CODE
OF ETHICS
1.
Introduction
We
are committed to maintaining the highest standards of ethical
conduct. This Code of Ethics reflects the business
practices
and principles of behavior that support this commitment.
Our Board of Directors is responsible for setting the standards
of conduct contained in this Code and for updating these
standards
as appropriate to reflect legal and regulatory developments.
We expect every employee, officer and director to read and
understand
this Code and its application to the performance of his or
her business responsibilities. We will hold each of our employees,
officers and directors accountable for adherence to this
Code. Those who violate this Code will be subject to disciplinary
action,
up to and including termination.
This
Code does not attempt to describe every practice or principle
related to honest and
ethical conduct. This Code
of Ethics is
an integral part of our broader Code of Conduct set forth
in our Employee Guidelines. The following additional policies
of
the Company supplement or amplify this Code in certain
areas and should be read in conjunction with this Code: our
Insider
Trading and Disclosure Policy and our Foreign Corrupt Practices
Act Policy. More information about these policies can be
found in the Employee Guidelines.
2.
Compliance Officer
The
Company has designated the Chairman of the Audit Committee
of the Board of Directors as our Compliance
Officer to
administer this Code. Employees, officers or directors
may, at their
discretion, make any report or complaint provided for
in this Code to the
Compliance Officer. The Compliance Officer will refer
complaints submitted, as appropriate, to the Board of Directors
or
an appropriate Committee of the Board.
3.
Compliance With Applicable Laws
All
employees, officers and directors of the Company must comply
with all of the laws,
rules and regulations
of the
United States
and other countries, as well as the states, counties,
cities and other jurisdictions, applicable to the
Company or its
business.
This
Code does not attempt to summarize all laws, rules and regulations
applicable to the Company
or its business.
You
should consult
the various guidelines the Company has prepared
on specific laws, rules and regulations, which
you can
find summarized
in the Employee
Guidelines, including employment laws concerning
equal employment and sexual and other types of
harassment; immigration laws
concerning hiring of documented workers; antitrust
laws; environmental laws;
occupational health and safety laws; food and
drug laws; securities laws concerning disclosure requirements
and
insider trading;
and anti-bribery laws including foreign corrupt
practices. Please consult with a supervisor,
the
Compliance
Officer
or a member
of the Company’s legal department if you
have questions about laws that you think may
be applicable to the Company
or its business.
4.
Conflicts Of Interest
A “conflict
of interest” may
exist whenever the private interests of an employee, officer
or director conflict
in any
way (or even appear to conflict) with the
interests of the Company. While our employees, officers and
directors
should
be free to
make personal investments and enjoy social
relations and normal business courtesies, they must not have
any personal interests
that adversely influence the performance
of their job responsibilities. A conflict situation can arise
when an employee, officer or
director takes actions or has interests that
may make it difficult to
perform his or her Company work objectively.
Conflicts of interest may also arise when an employee, officer
or director, or a
member of his or her family, receives improper
personal benefits as
a result of his or her position in the Company,
whether received from the Company or a third party. Gifts
to,
loans to, or guarantees
of obligations of, employees, officers and
directors and their respective family members may create
conflicts of interest.
Federal law prohibits personal loans from
the Company to directors and
executive officers. In addition, in general,
it is a conflict of interest for a Company employee or officer
to work simultaneously
for a competitor, customer or supplier absent
an express written consent or waiver from the Company. You
should consult the
Employee Guidelines for more details regarding
rules of conduct concerning
conflicts of interests.
Although
it is not always possible to avoid conflicts of interest,
it is the Company’s
policy to prohibit such conflicts when possible.
Conflicts of interest may not always be clear-cut,
so if you have a question, you should consult
with a supervisor,
the Compliance Officer or a member of the
Company’s legal
department. Any employee, officer or director
who becomes aware of a conflict or potential
conflict should bring it to the attention
of a supervisor, the Compliance Officer or
a member of the Company’s
legal department.
5.
Corporate Opportunity
Except
as may be approved or ratified by the Board of Directors or
a committee of
independent
directors,
employees,
officers
and directors are prohibited from (a)
taking for themselves personally any opportunities
that belong
to the Company
or are discovered
through the use of corporate property,
information or position; (b) using corporate property,
information or
position for
personal gain; and (c) competing with
the Company.
6.
Confidentiality
All
employees, contractors, and officers, under the Employee Agreement
or Non-Disclosure
Agreement,
as
applicable,
signed when they joined the Company,
and all directors, must maintain
the confidentiality of confidential
information entrusted to them by the Company or its
suppliers or customers,
except when
disclosure is authorized by the Company
or required by laws, regulations
or legal proceedings.
As
more fully
described in the Employee Agreement
or Non-Disclosure Agreement,
as
applicable, “confidential
information” includes, but
is not limited to, non-public information
that might be of use to competitors
of the Company,
or harmful to the Company or its
customers
if disclosed. Whenever feasible,
employees, officers and directors
should consult
a
supervisor, the Compliance Officer
or a member of the Company’s
legal department if they believe
they have a legal obligation to disclose
confidential information.
7.
Fair Dealing
Each
employee, officer and director should endeavor to deal fairly
with the Company’s customers,
suppliers, competitors, officers
and employees. None of the Company’s
employees, officers or directors
should take unfair advantage
of anyone through manipulation,
concealment, abuse of privileged
information, misrepresentation
of material facts or any other
unfair dealing practice. Stealing
proprietary information, misusing
trade secret information that
was obtained without the owner’s
consent, or inducing such disclosures
by past or present employees
of other companies
is
prohibited.
8.
Protection And Proper Use Of Company Assets
All
employees, officers and directors should protect the
Company’s
assets and ensure their efficient
use. Theft, carelessness,
and waste have a direct impact
on the Company’s profitability.
All Company assets should
be used for legitimate business
purposes. Of course, incidental
personal use may be appropriate
for certain
Company assets, but you should
check with a supervisor to
determine what may be appropriate.
9.
Public Company Reporting
As
a public company, it is of critical importance
that
the
Company’s
filings with the Securities
and Exchange Commission
be full, fair, accurate,
timely and understandable.
Depending on their
respective positions
with the Company, employees,
officers or directors
may
be called upon to provide
information necessary
to assure that the Company’s
public reports meet these
requirements. The Company
expects employees, officers
and directors to take
this responsibility very
seriously
and to provide prompt
and accurate answers
to inquiries related
to the
Company’s
public disclosure requirements.
The Company has formed
a Disclosure Committee
to oversee the preparation
and review of public
disclosure documents.
The members
of the Disclosure Committee
will change
from time to time, but
will generally consist
of certain key managers
and may include our legal
counsel. You must be
especially responsive
to inquiries
and requests from members
of our Disclosure
Committee.
10.
Accounting Complaints
The
Company’s policy is to comply
with all applicable financial reporting and accounting regulations
applicable to
the Company.
The Audit Committee
of the Board of Directors is responsible for establishing
procedures for the receipt, retention and
treatment of complaints
regarding accounting, internal accounting controls
or auditing matters.
Employees, officers or directors who have concerns or complaints
regarding questionable accounting or
auditing practices
are encouraged to promptly submit those concerns or
complaints (anonymously,
confidentially or otherwise) to the Audit Committee of the
Board of Directors which will, subject
to its duties arising
under applicable law, regulations and legal proceedings,
treat such submissions confidentially.
The
Company has designated the Compliance Officer
to receive such
complaints on behalf of the
Audit Committee
and to
bring such complaints
to the attention
of the members
of
the
Audit
Committee, as appropriate.
Such submissions
may be made
either
by e-mail to complianceofficer@laserscope.com or by mail
to the Company’s
headquarters address,
Attention: Compliance
Officer.
11. Reporting
Any Illegal Or Unethical Behavior
Employees
are encouraged to promptly contact the Compliance Officer if
the Employee believes
that the Employee has observed a violation
of this Code of Ethics or any other illegal or unethical
behavior by any officer, director or employee or by anyone
purporting
to be acting on the Company’s behalf and, the Employee
has any doubt, about the best course of action in a particular
situation. Such reports may be made anonymously. Confidentiality
will be protected, subject to applicable law, regulation
or legal proceeding.
Such submissions
may be made either by e-mail to complianceofficer@laserscope.com or
by mail to the Company’s headquarters address, Attention:
Compliance Officer.
12. Reporting
By Supervisors
When a supervisor,
manager or other person receives reports of violations or questionable
behavior pursuant to
this Code
of
Ethics, that person shall be responsible for bringing such
reports to the attention of his or her supervisor, the
Compliance Officer
or to the Audit Committee, as appropriate, in accordance
with the reporting procedures contained in this Code of
Ethics. Persons receiving such reports must endeavor to honor
any
confidentiality
or anonymity requests made by the reporting person, subject
to
applicable law, regulation or legal proceedings.
13. Enforcement
Any
violators of this Code will be subject to disciplinary action.
The disciplinary actions will be determined by
the Board of Directors
or its designee. The Company intends such disciplinary
action to reflect our belief that all employees, officers
and directors
should be held accountable to the standards of conduct
set forth herein. Accordingly, such disciplinary action
may include,
without
limitation, censure by the Board, demotion, re-assignment,
suspension or termination, depending on the nature
and the severity of the
violation.
14. No Retaliation
The
Company will not permit retaliation of any kind against anyone
who makes a report or complaint in
good faith
with a reasonable
basis for believing that a violation of this Code
or other illegal or unethical conduct has occurred.
15.
Amendment, Modification And Waiver
This Code
may be amended or modified from time to time by the Board of
Directors subject
to the
disclosure and other
provisions
of the Securities Exchange Act of 1934, and
the rules thereunder and the applicable rules of the
Nasdaq National
Market.
Any amendment, modification or waiver of the
provisions of this
Code for executive
officers or directors of the Company may only
be made by the Board of Directors and must be promptly
disclosed
to
shareholders,
along with the reasons for any such waiver,
as required
by the Securities Exchange Act of 1934, and
the rules thereunder and
the applicable rules of the Nasdaq National
Market.