Exhibit 2.2

TRANSFER AND ASSUMPTION
AGREEMENT

TD SECURITIES INC.
(as TDSI Transferor)

- and -

TD WATERHOUSE INVESTOR SERVICES (CANADA) INC.
(as Transferee)

DATED JUNE 28, 1999





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TRANSFER AND ASSUMPTION AGREEMENT

THIS AGREEMENT effective as of the Effective Time,

BETWEEN:

TD SECURITIES INC.,a corporation incorporated under
the laws of Ontario

(hereinafter referred to as TDSI Transferor)

OF THE FIRST PART,

- and -

TD
WATERHOUSE INVESTOR SERVICES (CANADA) INC.,

                  a corporation incorporated under the laws of

Ontario

(hereinafter referred to as the Transferee)

OF THE SECOND PART.

WHEREAS TDSI Transferor wishes to transfer the Transferred Business and the
Transferee wishes to acquire the Transferred Business, subject to and in accordance with
the terms and conditions hereof;

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the
premises, the mutual covenants and agreements hereinafter set forth and for good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the
Parties have agreed as follows:




ARTICLE 1
INTERPRETATION




1.1  Definitions

| | In this Agreement, including the recitals and the Schedules, unless the context
otherwise requires:
| | ---------------------------------------------------------------------------------------------------



| | (a) |  | Accounts Payable mean the payables owing at the Effective Time by
TDSI Transferor to creditors for the purposes of, or in connection with, the
Transferred Business (including the trade payables, other payables, accrued
expenses and arrears);
| | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





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| | (b) |  | Accounts Receivable mean the receivables owing at the Effective Time by
debtors of TDSI Transferor for the purposes of, or in connection with, the
Transferred Business (including trade receivables, other receivables, accrued
income, and prepayments);                                                                                                                                                                                                                                                                                                                                                               
| | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (c) |  | Assurance means any warranty, representation, statement, assurance,
comfort letter, covenant, agreement, undertaking, indemnity, guarantee or
commitment of any nature whatsoever;                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| | (d) |  | Balance Sheet Assets mean all assets which are owned, used or held, by
TDSI Transferor which exclusively relate to the Transferred Business but
which as of the Effective Time are carried in TDSI Transferors accounting
or financial books or records at a value greater than nil and which are not
carried on the accounting or financial books or records of the Transferred
Business;                                                                                                                                                                                                                            
|
| | (e) |  | Books and Records mean all books and records of TDSI Transferor
containing Transferred Business Information or other media on which any
such information is recorded, including all forms of computer or machine
readable material but excluding all books and records relating to Excluded
Assets or Excluded Liabilities;                                                                                                                                                                                                                                                                                              
|
| | (f) |  | Business Day means any day which is not a Saturday, Sunday or statutory
holiday in Toronto, Ontario;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| | (g) |  | Commitments mean contracts, arrangements, indentures, mortgages,
licence agreements, commitments and engagements, including the master
services agreement dated January 1, 1996 between the TDSI Transferor and
The Toronto-Dominion Bank to the extent that such agreement relates to the
Transferred Business, any quotation, order or tender for any of the
foregoing which remains open for acceptance and any manufacturers or
suppliers warranty, guarantee or commitment (express or implied);                                                                                                                  
|
| | (h) |  | Direction and Escrow Agreement Regarding the 1999 Green Line
Reorganization means the agreement entered into among The Toronto-Dominion Bank, TD Waterhouse Group, Inc., TDSI Transferor and the
Transferee, dated the date hereof setting out with respect to the transactions
contemplated therein, the list of documents to be exchanged, the parties to
whom such documents are to be delivered, the participants in the closing and
the terms of escrow and release of escrow, including the times at which the
various deliveries of documents are made and the transactions contemplated
thereby become effective;

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| | (i) |  | Effective Time means 00:01 a.m. on the first day of the month in which
the IPO Closing Date occurs;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (j) |  | Eligible Property means eligible property within the meaning of
subsection 85(1.1) of the Tax Act or its applicable provincial counterpart, in
respect of which an election has been or will be made as provided in Section
4.1 of this Agreement;                                                                                                                                                                                                                                                                                                                                                                     
|
| | (k) |  | Employees mean those persons whose names are set out in Schedule A
hereto;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| | (l) |  | Employee Transfer Date means the date designated by notice given by
TDSI Transferor to the Transferee as the date for the transfer of the
Employees to the Transferee; provided that the date so designated shall be
on the same day as or after the Effective Time and prior to the first
anniversary of the Effective Time;                                                                                                                                                                                                                                                                                          
|
| | (m) |  | Encumbrances mean liens, charges, security interests, rights of others or
other encumbrances;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| | (n) |  | Excluded Assets mean: (i) amounts recoverable in respect of Taxes
relating to the Transferred Business arising or relating to a period of time
ending prior to the Effective Time, (ii) the rights of TDSI Transferor under
the Reorganization Agreements, (iii) the Balance Sheet Assets, (iv) all stock
exchange seats other than one seat on the Winnipeg Stock Exchange, and (v)
the rights and benefits of TDSI Transferor under the master service
agreement between The Toronto-Dominion Bank and TDSI Transferor dated
as of January 1, 1996 to the extent that they do not relate to the Transferred
Business;
|
| | (o) |  | Excluded Liabilities mean: (i) all Taxes relating to the Transferred
Business arising or relating to a period of time ending prior to the Effective
Time, (ii) the obligations of TDSI Transferor under the Reorganization
Agreements, and (iii) the obligations of TDSI Transferor under the master
service agreement between The Toronto-Dominion Bank and TDSI
Transferor dated as of January 1, 1996 to the extent that they do not relate to
the Transferred Business;                                                                                                                                            
|
| | (p) |  | Independent Contractors mean those Persons whose names are set out in
Schedule B hereto;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| | (q) |  | Intellectual Property Rights mean patents, trade marks, service marks,
trade names, business names, rights in design, copyright (including rights in
computer software and moral rights), database rights, rights in domain
names                                                                                                                                                                                                                                                                                                                                                                                      

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| |     |  | and all other intellectual property rights, in each case whether
registered or unregistered and including applications for the grant of any of
the foregoing rights, and all rights or forms of protection having equivalent
or similar effect to any of the foregoing but excluding Transferred Business
Information;                                 
| | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (r) |  | IPO Closing Date means the date of the initial offering to the public of
common shares in the capital stock of TD Waterhouse Group, Inc.;                                                                                                                                                                                                            
|
| | (s) |  | Losses and Liabilities mean, in relation to a Person, claims, demands,
causes of action, liabilities, losses, costs, damages and expenses which such
Person suffers, sustains, pays or incurs including legal fees on a solicitor
and his own client basis;                                                                                        
|
| | (t) |  | Master Services Agreement means the master services agreement
between The Toronto-Dominion Bank and TD Waterhouse Group, Inc.
dated June 28, 1999 as such may be amended, restated or supplemented
from time to time;                                                                                                                                
|
| | (u) |  | Material Consent means a regulatory approval or consent which if not
obtained would preclude the Transferee from carrying on the business of a
dealer in any Province or Territory of Canada;                                                                                                                                                        
|
| | (v) |  | Parties mean the parties
to this Agreement and Party means any one of
them;                                                                                                                                                                                                                                                                        
|
| | (w) |  | Person shall include any individual, heir, executor, administrator or other
legal representative of an individual, firm, company, corporation, other
body corporate, association, unincorporated organization, partnership, trust,
government and governmental or regulatory department or agency (whether
or not having separate legal personality);
|
| | (x) |  | Release Time means the time of the release of this Agreement from the
escrow constituted by the Direction and Escrow Agreement Regarding the
1999 Green Line Reorganization (as specified in the Direction and Escrow
Agreement Regarding the 1999 Green Line Reorganization);                                                                       
|
| | (y) |  | Reorganization Agreements mean this Agreement and all other
agreements, Specific Conveyances or Specific Assumptions to be entered
into pursuant to this Agreement;                                                                                                                                                                                  
|
| | (z) |  | Sales Taxes includes all federal, provincial, and other sales, goods and
services, value added, use or other transfer taxes, and all other taxes
whatsoever, including, without limitation, any goods and services tax and
harmonized sales tax payable under the Excise Tax Act(Canada), and tax                                                    

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| |      |  | payable under An Act Respecting Quebec
Sales Taxand any retail sales tax
imposed by any Province in Canada;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | ---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (aa) |  | Specific Assumptions mean all assumption instruments, novations and
other documents or instruments that are reasonably required to effectively
cause the Transferee to assume the TDSI Assumed Liabilities, to make the
Transferee, in the place and stead of the TDSI Transferor, liable to satisfy
the TDSI Assumed Liabilities to the Third Parties to whom they are owed,
and to effect a release of the TDSI Transferor from the TDSI Assumed
Liabilities;                                                                                                                                                                                                                                                                                                                            
|
| | (bb) |  | Specific Conveyances mean all conveyances, assignments, transfers,
novations and other documents or instruments that are reasonably required to
convey, assign and transfer the TDSI Assets to the Transferee;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| | (cc) |  | Tax means: (a) taxes on income, profit or gains and (b) all other taxes,
levies, duties, imposts, charges and withholdings of any nature, including
any Sales Taxes, any excise, property, capital, franchise and payroll taxes
and any national or provincial insurance or social security contributions,
together with all penalties, charges and interest relating to any of the
foregoing or to any late or incorrect return in respect of any of them,
regardless of whether such taxes, levies, duties, imposts, charges,
withholdings, penalties and interest are chargeable directly or primarily
against or attributable directly or primarily to the Transferred Business or
any other Persons and of whether any amount in respect of them is
recoverable from any other Person;
|
| | (dd) |  | Tax Act means the
Income Tax Act(Canada) 1985 R.S.C. (5th Supp.),
c.1, as amended;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| | (ee) |  | TDSI Assets mean all of the assets, properties and undertakings owned,
used or held by TDSI Transferor which exclusively relate to the Transferred
Business, including but not limited to, to the extent they are owned, used or
held by TDSI Transferor and exclusively relate to the Transferred Business,
the Transferred Business Goodwill, the Transferred Business Information,
the Transferred Business IPR, Tangible Assets, Books and Records, the
Accounts Receivable, cash and cash equivalents and the benefits of
Commitments (including the rights and benefits of the TDSI Transferor under
the master service agreement dated January 1, 1996 between The Toronto-Dominion Bank and TDSI Transferor), but excluding the Excluded Assets;                                   
|
| | (ff) |  | TDSI Assumed Liabilities mean all liabilities and obligations of TDSI
Transferor relating to or in respect of the Transferred Business, whether
direct or indirect, existing or contingent, accrued on or prior to, or accruing
subsequent to, the Effective Time, including but not limited to liabilities
relating to or incurred in connection with the TDSI Assets or the use
thereof,                                                                                                                                                                                                                                                                                                                                                                                                 

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| |      |  | Assurances, Commitments (including all payment obligations
thereunder), Accounts Payable, causes of action, claims and lawsuits
presently or hereafter in existence whether known or unknown which relate
to or are in respect of the Transferred Business (including without limitation
causes of action, claims and lawsuits made by Employees) but excluding the
Excluded Liabilities;
| | ---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (gg) |  | TDSI Exchangeable Shares mean 33,625,000 exchangeable preferred
shares of the Transferee having the share conditions set forth in
Schedule C hereto;                                                                                                                                                                                                                                 
|
| | (hh) |  | TDSI Promissory Note means the promissory note in the principal
amount of $66,200,000 made and delivered by the Transferee in favour of
TDSI Transferor;                                                                                                                                                                                                                               
|
| | (ii) |  | TDSI Purchase Consideration has the meaning ascribed thereto in
Section 2.3;                                                                                                                                                                                                                                                                                                           
|
| | (jj) |  | TDSI Purchase Price has the meaning ascribed thereto in Section 2.3;                                                                                                                                                                                                                                                                                                                   
|
| | (kk) |  | Third Party means any Person other than a Party;                                                                                                                                                                                                                                                                                                                                       
|
| | (ll) |  | this Agreement, herein, hereto, hereof and similar expressions
refer to this Transfer and Assumption Agreement as amended from time to
time; and                                                                                                                                                                                                                                 
|
| | (mm) |  | Transferee Indemnified Parties has the meaning ascribed thereto in
Section 6.2 hereof;                                                                                                                                                                                                                                                                                                 
|
| | (nn) |  | Transferor Indemnified Parties has the meaning ascribed thereto in
section 6.1 hereof;                                                                                                                                                                                                                                                                                                 
|
| | (oo) |  | Transferred Business means the Canadian discount brokerage business
presently or heretofore carried on by TDSI Transferor through its division
known as Green Line Investor Services and (ii) the Canadian brokerage
clearing business presently and/or heretofore carried on by TDSI Transferor;                                                                                    
|
| | (pp) |  | Transferred Business Goodwill means the goodwill of TDSI Transferor
in relation to the Transferred Business, together with the right of the
Transferee to represent itself as carrying on the Transferred Business in
succession to TDSI Transferor;                                                                                                                                   
|
| | (qq) |  | Transferred Business Information means all information that is used
exclusively in the Transferred Business and is owned or the rights in which
are owned by TDSI Transferor; and                                                                                                                                                                                                      

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| | (rr) |  | Transferred Business IPR means all Intellectual Property Rights owned
by or on behalf of TDSI Transferor which is used exclusively in the
Transferred Business.
| | ---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------




1.2  Article, Section and Schedule References



| | Except as otherwise expressly provided, a reference in this Agreement to an
Article, section, subsection, paragraph or Schedule is a reference to an
article, section, subsection, paragraph or schedule of or to this Agreement.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




1.3  Interpretation Not Affected by Headings



| | The headings in this Agreement are for convenience only and shall not affect the
construction or interpretation of this Agreement.
| | ----------------------------------------------------------------------------------------------------------------------------------




1.4  Included Words



| | When the context reasonably permits, words suggesting the singular shall be
construed as suggesting the plural and vice versa, and words suggesting one gender
shall be construed as suggesting other genders.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




1.5  Schedules



| | The following Schedules are attached to and form a part of this Agreement:
| | --------------------------------------------------------------------------



| | Schedule A  List of Employees;
| | ---------------------------------



| | Schedule B  List of Independent Contractors; and
| | ---------------------------------------------------



| | Schedule C  Share Conditions of Transferees Exchangeable Shares.
| | --------------------------------------------------------------------




ARTICLE 2PURCHASE AND SALE




2.1  Transfer



| | As of the Effective Time, TDSI Transferor hereby transfers, assigns, sells and
conveys all of its right, title and interest in and to the TDSI Assets to the Transferee
and the Transferee hereby purchases and accepts from TDSI Transferor all of TDSI
Transferors right, title and interest in and to the TDSI Assets subject to and in
accordance with this Agreement including Section 7.8. The Transferee
acknowledges that the TDSI Assets may be subject to Encumbrances and it accepts
the TDSI Assets in the condition in which they exist at the Effective Time.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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2.2  Assumption of Assumed Liabilities, Etc.



| | The Transferee hereby assumes, and agrees to duly and fully perform, satisfy, pay
and discharge the TDSI Assumed Liabilities.
| | -----------------------------------------------------------------------------------------------------------------------------




2.3  Purchase Price



| | The purchase price for the TDSI Assets shall be equal to the aggregate fair market
value of the TDSI Assets (such price being herein referred to as the TDSI Purchase
Price). TDSI Transferor hereby acknowledges the receipt from the Transferee,
and the sufficiency of, the consideration for the TDSI Assets (the TDSI Purchase
Consideration) being the TDSI Exchangeable Shares, the assumption of the TDSI
Assumed Liabilities and the TDSI Promissory Note.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




2.4  Allocation of the TDSI Purchase Consideration



| | (a) |  | The TDSI Purchase Price shall be allocated among each of the TDSI Assets
as to an amount equal to the fair market value of each of the TDSI Assets.
| | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (b) |  | The TDSI Assumed Liabilities and the TDSI Promissory Note shall be
allocated as follows:                                                           



| |      |                                                                                                                                                                                                                                                                    
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i)  | to each of the TDSI Assets which is an Eligible Property, to the
extent of the amount agreed to by the TDSI Transferor and the
Transferee in their joint election under subsection 85(1) of the Tax
Act, in respect of the transfer of the particular property; and
|
| | (ii) | to each of the TDSI Assets which is not an Eligible Property, pro
rata based on the fair market value of each such property but in no
event shall the amount so allocated to a particular property exceed the
fair market value of the property.                   



| | (c) |  | The TDSI Exchangeable Shares shall be allocated to each of the TDSI Assets
to the extent that the fair market value of the particular property exceeds the
principal amount of the liabilities allocated to the particular property as set
out in Section 2.4(b) above.
| | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




2.5  GST



| | (a) |  | The TDSI Purchase Price does not include any Sales Taxes, which are or may
become exigible in connection with the transfer of the TDSI Assets.
| | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------
|
| | (b) |  | The Transferee shall pay to the TDSI Transferor any applicable goods and
services tax or harmonized sales tax payable under the Excise Tax
Act

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| |  |  | (Canada) and any applicable tax payable under
An Act Respecting Quebec
Sales Taxin connection with the transfer of the TDSI Assets.
| |  |  | -----------------------------------------------------------------------------------------------------------------------------------




2.6  Bulk Sales Act Legislation



| | The Parties hereto waive compliance with any and all applicable bulk sales
legislation.
| | ---------------------------------------------------------------------------------------




ARTICLE 3TRANSFERS




3.1  Specific Conveyances and Specific Assumptions



| | The Transferee shall bear all costs incurred in preparing and entering into and, if
necessary, registering any Specific Conveyances or Specific Assumptions and
registering any further assurances required pursuant to this Agreement. The
Transferee shall register all such Specific Conveyances and Specific Assumptions
promptly.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




ARTICLE 4TAXES




4.1  Section 85



| | TDSI Transferor and the Transferee will jointly elect under subsection 85(1) of the
Tax Act and under any similar provincial legislation, in prescribed form and within
the time provided, with respect to the transfer of each of the TDSI Assets which is
an eligible property within the meaning of subsection 85(1.1) of the Tax Act and in
respect of which TDSI Transferor designates, and the agreed amount for purposes
of paragraph 85(1)(a) of the Tax Act and any similar provincial legislation in
respect of each such property will be the amount as determined by TDSI
Transferor.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




4.2  Accounts Receivable



| | At the option of TDSI Transferor, the Transferee will jointly elect with TDSI
Transferor under section 22 of the Tax Act and any similar provincial tax
legislation, in prescribed form and within the time provided, with respect to the
transfer of Accounts Receivable by the TDSI Transferor and will designate therein
the applicable portion of the TDSI Purchase Price as the consideration paid by the
Transferee therefor and will each file an election with Revenue Canada and the
relevant provincial tax authority forthwith after the Effective Time.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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4.3  Unearned Amounts



| | TDSI Transferor agrees with the Transferee that TDSI Transferor is transferring
assets with a fair market value equal to the amount of TDSI Transferors obligations
in respect of undertakings which arise from the operations of the Transferred
Business and to which paragraph 12(1)(a) of the Tax Act applies and, in respect of
such transfer by TDSI Transferor to the Transferee at TDSI Transferors option, the
Transferee will jointly elect with TDSI Transferor under subsection 20(24) of the
Tax Act, and any similar provision of any provincial legislation, to have the rules in
subsection 20(24) apply.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




4.4  Transfer Taxes



| | All Sales Taxes that may be imposed or assessed solely in connection with the
transfer of TDSI Assets shall, subject to Section 2.5(b) hereof, be paid by the
Transferee directly to the relevant governmental authority.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




ARTICLE 5
REPRESENTATIONS AND WARRANTIES




5.1  Representations and Warranties of TDSI Transferor



| | TDSI Transferor represents and warrants to the Transferee that:
| | ---------------------------------------------------------------



| | (a) |  | TDSI Transferor Standing: TDSI Transferor is a corporation, duly organized
and validly existing under the laws of Ontario, and now has all the requisite
corporate power and authority to perform its obligations in accordance with
this Agreement;                                                                                                                                                                                                          
| | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (b) |  | No Conflicts: the consummation of the transactions contemplated herein will
not violate, nor be in conflict with, any of the constating documents, by-laws
or governing documents of TDSI Transferor;                                                                                                                                                                                                                                                         
|
| | (c) |  | Execution of Documents: this Agreement has been duly executed and
delivered by TDSI Transferor and all other documents (including the
Specific Conveyances) executed and delivered by TDSI Transferor pursuant
hereto will be duly executed and delivered by TDSI Transferor, and this
Agreement does, and such documents will, constitute legal, valid and
binding obligations of the TDSI Transferor, enforceable in accordance with
their respective terms;
|
| | (d) |  | Encumbrances: to the best of its knowledge, immediately after the transfer
provided for in Section 2.1, any Encumbrances applicable to the TDSI
Assets will not in any material way prevent the Transferee from
carrying on the                                                                                                                                                                                                                               

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| |     |  | Transferred Business in the manner in which it was conducted
immediately prior to such time. Furthermore, TDSI Transferor has not
created or permitted the creation of any Encumbrance on the TDSI Assets,
except in connection with the conduct of the Transferred Business;
| | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (e) |  | Residency: TDSI Transferor is not a non-resident of Canada within the
meaning of the provisions of the Tax Act; and                                                                                                                                                          
|
| | (f) |  | Registration Numbers: TDSI Transferor is registered under the Excise Tax
Act (Canada) and An Act Respecting Quebec Sales Tax and its respective
registration numbers are 89865749 and 1018634925.                                                                            




5.2  Representations and Warranties of the Transferee



| | The Transferee represents and warrants TDSI Transferor, that:
| | -------------------------------------------------------------



| | (a) |  | Standing: the Transferee is a taxable Canadian corporation as defined in
subsection 89(1) of the Tax Act, duly organized and validly existing under
the laws of Ontario and now has the requisite corporate power and authority
to perform its obligations in accordance with this Agreement;                                                                                                                                                              
| | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (b) |  | No Conflicts: the consummation of the transactions contemplated by this
Agreement will not violate, nor be in conflict with, the constating
documents, by-laws or governing documents of the Transferee;                                                                                                                                                                                                                                                   
|
| | (c) |  | Execution of Documents: this Agreement has been duly executed and
delivered by the Transferee and all other documents (including the Specific
Conveyances) executed and delivered by the Transferee pursuant hereto will
be duly executed and delivered by the Transferee, and this Agreement does,
and such documents will, constitute legal, valid and binding obligations of
the Transferee enforceable in accordance with their respective terms; and  
|
| | (d) |  | Exchangeable Shares: as of the date hereof, the TDSI Exchangeable Shares
are validly created, allotted and issued as fully-paid and non-assessable
shares, are registered in the name of TDSI Transferor, except for one
common share, 1,000,000 Class Ashares and 33,625,000 exchangeable
preference shares issued to The Toronto-Dominion Bank, are the only issued
and outstanding shares of the Transferee and are free and clear of any
Encumbrance.




5.3  Limitation



| | No claim under this Article 5 shall be made or be enforceable by the TDSI
Transferor or by the Transferee, unless written notice of such claim, with
reasonable particulars, is given by such Party to the Party against whom the claim is
made.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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5.4  Survival of Representations, Warranties and Covenants



| | (a) |  | The representations and warranties set forth in Sections 5.1 and 5.2 shall
survive the completion of the Transfer of the TDSI Assets herein provided
for and, notwithstanding such completion, shall continue in full force and
effect for a period of three (3) years from the Release Time.
| | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (b) |  | The covenants and indemnities of a Party set forth in this Agreement shall
survive the transfer of the TDSI Assets herein provided for and,
notwithstanding such completion, shall continue in full force and effect in
accordance with the terms thereof.                                   




ARTICLE 6INDEMNITIES




6.1  General Indemnity of Transferee



| | The Transferee covenants and agrees with TDSI Transferor to indemnify and save
harmless TDSI Transferor, its directors, officers, agents, employees and their
respective executors, heirs, administrators, successors and permitted assigns
(collectively the Transferor Indemnified Parties) from and against all Losses and
Liabilities that any of the Transferor Indemnified Parties may suffer or incur
directly or indirectly as a result of, or in connection with: (a) the TDSI Assumed
Liabilities, (b) the use of any Transferred Business IPR in the Transferred Business,
whether before or after the Effective Time, (c) the operation of the Transferred
Business from and after the Effective Time, (d) any breach of the Transferees
representations and warranties and covenants set out herein, (e) Sales Taxes payable
in connection with the transfer of the TDSI Assets, or (f) any misstatement or
omission relating to the Transferred Business in the Canadian prospectus and U.S.
Registration Statement of TD Waterhouse Group, Inc., in each case, dated June 23,
1999.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




6.2  General Indemnity of TDSI Transferor



| | TDSI Transferor covenants and agrees with the Transferee to indemnify and save
harmless the Transferee, its directors, officers, agents, employees and their
respective executors, heirs, administrators, successors and permitted assigns
(collectively the Transferee Indemnified Parties) from and against all Losses and
Liabilities that any of the Transferee Indemnified Parties may suffer or incur
directly or indirectly as a result of, or in connection with:
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (a) |  | the operation by TDSI Transferor of any business or operations other than
the Transferred Business, whether before or after the Effective Time; or
| | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------

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| | (b) |  | any breach of TDSI Transferors representations warranties and covenants
set out herein.
| | --- |  | ----------------------------------------------------------------------------------------




6.3  Conduct of Third Party Claims



| | (a) |  | Unless otherwise notified by the beneficiary of an indemnity herein granted
(an Indemnified) in connection with any claim, demand or cause of action
of, or asserted by a Third Party in respect of which a Party has given an
indemnity under this Agreement (the Indemnifier), the Indemnifier shall
take control of the defence or settlement of such claim, demand or cause of
action; provided that the Indemnifier may not settle or make any admission
of liability without having first obtained the Indemnifieds written consent,
which consent shall not be unreasonably withheld.
| | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (b) |  | An Indemnifier shall not be entitled to exercise and hereby waives any rights
or remedies the Indemnifier may now or in the future have against an
Indemnified in respect of matters in respect of which it has indemnified the
Indemnified, whether such rights and remedies are pursuant to the common
law or statute or otherwise, including without limitation, the right to name
the Indemnified as a third party to any action commenced by any Third Party
against the Indemnifier.                                                                                                       




ARTICLE 7CERTAIN RIGHTS AND OBLIGATIONS




7.1  Third Party Consents



| | The Transferee acknowledges and agrees that it has been responsible for
ascertaining and obtaining prior to the Release Time all licenses, permits, consents
and giving all notices necessary to permit the effective transfer of the TDSI Assets
from TDSI Transferor to the Transferee, to ensure that no Commitments or
Assurances relating to the Transferred Business are breached and that the
Transferee may operate the Transferred Business. In the event that it has failed to
do so, the Transferee shall promptly use its commercially reasonable efforts to do
so. The Transferee hereby indemnifies and saves harmless the Transferor
Indemnified Parties from and against all Losses and Liabilities that any of the
Transferor Indemnified Parties may suffer as a result of, or in connection with, its
failure to have obtained such licences, permits, consents and given such notices
prior to the Release Time. After the Release Time, TDSI Transferor shall provide
reasonable co-operation and assistance to the Transferee to obtain any outstanding
licences, permits and consents. Each of the TDSI Transferor and the Transferee
shall be responsible for their internal and professional costs in carrying out their
respective obligations under this section. The Transferee shall be liable for and
shall pay all fees, charges, costs and expenses levied by a
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

-13-



---





| | Person in granting, or as
a condition to grant a license, permit or its consent or including assignment fees.
| | -------------------------------------------------------------------------------------------------------------




7.2  Absence of Consent



| | (a) |  | Where any consent or agreement of any Third Party is required to the
transfer of any of the TDSI Assets (other than in relation to the transfer of
any Commitment (which is dealt with in Section 7.3)), and such consent or
agreement has not been obtained at or before the Release Time, the
transfer of the relevant asset shall not take effect, until that consent or
agreement has been obtained.
| | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (b) |  | After the Release Time, and until such time as any consent or agreement
referred to in Section 7.2 (a) is obtained, TDSI Transferor shall be deemed
to hold the benefit of such asset for the Transferee.                                                                                                                                                                                               




7.3  Commitments



| | (a) |  | Where any consent or agreement of any Third Party is required to enable
the Transferee to enjoy or perform any Commitment or to enable TDSI
Transferor to transfer the benefit or burden of any Commitment to the
Transferee, then the following provisions shall apply:
| | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i)   | this Agreement shall not constitute an assignment or an attempted
assignment of the relevant Commitment if, or to the extent that,
such an assignment or attempted assignment would constitute a
breach of such Commitment;                                                                                                                                                                                                                                                                                                                                                                                       
|
| | (ii)  | the Parties shall use all reasonable efforts to obtain the
consent or agreement of the Third Party to whatever
assignment, transfer or novation is necessary to enable
the Transferee to perform such Commitment after the
Effective Date or as the case may be to transfer the
benefit and burden of such Commitment to the
Transferee;                                                                                                                                                                                                                                                                          
|
| | (iii) | until the consent or agreement referred to in Section 7.3(a) is
obtained, the Transferee shall, unless the relevant Commitment
prohibits it, perform all the obligations of TDSI Transferor under
such Commitment, as agent for or sub-contractor to TDSI
Transferor and indemnify the Transferor Indemnified Parties in
respect of such performance or, if the relevant Commitment
prohibits the Transferee from so acting as agent and sub-contractor
or the Transferee cannot be permitted to act as agent and sub-contractor because of confidentiality obligations, the Transferor
Indemnified Parties shall,

-14-



---





| |                                                                                                                                                                                                                                                                                                                                                                                                                      
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | at the cost of the Transferee and to the
extent that the TDSI Transferor is reasonably able, do all such acts
and things as the Transferee may reasonably require to enable due
performance of the Commitment and to provide for the Transferee
the benefits, subject to the burdens, of the Commitment and the
Transferee shall indemnify the Transferor Indemnified Parties in
respect of all such acts and things.



| | (b) |  | Until such time as the consent or agreement referred to in Section 7.3(a) is
obtained, TDSI Transferor shall be deemed to hold the benefit of the
relevant Commitment referred to in Section 7.3(a) for the Transferee.                                                            
| | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (c) |  | If the rights or obligations under the Commitment to which TDSI
Transferor is a party extend to both the Transferred Business and any other
operation or business of TDSI Transferor (in this Section 7.3(c) a
Retained Business), TDSI Transferor and the Transferee agree that:



| |      |                                                                                                                                                                                                      
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i)  | the Commitment shall remain with the TDSI Transferor which
shall hold all rights under such Commitment to the extent they
relate to the Transferred Business for the benefit of the
Transferee;      
|
| | (ii) | to the extent that any rights under such Commitment are held by
TDSI Transferor for the benefit of the Transferee, TDSI
Transferor and the Transferee shall cooperate with each other to
ensure that:



| |     |                                                                                                                                                                                                                                
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (A) | the Transferee obtains the benefit of any such rights and
satisfies any associated or commensurate obligations;                                                                                                                
|
| | (B) | the Transferees rights under such Commitment are
enforced against the issuer thereof or the other party or
parties thereto;                                                                                                   
|
| | (C) | all such actions are taken and all such things are done by
TDSI Transferor as may reasonably be requested by the
Transferee, to the extent TDSI Transferor can do so
without prejudice to its own rights under such
Commitment;
|
| | (D) | all such actions are taken and all such things are done by
the Transferee as may reasonably be requested by TDSI
Transferor which are necessary to ensure that all                                                             

-15-



---





| |                                                                            
| | ---------------------------------------------------------------------------
| | associated or commensurate obligations are satisfied by
the Transferee; and



| |     |                                                                                                                                                                                                                                                                                                                                                                                                    
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (E) | all monies and properties collected by or paid or
transferred to TDSI Transferor in respect of such rights
are paid over or transferred to the Transferee as
appropriate, and all monies and properties payable or
transferable by the TDSI Transferor, as applicable, in
respect of such obligations are first paid over or
transferred to TDSI Transferor by the Transferee, as
appropriate; and.



| |       |                                                                                                                                                                                                                                                                                                                                                                    
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (iii) | the Transferee shall indemnify and save harmless TDSI
Transferor from and against any claims in respect of any such
Commitments in connection with or arising as a result of any
action reasonably taken by TDSI Transferor in its capacity as
holder of the Commitment (including, any such actions taken by
TDSI Transferor in accordance with this Section 7.3).




7.4  Letters to Suppliers



| | The Transferee shall promptly following the Release Time send out notices and
letters to all suppliers and customers of the Transferred Business and other
business contacts relating to the Transferred Business informing them of the
transfer of the Transferred Business and the Transferees assumption of the TDSI
Assumed Liabilities.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




7.5  Release of the Assurances



| | The Transferee covenants that, at the written request of TDSI Transferor made
from time to time after the Release Time, the Transferee will use best efforts to
execute and deliver all such instruments of assumption and acknowledgements in
order to effect the release and discharge in full of any Assurance given by TDSI
Transferor to any Person in respect of any obligation or liability of the Transferred
Business, and shall procure the assumption of, and the substitution of the
Transferee as the primary obligor in respect of, each such Assurance on a non-recourse basis to TDSI Transferor. Pending such release and discharge, the
Transferee hereby agrees with the TDSI Transferor that the Transferee will assume
and pay and discharge when due, and indemnify each Transferor Indemnified
Person against, all such Assurances.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




7.6  Employees and Independent Contractors



| | (a) |  | The Transferee will, effective as of the Employee Transfer Date and on
terms and conditions (including remuneration and benefits, if any)
which
| | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------

-16-



---





| |     |  | in the aggregate are similar to those which they presently enjoy,
(i) employ from and after such time the Employees and (ii) retain from
and after the Employee Transfer Date the Independent Contractors.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (b) |  | The Transferee will recognize, to the extent previously recognized by
the TDSI Transferor, accrued vacation, and other similar entitlements
of Employees and the past service of the Employees with the TDSI
Transferor and any prior service for which the TDSI Transferor has
given the Employees service credit for all purposes, including
eligibility to participate and extent of participation in all benefit plans
and entitlement to notice of termination of employment or pay in lieu
thereof or severance pay.                                                                                                                                                                                   
|
| | (c) |  | The Transferee will indemnify and save harmless the Transferor
Indemnified Parties against any Losses and Liabilities arising from or
relating to: (i) the employment by the TDSI Transferor or Transferee
of an Employee or termination thereof by the TDSI Transferor or
Transferee, except that the TDSI Transferor shall bear any termination
costs owing as a direct result of the transfer of the Transferred
Business, other than those termination costs attributable to an
Employees refusal to accept employment with the Transferee; or (ii)
the retainer by TDSI Transferor or the Transferee of an Independent
Contractor or termination of that retainer by TDSI Transferor or the
Transferee.
|
| | (d) |  | Without limiting Section 7.6(a), the Transferee shall also employ or
retain persons on short or long term disability or workers compensation
leave, child care leave or any other approved paid or unpaid leave of
absence who at the time of their disability, injury or the
commencement of their leave were employed or retained in the
Transferred Business.                                                                                                                                                                                                                                                                                                                                             




7.7  Amounts Received in Respect of the TDSI Assets

Where after the Effective Date any amount is paid to TDSI Transferor in respect of
a TDSI Asset, TDSI Transferor shall forthwith (and in any event, within 30 days of the
receipt of such amount) remit such amount to the Transferee.




7.8  Transfer of Legal Title



| | All Parties acknowledge and agree that the legal transfer of the TDSI Assets will
occur on the later of the IPO Closing Date and the date on which the last Material
Consent is obtained, but in any event the Parties acknowledge that the TDSI
Transferor is entitled to receive the net economic benefit derived from the
operation of the Transferred Business from and after the Effective Time, as
provided in Section 2.1.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

-17-



---






ARTICLE 8GENERAL




8.1  Further Assurances



| | Each Party will, from time to time and at all times after the Effective Time,
without further consideration, do such further acts and deliver all such further
assurances, deeds and documents as shall be reasonably required in order to fully
perform and carry out the terms of this Agreement.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




8.2  No Merger



| | Subject to any limitations set forth herein, the covenants, representations,
warranties and indemnities contained in this Agreement shall survive the execution
and delivery hereof and shall not merge in any assignments, conveyances, transfers
or other documents executed and delivered at or after the date hereof,
notwithstanding any rule of law, equity or statute to the contrary and such rules are
hereby waived.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




8.3  Entire Agreement



| | The provisions contained in any and all documents and agreements collateral hereto
shall at all times be read subject to the provisions of this Agreement and, in the
event of conflict, the provisions of this Agreement shall prevail.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




8.4  Governing Law



| | This Agreement shall be subject to and interpreted, construed and enforced in
accordance with the laws of Ontario and the laws of Canada applicable therein and
shall be treated as a contract made in Ontario. The Parties irrevocably attorn and
submit to the jurisdiction of the courts of Ontario and courts of appeal therefrom in
respect of all matters arising out of this Agreement.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




8.5  Assignment, Enurement, Etc.



| | Neither the obligations nor the benefits under this Agreement shall be assignable
unless:
| | -----------------------------------------------------------------------------------------



| | (a) |  | The assignor has given notice to the other party hereto;                                                
| | --- |  | --------------------------------------------------------------------------------------------------------
|
| | (b) |  | The assignment is an assignment of all of the assignors rights, benefits
and obligations hereunder; and

-18-



---





| | (c) |  | The assignment is made in connection with or as part of a corporate
reorganization of the assignor, a merger or amalgamation of the
assignor with one or more other corporations or the sale by the
assignor of all or substantially all of its assets.
| | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | Notwithstanding any such assignment, the assignor shall continue to remain liable
for its obligations hereunder jointly and severally with the assignee, and the
assignees rights and benefits hereunder shall be subject to any rights of set-off and
equities existing as between the assignor and the other party hereto. Any
purported assignment in contravention of this section shall be void. This
Agreement shall be binding upon and enure to the benefit of the Transferee, TDSI
Transferor, the Transferor Indemnified Parties, the Transferee Indemnified Parties
and their respective heirs, executors, administrators, successors and permitted
assigns.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




8.6  Time of Essence



| | Time shall be of the essence in this Agreement.
| | -----------------------------------------------




8.7  Notices



| | The addresses and fax number of each Party for notices shall be as follows:
| | ---------------------------------------------------------------------------

|                 |  |                                                              |  | 
|---------------- |  | ------------------------------------------------------------ |  | 
|TDSI Transferor: |  | c/o The Toronto-Dominion Bank                               
|                
|                
|                
|                
|                 |  | P.O. Box 1, 12th Floor                                      
|                
|                
|                
|                
|                 |  | Toronto-Dominion Centre                                     
|                
|                
|                
|                
|                 |  | Toronto, Ontario                                            
|                
|                
|                
|                
|                 |  | M5K 1A2                                                     
|                
|                
|                
|                
|                
|                 |  | Attention:       Senior Vice-President, Compliance           |  | 
|                
|                
|                
|                
|                
|                 |  | Fax:                  (416) 944-6932                         |  | 
|                
|                
|                
|                
|                
|The Transferee:  |  | c/o TD Waterhouse Group, Inc.                               
|                
|                
|                
|                
|                 |  | 100 Wall Street                                             
|                
|                
|                
|                
|                 |  | New York, NY                                                
|                
|                
|                
|                
|                 |  | 10005                                                       
|                
|                
|                
|                
|                
|                 |  | Attention:      Executive Vice-President and General Counsel |  | 
|                
|                
|                
|                
|                
|                 |  | Fax:                 (212) 509-8099                          |  | 



| | Any notice, communication or statement (a notice) required, permitted or
contemplated hereunder shall be in writing and shall be delivered as follows:
| | --------------------------------------------------------------------------------------------------------------------------------------------------------

-19-



---





| | (a) |  | by delivery to a Party between 8:00 a.m. and 4:00 p.m. local time on a
Business Day at the address of such Party for notices, in which case the
notice shall be deemed to have been received by that Party when it is
delivered; or                                                                                                                                                                                                                           
| | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (b) |  | by telecopier to a Party to the telecopier number of such Party for
notices, in which case, if the notice was telecopied prior to 4:00 p.m.
local time on a Business Day the notice shall be deemed to have been
received by that Party when it was telecopied and if it was faxed on a
day which is not a Business Day or is faxed after 4:00 p.m. local time
on a Business Day, it shall be deemed to have been received on the
next following Business Day.



| | A Party may from time to time change its address for service or its fax number for
service by giving written notice of such change to the other Party.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------




8.8  Invalidity of Provisions



| | If at any time any provision of this Agreement is or becomes illegal, invalid or
unenforceable in any respect under the law of any jurisdiction, that shall not affect
or impair:
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (a) |  | the legality, validity or enforceability in that jurisdiction of any other
provision of this Agreement; or                        
| | --- |  | ----------------------------------------------------------------------------------------------------------------------------------
|
| | (b) |  | the legality, validity or enforceability under the law of any other
jurisdiction of that or any other provision of this Agreement.




8.9  Waiver



| | No waiver by any Party of any breach (whether actual or anticipated) of any of the
terms, conditions, representations or warranties contained herein shall take effect
or be binding upon that Party unless the waiver is expressed in writing under the
authority of that Party. Any waiver so given shall extend only to the particular
breach so waived and shall not limit or affect any rights with respect to any other
or future breach.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




8.10  Remedies Generally



| | No failure on the part of any Party in exercising any right or remedy hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any
such right or remedy preclude any other or further exercise thereof or the exercise
of any other right or remedy in law or in equity or by statute or otherwise
conferred.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

-20-



---






8.11  Amendment



| | This Agreement shall not be varied in its terms or amended by oral agreement or
by representations or otherwise other than by an instrument in writing dated
subsequent to the date hereof, executed by a duly authorized representative of each
Party.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




8.12  Counterpart Execution



| | This Agreement may be executed in counterpart and all executed counterparts
together shall constitute one agreement.
| | --------------------------------------------------------------------------------------------------------------------




8.13  Access to Books, Records and Personnel



| | After the Effective Time, the Transferee shall permit TDSI Transferor and its
representatives to continue to have full and complete access to the
books and records of the Transferred Business and its personnel as TDSI Transferor may
require for the purpose of complying with all laws as well as its legitimate business
purposes, including without limitation in connection with any claims, demands or
litigation. The Transferee shall provide TDSI Transferor with its full co-operation
(including testimony if requested) in connection with such purposes. The
Transferee shall preserve and maintain its books and records for the greater of: (i)
15 years or (ii) such other time as they may be relevant.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




8.14  Agency For Indemnities



| | The Parties acknowledge and agree that TDSI Transferor has entered into the
Agreement on its own behalf and as agent for and on behalf of the Transferor
Indemnified Parties (whether or not formally appointed as agent on or before the
date of this Agreement) and it is the express intention of the Parties that TDSI
Transferor on behalf of the Transferor Indemnified Parties or the Transferor
Indemnified Parties themselves may exercise and enforce all their rights and
remedies provided herein in the same manner as if each were a signatory hereto.
The Transferee shall be generally entitled to deal with TDSI Transferor on behalf
of the Transferor Indemnified Parties in respect of all matters concerning this
Agreement without any obligation whatsoever to investigate the authority of the
TDSI Transferor and notwithstanding anything contained herein, TDSI Transferor
will continue to be bound by all of its obligations under this Agreement as if no
such agency relationship existed and shall remain liable to perform the obligations
of the Transferor Indemnified Parties hereunder to the extent that such persons fail
to do so. The foregoing also applies mutatis mutandis to the Transferee in respect
of the Transferee Indemnified Parties.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

IN WITNESS WHEREOF the Parties have executed this Agreement on the 28th
day of June, 1999.

-21-



---



|                   |                          |  |                        |                          
|------------------ | ------------------------ |  | ---------------------- | -------------------------
|TD SECURITIES INC. | TD WATERHOUSE INVESTOR  
|                   |                          |  | SERVICES (CANADA) INC.
|                  
|                  
|Per:               | Geoffery Horrocks      |  | Per:                   | Christopher A. Montague
|                   | Chief Compliance Officer |  |                        | Authorized Secretary     
|                  
|Per:               |                          |  | Per:                   |                          

-22-



---





| | SCHEDULE A TO A TRANSFER AND ASSUMPTION AGREEMENT BETWEEN
TD SECURITIES INC. AND TD WATERHOUSE INVESTOR SERVICES (CANADA)
INC.
| | --------------------------------------------------------------------------------------------------------------------------------

---

List of Employees





---





| | SCHEDULE B TO A TRANSFER AND ASSUMPTION AGREEMENT BETWEEN
TD SECURITIES INC. AND TD WATERHOUSE INVESTOR SERVICES (CANADA)
INC.
| | --------------------------------------------------------------------------------------------------------------------------------

---

List of Independent Contractors





---





| | SCHEDULE C TO A TRANSFER AND ASSUMPTION AGREEMENT BETWEEN
TD SECURITIES INC. AND TD WATERHOUSE INVESTOR SERVICES (CANADA)
INC.
| | --------------------------------------------------------------------------------------------------------------------------------

---

Share Conditions of Transferees Exchangeable Shares





---



TABLE OF CONTENTS

|                                                              |  |  |    | 
|------------------------------------------------------------- |  |  | -- | 
|ARTICLE 1                                                    
|                                                             
|                                                             
|                                                             
|                                                             
|INTERPRETATION                                                |  |  | 2  | 
|                                                             
|                                                             
|                                                             
|                                                             
|1.1     Definitions                                           |  |  | 2  | 
|                                                             
|                                                             
|                                                             
|                                                             
|1.2     Article, Section and Schedule References              |  |  | 7  | 
|                                                             
|                                                             
|                                                             
|                                                             
|1.3     Interpretation Not Affected by Headings               |  |  | 7  | 
|                                                             
|                                                             
|                                                             
|                                                             
|1.4     Included Words                                        |  |  | 7  | 
|                                                             
|                                                             
|                                                             
|                                                             
|1.5     Schedules                                             |  |  | 7  | 
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|ARTICLE 2                                                    
|                                                             
|                                                             
|                                                             
|                                                             
|PURCHASE AND SALE                                             |  |  | 8  | 
|                                                             
|                                                             
|                                                             
|                                                             
|2.1     Transfer                                              |  |  | 8  | 
|                                                             
|                                                             
|                                                             
|                                                             
|2.2     Assumption of Assumed Liabilities, Etc.               |  |  | 8  | 
|                                                             
|                                                             
|                                                             
|                                                             
|2.3     Purchase Price                                        |  |  | 8  | 
|                                                             
|                                                             
|                                                             
|                                                             
|2.4     Allocation of the TDSI Purchase Consideration         |  |  | 8  | 
|                                                             
|                                                             
|                                                             
|                                                             
|2.5     GST                                                   |  |  | 9  | 
|                                                             
|                                                             
|                                                             
|                                                             
|2.6     Bulk Sales Act Legislation                            |  |  | 9  | 
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|ARTICLE 3                                                    
|                                                             
|                                                             
|                                                             
|                                                             
|TRANSFERS                                                     |  |  | 9  | 
|                                                             
|                                                             
|                                                             
|                                                             
|3.1     Specific Conveyances and Specific Assumptions         |  |  | 9  | 
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|ARTICLE 4                                                    
|                                                             
|                                                             
|                                                             
|                                                             
|TAXES                                                         |  |  | 10 | 
|                                                             
|                                                             
|                                                             
|                                                             
|4.1     Section 85                                            |  |  | 10 | 
|                                                             
|                                                             
|                                                             
|                                                             
|4.2     Accounts Receivable                                   |  |  | 10 | 
|                                                             
|                                                             
|                                                             
|                                                             
|4.3     Unearned Amounts                                      |  |  | 10 | 
|                                                             
|                                                             
|                                                             
|                                                             
|4.4     Transfer Taxes                                        |  |  | 10 | 
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|ARTICLE 5                                                    
|                                                             
|                                                             
|                                                             
|                                                             
|REPRESENTATIONS AND WARRANTIES                                |  |  | 11 | 
|                                                             
|                                                             
|                                                             
|                                                             
|5.1     Representations and Warranties of TDSI Transferor     |  |  | 11 | 
|                                                             
|                                                             
|                                                             
|                                                             
|5.2     Representations and Warranties of the Transferee      |  |  | 12 | 
|                                                             
|                                                             
|                                                             
|                                                             
|5.3     Limitation                                            |  |  | 12 | 
|                                                             
|                                                             
|                                                             
|                                                             
|5.4     Survival of Representations, Warranties and Covenants |  |  | 12 | 
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|ARTICLE 6                                                    
|                                                             
|                                                             
|                                                             
|                                                             
|INDEMNITIES                                                   |  |  | 13 | 
|                                                             
|                                                             
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|6.1     General Indemnity of Transferee                       |  |  | 13 | 
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|6.2     General Indemnity of TDSI Transferor                  |  |  | 13 | 
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|6.3     Conduct of Third Party Claims                         |  |  | 13 | 
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|ARTICLE 7                                                    
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|CERTAIN RIGHTS AND OBLIGATIONS                                |  |  | 14 | 





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|7.1     Third Party Consents                           |  |  | 14 | 
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|7.2     Absence of Consent                             |  |  | 14 | 
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|7.3     Commitments                                    |  |  | 15 | 
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|7.4     Letters to Suppliers                           |  |  | 17 | 
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|7.5     Release of the Assurances                      |  |  | 17 | 
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|7.6     Employees and Independent Contractors          |  |  | 17 | 
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|7.7     Amounts Received in Respect of the TDSI Assets |  |  | 18 | 
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|7.8     Transfer of Legal Title                        |  |  | 18 | 
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|ARTICLE 8                                             
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|GENERAL                                                |  |  | 19 | 
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|8.1     Further Assurances                             |  |  | 19 | 
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|8.2     No Merger                                      |  |  | 19 | 
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|8.3     Entire Agreement                               |  |  | 19 | 
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|8.4     Governing Law                                  |  |  | 19 | 
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|8.5     Assignment, Enurement, Etc.                    |  |  | 19 | 
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|8.6     Time of Essence                                |  |  | 20 | 
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|8.7     Notices                                        |  |  | 20 | 
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|8.8     Invalidity of Provisions                       |  |  | 21 | 
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|8.9     Waiver                                         |  |  | 21 | 
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|8.10   Remedies Generally                              |  |  | 22 | 
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|8.11   Amendment                                       |  |  | 22 | 
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|8.12   Counterpart Execution                           |  |  | 22 | 
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|8.13   Access to Books, Records and Personnel          |  |  | 22 | 
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|8.14   Agency For Indemnities                          |  |  | 22 | 

ii