Antitrust and Competition Laws

KBR, Inc. and Subsidiary Companies
Corporate Policy

Date: November 10, 2006
Index No.: 3-0013

Purpose:

This Policy provides guidelines for compliance with all applicable antitrust and competition Laws.

Policy:

  1. The Company will comply in all respects with applicable antitrust and competition Laws.

  2. No Director, Employee or agent of the Company shall enter into any understanding, agreement, plan or scheme, express or implied, formal or informal, with any competitor in regard to prices, terms or conditions of sale or service, production, distribution, territories or customers; nor exchange or discuss with a competitor prices, terms or conditions of sale or service, or any other competitive information; nor engage in any other conduct which violates any applicable antitrust or competition Laws. Normal subcontracting arrangements or joint proposals with competitors which are not in violation of applicable antitrust or competition Laws and which have been approved by the Law Department are not prohibited by this Policy. Any discussion with competitors in connection with a project in which the competitor is an alliance partner, joint venturer or subcontractor must be precleared and coordinated with the Law Department.

  3. Each Director, Employee and agent responsible for the conduct or practices of the Company which may involve the application of the antitrust or competition Laws should consult with and be guided by the advice of the Law Department. Any questions on matters having possible antitrust or competition implications will be referred to the Law Department prior to taking any action with respect to such matters.

  4. There shall be no exception to this Policy, nor shall it be compromised or qualified by anyone acting for or on behalf of the Company.

Procedure:

The Company shall establish internal procedures and controls as appropriate to implement the provisions of this Policy, including without limitation the preparation and appropriate distribution of antitrust and competition compliance training materials designed to aid the Company's Employees and agents in fulfilling their responsibilities in antitrust and competition matters.

Other References:

1. Corporate Policy No. 3-0001 (General Policy Regarding Laws and Business Conduct) should be consulted.

Approved: Board of Directors
November 10, 2006