaccordingtoincreasingseriousness:

5) violations of the Model resulting in a situation of concrete danger to the physicalintegrity of one ormore persons, including the perpetrator of the violation, providedthatnoneoftheconditionsprovidedforundernumbers6,7and8belowapplies;

6) violations of the Model resulting in damage to the physical integrity of one or morepersons,includingtheperpetratoroftheviolation,providedthatnoneoftheconditionsprovidedforundernumbers7and8belowapplies;

7) violationsoftheModelresultingindamage,whichcanbeclassedas"serious"pursuanttoArticle583,paragraphI,oftheCriminalCode,tothephysicalintegrityofoneormorepersons,includingtheperpetratoroftheviolation,providedthatnoneoftheconditionsprovidedforundernumber8belowapplies;

8) violationsof theModelresulting indamage,whichcanbeclassedas"life‐threatening"pursuant toArticle583,paragraph I, of theCriminalCode, to thephysical integrityofoneormorepersons,orthedeathofoneormorepersons,includingtheperpetratoroftheviolation.

ChapterThree lists,with regard to each typeof conduct inquestion, the sanctions that couldtheoretically be issued for each category of persons required to comply with the Model.Primarilywith regard toThird‐PartyAddressees, dedicated sanctions of a contractual naturecanbeappliedintheeventofviolationoftheModeloroftherelatedProtocols(e.g.warningtocomplywiththeModel,applicationofapenalty,terminationofthecontract).

Inanycase,theidentificationandissuanceofsanctionsmusttakeintoaccounttheprinciplesofproportionalityandadequacyinrelationtotheviolationinquestion.

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Tothatend,thefollowingelementswillgenerallybeofsignificance:

a) thetypeofviolationcommitted;

b) theseriousnessoftheconductoreventinquestion;

c) thecircumstancesinwhichtheconducttookplace;

d) thewayinwhichtheconductwascarriedout;

e) theintensityofwilfulmisconductorthedegreeofnegligence.

For thepurposesofpossiblymakingthepunishmentmoresevere, the followingelementsarealsotakenintoaccount:

- the possible commission of several violations as part of the same conduct, inwhichcasethe increasedseveritywillbeappliedinrelationtothesanctiontobeissuedforthemostseriousviolation;

- the possible collaboration of several individuals in the commission of theviolation;

- thepossiblerecidivismoftheperpetratoroftheviolation.

Chapter Four governs the process of issuing and applying the sanction, with regard to eachcategoryofAddresseesoftheDisciplinarySystem,indicating,foreach:

- thephaseinwhichthepersoninquestionisnotifiedoftheviolation;

- thephaseinwhichthesanctionisdeterminedandsubsequentlyissued.

The provisions of the Disciplinary System do not rule out the option for the addressees toexercisealltherights,includingtherighttochallengeoropposethedisciplinarymeasureortoestablishanArbitrationPanel,grantedtothembythelaworregulations,aswellasbycollectivelabouragreementsorapplicablecorporateregulations.

13.  COMMUNICATIONANDTRAINING

13.1.CommunicationandinvolvementconcerningtheModel

The Company promotes the broadest possible dissemination, both within and outside of itsstructure,oftheprinciplesandprovisionscontainedintheModelandintherelatedProtocols.

TheModel is formallycommunicatedtoallsenior individuals(includingtheDirectors,BranchManagers, Statutory Auditors and External Auditor) and to the Company's Staff through the

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deliveryofa fullcopy inpaper,computerizedorelectronic format, throughthepublicationoftheModelonthecorporateintranet,andbydisplayingitinaplacethatisaccessibletoall.

Documentary evidence is kept of the delivery and of theAddressees' commitment to complywiththerulessetouttherein.

For Third‐Party Addressees required to comply with the Model, a summary thereof, whichhighlightstheaspectsthataresignificantforthem,ismadeavailableontheCompany'swebsite.

InordertoformalizeThird‐PartyAddressees'commitmenttocomplyingwiththeprinciplesofthe Model and of the related Protocols, a dedicated clause will be inserted into any newcontracts drawnup or, for contracts already in place, a specific supplementary agreement tothatendwillbesigned.

TheSBpromotesandmonitorsalladditionalinformationactivitiesthatitmaydeemnecessaryorappropriate.

TheCompanypromotes adequate communicationwith and involvementofAddresseesof theModel, within the limits of their respective roles, duties and responsibilities, with regard toworkplacehealthandsafetyasawholeandsecurity inparticular,witha special focuson thefollowingaspects:

health and safety risks associated with the Company's activities and/or risk factorsoutsideoftheproductionprocess(e.g.disseminationofTravelandHealthforms);

preventionandprotectionmeasuresandactivitiesadopted;

thespecificriskstowhicheachworkerisexposedinrelationtotheactivitiescarriedoutandtheCountryinwhichtheyoperate;

the dangers associated with the use of dangerous materials and substances or riskyproductioncycles;

procedures for first aid, emergency management, site evacuation, security threatmanagementandmanagingfalseimprisonment;

the appointment of individuals assigned specific tasks within the Health and SafetyManagementSystem.

To that end, a Health, Safety and Security information and involvement programme forAddressees of the Model is defined, documented, implemented, monitored and periodicallyupdated. The programme focuses in particular on newly hired workers, who must obtain aspecialqualification.

The involvement of the individuals concerned is also guaranteed through consultationswiththematdedicatedperiodicmeetings.

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13.2.TrainingandeducationabouttheModel

InadditiontoactivitiesrelatedtoinformationonthecontentsoftheModelforAddressees,theCompanyalsopromotestrainingactivities.

Specifically, theSB is responsible forcarryingoutcheckson theperiodic trainingreceivedbyAddresseeswithregardtoknowledgeofthecontentsoftheModelandoftherelatedProtocols,withaviewtofosteringacorporateculturebasedonethicalconductandcompliancewiththerules.

TheprinciplesoftheModel,andinparticularthoseoftheCodeofEthicsthatformspartof it,are illustrated to the Company's Staff through dedicated training activities (e.g. courses,seminars, questionnaires, tests), which are compulsory and are carried out according to theproceduresplannedbytheCompany,inagreementwiththeSB.

The training courses on the Model also vary according to the role held by and theresponsibilities assigned to the staff members in question, with more intense training forpersonsclassifiedas "seniorstaffmembers"pursuant to theDecree,aswellas for thosewhooperateinareasconsideredtobe"atrisk"pursuanttotheModel.

As described in more detail in Special Part I of this Summary Document, the Company alsopromotes training and education for Addressees of the Model, within the limits of theirrespectiveroles,dutiesandresponsibilities,inmattersrelatingtoworkplacehealthandsafety,in order to guarantee adequate knowledge of the importance of both conducting oneself inaccordancewith theModel and the possible consequences of violations of theModel. In thisrespect,specialattention ispaid to trainingandeducatingthose individualswhoformpartofthe"SafetyOrganigram".

Inparticular,theHSMSprovidesfortrainingandeducationofCompanystaffmemberstovaryaccording to the job held by and duties assigned to the workers, and to be provided whenworkers are hired, are transferred or change jobs, or when new work equipment ortechnologiesareintroduced.

Specifictrainingisalsoprovidedonsecurity,whichvariesbasedonthedutiesoftheworkersinvolvedand isdifferent ineachof theCountrieswhere theCompanyoperates,basedon theoutcomesoftheCountryThreatAssessments.

13.3.ViolationsoftheModel

Compliance with the rules of the Model must be considered an essential part of the dutiesincumbentontheCorporateBodiesandtheStaffoftheCompany,aswellas,totheextentthattheyareapplicable,anessentialpartofthecontractualobligationsenteredintobyThird‐PartyAddressees.

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Violation of the Model shall result in the application of the sanctions provided for in theDisciplinary System (which should be referred to for more details) and/or, with regard toThird‐PartyAddressees,intheclausesinsertedintotheirrespectivecontracts.

14.  UPDATINGTHEMODEL

Aswehaveseen,oneof themost important tasksassignedto theSB is thatofpromotingtheupdating and adaptation of the Model and of the related Protocols (including the Code ofEthics), possiblyby suggesting, throughwritten communications to theBoardofDirectorsorthe corporate departments in charge from time to time, the necessary or appropriatecorrectionsandadjustments.

TheBoardofDirectorsisresponsible,togetherwithanycorporatedepartmentsconcerned,forupdatingandadaptingtheModel followingachange inorganizationalstructuresoroperatingprocesses,significantviolationsoftheModel,ortheintroductionofadditionallegislation.

Updates and adjustments to the Model, or to the related Protocols, are disseminated viadedicatedcommunications sentbyemail andpublishedon the corporate intranet and,whereapplicable, through the organization of information sessions to explain the most significantupdatesandadjustments.