|  This      Code has been adopted pursuant to Section 406 of the Sarbanes Oxley Act of      2002 (“SOX”) and the Securities and      Exchange Commission (“SEC”) rules and      regulations related thereto, all as such Act, rules and regulations from      time to time may be in effect or amended (collectively referred to herein      as “SOX §406”).  As      amendments or changes to SOX §406 become effective, this Code shall      be deemed forthwith to be modified as necessary to be in full compliance      with SOX §406 as so amended or changed.  This Code shall be      posted on the “Shareholder Information” section of Hercules’ Internet      website, and such fact shall be disclosed in Hercules’ annual report on      Form 10-K, as well as the fact that copies of the Code are available in      print, free of charge, for any shareholder who requests them. This      Code is applicable to Hercules’ principal executive officer, principal      financial officer, principal accounting officer or controller and persons      performing similar functions (each of the foregoing officers and persons      is referred to herein as a “Senior Financial      Executive”). This      Code is in addition to the Hercules Business Practices Policy which is      applicable to all Hercules employees (including Senior Financial      Executives), and the Directors Code of Business Conduct and Ethics, which      is applicable to members of the Hercules Board of Directors (including      inside directors, if any). Compliance      with this Code shall be monitored by the Audit Committee of the Hercules      Board of Directors. The      Board of Directors shall determine, or designate persons to determine,      appropriate actions to be taken in the event of violations of this      Code.  Such actions shall be reasonably designed to deter      wrongdoing and to promote accountability for adherence to this      Code.  In determining what action (e.g., re-assignment,      demotion, suspension, termination or other) is appropriate in a particular      case, the Board of Directors or such designee shall take into account all      relevant information, including, without limitation, 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 individual 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. |
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| 2.   | Comply      with the rules and regulations of federal, state, provincial and local      governments, and other appropriate private and public regulatory agencies      including, without limitation, rules and regulations of the SEC (including      those related to SOX) and of the New York Stock Exchange (“NYSE”), all as      applicable to his function(s) atHercules. |
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| 3.   | Be      honest and ethical in his conduct (including the ethical handling of      actual or apparent conflicts of interest), avoid conflicts of interest      (including disclosure to the Chair of the Audit Committee and the General      Counsel of any material transaction or relationship that reasonably could      be expected to give rise to such a conflict or the appearance of such a      conflict), and help foster a culture of honesty and      accountability. |
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| 4.   | Be      responsible and provide information for full, fair, accurate, timely, and      understandable disclosure in the reports that Hercules files with or      submits to the SEC, the NYSE and other regulatory agencies and in other      public communications byHercules. |
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| 5.   | Promptly      bring to the attention of the Hercules Disclosure Committee any material      information of which he may become aware that affects the disclosures made      by Hercules in its filings with or submissions to the SEC; and otherwise      assist the Hercules Disclosure Committee in fulfilling its      responsibilities under Hercules’ financial reporting, disclosure and      internal control policies and procedures and assist the Audit Committee in      reviewing such matters. |
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| 6.   | Promptly      bring to the attention of the Audit Committee any information he may have      concerning: (A) significant deficiencies in the design or operation of      internal controls which could adversely affect Hercules’ ability to      record, process, summarize and report financial data or (B) any fraud,      whether or not material, that involves management or other employees who      have a significant role in Hercules’ financial reporting, disclosures or      internal controls. |
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| 7.   | Promptly      bring to the attention of the General Counsel or the Chief Executive      Officer and to the Audit Committee any information he may have concerning:      (A) any violation of this Code, the Directors Code of Business Conduct and      Ethics or the Hercules Business Practices Policy, including any actual or      apparent conflicts of interest, involving any management or other      employees who have a significant role in Hercules’ financial reporting,      disclosures or internal controls; or (B) evidence of a material violation      of the securities or other laws, rules or regulations applicable to      Hercules and the operation of its business, by Hercules or any agent      thereof. |
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| 8.   | Act      in good faith, responsibly, with due care, competence and diligence,      without misrepresenting material facts or allowing his independent      judgment to be subordinated. |
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| 9.   | Respect      the confidentiality of Hercules’ information acquired in the course of his      work, except when authorized or otherwise legally obligated to disclose,      and not use such information for his advantage or the advantage of members      of his immediate family. |
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| 10.   | Maintain      and share his knowledge and skills with others (including, without      limitation, Hercules’ investor relations and legal functions) relevant to      Hercules’ needs (including communications to shareholders and other      stakeholders of Hercules). |
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| 11.   | Responsibly      use and control for the benefit of Hercules all assets and resources      employed or entrusted to him in the course of performing his functions at      Hercules. |
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| 12.   | Agree      that any changes to, or waivers (including implicit waivers) from, this      Code that may be made or granted by the Hercules Board of Directors or the      Audit Committee, the date thereof and (if applicable) the name of the      Senior Financial Executive(s) to whom the waiver has been granted, will be      publicly disclosed as part of a Hercules filing with the SEC on Forms 8-K      (in compliance with such form) or as a posting on the “Shareholder      Information” section of Hercules’ Internet website (provided Hercules has      previously disclosed in its most recently filed annual report on Form 10-K      its intention to disclose these events on its Internet website, and its      Internet website address). |
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| 13.   | Promptly      use and encourage others to promptly use the appropriate Hercules’      procedure for any action which is or could be reasonably expected to be a      violation of this Code, the Directors Code of Business Conduct and Ethics      or of the Hercules Business PracticesPolicy. |
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