Political Contributions
KBR, Inc. and Subsidiary Companies
Corporate Policy
Date: November 10, 2006
Index No.: 3-0012
Purpose:
The Company encourages participation in the political process by its Employees. The United States federal government, some states and some other countries have, however, enacted Laws regulating campaign contributions in order to limit the political influence of certain types of contributors, such as corporations. This Policy sets forth certain rules regarding Company and Employee contributions to political candidates and participation in political campaigns.
Policy:
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The Company will comply with applicable Laws regulating political influence and campaign contributions.
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The Company believes strongly in the democratic political process and that its Directors, Employees and agents should take an active interest in fostering principles of good government in the nations, states and communities in which they live. Directors and Employees may spend their own time and funds supporting political candidates and issues but they will not be reimbursed by the Company in any way for such time or their funds used for political contributions. Directors and Employees are urged to be sure that their personal political contributions and activities are in compliance with applicable Law. For example, persons who are not United States citizens are not permitted to make political contributions to candidates in federal, state or local elections in the United States. Other countries also have Laws regulating political contributions.
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No Director, Employee or agent shall apply any pressure, direct or implied, on any other Employee that infringes upon an individual's right to decide whether, to whom and in what amount a personal political contribution is to be made.
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Directors, Employees and agents who represent the Company in political and governmental matters must comply with all Laws that regulate corporate participation in public affairs. Under various statutes, certain conduct, which is permitted and encouraged for individuals, is prohibited on the part of corporations. It is the Company's policy to comply fully with these prohibitions.
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The Company is legally prohibited from contributing directly or indirectly in support of political candidates for elective federal office in the United States and is similarly prohibited from making such contributions in certain states and other countries. Indirect expenditures on behalf of a candidate, such as travel on Company aircraft, may be considered as contributions in this regard.
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No political contribution of Company funds, property or services can be made by the Company, or in the name of the Company, except in accordance with a plan approved by the Chief Executive Officer or his or her designee. Such approval is subject to assurance by the Law Department that such contribution is legal and proper under applicable Laws and regulations.
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When permitted by Law and authorized by the Chief Executive Officer or his or her designee, Company funds and facilities may be used to provide the needed administrative support for the operation of Political Action Committees or political action programs, the purposes of which include the disbursement of financial contributions made by certain Employees, shareholders and/or others to political parties or candidates. No Company funds, facilities or other property will be used for other than administrative support of such a committee.
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When permitted by Law, and authorized by the Chief Executive Officer or his or her designee, expenditures of Company funds may be made to inform or influence the voting public on an issue of importance to the business of the Company and its shareholders.
Procedure:
If an Employee or Director is requested to make a political contribution or to provide assistance on behalf of the Company, whether personal or corporate, and such Employee or Director has any questions regarding this Policy or applicable Law, the Employee or Director should consult with the Vice President-Government Relations or the Law Department.
Other References:
1. Corporate Policy No. 3-0005 (Sensitive Transactions) should be consulted.
Approved: Board of Directors
November 10, 2006