Code of Conduct and Ethics

C. Gifts and Entertainment

1. Permissible Gifts

   Any Person may accept any non-cash item of value from customers only if it:

   1. Is valued at $100 or less;
   2. Is not intended to influence any decision by the Person;
   3. Is unsolicited;
   4. Is infrequent; and
   5. Is not a quid pro quo.
   Under no circumstances shall any Person accept cash or any other form of money as a gift from any customer. Gifts which are likely to meet these guidelines are: advertising or promotional materials such as pens, pencils, key rings, calendars and similar items valued under $100.

   Additionally, a Person may accept gifts from individuals who have both a personal relationship with that Person and a business relationship with the Company, for such commonly recognized events or occasions as a promotion, wedding, retirement, or religious observance, if valued at less than $100.

   Generally, there is no threat of a violation of the Bank Bribery Act (as discussed below) if acceptance of a gift or benefit is based on an Immediate Family or personal relationship, which exists independent of any business with the Company or if the gift or benefit is made available to the general public under the same conditions on which it is made available to a Person.

   If a Person is offered or receives something of value in excess of the above-stated amounts which he or she believes may be impermissible under this Code, that Person must disclose the matter by means of the Approval/Clarification Process and seek a determination that the item of value may be accepted or must be returned. The reviewer will give due consideration to the criteria for permissible gifts and whether receipt poses a threat to the integrity of the Company.

2. Business Gratuities Payments for travel, lodging, meals and entertainment are normally permissible if they (i) are reasonable in amount; (ii) are expended in the course of a legitimate business meeting or an event intended to foster better business relations; (iii) would be paid by the Company as a business expense if not paid for by the outside source; and (iv) are unsolicited.

   If a Person is offered payments of a type which he or she believes may be impermissible, that Person must disclose the matter by means of the Approval/Clarification Process and seek a determination that the offer may be accepted or must be rejected. The reviewer will give due consideration to the criteria for permissible payments and whether receipt poses a threat to the integrity of the Company.

   Example: The use of a customer's ski chalet for the weekend is a prohibited business gratuity if the only relationship with the chalet owner is that of banker/customer or where there is no legitimate business discussion held or contemplated. If, however, the customer were also a family member or a close personal friend of the Person, the use of the ski chalet would be permitted.

   Example: It is not a prohibited business gratuity to accept a vendor's offer to pay lodging and meals for an Employee's attendance at a conference sponsored in whole or in part by the vendor so long as the Employee's attendance has a business purpose.

1. Bank Bribery Act Compliance

   The Bank Bribery Act prohibits any Person or agent of TD Banknorth Inc. or any subsidiary bank from offering or receiving anything of value where the item of value is offered with the intent of influencing the Person, agent or attorney or a business transaction. This law is broad and carries civil and criminal penalties, including fines and/or imprisonment. As a matter of corporate policy, Persons or agents of any other company controlled directly or indirectly by TD Banknorth Inc. are subject to these prohibitions. Gifts or awards given in recognition of a Person's service or accomplishment in civic, charitable, educational, or religious organizations are not prohibited by this Code.

   Persons who are registered representatives affiliated with the Company's third party broker-dealer are subject to the third party broker-dealer's internal policy and procedures related to "cash and non-cash" compensation and should comply with those policies and procedures, as well as the Code, before accepting any "cash or non-cash" compensation, which may include compensation or gifts as discussed below.

   Except as provided above under Section 2.C Gifts and Entertainment, Persons are prohibited from soliciting or receiving anything of value in any amount in connection with the business of the Company, including but not limited to money, goods, or services. This prohibition applies whether such was obtained as a gratuity/gift or as a "quid pro quo" exchange (something received or given as a reward for preferential action or service rendered by a Director or Employee). Additionally, this prohibition includes receiving compensation of any kind from any source for rendering services of a type that are performed or offered by the Company. A Director or Employee may not do indirectly what he or she is prohibited from doing directly; for example, arrange to have a prohibited gift made to a member of his or her Immediate Family. Similarly, a Person may not give gifts, meals, or entertainment (including a quid pro quo exchange) which are intended to influence, or that might give the appearance of influencing, another Person or a business contact in a business decision. Any action by a Person perceived to compromise another's judgment is prohibited.

   Example: An Employee may not solicit any sort of personal compensation in return for making a loan to a customer.

   Example: A Director who is in a position, whether directly or indirectly, to sell goods or services to the Company may not give gifts to the department responsible for making such purchasing decisions.

2. Insider Trading or Tipping

   The Board of Directors of the Company has approved a policy to prevent insider trading (the "Policy"). The Policy also details, among other things, the Company's Preclearance Policy and the Compliance Program for Insider Transaction Reporting.