Attached files
Exhibit
14.1
XSTREAM SYSTEMS, INC.
CODE OF ETHICS FOR SENIOR FINANCIAL OFFICERS
I. | Introduction | |
This Code of Ethics for Senior Financial Officers (the Code) applies to Senior Financial Officers of XStream Systems, Inc. (the Company). The term Senior Financial Officer, as used in this Code, means the Companys Chief Executive Officer (i.e., the principal executive officer), Chief Financial Officer (i.e., the principal financial officer), President, Principal Accounting Officer or Controller or any other person performing similar functions. | ||
While this Code provides general guidance for appropriate conduct and avoidance of conflicts of interest, it does not supersede specific policies that are set forth in other Company policy statements. | ||
The purpose of this Code is to provide guidance to the Companys Senior Financial Officers with regard to and to promote the following: |
| honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; | ||
| full, fair, accurate, timely and understandable disclosure in reports and documents that the Company files with, or submits to, the Securities and Exchange Commission (the SEC) and in other public communications made by the Company; | ||
| compliance with applicable governmental laws, rules and regulations; | ||
| prompt internal reporting to an appropriate person or persons identified in the Code of violations of the Code; and | ||
| accountability for adherence to the Code. |
Each day, you are faced with making decisions that will affect the Companys business. You are obligated to comply with the Code guidelines and should avoid even the appearance of unethical or unprofessional behavior. To that end, you should seek advice from the Companys outside corporate counsel when faced with a situation that may violate or give the appearance of violating the Code, Company policies, laws, rules or regulations. | ||
II. | Honest and Ethical Conduct | |
The Company expects and requires ethical behavior from Senior Financial Officers. You are expected to act in the best interests of the Company. Further, you must engage in and promote honest and ethical conduct, including handling actual or apparent conflicts of interest in an ethical manner, and act with honesty and integrity. |
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III. | Conflicts of Interest | |
A conflict of interest exists when your personal interests interfere with, or give the appearance of interfering with, the interests of the Company. In the best interests of the Company, you must avoid actual or apparent conflicts between your personal interests and those of the Company, including gaining improper personal benefits as a result of your position. In addition, you should not use corporate assets or information for your personal gain. | ||
Conflicts of interest may manifest themselves in many ways and may reach farther than just the person employed by the Company. In fact, many conflicts arise as a result of situations involving your relative. | ||
IV. | Accuracy of Reporting | |
The Company anticipates that it will become a publicly-traded company in the future. At that time, the Company will be required to comply with federal and state laws and regulations with respect to accuracy in the information it reports to the SEC and communicates to the public. The Companys financial statements are relied upon both internally and externally by individuals making business or investment decisions. Accuracy and candor is critical to the financial health of the Company. As a result, Senior Financial Officers must act in good faith, responsibly, with due care and diligence in preparing the financial statements, reports and other documents filed or submitted to the SEC as well as other public communications made by the Company (collectively, SEC Reports and Public Documents). | ||
As a Senior Financial Officer, you must help ensure that SEC Reports and Public Documents fairly disclose the Companys assets, liabilities and material transactions engaged in by the Company. You are responsible for the SEC Reports and Public Documents meeting the following requirements: |
| SEC Reports and Public Documents must, in reasonable detail, accurately and fairly reflect the transactions engaged in by the Company and acquisitions and dispositions of the Companys assets; | ||
| SEC Reports and Public Documents must not contain any untrue statement of material fact that would make the statements in the SEC Reports and Public Documents misleading; | ||
| Financial reports must be prepared in accordance with, or reconciled to, Generally Accepted Accounting Principles and applicable SEC rules, including the SEC accounting rules; and | ||
| SEC Reports and Public Documents must contain full, fair, accurate, timely and understandable disclosure. |
If you become aware of inaccuracies contained in the SEC Reports and Public Documents, or material omissions from the SEC Reports and Public Documents, you are |
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required to immediately report such inaccuracies or omissions to the Chairman of the Companys Audit Committee pursuant to the procedure outlined in Section VI. | ||
Finally, you are required to respect the confidentiality of information acquired in the course of the performance of your responsibilities. | ||
V. | Compliance with Laws, Rules and Regulations | |
The Companys success largely depends upon its reputation for engaging in its business in an ethical and legal manner. Therefore, Senior Financial Officers must comply with both the letter and spirit of federal, state and local laws, rules and regulations applicable to the Companys business. | ||
VI. | Responsibility for Reporting | |
The Company has established a reporting system that requires Senior Financial Officers to report violations of any of the policies set forth in this Code. These mandatory reporting obligations apply whether or not the reporting person was personally involved in the alleged violation of the policies set forth in this Code. | ||
Upon observing or learning of any violation of the policies set forth in this Code, Senior Financial Officers must report the same by writing a letter describing the suspected violation with as much detail as possible and sending the letter to the Chairman of the Audit Committee, Confidential Conduct of Business Affairs at: XStream Systems, Inc., 10305 102nd Terrace, Suite 101, Sebastian, FL 32958. | ||
The Senior Financial Officer is required to sign the letter, unless such complaint relates to questionable accounting or auditing matters. The letter will be treated confidentially by the Company unless disclosure is required or deemed advisable by the Company in connection with any actual or potential governmental investigation or unless advised by the Companys outside counsel that disclosure would be in the interest of the Company. Anonymous letters will not normally be investigated, unless the correspondence concerns questionable accounting or auditing matters covered by the Whistle-Blower Policy. | ||
The Company will not investigate letters containing allegations of unspecified wrongdoing without verifiable evidentiary support. The report of an alleged violation of the Code must be factual, rather than speculative or conclusory, and must contain the following specific information to justify the commencement of an investigation: (i) the alleged event, including the date and location of such event, or issue that is the subject of the letter; (ii) the name of each person involved; and (iii) any additional information, documentation or other evidence available to support the reported violation. | ||
Once the Company receives notice of a suspected violation of this Code that complies with the foregoing requirements, the Company shall promptly begin an investigation. Such investigation shall be supervised by the Audit Committee. Once a violation is found to exist, the individual that violated the Code shall be subject to disciplinary action as described in Section VII of the Code. |
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The Company will not condone any form of retribution upon any Senior Financial Officer who uses the reporting system in good faith to report suspected wrongdoers, unless the individual reporting the violation is one of the violators. The Company will not tolerate any harassment or intimidation of any Senior Financial Officer using the reporting system. The Company will also exercise disciplinary action against any Senior Financial Officer who is found to have intimidated or harassed a person who has reported a suspected violation in good faith. | ||
VII. | Compliance; Administration | |
As a condition of employment and continued employment, each Senior Financial Officer must accept the responsibility of complying with the foregoing policies and acknowledge his or her receipt of the Code by executing the Acknowledgement attached hereto. The Company may, at least annually, require each Senior Financial Officer to complete and submit a certification in a form designated by the Company pertaining to compliance with the policies set forth in this Code; a copy of one such form is contained in this Code. The Company reserves the right to request any such Senior Financial Officer to complete and submit such certification at any time or as frequently as the Company may deem advisable. | ||
Any Senior Financial Officer who knowingly and willfully violates any of these policies is subject to disciplinary action, including, but not limited to, suspension or termination of employment, and such other action, including legal action, as the Company believes to be appropriate under the circumstances. The Audit Committee will make the determination as to penalties applicable to Senior Financial Officers for Code violations. | ||
VIII. | Amendments; Waiver | |
The Company reserves the right to amend, waive or alter the policies set forth in the Code at any time. Any amendment to the Code or waiver or implicit waiver of any provision of the Code requires the approval of a majority of the Companys non-management directors. | ||
Unless the SEC rules and regulations otherwise provide, amendments to and waivers of any provision of the Code must be promptly disclosed in accordance with SEC regulations, including an explanation of why the waiver or implicit waiver was granted. Unless the SEC rules and regulations otherwise provide, the term waiver means the Companys approval of a material departure from a provision of the Code; and the term implicit waiver means the Companys failure to take action within a reasonable period of time regarding a material departure from a provision of the Code that has been made known to the Companys executive officer. |
Adopted: October 29, 2009.
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ACKNOWLEDGEMENT
I hereby acknowledge receipt of the Code of Ethics for Senior Financial Officers (the
Code) of XStream Systems, Inc. (the Company). I have read the Code and
understand and acknowledge that I may be subject to disciplinary action including, but not
limited to suspension, termination of employment, or any other action, including legal
action, by the Company in the event of my violation of the Code.
Date:
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Name | ||
Signature | ||
Title |
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CODE OF ETHICS FOR SENIOR FINANCIAL OFFICERS CERTIFICATION FORM
The undersigned hereby certifies that he or she is not aware of any of the following:
1. | Any violation of the Code of Ethics for Senior Financial Officers (the Code) of XStream Systems, Inc. by the undersigned; or |
2. | Any violation of the Code by any other Senior Financial Officer, as such term is defined in the Code. |
Date:
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Name | ||
Signature | ||
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