I. Introduction and Purpose
This Code of Ethics for Principal Executive and Senior Financial Officers
(hereinafter referred to as the "Code") helps maintain Ricks
Cabaret International, Inc.'s (hereinafter referred to as the "Company")
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 thereunder.
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.
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.
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.
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: 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.
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.
Reports of violations under this Code received by the Chairman of
the Audit Committee shall be investigated by the Audit Committee.
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
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.
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, 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.
Please sign and return this form to the Company's Chairman of the