Document:

EX-10.63

Alion Code of

Ethics,

Conduct,

and Responsibility

(Fourth Edition)

November 2009

Dear Employee-owner,

Alion Science and Technology Corporation (“Alion” or the “Company”) has published this Fourth
Edition of the Code of Ethics, Conduct, and Responsibility (the “Code”) to incorporate new laws and
regulations and to make other general administrative amendments.

Alion is committed to the personal success and professional growth of its people, the success of
its projects, and the long-term success of the Company.

At the root of Alion’s commitment to success are the fundamental principles that legal requirements
must be satisfied, financial statements must be complete and accurate and customers and other
stakeholders must be treated fairly.

The Alion Code not only requires compliance with laws and regulations, but embodies a commitment to
positive behavior that builds honesty, promotes fairness, and demonstrates integrity. This leads
to Alion’s success by producing customer satisfaction, loyalty, trust, and respect. We honor our
commitments, communicate openly, and hold ourselves accountable. Operating within the framework of
the Code, Alion creates and sustains value for its stakeholders.

If you have a question or concern regarding the Code or any ethics-related policy, contact your
Group Compliance Officer, the Corporate Compliance Officer, a Group Human Resources Manager or the
Law Department, each of whom is listed on the Ethics Contact List. If you prefer to raise an issue
confidentially, I encourage you to call the Ethics Hotline at 1-888-230-5459 or 1-703-506-1458 if
calling from outside the U.S., or use the on-line reporting mechanism.

Employees are directed to familiarize themselves with this Code and regularly practice its solid
principles.

Sincerely,

Bahman Atefi

Chairman and CEO

1

Vision

Our vision is to be the premier, total technology solutions provider for the global marketplace.

Mission

Alion fosters a dynamic employee-ownership culture that encourages the innovative application of
science, engineering and operational experience to support the successful resolution of nationally
and globally significant problems.

Values

The Alion core values by which we navigate are:

Integrity – We lead by example and uphold the highest standards of integrity.

Commitment – We are committed to the personal success and professional growth of our people, the
success of our projects and the long-term success of Alion. We define our success by our
customers’ success. We are committed to delivering quality, meeting expectations, and satisfying
customers.

Respect – We respect our co-workers, customers, partners, and competitors.

Highest Quality – We strive to achieve the highest quality of effort and work product.

A Culture of Ownership – Our employee-ownership culture is the cornerstone of Alion. Employees who
act like owners contribute significantly to our success. Ownership builds employee satisfaction,
commitment and retention and these attributes are directly linked to customer satisfaction.

Statement of Purpose

The purpose of the Alion Code of Ethics, Conduct, and Responsibility (the “Code”) is to state the
principles of business ethics and conduct that Alion requires all employees to follow in dealings
on behalf of Alion with the government, the general public, customers, suppliers, competitors, and
fellow employees, and to outline the requirements of the Alion Ethics Compliance Program (the
“Program”). All officers and managers are responsible for making this Code known and regularly
stressing its importance to employees over whom they have supervision.

Policies and Procedures

The policies and procedures referenced in this Code can be found on the Alion Intraweb at:

	 	•	 	http://intraweb.alionscience.com (internal)

	 	•	 	http://iweb.alionscience.com (external)

Violations and Reporting Misconduct

(See Policy Nos. EC1.01, EC1.03 and EC1.13)

Violations of this Code, its implementing policies and procedures, or other violations of the law
by any employee may result in disciplinary action up to and including termination. Alion may apply
such disciplinary measures to any employee who directs or approves of prohibited activities, or who
has knowledge of them and does not move promptly to correct or report them. Employees who fail to
take reasonable steps to prevent or detect improper conduct are also subject to disciplinary
action. Additional criminal or civil penalties may apply for violations of laws or regulations
(federal, state, and local) governing activities outlined in this Code.

Employees are obligated to immediately report any violation or apparent violation of this Code, its
implementing policies and procedures, or other violations of the law or regulation, in accordance
with Alion policy EC1.01 – Ethics Compliance Program, EC 1.03 – Internal Investigations and EC1.13
– Disclosing Violations of Law and Contract Overpayments. Alion fosters open and free
communication within the Company to ensure that all reported violations are promptly investigated
in accordance with applicable Alion policies and procedures. Employees must not conduct their own
preliminary investigations. Alion will investigate all incidents reported to the Company to the
fullest extent possible, and will take appropriate action to address the situation. Employees are
expected to cooperate fully with such investigations and to provide all information that they
possess regarding such violations. Failure to cooperate fully in a forthright manner with any such
investigation is grounds for disciplinary action up to and including termination.

In doing business with the U.S. Government, employees must also comply with the mandatory
disclosure rule under the Federal Acquisition Regulations (“FAR”). Under the FAR, U.S. Government
contractors and subcontractors are required to disclose to the federal government credible evidence
of certain violations of U.S. criminal law, the civil False Claims Act, and significant
overpayments involving the award, performance, or closeout of a U.S. Government contract or
subcontract. While it is impossible to list each and every possible violation of governing laws
and regulations that Alion expects its principals, managers, employees, and agents to disclose
internally, Alion requires the prompt reporting of any business standards, compliance, or ethics
concern, complaint, or issue using any of the channels set forth below. Anyone to whom such a
disclosure is made (i.e., Human Resources Manager, Supervisor) must immediately forward the report
to the Corporate Compliance Officer. Violations that fall within the FAR mandatory disclosure rule
requirements will be reviewed and a disposition provided in accordance with Policy EC1.13 –
Disclosing Violations of Law and Contract Overpayments.

Alion does not discharge, demote, suspend, threaten, harass, retaliate, or discriminate against any
person based upon the lawful action of any such employee with respect to good faith reporting of
any matter covered by the Code, its implementing policies and procedures, and applicable laws or
regulations. Any such retaliation or reprisal by an Alion employee or agent is forbidden.

Reporting Mechanisms

The Program provides various reporting mechanisms to allow employees to make ethics and/or
compliance inquiries or reports and remain anonymous, if so desired.

	 	•	 	Ethics Hotline: From within the U.S., the Ethics Hotline number is
1-888-230-5459. This is a toll-free, 24-hours-a-day, 7-days-a-week resource.

From locations outside the U.S., the Ethics Hotline number is 1-703-506-1458, also a
24-hours-a-day, 7-days-a-week resource. This may be a collect call during regular working
hours (U.S. EST).

Callers to the Ethics Hotline have the option to remain anonymous when making reports if
they so desire.  All questions and incident reports are responded to promptly and
confidentially.

	 	•	 	On-line Ethics Reporting: The On-line Ethics Reporting mechanism
allows employees to make inquiries and submit ethics-related reports on-line. The form
works like an e-mail: employees fill out the appropriate areas of the form and click
“Submit” at the bottom of the form. The sender’s contact information (unless purposely
included) remains anonymous as part of this transmission. The system does not capture the
username or other identifying data when employees enter the ethics form submission area.

	 	•	 	Ethics Contact List: Employees may directly contact the Group
Compliance Officer, the Corporate Compliance Officer, the Group Human Resources Manager or
the Law Department.

These reporting mechanisms can be found on the Alion Intraweb at:

	 	•	 	http://intraweb.alionscience.com/ethics (internal)

	 	•	 	http://iweb.alionscience.com/ethics (external)

2

Responsibilities

General Responsibilities for All Associated with Alion

Alion directors, officers, employees, agents, consultants, subcontractors, and suppliers are
expected to:

	 	•	 	Conduct business in accordance with the highest ethical standards;

	 	•	 	Comply with the letter and spirit of the laws of the U.S. and other
jurisdictions in which Alion does business;

	 	•	 	Use Alion and customer resources appropriately;

	 	•	 	Never participate in, condone, or ignore illegal or unethical acts; and

	 	•	 	Raise ethical concerns immediately and escalate them as necessary to all
appropriate resources within the company.

Governing Authority Responsibilities

The Corporate Governance and Compliance Committee of the Board of Directors is responsible for
providing overall guidance with respect to the Program. In addition, the Audit and Finance
Committee of the Board of Directors has established procedures for the receipt, retention, and
treatment of complaints regarding accounting, internal accounting controls, auditing, or other
financial matters. These procedures allow for the confidential and anonymous submission of concerns
regarding questionable accounting or auditing matters.

Corporate Compliance Officer and Group Compliance Officer Responsibilities

The Corporate Compliance Officer (“CCO”) is responsible for implementing the Program, including the
maintenance of open lines of communication, mandatory training programs designed to train new and
current employees about the Program, and to foster a continued awareness and understanding of the
Code. The CCO keeps the Committees apprised of major actions taken with respect to the
implementation and administration of the Program.

Corporate, and each Group within Alion, has a Group Compliance Officer (“GCO”) responsible for
maintaining a high level of awareness and visibility of the Program to employees. In addition, an
existing GCO is assigned at the Sector level to act as a point of contact for Sector level
employees.

Manager and Supervisor Responsibilities

Each manager and supervisor has the responsibility to employees, consultants, agents, and other
representatives of the Company under his or her direction or control to:

	 	•	 	Ensure that employees are aware of the requirements of the Code and the
Program, and participate in education and training regarding the Code;

	 	•	 	Communicate on an ongoing basis the importance of the principles of, and
compliance with, the Code;

	 	•	 	Encourage open communication regarding the importance of the Code and
reinforce the importance of resolving concerns related to the Code and the Program; and

	 	•	 	Take reasonable measures, based on facts that a manager or supervisor
knows or should know, to detect violations of the Code.

Employee Responsibilities

Alion is committed to conducting its business in accordance with all applicable federal, state and
local laws and regulations, and in accordance with the Code. Alion employees are expected to
comply and to assist the company in complying with each of these obligations. All employees have
the responsibility to familiarize themselves with the Code, its implementing policies and
procedures, and the Program.

Any employee who suspects or has knowledge of violations of this Code, its implementing policies
and procedures, or other violations of the law or regulation should immediately report any concerns
using one of the reporting mechanisms set above.

Employees are required to participate in mandatory ethics training on an annual basis. In
addition, non-mandatory ethics training is provided on an intermittent basis.

Responsibilities of Consultants, Subcontractors and Suppliers

Alion policy requires consultants, subcontractors, and suppliers to comply fully with Alion’s Code
or to have an equivalent Code and to inform appropriate Alion company officials immediately of any
illegal or unethical conduct in dealings with Alion directors, officers, and employees.

Internal Audit Department Responsibilities

The Alion Internal Audit Department performs regular reviews of awareness and compliance with the
Program and conducts special reviews of matters when requested by senior management.

Compliance with Laws and Regulations

Alion conducts its business activities in compliance with all applicable U.S. (federal, state, and
local) laws, regulations, and judicial decrees, as well as those of other countries where Alion
conducts business. No employee may take any action on behalf of Alion that the employee knows, or
reasonably should know, would violate any law or regulation.

In addition to literal compliance with legal requirements, each employee must adhere to the
overriding moral and ethical standards of fair dealing in the conduct of business. Alion’s
interests are not served by unethical practices and activities even in the absence of a technical
violation of law. When no legal requirement applies directly to a questionable situation,
employees must conduct Alion business in a manner protective of Alion’s tradition of integrity and
ethical conduct.

Marketing and Procurement Integrity

(See Policy No. EC1.04)

Employees must always deal honestly and fairly with all government customers, as well as with other
contractors, teaming partners, subcontractors, suppliers, and consultants supporting Alion’s
government business. When preparing government proposals and negotiating contracts, employees must
always be accurate, current, and complete in all of their representations on behalf of Alion. In
conducting business with government agencies, the Company is required to abide by certain special
contract and procurement regulations and rules designed to protect the public interest and
integrity of the government procurement processes.

In addition, the submission to a government customer of a proposal, price quotation, claim, or
other information that is knowingly false, incomplete, or misleading can result in civil or
criminal liability for both the Company and individual employees involved in the submission. The
penalties for such practices include suspension of a contract, debarment, imprisonment, and/or
fines. The Company is obligated to and must disclose, when required to do so, current, accurate,
and complete cost and pricing data. Generally, cost and pricing data includes historical price and
cost information plus information related to supplier quotations, cost trends, management
decisions, or other factors that may potentially affect costs.

Government contracts frequently impose high-level quality requirements for critical and complex
items. Management is responsible for identifying such requirements and communicating them to all
employees assigned to the contract. Where a contract specifies use of particular components,
equipment, materials, or processes, such specifications will be followed. Substitution of other
components or changes in the scope of work in a contract is permitted only upon receipt of a
written contract modification signed by the authorized government official, or as otherwise
permitted by the contract. In such cases, employees should consult with the appropriate Group
Contracts Manager or the Corporate Director of Contracts for guidance.

Q: One of our government contracts requires a test during the early stage of production that
duplicates part of a test required during a later stage of production. The earlier test is clearly
a waste of time and money and will delay delivery. Can the extra test be skipped?

A: No. Since the contract requires that both tests be performed, no change in testing or quality
controls can be made without first informing and obtaining the approval of the appropriate level of
management, as well as the approval of our customer. To knowingly deliver a product that fails to
meet the contract specifications or testing requirements, without specific prior approval from the
customer, could be considered fraud and a violation of law.

Q: Alion must disclose current, accurate, and complete cost and pricing data to the U.S. Government
in connection with many of its contracts. What does this mean?

A: As defined by the Truth in Negotiations law, “cost and pricing data” means all the facts at the
time of agreement on price that prudent buyers and sellers could reasonably expect to affect price
negotiations. These include vendor quotes, nonrecurring costs, changes in production methods and
estimates, and any other final management decisions that could have a significant bearing on cost
or price.

Government Proprietary and Source Selection Information

(See Policy No. EC1.04)

Employees must not obtain, or ask to obtain, directly or indirectly, from any government employee
or other third parties, any information believed to contain proprietary or source selection
information not belonging to the Company, except where permitted by law or express agreement.
Examples include information contained in a competitor’s bid or proposal, cost or pricing data, or
other information submitted to the government or contemplated for submission to the government and
designated as proprietary in accordance with the law or regulation.

Q: I am evaluating specification data and drawings on a supplier’s new product that we are
considering for one of our programs. The documentation has been labeled “Proprietary-For
Evaluation Purposes Only.” I want to find out if another supplier can develop a similar product
more cheaply. Can I send them the drawings to see if they have a similar product or can develop
one? After all, we’re supposed to encourage competition between suppliers.

A: No. You cannot share the data with the other supplier. It was provided to us in confidence and
the purpose has been clearly indicated.

Recruitment and Employment of Current and Former U.S. Government Employees

(See Policy No. EC1.08)

Federal laws and regulations govern the employment of current or former U.S. Government employees
(military or civilian), either directly or as consultants. These requirements also regulate the
circumstances under which Alion may engage in pre-employment discussions. If a current government
employee seeks employment with Alion, that employee must notify his or her supervisor and ethics
official immediately to initiate a review of the situation in accordance with federal procurement
integrity laws and regulations.

All prospective employees and consultants who are current or former U.S. Government officers or
employees must complete the Alion Employment Questionnaire and Certification Form.  This Employment
Questionnaire and Certification Form is designed to assist Alion in determining which restrictions,
if any, apply to the prospective employee/consultant and in assessing the impact upon employment
discussions, hiring restrictions, and future work assignments at Alion.

Before initiating any action to discuss the employment of current or former U.S. Government
employees, Alion employees must consult with the Director of Human Resources. In the event that a
former U.S. Government employee becomes a consultant or employee of Alion, Alion will observe all
applicable post-employment requirements.

Q: May I inform an individual retiring from the U.S. Government of possible opportunities within
Alion?

A: While you may mention in a very general manner that possible opportunities may exist, do not get
into any specifics regarding employment or current openings or requirements. Do not make any
promises or offers regarding employment, or accept a resume as there are very restrictive rules
regarding the employment of current or former U.S. Government employees. Refer the individual to
the appropriate Human Resources representative. These same guidelines apply to consulting
arrangements with former U.S. Government employees.

Q: I want to hire an individual for a managerial position. That person worked for the U.S.
Government but left that position three years ago. Does this past employment raise a potential
issue for the Company?

A: Yes. Federal laws and regulations restrict post-government employment activities of former
government officers and employees. Although some restrictions imposed on former government
employees apply only for a one or two-year period after termination of government service, these
regulations also impose lifetime restrictions related to certain activities that the former
government employee may have participated in during government service. During the recruitment
process a former government employee is required to complete the Alion Employment Questionnaire and
Certification Form (HR Form 175) to assist Alion in determining which restrictions, if any, apply,
and in assessing their impact upon employment discussions, hiring decisions, and future work
assignments at Alion.

Gratuities, Bribes and Kickbacks

(See Policy No. EC1.14)

Employees must not make, receive, or cause to be made or received any improper payment or
inducement that may be described as a bribe or kickback in connection with a business activity, to
or from any actual or potential Alion customer, supplier, or government employee or official.

The Anti-Kickback Act of 1986 prohibits government contractors and subcontractors from providing,
attempting to provide, offering, soliciting, accepting, or attempting to accept any kickbacks. The
Act stipulates criminal and civil penalties for both the company and the responsible employee for a
violation of the law.

Federal government departments and agencies are subject to procurement integrity laws and other
regulations concerning acceptance by their employees of entertainment, meals, gifts, or anything of
value from firms and persons with whom the government departments and agencies do business.
Therefore, employees of Alion may not give, or offer to give, government employees or their
families any prohibited entertainment, meal, gift, or item of value. Alion employees may, as an
exception, provide marketing or promotional items such as a mug, pen, or T-shirt listed in the
Alion Promotional Catalog that has a market value of $20 or less per government employee,
per occasion, so long as the total value of the items given to a government employee during a
calendar year does not exceed $50. This is commonly referred to as the “20/50 rule.”
Additionally, no “buy down” of a meal or promotional item is authorized under the regulations,
which means that if the meal or promotional item costs more than $20, the government employee is
not permitted to make up the difference. This applies to both the $20 per occasion and $50 per
calendar year limits.

Alion does not prevent employees from socially entertaining business acquaintances. While
entertaining clients, Alion employees may not incur any extravagant or any unreasonable expenses.
However, it should be clear that Alion does not consider the entertainment of government employees
to be related to the business activities of Alion. In addition, no expenditure for such social
entertainment is reimbursable to the employee.

Alion employees are strongly encouraged to contact their appropriate Group Compliance Officer, the
Corporate Compliance Officer or any member of the Law Department to confirm that any of the
activities described in this section are in compliance with applicable laws and regulations or the
Alion Program, or to discuss any other ethics-related matter. Also, as a reminder, every Alion
employee, subcontractor, and consultant is obligated to report to the Group Compliance Officer, the
Corporate Compliance Officer or any member of the Law Department any actual or potential violation
of a law, regulation, or restriction contained in this Code. Employees may also report the matter
through one of Alion’s other reporting mechanisms such as the Ethics Hotline.

Q: I recently met with one of our customers. This customer mentioned he had an all expenses-paid
trip coming up, but was unable to go because of company business. He offered the trip to me. Can
I accept?

A: No. This gift could be seen as an attempt at improperly influencing our business. If the
customer continues to make these offers, seek advice from your Group Compliance Officer or the Law
Department.

Q: Can I go to lunch or play golf with a DoD representative as long as we each pay our own
expenses?

A: Yes. However, you should be concerned about the appearance and the perception by others. The
appearance of impropriety should always be avoided. Discuss any doubts with your supervisor, Group
Compliance Officer or the Law Department.

Organizational Conflicts of Interest

(See Policy No CN3.10)

Alion policy prohibits any contract from being negotiated or executed if the interests of a
particular customer are of such a nature as to compromise or threaten Alion’s ability to maintain
unbiased objectivity in serving its other customers, resulting in a potential Organizational
Conflict of Interest (“OCI”).

Examples of potential OCIs include:

	 	•	 	Competing for a management/services contract that might require the
contracting company to evaluate its own or its competitors’ products for use by the
government;

	 	•	 	Competing to supply products/services for which Alion has designed the
specifications;

	 	•	 	Access to other companies’ proprietary information that has not been
authorized for use in landing/performing the contract; and

	 	•	 	Access to other companies’ proprietary information obtained by leveraging the
contract in question, which might provide an unfair competitive advantage.

Where an actual or potential OCI may occur by entering into a contractual agreement or by accepting
a task under an awarded contract, such contractual instruments may be entered into only after all
of the following conditions have been satisfied:

	 	•	 	Full and complete disclosure of the actual or potential OCI has been made
to the appropriate governmental official(s) with a proposed means of avoiding,
mitigating or neutralizing all perceived conflict(s), and

	 	•	 	Consent to the execution of the contractual arrangement has been obtained
from the appropriate governmental official(s), along with any necessary government
approvals of an appropriate OCI avoidance and mitigation plan where required.

Q: Alion was awarded a contract to advise the Army in its review of a newly designed tank. I
worked on the original contract, and became aware of a recent award to one of Alion’s subsidiaries
to supply the products/services for the same tank. I know that if I disclose the potential OCI,
Alion might lose the award. Should I disclose the OCI?

A: Yes. A contractor is required to disclose all actual or potential OCIs. In addition, Alion has
established an Organizational Conflict of Interest Routing System (“OCIRS”) to ensure that
potential OCI issues are properly communicated and vetted throughout the Company. The OCIRS is an
automated tool used to route, track and regulate contracts that Alion has with the U.S. Government
with respect to actual and potential conflicts of Interest.

False Claims

(See Policy No. EC1.04)

Employees must not submit or concur in the submission of any claims, bids, proposals, or any other
documents of any kind that are false, fictitious, or fraudulent.  With regard to government
contracts, such acts are criminal violations which could result in prosecution of both the Company
and the employee.

Employees charging costs to a contract must ensure that all costs are accurately recorded and
charged to the proper account.  The mischarging of labor costs, the improper allocation or transfer
of costs, or the falsification of other cost records is not tolerated.

Employees must be aware of OCI certification clauses in government contracts and in all
solicitations for which a bid is prepared. Employees must make the company aware of any potential
OCIs and be mindful that reckless disregard for the truth or falsity of information presented to
the government triggers the knowledge requirement for False Claims Act liability.

Q: My colleague and I are preparing for a quarterly contract performance review with the Army. My
preliminary figures indicate that for the upcoming quarter we will have high cost overruns. In
addition, we have not been properly monitoring costs which will certainly risk a poor award fee
evaluation for not undertaking adequate cost control measures. My colleague suggests that we delay
disclosing this bad news to the Army so that we have more time to fix the problem in time for the
next quarterly review. My colleague argues that we would not be lying to the government, and that
by the next review the numbers would look much better. We would also be doing the Company a favor
by getting a higher award fee. Should I agree to my colleague’s suggestion?

A: No. Honesty and integrity in contracting means full disclosure of all relevant information
which the government should know in determining award fee evaluation scores. Intentionally
omitting such relevant facts or making false statements to the government could result in civil
and/or criminal penalties imposed on the Company and/or you personally.

Labor Collection and Reporting

(See Policy No. TA8.04)

Timely and accurate completion of timesheets as described in Alion’s policies and procedures is
essential. Alion must ensure that no cost is allocated to a government contract, either directly
or indirectly, where unallowable, contrary to the contract or related regulations, or otherwise
improper. Timesheets must report the number of hours worked and the proper distribution of the
time against appropriate cost objectives represented by project and overhead ventures. Employees
can ensure accuracy in time reporting by charging a cost objective only for the work performed on
that objective. Each employee must complete an original timesheet (using either the paper or
electronic time reports) on a daily basis.

Employees must record all hours worked on a daily basis or by 10 a.m. the next business day.
Reporting hours not worked, but for which pay is received (e.g., leave, excused absences), must be
true and accurate. Shifting of costs to a contract other than the contract worked on is strictly
prohibited. It is essential that employees properly document and allocate any cost charged to a
customer. These costs might include, but are not limited to, travel expenses, purchases, and use
of equipment charges. Improper charging or allocation of time or any other cost may constitute a
violation of civil or criminal statutes and regulations.

Direct-charge employees must keep time and labor-charging reports current and must properly report
all time spent on each project/assignment. Assignments shall not be initiated until all proper
documentation, including a charge number, has been issued and communicated to the employee. When
this is not possible, a governmental Authority to Proceed is required.

Q: I’m working on an Alion fixed-price government contract. My supervisor has informed me that
we’re charging too many hours to this contract and reducing the profit level he promised the Group
Manager. My supervisor told me to charge the remainder of my time to overhead or to another
(preferably cost reimbursable) contract. Is this proper?

A: No. Work must be charged accurately and reflect the appropriate contract or task order. This
activity would be mischarging a government contract which may lead to both civil and criminal
penalties imposed on the Company and/or you personally.

Q: My supervisor asked me to charge my time to an incorrect charge number. He said it was approved
by the “powers that be.” Should I do this?

A: No. First, incorrect charging is never approved. Second, make sure that your supervisor knows
what you are really working on so that there is no misunderstanding about the work you are doing.
If that doesn’t resolve the problem, you should seek advice from your next-level manager, your
Group Compliance Officer or the Law Department. You may also report the matter through one of
Alion’s other reporting mechanisms such as the Ethics Hotline.

3

Government and Company Investigations

(See Policy Nos. EC1.03, EC1.06, EC1.11 and EC1.13)

As a U.S. Government contractor, Alion is subject to an array of laws and regulations governing its
business activities. In some circumstances, a government agency may initiate an investigation or
review of the Company’s activities or the activities of an employee. During such investigations,
the Company will comply with all applicable laws, regulations and contractual requirements, and
will cooperate fully with appropriate investigating agency officials. In addition, the Company has
certain procedures in the event a government official contacts an employee, requests information
from an employee or the Company, and/or seeks to interview any employee in connection with an
investigation that may involve possible violations of law.

In the event of such investigations, the Company will often conduct its own internal investigation
in cooperation with any government review. The Company also maintains a policy on disclosure to
appropriate government agencies with regard to any suspected violations of law and contract
overpayments involving the Company or any of its employees.

Alion also maintains policies and procedures for the Audit and Finance Committee and the Corporate
Governance and Compliance Committee of the Board of Directors to administer and investigate
complaints of a financial or other material nature including, but not limited to, accounting,
financial reporting, and internal controls.

Q: I received a written request for information entitled “Civil Investigative Demand.” I have the
information they are requesting. Should I respond and provide the information?

A: No. Any government inquiry arising through a written subpoena or a written request for
information must be provided to the Law Department before any action is taken or promised.

Protecting Shareholder Value and Compliance with Applicable Securities Laws

(See Policy Nos. TA1.01, TA3.02, TA11.01, and AD4.04)

The Alion Employee Stock Option Plan (“ESOP”) Trust owns 100 percent of Alion’s stock. Although
Alion’s stock is not publicly traded, due to certain contractual obligations, Alion is required to
make public filings with the U.S. Securities and Exchange Commission (“SEC”) of certain financial
and other business information as if it were a publicly traded company.

Proper Accounting: In order to assure corporate integrity and to preserve and enhance shareholder
value, the Company will aggressively pursue growth and earnings objectives, while keeping ethical
and legal standards at the forefront of all activities. This includes absolute reliability and
accuracy of books and records, and honesty in disclosures. The books of account, financial
statements, and records of the Company are intended to reflect accurately and fairly, in reasonable
detail, the Company’s operations and financial position and the underlying transactions and any
disposition of assets. The books, statements, and records should be maintained in accordance with
established financial and accounting policies issued by the Company and with generally accepted
accounting principles, and in accordance with SEC requirements. All invoices submitted to the
government for payment must be reviewed carefully for accuracy. If there is doubt as to whether a
particular cost is allowable, it should not appear on the invoice. An employee’s approval of an
invoice means that the employee has certified that the amounts claimed are proper. Submission of
inflated claims could lead to liability for the Company and the employee who approves the claim.

Recording and Reporting Information: Information that is the basis for recording transactions or
measuring the Company’s performance and results should be recorded and reported accurately and
honestly. No employee shall falsify, forge, or record inaccurate or misleading information that is
used for recording transactions. Dishonest reporting, either inside or outside the Company, is
strictly prohibited. This includes misreporting information or organizing it in a way that is
intended to mislead or to misinform those who receive it.

Discussing Company Affairs: Information about the Company and its affiliates, particularly
financial information not yet disclosed, should not be disclosed to persons outside the Company,
unless the information has been made public or unless disclosing the information is related to the
Company’s business and is done in accordance with applicable securities laws and regulations.
Confidential Company business should not be discussed in public places or in places where visitors
are likely to be present, such as lobbies, elevators, and cafeterias.

Insider Trading: The use of non-public information for private gain, or the disclosure of
non-public information to persons other than Alion employees or others who have a legitimate
business need for the information, is strictly prohibited. The trading of Alion securities or
securities of other publicly-traded companies based on material, non-public information relating to
any company is unethical and illegal. Such trading includes acquiring a beneficial interest in
Alion’s stock through pre-tax deferrals, rollovers or transfers to the ESOP. Liability can also
extend to any employee who discloses material, non-public information to another person, who in
turn uses such information in a securities transaction. Even accidental disclosure of inside
information to another party can be a serious breach of corporate confidentiality and can also
result in insider trading. For this reason, every employee must avoid discussing sensitive
information in any place where such information may be overheard by others. All incidents of
disclosure of inside information must be promptly reported to the Law Department. Information is
considered material if it would be considered important by investors making decisions on whether to
purchase, sell, or hold the securities of the company in question.

Q: I’ve become aware of financial information on one of the Company’s customers (or suppliers) that
indicates the customer is in better financial condition than most people realize. I want to
purchase some of the customer’s stock. May I do so?

A: No. You may not purchase this stock until the financial information is known to the public.
Information of this sort may have been provided to Alion in confidence by the customer to help
Alion determine how to meet the customer’s needs. Using this information for personal purposes or
disclosing it to others is a violation of Alion’s policy and is illegal.

Q: I am aware that a large order for Alion products has been placed by a customer, but has not yet
been announced. May I purchase Alion stock based on that information?

A: No. This is a violation of Alion’s policy and a potential violation of federal securities laws.
You may purchase Alion stock only after such information is known to the public for a period of 48
hours. Consult Policy EC1.12 – Insider Trading for more information.

Protecting Confidential and/or Proprietary Information and Intellectual Property

(See Policy No. EC1.07)

Employees are responsible for ensuring the proper protection of Alion confidential and/or
proprietary information and capital assets including intellectual property. This responsibility is
not limited to Alion facilities, but extends to the reasonable protection of all assets
(confidential and/or proprietary information or intellectual property) used by Alion in the
performance of its mission. This responsibility also extends to all confidential and/or
proprietary information and intellectual property produced by and/or communicated to employees as a
result of employment at Alion. In accordance with Alion’s Employee Intellectual Property
Agreement, Alion retains all rights, title, and interest to all inventions, software, and other
intellectual property that result from or are suggested by work performed by employees for Alion or
use of Alion resources.

Employees must: (a) take all responsible steps to comply with all applicable procedures established
by Alion with respect to protecting confidential and/or proprietary information from unauthorized
or inadvertent disclosure; (b) use confidential and/or proprietary information only as necessary
and proper in the performance of his or her duties as an employee of Alion; and (c) not directly or
indirectly, without the written consent of Alion, reproduce, copy, disseminate, publish, disclose,
provide or otherwise make available to any person, firm, corporation, agency or other entity, any
confidential and/or proprietary information. Under no circumstances shall an employee use,
directly or indirectly, any such confidential and/or proprietary information for any purpose other
than for Alion’s sole benefit. All employees must, upon termination of employment with Alion,
deliver all confidential and/or proprietary information in their possession to Alion.

In addition to the obligations with respect to Alion confidential and/or proprietary information,
Alion must protect and hold in confidence confidential and/or proprietary and business-sensitive
information given to it by customers, corporations, or individuals with whom it does business.
Employees must report possession of such information to their Group Manager, and must take all
necessary measures to protect such third party information from unauthorized disclosure.

Q: We are in the middle of preparing a proposal for a large government procurement and I have just
received an email containing a copy of a competitor’s proprietary information from an unknown
source. What should I do?

A: Immediately contact your supervisor or the Law Department. Do not copy it, share it with
others, or use it in any way. Proper intelligence gathering is a legitimate marketing activity,
but use of apparently proprietary information received from unknown sources is never an approved
practice.

Q: What types of competitors’ information may Alion employees legitimately receive and use?

A: Information that is available to the general public (e.g., published price lists, catalogs) or
which is provided to Alion by a representative of the competitor, who has the authority and
approval to release the information.

Security of U.S. Government Classified and Other Sensitive Information

(See Policy No. EC1.05)

Employees have an obligation to comply with the government regulations and laws that protect our
nation’s defense secrets and to prevent any unauthorized access to or dissemination of sensitive
information.

Employees who have a valid security clearance and require access to specific classified information
must handle such information, in whatever form it exists, strictly in accordance with the
procedures set forth by the appropriate governmental agency for safeguarding classified
information. Such procedures normally encompass activities such as storage, reproduction, review,
shipping, and destruction of classified information.

Employees must not seek access to, accept, or retain any classified materials for which they have
no need to know, or which they are not otherwise entitled to possess. Employees with questions
relative to the security of U.S. Government classified information should contact the local
Facility Security Officer or Alion’s Corporate Security Officer.

In addition, information may be unclassified but sensitive in the form of documents labeled “For
Official Use Only” or “For Internal Use Only” (or words to that effect) to identify information or
material which, although unclassified, may not be appropriate for public release, or “NOFORN”
meaning that the information is not to be conveyed in any manner to any foreign national except
through a license or other valid approval from the appropriate U.S. Government agency or
classifying authority. Employees must take appropriate steps to protect such information from
unauthorized disclosure consistent with the agency rules and policies under which such document is
issued.

Q: I am meeting an engineer from another company for coffee. He is working on the same government
project as I and we need to discuss the interface specification. The specification is classified
so I left it at the office. Is it ok to discuss the specification with him at the restaurant since
we don’t have the actual classified material with us?

A: No. It is never acceptable to discuss classified information in a public place. The security
and confidentiality of the information could be compromised if someone overhears the conversation.

Records Retention

(See Policy No. AD4.08)

Employees must ensure that business records are available to meet the business needs of the
Company, including the legal, tax, and other regulatory requirements wherever Alion conducts its
business. Failure to comply with the requirement to preserve documents and other information as
required by the Records Retention policies and any distributed Hold Notice can result in serious
adverse consequences to Alion and its employees.

It is unlawful to destroy, conceal, alter, or falsify any Alion business or other record, document,
or object for the purpose of obstructing or influencing any lawsuit or other legal, regulatory, or
government proceeding or investigation.  Doing so may subject Alion and any offending persons to
severe civil and criminal penalties including substantial damage awards, fines, and imprisonment.

Q: I found several boxes of files stored in a closet. They seem to relate to a contract that I
believe to be closed. Can I shred them?

A: No. You must verify the date that the contract was closed and then refer to Alion’s Records
Retention policies to determine whether or not the files may be destroyed. If in doubt, contact
your department head or contracts manager for guidance.

Q: I received a Hold Notice from the Law Department regarding a litigation matter on a government
contract I’m working on. I think that some of my e-mails relating to the contract might be
damaging. Can I delete them?

A: No. While a record is under suspension or “Hold Notice,” you may not alter or dispose of it in
any manner. In addition, there are requirements under Alion’s Records Retention policies for
contract-related documents to include written communications such as e-mails. Consult with your
department head or contracts manager on such retention requirements.

Conflicts of Interest

(See Policy No. EC1.15)

Employees and their immediate families should avoid any situation that may create or appear to
create a conflict between personal interests and the interests of the Company. Employees and their
immediate families must not engage in any outside interest, activity, or investment which, in the
opinion of Alion, may reflect against Alion or conflict with its best interests.

The following are examples of conflicts of interest:

	 	•	 	Engaging in employment or any other activity that interferes with your ability to devote
the required time and attention to your job responsibilities at Alion.

	 	•	 	Holding a significant financial interest in a current or prospective customer, supplier,
or competitor of Alion, or serving as an employee, consultant, or director of that
business.

	 	•	 	Directing Alion business to a supplier owned or managed by a relative.

	 	•	 	Supervising the job performance or compensation of a relative.

	 	•	 	Using confidential Company information or improperly using Company assets for personal
benefit or the benefit of others.

	 	•	 	Other examples listed in the policy.

If a conflict of interest or appearance of a conflict of interest develops, an employee must report
the matter to his or her supervisor and the General Counsel/Corporate Compliance Officer.

It is important to remember that even if a conflict exists, it will not necessarily result in
corrective action. Conflicts can arise innocently, and most are investigated to the extent
necessary to determine that the Company’s interests are being best served. Each conflict must be
reported so that an independent determination can be made of the situation.

Q: A Company consultant has offered to pay me to work for him on my own time. Is this against
Company policy?

A: While not against Company policy, “moonlighting” for a consultant or supplier could lead to a
conflict of interest. You must report the matter to your supervisor and the General
Counsel/Corporate Compliance Officer.

Q: A colleague of mine has just become the capture manager on an Alion proposal. In a meeting he
emphasized the need to use XYZ Systems, Inc. as a proposed subcontractor. I just learned that this
person owns 10% of XYZ’s stock. Given that this is a minority interest, is this still a violation
of Alion’s policy?

A: Yes. Alion policy prohibits employees engaged in procurement activities from any relationship
that might involve a conflict of interest and particularly when the Alion employee has a
substantial financial interest in the company conducting business with Alion. Generally, owning
more than 5% of a publicly-traded stock, or owning any stock in a company which is not publicly
traded, is considered a “substantial financial interest.” An individual’s interest in another
company that constitutes 10% or more of his or her net worth is also considered to be a
“substantial financial interest.” Failure to disclose such conflicts of interest could result in
disciplinary action up to and including termination.

Political Activities

(See Policy No. EC1.01)

Alion encourages employees to endorse, advocate, contribute to, or otherwise support any political
party or candidate, or engage in any political activity. Employees may not, however, engage in any
such activities during normal work time or on Alion premises. In any public political statement,
references to an employee’s affiliation with Alion or any of its activities should be avoided; in
any personal political activity, it must be clear that the employee is acting personally and not on
behalf of Alion. There are also federal and local laws that govern contributions made to political
candidates. No illegal political contributions may be made by an employee either in an individual
capacity or on behalf of Alion. Employees may contribute personally to the candidates and parties
of their choice, but will not be compensated or reimbursed in any way for such personal
contributions. For purposes of this section, the term “contributions” includes the use of Alion
facilities and employee time in connection with an election for public office.

There are additional federal and state laws that govern the activities of government lobbyists.
All such activities on behalf of Alion must be coordinated with the Director of Government
Relations.

The Alion Science and Technology Corporation Political Action Committee (“Alion PAC”) makes all
political contributions on behalf of Alion’s business interests. Alion PAC is funded by the
voluntary contributions of eligible employees of Alion and its affiliates. Consistent with federal
regulations, only eligible employees are asked to consider supporting the Alion PAC.

Eligible employees must also contact the Alion PAC for guidance before contacting U.S.
Congressional and Executive Branch employees and staff.

Q: With respect to public officials, what lobbying efforts are appropriate, and are gifts and
gratuities allowed?

A: Any lobbying efforts should be coordinated through the Director of Government Relations. In
many countries, including the U.S., gifts and gratuities to government officials are restricted,
and in some cases prohibited, by law. If in doubt, contact a member of the Law Department and
consult with the Code’s section on Gratuities, Bribes and Kickbacks.

Discrimination and Harassment, Including Sexual Harassment

(See Policy No. HR1.02)

Alion is committed to providing equal opportunity in employment to all employees and applicants for
employment. No person shall be discriminated against because of race, religion, color, sex, sexual
orientation, age, national origin, disability, or military status.

Alion promotes a productive work environment and will not tolerate inappropriate behavior to
include verbal or physical conduct that creates an intimidating, offensive, or hostile environment.
No form of harassment will be tolerated including harassment for race, national origin, religion,
disability, pregnancy, age, military status, sex, or sexual orientation.

Employees who engage in acts that constitute discrimination and/or harassment will be disciplined
in a manner appropriate to the offense up to and including termination.

Managers have a responsibility to keep the workplace free of any form of discrimination and/or
harassment, including sexual harassment. No supervisor or manager may threaten or insinuate,
either explicitly or implicitly, that an employee’s refusal or willingness to submit to sexual
advances will affect the employee’s terms or conditions of employment.

All acts of discrimination and/or harassment must be reported to a supervisor or manager, senior
management, or the Director of Human Resources or senior management if the complaint involves the
supervisor or manager.

Q: A co-worker is initiating unwelcome advances. I’m uncomfortable confronting this person. Whom
should I talk to?

A: You can discuss this situation with your supervisor, utilize a reporting mechanism referenced in
this Code, or contact the Human Resources Department or the Law Department.

Q: I suspect a fellow employee is occasionally coming to work intoxicated and may even be drinking
on the job. I’m concerned for this co-worker’s health and safety. What can I do?

A: Consult with your supervisor who will take appropriate steps to address the situation. If
you’re not comfortable discussing the matter with your supervisor, you can also report this concern
utilizing a reporting mechanism referenced in this Code, or contact the Human Resources Department
or the Law Department.

4

Office Automation and Information Systems

(See Policy Nos. IT1.01 and IT1.04)

With the increasing dependence on office automation and information equipment in the workplace,
employees have access to a wide variety of information media, including computer hardware and
software, telephones, internet access, photocopiers, and facsimile equipment. Alion limits the use
by employees of all office automation and information systems, whether company-owned or
customer-owned, to company business. In keeping with this limitation, all information stored or
transmitted with the use of computer-based and voice-based information systems owned or otherwise
used by Alion shall remain the sole property of Alion. Alion reserves the right to access and
audit all such information systems at any time.

Employees must never use office automation and information systems to display, store, or transmit
any information that others may construe as discrimination and/or harassment on the basis of race,
national origin, sex, sexual orientation, age, disability, or religious or political beliefs.

Q: Can I use a company computer at lunch time to access my bank account?

A: Yes, if the access is only occasional and does not take excessive time away from your work. But
you should be aware that the Company can monitor any activity or transaction undertaken on any of
its computers.

Q: I am staying in a hotel as part of a business trip and have decided to access the Company
network remotely using approved secure access methods. I click on a website that recommends
downloading some additional software. Is this acceptable?

A: No. Never download software to a Company computer or while connected to the Company network.
Only authorized Company IT staff may do so.

Dealing with Competitors

(See Policy No. EC1.01)

The Company prohibits unfair methods of competition and unfair or deceptive acts or practices in
the conduct of its business affairs. In situations where Alion is considering the possibility of
teaming with a company or organization to respond to a particular opportunity, the company or
organization will, in most cases, not be considered a competitor with respect to that particular
opportunity for purposes of this section. However, the same company or organization with which
Alion is teaming on a specific opportunity may be competing against Alion on other opportunities.
In those situations, that company would be considered a competitor to which the requirements of
this section apply. Since teaming arrangements with competitors may raise antitrust issues, care
must be taken to avoid such issues prior to entering into a teaming arrangement with any of the
Company’s competitors. In addition, employees are prohibited by law and Company policy from
entering into any agreement or understanding with a competitor regarding prices. This includes any
agreement or understanding that affects prices or any other conditions of sale.

Q: A customer has asked for a specific delivery schedule that Alion cannot meet. Can I agree to
the schedule and, to stay competitive, simply price in the damages that the Company will pay for
late delivery?

A: No. You should propose an alternative schedule that Alion can reasonably meet. There may be
other benefits we can offer to offset this disadvantage, but honesty is required.

Q: Another company has asked to discuss what contract terms and pricing we have negotiated with a
supplier, as they would like the same kind of deal that we have. Is this ok?

A: No. We have an ethical and contractual obligation to respect the confidentiality of the
supplier’s pricing. Also, such actions might be construed as an attempt to fix prices in the
supply market.

Doing Business Overseas

(See Policy Nos. AD7.01 and EC1.10)

Alion’s international scope is expanding and employees must be mindful of both the U.S. laws and
the laws and customs of the host country in which Alion has business activities. Although a survey
of host country laws is beyond the scope of this Code, the following U.S. laws applicable to
business activities overseas are noted:

	 	•	 	Foreign Corrupt Practices Act (“FCPA”)

	 	•	 	Anti-boycott Laws

	 	•	 	Embargo Regulations

	 	•	 	Export/Import Laws and Regulations

Foreign Corrupt Practices Act (“FCPA”): The FCPA has two principal components that:

	 	•	 	Prohibit the making of bribes, kickbacks, or other forms of corrupt,
illegal, or improper payments to government officials for the purpose of obtaining or
retaining business.

	 	•	 	Require that the financial books, records, and accounts of the Company are
accurate, current, and complete in all respects, and that the Company has a system of
internal accounting controls to ensure accurate books, records, and accounts.

Anti-boycott Laws: The Anti-boycott Law prohibits U.S. persons and companies from taking
actions or entering into agreements that further economic boycotts or restrictive trade practices
not supported by the U.S. This primarily involves prohibiting actions that have the effect of
furthering the Arab Boycott of Israel.

Embargo Regulations: The Office of Foreign Assets Control (“OFAC”), through the Foreign
Assets Control Regulations, prohibits exports to certain countries, individuals, or entities that
are the object of sanctions by the U.S. These regulations apply to all technologies and all
transactions, not just exports. Something as simple as electronic mail exchanges or sending
marketing materials to certain countries can violate the OFAC regulations. All transactions
conducted by Alion and its employees must be carefully analyzed to ensure that an embargoed
country, or a national from an embargoed country, is not involved.

The Export/Import Laws and Regulations: The Export/Import Laws and Regulations were
enacted to:

	 	•	 	Encourage and allow international commerce, while maintaining the
well-being and national security interests of the U.S. The Export Administration
Regulations and the International Traffic in Arms Regulations establish licensing,
recordkeeping, screening, and reporting frameworks designed to ensure that these
Regulations are properly implemented and enforced.

	 	•	 	Prohibit the export and re-export of certain U.S. origin products,
services, and technologies and control the export and re-export of certain products,
services, or technologies.

	 	•	 	Require the use of an export license, license exception, or license
exemption to export, controlled products, services, or technology specifically
identified by the U.S. Government.

Violations of these laws and regulations can result in severe fines to Alion and its employees, and
can result in imprisonment.

Q: Alion is considering pursuing a business opportunity outside the U.S. I have been told that in
some countries it is necessary to pay an official for the purpose of obtaining business. Is this
permitted, especially since I understand the country in which we will make the sale has no laws
precluding such activity?

A: No. Alion policy and the U.S. Foreign Corrupt Practices Act prohibit the giving of money or
anything of value to a foreign official for the purpose of influencing a foreign official, even
though local practice or custom permits it. Limited payments, sometimes called “facilitating
payments,” may be made to expedite or secure performance of routine government action, but the
rules are complicated. Check with the Law Department before making a questionable payment.

Q: In order to expedite the delivery of products and technical drawings to a non-U.S. customer, I
propose to hand-carry or have other employees traveling to our customer’s facility hand-carry these
products and drawings in luggage or briefcases. Would this be a problem?

A: Yes. This could violate U.S. export laws and Company policy, and could cause delays, seizure of
the products and drawings, fines, and loss of export privileges. Contact your Export Control
Specialist or the Law Department before hand-carrying Alion products or technical data abroad.

Summary

The success of Alion’s Program depends on the support and cooperation of all employees. If you
have questions relative to the conduct or laws summarized in this Code, contact your supervisor or
manager, or anyone on the Ethics Contact List. By keeping these broad lines of communication open
and by conducting ourselves responsibly and ethically, we will ensure the continuance of our
reputation as a preeminent supplier of technology services and products to both the government and
industry.

This Code may be changed at any time with or without notice. Adherence to this Code and the
Program constitutes a term of employment, but the Code shall not otherwise alter the employment
relationship of any employee or limit the right of either Alion or any employee to terminate that
employment relationship with or without notice and with or without cause.SUPPLEMENT TO ALION
CODE OF ETHICS, CONDUCT, AND RESPONSIBILITY: Code of Ethics for Finance Employees

Effective November 2007

This Code of Ethics applies to the Chief Executive Officer (“CEO”), Chief Financial Officer
(“CFO”), Controller or other personnel performing similar functions (collectively “Finance
Employees”). This Code is intended to supplement the Alion Code of Ethics, Conduct and
Responsibility and its implementing policies and procedures. To ensure complete and accurate
financial records and reporting, all Finance Employees will:

	 	a.	 	Act with honesty and integrity and avoid actual or apparent conflicts of
interest;	 

	 	b.	 	Provide constituents with information that is accurate, complete, objective, relevant,
timely and understandable;

	 	c.	 	Comply with rules and regulations of federal, state and local governments, and other
applicable private and public regulatory agencies;

	 	d.	 	Act in good faith, responsibly, with due care, competence and diligence, without
misrepresenting material facts or allowing one’s independent judgment to be subordinated;

	 	e.	 	Respect the confidentiality of information acquired in the course of one’s work except
when authorized or otherwise legally obligated to disclose. Confidential information
acquired in the course of one’s work will not be used for personal advantage;

	 	f.	 	Share knowledge and maintain skills important and relevant to constituents’ needs;

	 	g.	 	Proactively promote ethical behavior as a responsible partner among peers, in the work
environment and the community; and

	 	h.	 	Exercise responsible use of and control over all assets and resources employed or
entrusted.

Sarbanes-Oxley Compliance

The Sarbanes-Oxley Act of 2002 (the “Act”) imposes duties and significant penalties for
non-compliance on public companies and their executives, directors, auditors, attorneys and
securities analysts.

Because Alion is an issuer of securities that is required to file an annual report on Form 10-K
with the Securities and Exchange Commission (“SEC”), there are numerous aspects of the Act that
impact Alion. These include, for example, rules governing the independence of Alion’s independent
financial auditor, requirements on the qualifications of members of the Board’s Audit and Finance
Committee, enhanced financial disclosures in filings with the SEC, restrictions on conflicts of
interest, and criminal accountability for fraud.

Pursuant to the Act, the SEC has issued rules requiring the CEO and CFO to certify that:

	 	1.	 	The annual report does not contain untrue statements or material omissions;

	 	2.	 	The financial statements fairly present, in all material respects, the financial
condition and results of operations;

	 	3.	 	Such officers are responsible for internal controls designed to ensure that they
receive material information regarding the issuer and consolidated subsidiaries;

	 	4.	 	The internal controls have been reviewed for their effectiveness within 90 days prior
to the report; and

	 	5.	 	Any significant changes to the internal controls have been reported.

Consistent with the best practices implemented by public companies, Alion’s CEO and CFO require
certain executives who report directly to them to make an internal certification that these
executives have provided the CEO or CFO will all necessary information. Such internal
certifications, called “sub-certifications,” are not filed with the SEC, but nevertheless provide
the company with assurance that it has obtained all facts necessary to file a proper report to the
SEC. In most cases, the CEO’s and CFO’s direct reports will similarly require their reports to
make a second-tier sub-certification.

Any questions regarding this Code should be directed to the Alion Law Department or through other

channels as set forth in the Code of Ethics, Conduct and Responsibility.CODE OF ETHICS,

CONDUCT AND RESPONSIBILITY ACKNOWLEDGEMENT FORM

	 
	I acknowledge that I have received and carefully read Alion’s Code of Ethics,

Conduct and Responsibility – November 2009 (Fourth Edition). I understand that

this Code, along with the policies and procedures implementing the Code,

outline the Alion Ethics Compliance Program and the requirements to conduct

business honestly, ethically and in accordance with the Company’s policies and

all applicable laws.

I understand the importance of my obligation to always conduct my business

affairs in a legal and ethical manner in accordance with Alion’s policies, and

(where applicable) to be available to my staff to provide them guidance on

proper business conduct. I will promptly report any possible violation of the

Code in accordance with such policies.

I understand that compliance with the Code is a mandatory condition of

employment with Alion, and that my employment with Alion is at-will and may be

terminated by me or the Company at any time. The Code and the Company’s

policies may be amended or revoked, or new policies may be established

unilaterally and within the Company’s discretion.

Check one of the following categories:

	New Employee

Annual Acknowledgement

	Signed:

	Printed Name:

	Date:

	Sector:

	Group:

When complete and signed, forward this document to your local Human Resources Manager.

5EX-10.1

EMPLOYMENT AGREEMENT

This Employment Agreement (“Agreement”) executed this 12th day of November, 2009
is entered into between Group 1 Automotive, Inc. (“Employer”), and Darryl M. Burman (“Employee”),
to become effective as of December 1, 2009 (the “Effective Date”).

RECITALS

WHEREAS, Employer and Employee previously entered into an employment agreement dated December
1, 2006 as amended (the “Prior Employment Agreement”) and they desire to enter into a continuing
employment relationship under the following terms and to supersede the Prior Employment Agreement
in its entirety.

WHEREAS, Employee has made the following representations to Employer, and Employer is relying
upon such representations: (i) Employee has previously completed the term of the Prior Employment
Agreement and recognizes that it is null and void; (ii) Employee is not subject to any non-compete
or other provision in any other agreement to which he is a party that would restrict his ability to
perform his obligations under this Agreement; and (iii) Employee is not bound by the terms of any
other agreement that would prevent him from performing his obligations under this Agreement.

WHEREAS, simultaneously with the execution of the Prior Employment Agreement, Employer and
Employee executed the Incentive Compensation and Non-Compete Agreement (“Incentive Compensation
Agreement”) governing the terms and conditions of Employer’s grant of restricted stock or
restricted stock units (collectively “Restricted Stock”) to Employee and the terms and conditions
of Employee’s non-competition obligations to Employer and nothing herein shall affect the continued
enforceability of the Incentive Compensation Agreement.

AGREEMENT

For and in consideration of the mutual promises, covenants, and obligations contained herein,
Employer and Employee agree as follows:

	1.	 	EMPLOYMENT AND DUTIES

1.1. Agreement to Employ. Employer shall employ Employee, and Employee shall be employed by
Employer, beginning on the Effective Date and continuing throughout the Term (as defined below) of
this Agreement, subject to the terms and conditions of this Agreement and the Incentive
Compensation Agreement.

1.2. Position and Responsibilities. Employee shall serve as General Counsel of Employer.
Employee shall perform diligently the duties and services appertaining to such position as
reasonably determined by Employer, as well as such additional duties and services appropriate to
such position which Employee from time to time may be reasonably directed to perform by Employer.
Employee shall at all times comply with and be subject to such reasonable policies and procedures
as Employer may establish from time to time, which shall not be contrary to the terms of this
Agreement. Employee shall devote Employee’s full business time, energy, and best efforts to the
business and affairs of Employer. Employee shall not engage, directly or indirectly, in any other
business, investment, or activity that interferes with Employee’s performance of Employee’s duties
hereunder, is contrary to the interests of Employer or any of its subsidiaries or affiliates, or
requires any significant portion of Employee’s business time; provided, however, that Employee may
engage in passive personal investments that do not conflict with the business and affairs of
Employer or any of its subsidiaries or affiliates or interfere with Employee’s performance of his
duties hereunder.

1.3. Fiduciary Duties. Employee acknowledges and agrees that Employee owes a fiduciary duty
of loyalty, fidelity and allegiance to act at all times in the best interests of Employer or any of
its subsidiaries or affiliates and to do no act which would be inconsistent with those duties. In
keeping with these duties, Employee shall make full disclosure to Employer of all business
opportunities pertaining to Employer’s business and shall not appropriate for Employee’s own
benefit business opportunities concerning the subject matter of the fiduciary relationship.

1.4. Conflicts of Interest. Any direct or indirect interest of Employee in connection with,
or benefit received by the Employee from, any outside activities, particularly commercial
activities, which might in any way adversely affect Employer, or any of its affiliates, shall be
deemed to be a conflict of interest. In keeping with Employee’s fiduciary duties to Employer,
Employee shall not knowingly become involved in a conflict of interest with Employer, or its
affiliates, or upon discovery thereof, allow such a conflict to continue. Moreover, Employee
agrees that Employee shall disclose to Employer’s Senior Vice President, Chief Financial Officer
and the audit committee of the Employer’s board of directors (the “Board”) any facts which might
involve such a conflict of interest that has not been approved by the Board. The Employer’s
determination as to whether a conflict of interest exists shall be conclusive absent manifest
error; but this standard shall not apply to, nor shall any determination under this Section 1.4
affect, any issue that may arise as to the existence of “cause” under Section 3.2(i). Employer
reserves the right to take such action as, in its judgment, will resolve the conflict, as long as
such action is not contrary to the terms of this Agreement.

	2.	 	COMPENSATION AND BENEFITS

2.1. Base Salary. Employee’s base salary shall be $357,500.00 per annum and shall be paid in
semi-monthly installments in accordance with Employer’s standard payroll practice. Employee’s base
salary may be increased from time to time by Employer and, after any such increase, Employee’s new
level of base salary shall be Employee’s base salary for purposes of this Agreement until the
effective date of any subsequent change. At any time, Employee’s base salary shall not be reduced
other than pursuant to a reduction that is applied to substantially all other executive officers of
Employer and that is no greater than the percentage applied to substantially all other executive
officers.

2.2. Annual Incentive Compensation Program. Employee’s bonus shall be determined by the
compensation committee of the Board (the “Compensation Committee”) in its sole discretion in
accordance with the terms of Employer’s Annual Incentive Compensation Program. Notwithstanding the
foregoing, Employee shall receive, no later than March 31st of each calendar year, his
Annual Incentive Compensation Program outlining his potential bonus calculations and performance
criteria to achieve such discretionary bonus for such calendar year. Any payments made pursuant to
the Annual Incentive Compensation Program shall be made on or before March 15th of the year
following the release of earnings for the year in which the services giving rise to such bonus
award were performed.

2.3. Benefits and Vacation. While employed by Employer, Employee shall be allowed to
participate, on the same basis generally as other executive level employees of Employer, in all
general and executive level employee benefit plans and programs, including improvements or
modifications of the same, which on the Effective Date or thereafter are made available by Employer
to all or substantially all of Employer’s employees. Such benefits, plans, and programs may
include, without limitation, medical, health, vision and dental care, life insurance, disability
protection, deferred compensation and retirement plans. Employer will furnish Employee one
“demonstrator vehicle” of Employee’s choice, and one vehicle allowance totaling $941.67 per month.
Additional perquisites must be approved by the Board and the Compensation Committee. Nothing in
this Agreement is to be construed or interpreted to provide greater rights, participation,
coverage, or benefits under such benefit plans or programs than provided to similarly situated
employees pursuant to the terms and conditions of such benefit plans and programs. In addition,
Employer may furnish to Employee benefit plans and programs that are not generally available to
other employees, including, without limitation, Employer’s Deferred Compensation Plan, Executive
Long-Term Disability Plan, and executive life insurance programs.

2.4. Business Expenses. Employee shall be entitled to incur, and be reimbursed for, all
reasonable out-of-pocket business expenses incurred in the performance of Employee’s duties on
behalf of Employer. Employer shall reimburse Employee for such expenses, in accordance with
Employer’s policies regarding reimbursement of expenses (which policies will comply with Treasury
Regulation § 1.409A-3(i)(1)(iv)), subject to the Employee presenting appropriate supporting
documents regarding such expenses as required by such policies.

2.5. Benefit Obligations. Employer shall not by reason of this Section 2 be obligated to
institute, maintain, or refrain from changing, amending, or discontinuing, any incentive
compensation or employee benefit program or plan, so long as such actions are similarly applicable
to other covered employees generally. Moreover, unless specifically provided for in a written plan
document adopted by the Board or the Compensation Committee, none of the benefits or arrangements
described in this Section 2 shall be secured or funded in any way, and each shall instead
constitute an unfunded and unsecured promise to pay money in the future exclusively from the
general assets of Employer and its subsidiaries and affiliates.

2.6. Taxes. Employer may withhold from any compensation, benefits, or amounts payable under
this Agreement all federal, state, city, or other taxes as may be required pursuant to any law or
governmental regulation or ruling.

	3.	 	TERM OF THIS AGREEMENT, EFFECT OF EXPIRATION OF TERM, AND TERMINATION PRIOR TO
EXPIRATION OF TERM AND EFFECTS OF SUCH TERMINATION	 

3.1. Term. The initial term of this Agreement shall be from December 1, 2009 through November
30, 2011 (the “Initial Term”), unless earlier terminated as provided for herein. Unless earlier
terminated as provided for herein, the Term shall be automatically renewed for successive one-year
periods (each defined as a “Renewal Term”) unless either party notifies the other party in writing,
not less than sixty (60) days prior to expiration of the Initial Term or Renewal Term, as
applicable, of that party’s intent to not renew this Agreement. The Initial Term and any Renewal
Term(s) are collectively referred to herein as the “Term.”

3.2. Termination by Employer. Notwithstanding any other provisions of this Agreement,
Employer shall have the right to terminate Employee’s employment under this Agreement at any time,
including during the Term, for any of the following reasons:

	 	(i)	 	For “cause,” which, as used in this Section 3.2(i), shall mean any of the
following; (a) the Employee’s conviction or plea of nolo contendere to a felony or a
crime involving moral turpitude; (b) the Employee’s breach of any material provision of
either this Agreement, the Employee Handbook, Employer’s Code of Conduct, or the Code
of Ethics for Specified Officers of Employer signed by Employee; (c) the Employee’s
using for his own benefit any confidential or proprietary information of Employer, or
willfully divulging for his benefit such information; (d) the Employee’s (1) fraud or
(2) misappropriation or theft of any of the Employer’s funds or property; or (e) the
Employee’s willful refusal to perform his duties or gross negligence, provided that
Employer, before terminating Employee under subsection (b) or (e) must first give
written notice to Employee of the nature of the alleged breach or refusal and must
provide the Employee with a minimum of fifteen (15) days to correct the problem and,
provided further, before terminating Employee for purported gross negligence Employer
must give written notice that explains the alleged gross negligence in detail and must
provide Employee with a minimum of twenty (20) days to correct the problem, unless
correction is inherently impossible;

	 	(ii)	 	For any other reason whatsoever, including termination without cause, in the
sole discretion of Employer’s Board of Directors;

	 	(iii)	 	Upon Employee’s death; or

	 	(iv)	 	Upon Employee’s becoming incapacitated by accident, sickness, or other
circumstance which in the reasonable opinion of a qualified doctor approved by the
Board renders him mentally or physically incapable of performing the essential
functions of Employee’s position, with or without reasonable accommodation, and which
will continue in the reasonable opinion of such doctor for a period of not less than
180 days. If the Employee disagrees with the determination, the Employee may appoint a
doctor of his own choosing and if that doctor reaches a determination different than
that of the first doctor, the two doctors shall mutually select a third doctor within
ten (10) days and such third doctor’s determination shall be deemed conclusive.

The termination of Employee’s employment shall constitute a “Termination for Cause” if made
pursuant to Section 3.2(i); the effect of such termination is specified in Section 3.4.

The termination of Employee’s employment shall constitute an “Involuntary Termination” if made
pursuant to Section 3.2(ii) or notice by Employer of its intent that this Agreement not renew for a
Renewal Term at any time; the effect of such termination is specified in Section 3.5.

The effect of the employment relationship being terminated pursuant to Section 3.2(iii) as a result
of Employee’s death is specified in Section 3.7.

The effect of the employment relationship being terminated pursuant to Section 3.2(iv) as a result
of the Employee’s inability to perform the essential functions of the position is specified in
Section 3.8.

3.3. Termination by Employee. Notwithstanding any other provisions of this Agreement,
Employee shall have the right to terminate the employment relationship under this Agreement at any
time for any of the following reasons:

	 	(i)	 	A breach by Employer of any material provision of this Agreement or the
occurrence of a “Constructive Termination Event,” which shall be defined as (a) the
failure by the Employer to pay the Employee’s compensation as provided in this
Agreement, (b) relocation without the Employee’s prior written consent of the
Employee’s primary employment location to a location that is more than 50 miles from
the location to which he was required to report on the Effective Date, (c) a material
diminution in the Employee’s position, duties, responsibilities, reporting status, or
authority, without the Employee’s prior written consent, or (d) if the Employee is
requested to perform any illegal activity or to sign-off on any inappropriate financial
statement or acknowledgement, except that before exercising his right to terminate the
employment relationship pursuant to any of the provisions of this subsection (i), the
Employee must first give written notice to the Employer’s Board of Directors of the
circumstances purportedly giving rise to his right to so terminate and must provide the
Employer with a minimum thirty (30) days to correct the problem, unless correction is
inherently impossible; provided, however, that in the event of a Corporate Change (as
defined below) in which Employer either ceases to exist and its successor does not
succeed to Employer’s obligations under this Agreement by operation of law or Employer
has sold or otherwise disposed of substantially all its assets, if Employer’s successor
assumes in writing Employer’s obligations under this Agreement effective as of the date
of such Corporate Change, Employee shall not be entitled to resign for the reasons
described in Section 3.3(i) or 3.3(ii) and receive the compensation and benefits
described in Section 3.5 without a breach by such successor of this Agreement or a
“Constructive Termination Event” or “Compensation Reduction” (as defined below)
occurring upon or following such Corporate Change.

	 	(ii)	 	The involuntary reduction of Employee’s base salary or incentive compensation
targets (other than a reduction in such targets applied consistently to the Company’s
other executive officers that is designed to account for changes in relative EPS
projections as a result of such Corporate Change) within six (6) months after the
occurrence of any Corporate Change (defined below) (a “Compensation Reduction”) that is
not cured by Employer or its successor, as applicable, within thirty (30) days of
receiving detailed written notice of such event from Employee. A “Corporate Change”
shall mean the first to occur of any of the following events: (1) an acquisition by
any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (each, a
“Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under
the Exchange Act) of 50% or more of either: (i) the then outstanding shares of common
stock of Employer (the “Outstanding Common Stock”) or (ii) the combined voting power of
the then outstanding voting securities of Employer entitled to vote generally in the
election of directors (the “Outstanding Voting Securities”); excluding, however, the
following: (A) any acquisition directly from Employer (including without limitation any
public offering), other than an acquisition by virtue of the exercise of a conversion
privilege unless the security being so converted was itself acquired directly from
Employer; (B) any acquisition by Employer; (C) any acquisition by any employee benefit
plan (or related trust) sponsored or maintained by Employer or any Person controlled by
Employer; or (D) any acquisition by any Person pursuant to a transaction which complies
with clauses (A), (B) and (C) of subsection (1) of this definition of “Corporate
Change”); (2) the consummation of a reorganization, merger or consolidation or sale or
other disposition of all or substantially all of the assets of Employer (a “Corporate
Transaction”); excluding, however, such a Corporate Transaction pursuant to which (i)
all or substantially all of the individuals and entities who are the beneficial owners,
respectively, of the Outstanding Common Stock and Outstanding Voting Securities
immediately prior to such Corporate Transaction will beneficially own, directly or
indirectly, more than 50% of, respectively, the outstanding shares of common stock and
the combined voting power of the then outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the entity resulting
from such Corporate Transaction (including, without limitation, an entity which as a
result of such transaction owns Employer or all or substantially all of the Employer’s
assets, either directly or through one or more subsidiaries) in substantially the same
proportions as their ownership, immediately prior to such Corporate Transaction, of the
Outstanding Common Stock and Outstanding Voting Securities, as the case may be, and
(ii) no Person (other than Employer, any employee benefit plan (or related trust)
sponsored or maintained by Employer, by any entity controlled by Employer, or by such
entity resulting from such Corporate Transaction) will beneficially own, directly or
indirectly, more than 50% of, respectively, the outstanding shares of common stock of
the entity resulting from such Corporate Transaction or the combined voting power of
the outstanding voting securities of such corporation entitled to vote generally in the
election of directors, except to the extent that such ownership existed with respect to
Employer prior to the Corporate Transaction or (3) the approval by the stockholders of
Employer of a complete liquidation or dissolution of Employer, other than to a
corporation pursuant to a transaction which would comply with clauses (i) and (ii) of
subsection (2) of this definition of “Corporate Change,” assuming for this purpose that
such transaction were a Corporate Transaction. Any such Corporate Change must also
constitute a change in control as such phrase is defined in section 409A(a)(2)(A)(v) of
the Internal Revenue Code of 1986, as amended (the “Code”) and the guidance issued
thereunder, including consideration of all applicable attribution of ownership rules
under section 318 of the Code to the extent required by any guidance under section 409A
of the Code; or

	 	(iii)	 	For any other reason whatsoever, in the sole discretion of Employee.

The termination of Employee’s employment by Employee shall constitute an “Involuntary Termination”
if made pursuant to Section 3.3(i) or 3.3(ii); the effect of such termination is specified in
Section 3.5. The termination of Employee’s employment by Employee shall constitute a “Voluntary
Termination” if made pursuant to Section 3.3(iii); the effect of such termination is specified in
Section 3.4.

3.4. Payments Upon Voluntary Termination and Termination for Cause. Upon a “Voluntary
Termination” of the employment relationship during the Term by Employee pursuant to Section
3.3(iii), or for “cause” by Employer pursuant to Section 3.2(i), all compensation and benefits for
Employee shall cease and terminate as of the date of termination. Employee shall be entitled to
pro rata salary through the date of such termination, but Employee shall not be entitled to any
bonuses with respect to the operations of Employer, its subsidiaries and/or affiliates for the
calendar year in which Employee’s employment with Employer is terminated. Employee will be
entitled to the use of the “demonstrator vehicle” provided pursuant to Section 2.4 for 30 days
following date of termination.

3.5. Payments Upon Involuntary Termination.

	 	(i)	 	Upon an Involuntary Termination of the employment relationship during the Term
by Employer pursuant to Section 3.2(ii), or by Employee pursuant to Section 3.3(i),
Employee shall be entitled, in consideration of Employee’s continuing obligations
hereunder after such termination (including, without limitation, Employee’s
non-competition obligations as set forth in the Incentive Compensation Agreement), to
receive a payment in an amount equal to Employee’s base salary determined pursuant to
Section 2.1 and as in effect immediately prior to the Involuntary Termination, divided
by twelve (12) and multiplied by the greater of (i) twelve (12) months or (ii) the
number of months remaining in the Term, payable in a single lump sum payment on the
first day of the seventh month following the Employee’s “separation from service”
(within the meaning of Treasury Regulation § 1.409A-1(h)) with the Employer
(“Separation from Service”). Employee shall also be entitled to a pro-rated bonus
(based on termination date), calculated in accordance with the Employer’s Incentive
Compensation Plan and paid in a single lump sum payment at the later of (1) the first
day of the seventh month following the Employee’s Separation from Service, or (2) March
15th of the year following the release of earnings for the year in which Separation
from Service occurred.

	 	(ii)	 	Upon an Involuntary Termination of the employment relationship by Employee
pursuant to Section 3.3(ii), Employee shall be entitled, in consideration of Employee’s
continuing obligations hereunder after such termination (including, without limitation,
Employee’s non-competition obligations as set forth in the Incentive Compensation
Agreement), to receive a payment in an amount equal to Employee’s base salary
determined pursuant to Section 2.1 and as in effect immediately prior to the
Involuntary Termination, divided by twelve (12) and multiplied by fifteen (15) months,
payable in a single lump sum payment on the first day of the seventh month following
the Employee’s Separation from Service.

	 	(iii)	 	In the event of an Involuntary Termination pursuant to Sections 3.2(ii),
3.3(i) or 3.3(ii), all Restricted Stock and stock options granted to Employee under the
Incentive Compensation Agreement shall become 100% vested, the exercise of which shall
continue to be permitted as if Employee’s employment had continued for the full Term.
Employee will be entitled to a pro-rated bonus (based on termination date), calculated
in accordance with the Employer’s Incentive Compensation Plan and paid in a single lump
sum payment at the later of (1) the first day of the seventh month following the
Employee’s Separation from Service, or (2) March 15th of the year following the release
of earnings for the year in which Separation from Service occurred. The Employee would
also be eligible for use of the “demonstrator vehicle” provided pursuant to Section 2.4
for six months following the Separation from Service; provided, however, that the
taxable benefit to the Employee does not exceed the limit set forth in section
402(g)(1)(B) of the Code in the calendar year of the Employee’s Separation from Service
with the Employer.

	 	(iv)	 	Employee shall not be under any duty or obligation to seek or accept other
employment following Involuntary Termination and the amounts due Employee hereunder
shall not be reduced or suspended if Employee accepts subsequent employment. As noted
in the Incentive Compensation Agreement, the rights and liabilities of Employer and
Employee regarding entitlement to vesting of all Restricted Stock and stock options,
shall be conditioned and dependent on the Employee’s consent and agreement to the
promises set forth therein and to the enforceability of such covenants stated therein.

3.6. Covenant Not to Sue. Employee shall not sue or lodge any claim, demand or cause of
action against Employer based on Involuntary Termination for any monies other than those specified
in Section 3.5. If Employee breaches this covenant, Employer, and its subsidiaries and affiliates
shall be entitled to recover from Employee all sums expended by Employer, and its subsidiaries and
affiliates (including costs and attorneys’ fees) in connection with such suit, claim, demand or
cause of action. Employer and its subsidiaries and affiliates shall not be entitled to offset any
of the amounts specified in the immediately preceding sentence against amounts otherwise owing by
Employer and its subsidiaries and affiliates to Employee prior to a final determination under the
terms of the arbitration provisions of this Agreement that Employee has breached the covenant
contained in this Section 3.6.

3.7. Payments Upon Employee’s Death. Upon termination of the employment relationship as a
result of Employee’s death (i) Employee’s heirs, administrators, or legatees shall be entitled to
Employee’s pro rata salary through the date of such termination, and Employee’s heirs,
administrators, or legatees shall be entitled to a pro-rated bonus (based on date of death),
calculated in accordance with the Employer’s Incentive Compensation Plan and paid on or before
March 15th of the year following the release of earnings for the year in which such
termination occurred; and (ii) all Restricted Stock and stock options granted to Employee pursuant
to the Incentive Compensation Agreement shall become 100% vested.

3.8. Payments Upon Employee’s Incapacity. Upon termination of the employment relationship as
a result of Employee’s incapacity pursuant to Section 3.2(iv): (i) Employee shall be entitled to
his pro rata salary through the date of such termination, and Employee shall be entitled to a
pro-rated bonus (based on date of disability), calculated in accordance with the Employer’s
Incentive Compensation Plan and paid in a single lump sum payment at the later of (1) the
first day of the seventh month following the Employee’s Separation from Service, or (2) March 15th
of the year following the release of earnings for the year in which Separation from Service
occurred; and (ii) all Restricted Stock and stock options granted to Employee under the Incentive
Compensation Agreement shall become 100% vested. The Employee would also be eligible for use of the
“demonstrator vehicle” provided pursuant to Section 2.4 for six months from date of disability;
provided, however, that the taxable benefit to the Employee does not exceed the limit set forth in
section 402(g)(1)(B) of the Code.

3.9. Right of Set-Off. In all cases, the compensation and benefits payable to Employee under
this Agreement upon Separation from Service shall be reduced and offset by any amounts to which
Employee may otherwise be entitled under any and all severance plans (excluding any pension,
retirement and profit sharing plans of Employer that may be in effect from time to time) or
policies of Employer or its subsidiaries or affiliates or any successor to all or a portion of the
business or assets of Employer (“Other Severance”); provided, however, in the event this Section
3.9 would result in a substitution for a payment of deferred compensation otherwise payable
pursuant to this Agreement within the meaning of Treasury Regulation § 1.409A-3(f) and an
impermissible change in the timing of the payment of deferred compensation pursuant to Section 409A
of the Code and the guidance promulgated pursuant thereto, then no amounts payable pursuant to this
Agreement will be reduced and instead such Other Severance to which the Employee would be entitled
shall be forfeited.

3.10. Continuation of Certain Obligations. Termination of the employment relationship shall
not terminate those obligations imposed by this Agreement which are continuing in nature,
including, without limitation, Employee’s obligations of confidentiality, non-competition and
Employee’s continuing obligations with respect to business opportunities that had been entrusted to
Employee by Employer during the employment relationship.

3.11. Scope of Agreement. This Agreement shall govern the rights and obligations of Employer
and Employee with respect to Employee’s salary and other perquisites of employment.

	4.	 	UNITED STATES FOREIGN CORRUPT PRACTICES ACT AND OTHER LAWS

4.1. Compliance with Foreign Corrupt Practices Act. Employee shall at all times comply with
United States laws applicable to Employee’s actions on behalf of Employer and its subsidiaries and
affiliates, including specifically, without limitation, the United States Foreign Corrupt Practices
Act, generally codified in 15 USC 78 (“FCPA”), as the FCPA may hereafter be amended, and/or its
successor statutes. If Employee pleads guilty to or nolo contendere or admits civil or criminal
liability under the FCPA or other applicable United States law, or if a court finds that Employee
has personal civil or criminal liability under the FCPA or other applicable United States law, or
if a court finds that Employee committed an action resulting in Employer or any of its subsidiaries
having civil or criminal liability or responsibility under the FCPA or other applicable United
States law, such action or finding shall constitute “cause” for termination under this Agreement in
accordance with Section 3.2(i) unless the Board determines that the actions found to be in
violation of the FCPA or other applicable United States law were taken in good faith and in
compliance with all applicable policies of Employer. The rights afforded Employer under this
provision are in addition to any and all rights and remedies otherwise afforded by the law.

	5.	 	OWNERSHIP AND PROTECTION OF INFORMATION; COPYRIGHTS

5.1. Provision of Confidential and Proprietary Information. Employer owns certain
confidential and proprietary information and trade secrets to which Employee will be given access
for the purpose of carrying out his employment responsibilities hereunder. Furthermore, Employer
shall provide Employee with confidential and proprietary information and trade secrets regarding
Employer and its subsidiaries and affiliates, in order to assist Employee in satisfying his
obligations hereunder. Employer shall provide Employee with specialized training including
orientation, sales and financial information, and computer and systems training.

5.2. Return of Proprietary Material. All information, ideas, concepts, improvements,
discoveries, and inventions, whether patentable or not, which are conceived, made, developed or
acquired by Employee, individually or in conjunction with others, during Employee’s employment by
Employer (whether during business hours or otherwise and whether on Employer’s premises or
otherwise) which relate to Employer’s or any of its subsidiaries’ or affiliates’ businesses,
products or services (including, without limitation, all such information relating to corporate
opportunities, research, financial and sales data, pricing and trading terms, evaluations,
opinions, interpretations, acquisition prospects, the identity of customers or their requirements,
the identity of key contacts within the customer’s organizations or within the organization of
acquisition prospects, or marketing and merchandising techniques, prospective names, and marks)
shall be disclosed to Employer and are and shall be the sole and exclusive property of Employer.
Upon termination of Employee’s employment, for any reason, Employee promptly shall deliver the
same, and all copies thereof, to Employer.

5.3. Nondisclosure of Confidential Information. Except as required by law or process,
Employee will not, at any time during or after his employment by Employer, make any unauthorized
disclosure of any confidential business information or trade secrets of Employer or its
subsidiaries or affiliates, or make any use thereof, except in the carrying out of his employment
responsibilities hereunder. As a result of Employee’s employment by Employer, Employee may also
from time to time have access to, or knowledge of, confidential business information or trade
secrets of third parties, such as customers, suppliers, partners, joint venturers, and the like, of
Employer and its subsidiaries and affiliates. Employee also agrees to preserve and protect the
confidentiality of such third party confidential information and trade secrets to the same extent,
and on the same basis, as Employer’s or any of its subsidiaries’ or affiliates’ confidential
business information and trade secrets.

5.4. Ownership of Copyrighted Works. If, during Employee’s employment by Employer, Employee
creates any original work of authorship fixed in any tangible medium of expression which is the
subject matter of copyright (such as videotapes, written presentations on acquisitions, computer
programs, E-mail, voice mail, electronic databases, drawings, maps, architectural renditions,
models, manuals, brochures, or the like) relating to Employer’s, or any of its subsidiaries’ or
affiliates’ businesses, products, or services, whether such work is created solely by Employee or
jointly with others (whether during business hours or otherwise and whether on Employer’s or any of
its subsidiaries’ or affiliates’ premises or otherwise), Employer shall be deemed the author of
such work if the work is prepared by Employee in the scope of his employment; or, if the work is
not prepared by Employee within the scope of his employment, but is specially ordered by Employer
or any of its subsidiaries or affiliates as a contribution to a collective work, as a part of a
motion picture or other audiovisual work, as a translation, as a supplementary work, as a
compilation, or as an instructional text, then the work shall be considered to be work made for
hire and Employer or any of its subsidiaries or affiliates shall be the author of the work. If
such work is neither prepared by Employee within the scope of his employment, nor a work specially
ordered that is deemed to be a work made for hire, then Employee hereby agrees to assign, and by
these presents does assign, to Employer all of Employee’s worldwide right, title, and interest in
and to such work and all rights of copyright therein.

5.5. Protection of Proprietary Material. Both during the period of Employee’s employment by
Employer and thereafter, Employee shall assist Employer, or any of its subsidiaries or affiliates
and their nominees, at any time, in the protection of Employer’s or any of its subsidiaries’ or
affiliates’ worldwide right, title, and interest in and to information, ideas, concepts,
improvements, discoveries, and inventions, and its copyrighted works, including without limitation,
the execution of all formal assignment documents requested by Employer or any of its subsidiaries
or affiliates or their nominees and the execution of all lawful oaths and applications for patents
and registration of copyright in the United States and foreign countries.

	6.	 	MISCELLANEOUS

6.1. Definition of “Affiliates” and “Affiliated.” For purposes of this Agreement the terms
“affiliates” or “affiliated” means an entity who directly, or indirectly through one or more
intermediaries, controls, is controlled by, or is under common control with Employer.

6.2. Prohibition of Publication of Certain Information. Except as required by law or process,
Employee shall refrain, both during the employment relationship and after the employment
relationship terminates, from publishing any oral or written statements about Employer at any of
its subsidiaries’ or affiliates’ directors, officers, employees, agents or representatives that are
slanderous, libelous, or defamatory; or that disclose private or confidential information about
Employer or any of its subsidiaries’ or affiliates’ business affairs, officers, employees, agents,
or representatives; or that constitute an intrusion into the seclusion or private lives of Employer
or any of its subsidiaries’ or affiliates’ directors, officers, employees, agents, or
representatives; or that give rise to unreasonable publicity about the private lives of Employer or
any of its subsidiaries’ or affiliates’ officers, employees, agents, or representatives; or that
place Employer or its subsidiaries’ or affiliates’ officers, employees, agents, or representatives
in a false light before the public; or that constitute a misappropriation of the name or likeness
of Employer or any of its subsidiaries’ or affiliates’ or its officers, employees, agents, or
representatives. Except as required by law or process, the Employer shall refrain, and shall use
its best efforts to assure that its directors, officers, employees, agents and representatives, and
its subsidiaries and affiliates and their directors, officers, employees, agents and
representatives, shall refrain, both during the employment relationship and after the employment
relationship terminates, from publishing any untrue oral or written statements about the Employee
that are slanderous, libelous, or defamatory; or that disclose private or confidential information
about the Employee; or that constitute an intrusion into the seclusion or private life of the
Employee; or that give rise to unreasonable publicity about the private life of the Employee; or
that place the Employee in a false light before the public.

6.3. Notice. For purposes of this Agreement, notices and all other communications provided
for herein shall be in writing and shall be deemed to have been duly given when personally
delivered or when mailed by United States registered or certified mail, return receipt requested,
postage prepaid, addressed as follows:

If to Employer to:

Group 1 Automotive, Inc.

800 Gessner, Suite 500

Houston, TX 77024

Attn: Chairman of the Board

With a copy to:

Fisher & Phillips LLP

18400 Von Karman Avenue, Suite 400

Irvine, CA 92612

Attn: John M. Polson, Esq.; and

	 	 	 
	Group 1 Automotive, Inc.

	800 Gessner, Suite 500

	Houston, TX 77024

	Attn:

	 	President

If to Employee:

Darryl M. Burman

401 Bunker Hill Road

Houston, TX 77024

Either Employer or Employee may furnish a change of address to the other in writing in accordance
herewith, except that notices of changes of address shall be effective only upon receipt.

6.4. Governing Law. This Agreement shall be governed in all respects by the law of the State
of Texas, excluding any conflict-of-law rule or principle that might refer the construction of the
Agreement to the laws of another State or country.

6.5. No Waiver. No failure by either party hereto at anytime to give notice of any breach by
the other party of, or to require compliance with, any condition or provision of this Agreement
shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any
prior or subsequent time.

6.6. Severability. It is a desire and intent of the parties that the terms, provisions,
covenants, and remedies contained in this Agreement shall be enforceable to the fullest extent
permitted by law. If any such term, provision, covenant, or remedy of this Agreement or the
application thereof to any person, association, or entity or circumstances shall, to any extent, be
construed to be invalid or unenforceable in whole or in part, then such term, provision, covenant,
or remedy shall be construed in a manner so as to permit its enforceability under the applicable
law to the fullest extent permitted by law. In any case, the remaining provisions of this
Agreement or the application thereof to any person, association, or entity or circumstances other
than those to which they have been held invalid or unenforceable, shall remain in full force and
effect.

6.7. Arbitration. The Parties agree that any claim, dispute, and/or controversy that they may
have arising from, related to, or having any relationship or connection whatsoever with this
Agreement, Employee’s employment, or other association with the Company, shall be submitted to and
determined exclusively by binding arbitration under the Federal Arbitration Act. In addition to
any other requirements imposed by law, the arbitrator selected shall be a retired Judge, or
otherwise qualified individual to whom the parties mutually agree, and shall be subject to
disqualification on the same grounds as would apply to a Judge. The arbitrator shall apply the
Federal Rules of Civil Procedure and Evidence, including all rules of pleading, discovery, evidence
and all rights to resolution of the dispute by means of motions for summary judgment and judgment
on the pleadings. Resolution of the dispute shall be based solely upon the law governing the
claims and defenses pleaded, and the arbitrator may not invoke any basis (including but not limited
to, notions of “just cause”) other than such controlling law. The arbitrator shall have the
immunity of a judicial officer from civil liability when acting in the capacity of an arbitrator,
which immunity supplements any other existing immunity. Likewise, all communications during or in
connection with the arbitration proceedings are privileged. Awards shall include the arbitrator’s
written reasoned opinion.

6.8. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of
Employer, its subsidiaries and affiliates and any other person, association, or entity which may
hereafter acquire or succeed to all or a portion of the business or assets of Employer by any means
whether direct or indirect, by purchase, merger, consolidation, or otherwise. Employee’s rights
and obligations under this Agreement are personal and such rights, benefits, and obligations of
Employee shall not be voluntarily or involuntarily assigned, alienated, or transferred, whether by
operation of law or otherwise, by Employee without the prior written consent of Employer.
Notwithstanding anything to the contrary in this Section 6.8 or elsewhere in the Agreement, in the
event of the Employee’s death after becoming entitled to receipt of any payment or benefit, but
before receiving all such payments or benefits, the remaining payments shall be made to the
Employee’s survivors or estate and the remaining benefits shall be provided to his widow or other
survivors to the same extent and in the same manner as if he were still alive.

6.9. Entire Agreement. Except as provided in (1) written company policies promulgated by
Employer dealing with issues such as securities trading, business ethics, governmental affairs and
political contributions, consulting fees, commissions and other payments, compliance with law,
investments and outside business interests as officers and employees, reporting responsibilities,
administrative compliance, and the like, (2) the written benefits, plans, and programs referenced
in Section 2.3, (3) any signed written agreements contemporaneously or hereafter executed by
Employer and Employee, (4) the Incentive Compensation Agreement or (5) any award agreements under
Employer’s 1996 Stock Incentive Plan or 2007 Stock Incentive Plan entered into by Employer and
Employee prior to the Effective Date, this Agreement constitutes the entire agreement of the
parties with regard to such subject matters, and contains all of the covenants, promises,
representations, warranties, and agreements between the parties with respect to such subject
matters and replaces and merges previous agreements and discussions pertaining to the employment
relationship between Employer and Employee, including, without limitation, the Prior Employment
Agreement.

6.10. Headings. The headings contained in this Agreement are for reference only and shall not
affect the meaning or interpretation of any provision of this Agreement.

6.11. Amendment. No amendments or additions to this Agreement shall be binding unless in
writing and signed by both parties hereto.

6.12. Counterparts. This Agreement may be executed in counterparts, each of which shall be
deemed to be an original, but both of which together will constitute one and the same instrument

IN WITNESS WHEREOF, Employer and Employee have duly executed this Agreement in multiple
originals to be effective on the date first stated above.

	 	 	 	 	 
	DATE:
	 	November 12, 2009
	 	GROUP 1 AUTOMOTIVE, INC.

	 	 	 	 	By: /s/John C. Rickel

	 	 	 	 	 

	 	 	 	 	Name:John C. Rickel

Title:Senior Vice President

	DATE:
	 	November 12, 2009
	 	

	 	 	 	 	/s/Darryl M Burman

	 	 	 	 	 

	 	 	 	 	Darryl M. Burman

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00165-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00165-of-00352.parquet"}]]