Harassment

KBR, Inc. and Subsidiary Companies
Corporate Policy

Date: November 10, 2006
Index No.: 3-0016

Purpose:

This Policy establishes and communicates the Company's policy prohibiting harassment.

Policy:

1. The Company believes that all Employees should be treated with dignity and respect.

2. It is the policy of the Company to provide a work environment which is free from harassment. The Company prohibits all forms of harassment of its Employees by Directors and other Employees, including supervisors or other members of management.

3. It is the responsibility of every Employee and Director to cooperate in reaching this goal. Harassment is considered a serious act of misconduct and may subject an Employee to disciplinary action including immediate discharge. As used in this Policy, the term "harassment" includes sexual, racial, ethnic, and other forms of harassment, including harassment based upon disability.

4. Some examples of what may be considered harassment, depending on the facts and circumstances, include the following:

   Verbal or Written Harassment. For example, unwelcome or derogatory comments regarding a person's race, color, sex, religion, ancestry, ethnic heritage, mental or physical disability, age, appearance or other classification protected by Law; threats of physical harm; or the distribution, including by e-mail or other electronic media, or display in any Company work area, of written or graphic material having such effects.

   Physical Harassment. For example, hitting, pushing or other aggressive physical contact, touching or threats to take such action, or inappropriate gestures.

   Sexual Harassment. For example, unwelcome sexual conduct, whether verbal or physical, including, among other things, sexual advances, demands for sexual favors, or other verbal or physical conduct of a sexual nature, whether or not it was designed or intended to promote an intimate relationship.

   Racial Harassment. For example, unwelcome or derogatory comments regarding a person's race, color, ancestry or ethnic heritage; or distribution, including e-mail or other electronic media, or display in any Company work area, of written or graphic material having such effects.

5. It is not considered harassment of any sort for supervisors and other members of management to enforce job performance and standards of conduct in a fair and consistent manner.

6. Employees who violate this Policy against harassment will be subject to disciplinary action at the discretion of the Company, up to and including suspension and termination of employment. Supervisors and other members of management who fail to report violations by others of which they become aware, also will be subject to disciplinary action, up to and including suspension and termination of employment.

Procedure:

1. Any Employee who believes she or he is being harassed should consider telling the offending party that she or he objects to that conduct. This often solves the problem. However, if an Employee is not comfortable confronting the offending party (or if the offending party's unwelcome conduct continues), the Employee should advise his or her immediate supervisor of the offending conduct. If the Employee is more comfortable discussing the issue with someone other than his or her immediate supervisor, or if the immediate supervisor has not taken what the Employee regards as appropriate action to solve the problem, the Employee should contact a Human Resources or Law Department representative.

2. All such complaints will be investigated promptly and discreetly. Employees will not suffer adverse consequences as a result of reporting any act of harassment, including sexual harassment.

Other References:

1. Corporate Policy No. 3-0002 (Equal Employment Opportunity) should be consulted.

Approved: Board of Directors
November 10, 2006