EXHIBIT 14
SYNERGY RESOURCES CORPORATION
CODE OF ETHICS FOR PRINCIPAL EXECUTIVE
AND SENIOR FINANCIAL OFFICERS
I.
Introduction and Purpose
This Code of Ethics for Principal Executive and Senior Financial Officers
(hereinafter referred to as the "Code") helps maintain standards of business
conduct and ensures compliance with legal requirements, specifically, but not
limited to, Section 406 of the Sarbanes-Oxley Act of 2002 and SEC rules
promulgated thereby for Synergy Resources Corporation (hereinafter referred to
as the "Company").
In addition to securing compliance with legal requirements, the purpose of
the Code is to deter wrongdoing and promote ethical conduct, and full, fair,
accurate, timely, and understandable disclosure of financial information in the
periodic reports of the Company. The matters covered in this Code are of the
utmost importance to the Company, our stockholders and our business partners,
and are essential to our ability to conduct our business in accordance with our
stated values.
Principal and Financial executives hold an important and elevated role in
corporate governance and are uniquely capable and empowered to ensure that
stockholders' interests are appropriately balanced, protected and preserved.
Accordingly, this Code provides principles to which financial executives are
expected to adhere and advocate. This Code embodies rules regarding individual
and peer responsibilities, as well as responsibilities to the company, the
public and others.
II.
Application
This Code is applicable to the following persons (hereinafter referred to
as the "Officers"):
1. The Company's principal executive officers; 2. The Company's principal
financial officers;
3. The Company's principal accounting officer or controller; and 4. Persons
performing similar functions.
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III.
Code of Ethics:
Each Officer shall adhere to and advocate the following principles and
responsibilities governing professional and ethical conduct:
1. Act with honesty and integrity, avoiding actual or apparent conflicts of
interest in personal and professional relationships.
2. Provide information that is full, fair, accurate, complete, objective,
relevant, timely, and understandable to the Company's Board of Directors,
the Securities and Exchange Commission, the Company's stockholders, and the
public.
3. Comply with applicable governmental laws, rules, and regulations.
4. Act in good faith, responsibly, with due care, competence and diligence,
without misrepresenting material facts or allowing your independent
judgment to be subordinated.
5. Take all reasonable measures to protect the confidentiality of non-public
information about the Company acquired in the course of your work except
when authorized or otherwise legally obligated to disclose such information
and to not use such confidential information for personal advantage.
6. Assure responsible use of and control over all assets and resources
employed or entrusted to you.
7. Promptly report to the Chairman of the Audit Committee (or in the absence
of an Audit Committee, to the full Board of Directors):
a. any information you may have regarding any violation of this Code;
b. any actual or apparent conflict of interest between personal and/or
professional relationships involving management or any other employee
with a role in financial reporting disclosures or internal controls;
c. any information you might have concerning evidence of a material
violation of the securities or other laws, rules or regulations
applicable to the Company and its operations;
d. significant deficiencies in the design or operation of internal
controls that could adversely affect the Company's ability to record,
process, summarize or report financial data; or
e. any fraud, whether or not material, that involves management or other
employees who have a significant role in the Company's financial
reporting, disclosures or internal controls.
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IV.
Reporting Procedure, Process and Accountability
As discussed above, Officers shall promptly report any violation of this
Code to the Chairman of the Company's Audit Committee (or in the absence of an
Audit Committee, to the full Board of Directors).
Reports of violations under this Code received by the Chairman of the
Audit Committee shall be investigated by the Audit Committee (or in the absence
of an Audit Committee, to the full Board of Directors). If the Audit Committee
finds a violation of this Code, it shall refer the matter to the full Board of
Directors.
In the event of a finding that a violation of this Code has occurred,
appropriate action shall be taken that is reasonably designed to deter
wrongdoing and to promote accountability for adherence to this Code, and may
include written notices to the individual involved of the determination that
there has been a violation, censure by the Board, demotion or re-assignment of
the individual involved, suspension with or without pay or benefits, and up to
and including, if appropriate, termination of the individual's employment. In
determining what action is appropriate in a particular case, the Board of
Directors (or the independent directors of the Board as the case may be) shall
take into account all relevant information, including the nature and severity of
the violation, whether the violation was a single occurrence or repeated
occurrences, whether the violation appears to have been intentional or
inadvertent, whether the individuals in question had been advised prior to the
violation as to the proper course of action and whether or not the individual in
question had committed other violations in the past.
V.
Anonymous Reporting
Any violation of this Code and any violation by the Company or its
directors or officers of the securities laws, rules, or regulations, or other
laws, rules, or regulations applicable to the Company may be reported to the
Chairman of the Audit Committee anonymously.
VI.
No Retaliation
It is against the Company's policy to retaliate in any way against an
Officer for good faith reporting of violations of this Code.
VII.
Waiver and Amendment
The Company is committed to continuously reviewing and updating its
policies and procedures. Therefore, this Code is subject to modification. Any
amendment or waiver of any provision of this Code must be approved in writing by
the Company's Board of Directors and promptly disclosed pursuant to applicable
laws and regulations.
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VIII.
Acknowledgment Of Receipt Of Code Of Ethics For
Principal Executive And Senior Financial Officers
I have received and read the Company's Code of Ethics for Principal
Executive and Senior Financial Officers (the "Code"). I understand the standards
and policies contained in the Code and understand that there may be additional
policies or laws applicable to my job. I agree to comply with the Code in all
respects.
If I have questions concerning the meaning or application of the Code, any
Company policies, or the legal and regulatory requirements applicable to my job,
I know that I can consult with the Chairman of the Audit Committee (or if the
Company does not have an Audit Committee the Company's Chief Executive Officer),
knowing that my questions or reports will remain confidential to the fullest
extent possible.
I understand that my agreement to comply with this Code does not
constitute a contract of employment.
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Officer Name
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Signature
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Date
Please sign and return this form to:
William E. Scaff, Jr.
Synergy Resources Corporation
20203 Highway 60
Platteville, CO 80651
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