CODE OF CONDUCT

1  Objectives

This  Code  of  Conduct  applies  to  all  officers  (including  directors  and  executives)  and  employees (Employees)  of  AirXpanders,  Inc.  (AirXpanders)  and  its  affiliates.  Directors  and  executives  of  AirXpanders are expected to lead by example and actively promote this Code of Conduct.

This Code of Conduct promotes practices that foster AirXpanders’ key values of:

  1. acting with fairness, honesty and integrity;
  2. providing a safe and healthy work environment for all Employees;
  3. being aware of and abiding by all relevant laws and regulations;
  4. not knowingly participating in any illegal or unethical activity;
  5. meeting the expectations of stockholders, customers and the community;
  6. maintaining high standards of professional behaviour;
  7. avoiding or managing conflicts of interest;
  8.  not taking advantage of property or information for personal gain or to cause detriment   to the AirXpanders group or patients; and
    • striving to be a good corporate citizen, and to achieve community respect.

The  AirXpanders  group  is committed to ensuring that  high  standards of honesty, integrity, ethics and legality are upheld and enforced.  Employees  are expected to be honest and ethical in dealing with each other, with  customers  and all other third parties. An important part of that process is establishing and adhering  to  a  set  of  principles  that  guide  the  conduct  of  everyone  associated  with  the  AirXpandersgroup.  This  Code  of  Conduct  refers  to  policies,  procedures  and  guidelines  aimed  at  ensuring  that appropriate  ethical  standards,  corporate  behaviour  and  accountability  are  maintained  across  the AirXpanders group.

The  AirXpanders  group  will make consultants and contractors aware of  AirXpanders’ expectations  of Employees as set out in this Code of Conduct  and will seek to ensure that consultants and contractors follow this Code of Conduct as if they were Employees.

2  Responsibilities under the Code

Each Employee must make himself or herself familiar with this Code of Conduct.  If  an Employee has any  doubts  about  an  issue  or  situation  they  should  notify  their  manager  (if  relevant)  or  the  Chief  Executive Officer.
All  Employees  are  responsible  for  actively  reporting,  in  good  faith,  any  inappropriate  behaviour, corrupt practices, breach of the law and any breach of this Code of Conduct.If  an  Employee  is  aware  of,  or  suspects,  a  breach  of  this  Code  of  Conduct  or  other  inappropriate behaviour,  the  matter  should  be  promptly  reported  by  following  the  steps  outlined  in  section  13.Retribution against a person for reporting or supplying information about a Code  of Conduct  or policy concern will not be tolerated.

Any person who breaches this Code of Conduct (including by failing to report a suspected breach, or by victimising another for reporting a concern) may be subject to corrective  disciplinary action, includingtermination of employment for misconduct.

3  Compliance with laws and regulations

The  members  of  the  AirXpanders  group  and  its  directors  and  officers  are  subject  to  various  legal requirements,  including  financial,  corporate,  disclosure  and  fair  trading  requirements.  Directors  and officers  also  owe  a  number  of  fiduciary  duties  to  AirXpanders.  No  director  or  officer  may  direct another Employee or any other person to violate any law on behalf of the AirXpanders group.All Employees should  comply with  the duties and obligations  that  apply to them or  AirXpanders  under any  relevant  laws  or  regulations.  Employees  are  encouraged  to  attend  seminars  presented  by  the AirXpanders  group  or other external service providers  from time to time on  relevant legal and industry developments. If an Employee needs help understanding any relevant laws and regulations, they should contact their immediate supervisor or manager (if relevant), or  the Chief Executive Officer .

4  Fair dealing

AirXpanders  aims to maintain  high  standards  of ethical behaviour in all its dealings with  patients, the medical community, stockholders, government, suppliers and the community.Employees  are  expected  to  perform  their  duties  in  a  professional  manner  and  act  with  integrity  and objectivity, striving at all times to enhance the reputation and performance of  AirXpanders.  Employees must ensure that  their  actions, and the actions of those who report to  Employees, deal fairly with  the stakeholders listed above.

5  Conflicts of interest

Employees  should  avoid  any  situation  that  involves  or  may  involve  an  actual  or  perceived  conflict between the Employee’s personal interests and the interests of the AirXpanders group. A  conflict  of  interest  may  occur  when  the  interests  of  an  Employee  or  relative  or  associate  of  the Employee,  or  a  duty  or  obligation  to  some  other  person  or  entity,  conflict  with  a  person’s  duty  or responsibility to AirXpanders.

Potential direct or indirect conflicts of  interest of  Employees or those acting on behalf of  AirXpanders (or their family, relatives, friends or agents) should be avoided. If  an Employee is  concerned that  they have a potential conflict of interest they should disclose and discuss the matter with, and seek direction from, their manager or the Chief Executive Officer.An Employee  should report any  potential or actual conflict of interests that they become aware of to their manager or the Chief Executive Officer.

The following are some common examples that  illustrate  actual or apparent conflicts of interest  that should be avoided. This is not intended to be an exhaustive list.

  1. Employees  should  not  exploit  their  position  or  relationship  with  AirXpanders  for  personal gain.  Employees  and  their  relatives  and  friends  should  not  give  unreasonable  gifts  to,  or receive  unreasonable  gifts  from,  patients  or  members  of  the  medical  community  using AirXpanders’ products. Employees should not accept a gift in circumstances in which it would appear to others that the gift has caused their business judgement to be compromised.
  2. Employees should avoid having a significant ownership interest in any other enterprise if that interest  compromises  or  appears  to  compromise  their  ability  to  comply  with  AirXpanders’policies  or  their  loyalty  to  AirXpanders,  irrespective  of  the  capacity  within  which  the ownership interest is held. This will not normally apply to interests in listed entities. However, if  an Employee has  any doubt about such an investment  they  should consult with  the Chief Executive Officer or Chief Financial Officer.
  3. If  an  Employee  learns  of  a  business  or  investment  opportunity  through  AirXpanders’information  or  their  position  at  AirXpanders,  they  should  not  participate  in  the  business  or make  the  investment  without  approval  from  the  Chief  Executive  Officer  or  Chief  Financial Officer.

6  Improper use or theft of AirXpanders property and assets

Employees  are expected to be responsible for protecting any  AirXpanders property and assets that are under their control and they should safeguard them from loss, theft and unauthorised use.  AirXpanders’property  and  assets  includes  cash,  securities,  business  plans,  third  party  information,  intellectual property  (computer  programs,  software,  models  and  other  items),  confidential  information,  office equipment and supplies.As a general rule, AirXpanders’ property and documents should not be removed from official premises without a good and proper reason. If removed, they should be stored in a secure manner and covered by appropriate insurances.Employees  should  use  common  sense  and  observe  standards  of  good  taste  regarding  content  and language when creating documents that may be retained by  AirXpanders or a third party. AirXpanders’ electronic communications systems  should not be used  to access or post material that is pornographic, obscene, sexually-related, profane or which is otherwise offensive or violates  AirXpanders’  policies or any laws or regulations. In addition, any use of  AirXpanders’  electronic communications systems fornon-business purposes should:

  1. be occasional;
  2. not interfere with professional responsibilities;
  3. not diminish productivity; and
  4. not violate this Code of Conduct or any other AirXpanders policies.

7  Confidentiality

In the course of business, Employees  will have access to business or personal information about the affairs of the AirXpanders group, its patients, Employees, suppliers and its business partners, and others in the medical community. The information may include business strategies, marketing and sales plans, competitive analysis, financial plans and forecasts,  patients’ personal information, clinical data, sales information, Employee information, supplier information and pricing. Each of the parties expects the confidential nature of the information they have given in good faith to be respected.Employees must keep confidential information acquired while they are with  the  AirXpanders  group, or acting  on  behalf  of  the  AirXpanders  group,  confidential,  even  after  they  leave  or  cease  their engagement with the AirXpanders group.

Employees  must  not  access  or  request  or  make  improper  use  of  or  transfer  or  disclose  confidential information to anyone else except as required by their position or as authorised or legally required. If it advertently comes into their possession it should be returned immediately.If  an  Employee  is  required  by  an  authority  to  provide  confidential  information  that  has  not  been otherwise authorised, they must notify the Chief Executive Officer or Chief Financial Officer .

8  Privacy

AirXpanders  respects  the  privacy  of  others  and  will  only  use  personal  information  collected  from Employees  for  legitimate  purposes  relating  to  their  position  with  AirXpanders.  Employees  should familiarise themselves with and comply with AirXpanders’ procedures in relation to privacy.

9  Continuous disclosure and public communications

9.1  Continuous disclosure

AirXpanders  has  adopted  a  Continuous  Disclosure  Policy  relating  to  its  obligations  under  the Corporations Act and the ASX Listing Rules to keep the market fully informed of information that may have a material effect on the price or value of AirXpanders’ securities.

Employees should ensure they are aware of, and act in accordance with the requirements of, the policy. A copy of the Continuous Disclosure Policy is available on AirXpanders’ website.

9.2  Other public communications

Employees  are responsible for the integrity of the information, reports and records under  their  control
and are expected to exercise a high standard of care in preparing materials for public communications.
Documents should:

  1. comply with any applicable legal requirements;
  2. comply with AirXpanders’ Continuous Disclosure Policy;
  3. not  contain  any  false  or  intentionally  misleading  information,  nor  intentionally  misclassify information; and
  4. comply  with  privacy  requirements  and  any  applicable  requirements  protecting  confidential information.

10  Employment

10.1  Equal opportunity and anti-discrimination

AirXpanders is committed to:

  1. equal employment opportunity; and
  2. a workplace free from any kind of discrimination, harassment or intimidation of Employees.AirXpanders  will  promptly  investigate  all  allegations  of  harassment,  bullying,  victimisation  or discrimination  and  will  take  appropriate  corrective  action.  Retaliation  against  individuals  for  raising claims of harassment or discrimination will not be tolerated.

10.2  Diversity

AirXpanders  recognises  the  value  and  unique  contribution  that  all  people  make  on  account  of  their individual skills, experiences and perspectives, and how this fosters a constructive and inclusive work culture.  In  support  of  this  recognition,  AirXpanders  has  implemented  a  Diversity  Policy  designed  to value and improve diversity in the workplace.Employees  should familiarise  themselves  with the Diversity Policy so that  their actions  are consistent with AirXpanders’ diversity objectives and principles. The policy is available on AirXpanders’ website.
10.3  Occupational health and safety AirXpanders  is committed to maintaining a healthy and safe working environment for its  Employees. All appropriate laws and internal regulations (including  work  health and safety laws) should be  fully complied with. Misusing controlled substances or alcohol or selling, manufacturing, distributing, possessing, using or being under the influence of illegal drugs on the job will not be tolerated.

Employees should be aware of all relevant standards and procedures adopted by AirXpanders to ensure the workplace is safe and without risk to the health of  Employees and others and follow any lawful and reasonable instructions consistent with those policies and procedures.

10.4  Securities trading

AirXpanders  has adopted specific guidelines for dealing in  AirXpanders’  securities.  Employees  should review  the  Securities  Trading Policy  and ensure  they  act in accordance with that policy.  The policy is available on AirXpanders’ website.

10.5  Bribes, inducements and commissions

AirXpanders  does not condone the giving or receiving of any bribe, commission or inducement, which may  influence  business  decisions  or  compromise  independent  judgement,  whether  through  an intermediary or otherwise, in any circumstance, even if it might be culturally acceptable.

Employees  should not pay or receive any bribes, inducements or commissions (this includes any item intended  to  improperly  obtain  favo urable  treatment,  whether  from  or  to  government  bodies  or otherwise). In addition, Employees should not give or receive any unreasonable gifts or otherwise act in an  unethical  way  that  may  cause  financial  detriment  or  degrade  the  reputation  or  integrity  of  the AirXpanders group.

The giving and receiving of bribes, inducements and commissions is against  AirXpanders’  policy and the  laws  of  countries  where  AirXpanders  conducts  business.  Any  Employee  found  to  be  receiving, accepting or condoning a bribe, commission or inducement, or attempting to initiate such activities maybe liable for termination and possibly criminal proceedings.

11  Politics and community

An Employee may voluntarily participate in the political process as an individual. An Employee should not engage in actions that could  cause someone to believe that their actions or statements reflect the views or position of AirXpanders.AirXpanders  is  a  responsible  corporate  citizen  and  actively  supports  the  communities  in  which  it operates.  AirXpanders  provides  information  about  itself  in  response  to  reasonable  and  responsible requests.
AirXpanders  supports  and  encourages  its  Employees  to  actively  contribute  to  the  needs  of  the community. AirXpanders’ requirements for making donations or sponsorship on behalf of  AirXpandersmust be complied with by Employees.

12  Environment and Social Responsibility

AirXpanders  is  committed  to  maintaining  an  environment  that  takes  into  consideration  the  social, ethical  and  environmental  consequences  of  AirXpanders’  activities.  Employees  should  ensure  they comply  with  all  appropriate  laws  and  internal  regulations  in  respect  of  the  social,  ethical  and environmental practices of AirXpanders.

13  Reporting unlawful and unethical behavior & Whistleblower Policy

13.1 The Board of Directors encourages employees to report promptly any actual or suspected illegal, unethical or otherwise improper conduct by AirXpanders, Inc., or any of its employees, including breaches of the Code of Conduct. Employees are encouraged to raise any areas of concern at any time. A report under this Policy should be made in the following order:
o To the relevant General Manager (if not your immediate manager)
o To the relevant Group Executive, Chief Financial Officer or Human Resources Manager
o To the CEO
o If the issue is not being adequately addressed or the employee is not comfortable speaking with one of the above individuals, the concern may be reported to the Chair of the Audit and Risk Committee, Greg Lichtwardt, at glichtwardt@gmail.com
You may at any stage skip a person in the chain outlined above if that person is the subject of the report or if you have another reason to believe that the person is not likely to deal with the report properly. Nothing in this Policy should be taken as restricting you from reporting any matter or providing any information to a regulator (such as ASIC or the FDA), AirXpanders’ auditor or a member of the audit team or any other person in accordance with any relevant law, regulation or other requirement.

13.2 The Board of Directors is committed to protecting employees who report improper conduct as outlined in this Section.All reports will be kept confidential, except to the extent reasonably necessary to conduct the investigation and take any remedial actions, or as required by law. Reports can also be made anonymously if required, however this may affect the ability to investigate the matter properly and to communicate with you about your report. Disclosures that involve a threat to life or property, illegal activities or legal action against AirXpanders may require actions that do not allow for complete anonymityof the reporting person(s) (the “whistleblower”). In such cases, should it be necessary to disclose the identity of the whistleblower, reasonable steps will be taken to discuss this with the whistleblower first.

13.3 Reportable improper conduct is conduct that is illegal, unethical or in violation of AirXpanders’ policies or of a law or government regulation. It includes:
o fraudulent, corrupt or dishonest behavior
o criminal conduct
o sexual harassment, discrimination, retaliation or analogous inappropriate behavior
o legal or regulatory non-compliance (including non-compliance with health and safety requirements)
o improper accounting, internal accounting controls, or other financial matters, or the reporting of fraudulent financial information

You should also report a matter if you have previously reported but you are not satisfied with the response to your report.

13.4 Following receipt of a report, AirXpanders will ensure that:

o the alleged improper conduct is thoroughly investigated; and
o appropriate disciplinary action proportionate to the seriousness of the offense is taken if the allegation is substantiated.

Investigation processes will vary depending on the precise nature of the conduct being investigated. The purpose of the investigation is to determine whether or not your concerns are substantiated, with a view to AirXpanders then rectifying any wrongdoing uncovered to the extent that this is practicable in all the circumstances. The Board will be appropriately updated with all reports under this Policy and the investigations which follow each report.

13.5 Reprisals are adverse actions taken by one employee of AirXpanders against another employee because of a good faith report or disclosure made in accordance with this Policy. AirXpanders will ensure that reasonable measures are taken to maintain the confidentiality of the report and to protect employees against reprisals as a result of making a report under this Policy. An employee who retaliates against anyone who makes a report under this Policy will be subject to disciplinary action, which may include termination of employment. An external consultant will be engaged to perform an investigation in certain circumstances if it is deemed that special skills are required to properly conduct the investigation.

13.6 A false report could have significant effects on AirXpanders’ reputation and the reputations of other staff members and could also cause considerable waste of time and effort. Any deliberately false reporting, whether under this Policy or otherwise, will be treated as a serious disciplinary matter.

14  Conclusion

While this Code of Conduct endeavours to address a wide range of business practices and procedures, it cannot anticipate every issue that may arise and is intended to provide a set of guidelines on what is considered  acceptable  and  appropriate  behaviour.  Employees  are  responsible  to  ensure  that  they  act ethically and lawfully at all times.

15  Disclaimer

This  Code  of  Conduct  is  a  statement  of  certain  fundamental  principles,  policies  and  procedures  that govern actions  in the conduct of  AirXpanders’  business. It is not intended to  and does not create any rights  in  any  director,  executive,  consultant,  employee,  patient,  member  of  the  medical  community, supplier, competitor, security holder or any other person or entity.

16  Further information

Any person who has questions about this Code of Conduct or who requires further information should contact the Chief Executive Officer.

17  Review of this Code of Conduct

This Code of Conduct may be amended by the Board of Directors of AirXpanders.Approved by the Board of Directors of AirXpanders, Inc.