Exhibit 2.1

TRANSFER AND ASSUMPTION
AGREEMENT

THE TORONTO-DOMINION BANK
(as TD 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:

THE TORONTO-DOMINION BANK
                        (a Canadian chartered bank)
                        (hereinafter referred to as TD 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 TD Transferor wishes to transfer the Service Operations and the
Transferee wishes to acquire the Service Operations, 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 TD
Transferor to creditors for the purposes of, or in connection with, the
Service Operations (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 TD Transferor for the purposes of, or in connection with, the
Service Operations (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) |  | Books and Recordsmean all books and records of TD Transferor
containing Service Operations 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;                                                                                                                                                                                                                                                                                         
|
| | (e) |  | Business Daymeans any day which is not a Saturday, Sunday or statutory
holiday in Toronto, Ontario;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|
| | (f) |  | Commitmentsmean contracts, arrangements, indentures,
mortgages, licence agreements, commitments and engagements,
including 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),
excluding the Leases;                                                                                                                                                                                                                                                                        
|
| | (g) |  | Direction and Escrow Agreement Regarding the 1999 Green Line
Reorganizationmeans the agreement entered into among TD Transferor, TD
Waterhouse Group, Inc., TD Securities Inc. 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;
|
| | (h) |  | Effective Timemeans 00:05 a.m. on the first day of the month in which
the IPO Closing Date occurs;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| | (i) |  | 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;                                                                                                                                                                                                                                                                                                                                                              

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| | (j) |  | Employee Transfer Datemeans the date designated by notice
given by TD 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;                                                                                                                                                                                                                                                                                                                                                    
| | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (k) |  | Employeesmean those Persons whose names are set out in Schedule A
hereto;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| | (l) |  | Encumbrancesmean liens, charges, security interests, rights of others
or other encumbrances;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|
| | (m) |  | Excluded Assetsmean: (i) amounts recoverable in respect of Taxes
relating to the Service Operations arising or relating to a period of time
ending prior to the Effective Time, (ii) the rights of TD Transferor under
the Reorganization Agreements, (iii) the benefits of the TD Transferor
under the master service agreement dated January 1, 1996 between TD
Securities Inc. and TD Transferor to the extent that such services do not
relate to the Service Operations or to the extent they relate to the
period prior to the Effective Time, (iv) all stock exchange seats, (v) the
benefits under the Leases and (vi) Accounts Receivable, cash and cash
equivalents;
|
| | (n) |  | Excluded Liabilitiesmean: (i) all Taxes relating to the Service
Operations arising or relating to a period of time ending prior to the
Effective Time, (ii) the obligations of TD Transferor under the
Reorganization Agreements, (iii) the burdens of TD Transferor under the
master service agreement dated January 1, 1996 between TD Securities Inc.
and TD Transferor to the extent that such services do not relate to the
Service Operations or to the extent they relate to the period prior to the
Effective Time, (iv) the obligations under the Leases and (v) Accounts
Payable;                                                                                   
|
| | (o) |  | Independent Contractorsmean those Persons whose names are
set out in Schedule B hereto;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| | (p) |  | 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 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 Service
Operations Information;                                                                                                                         
|
| | (q) |  | 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.;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

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| | (r)  |  | Leasesmean collectively the leases pertaining to the Premises and
includes, if applicable, all amendments to and renewals and extensions of
such documents and all documents issued in substitution therefor;                                                                                                                                                                                               
| | ---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (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)  |  | 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;                                                                                                                                                                                                                
|
| | (u)  |  | Partiesmean the parties to this Agreement and Party means any one of
them;                                                                                                                                                                                                                                                                                                                                
|
| | (v)  |  | 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);                                                        
|
| | (w)  |  | Premisesmean the premises used by TD Transferor in connection with the
Service Operations;                                                                                                                                                                                                                                                                                                                  
|
| | (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 (such time
being 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 payable under An Act Respecting Quebec Sales Taxand any retail
sales tax imposed by any Province in Canada;
|
| | (aa) |  | Service Operationsmeans: (i) the provision of services by
the TD Transferor to the Canadian discount brokerage business
presently and/or                                                                                                                                                                                                                                                                    

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| |      |  | heretofore carried on by TD Securities Inc. through
its division known as Green Line Investor Services and (ii) the
provision of services by the TD Transferor to TD Securities Inc.
through the TD Transferors division known as TD Securities
Services;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | ---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (bb) |  | Service Operations Informationmeans all information that is used
exclusively in the Service Operations and is owned or the rights in which
are owned by TD Transferor;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|
| | (cc) |  | Service Operations IPRmeans all Intellectual Property Rights owned by
or on behalf of TD Transferor which is used exclusively in the Service
Operations;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|
| | (dd) |  | Specific Assumptionsmean all assumption instruments, novations and
other documents or instruments that are reasonably required to effectively
cause the Transferee to assume the TD Assumed Liabilities, to make the
Transferee, in the place and stead of the TD Transferor, liable to satisfy
the TD Assumed Liabilities to the Third Parties to whom they are owed and
to effect a release of the TD Transferor from the TD Assumed Liabilities;                                                                                                                                                                                                                                                                                                                                     
|
| | (ee) |  | Specific Conveyancesmean all conveyances, assignments, transfers,
novations and other documents or instruments that are reasonably required
to convey, assign and transfer the TD Assets to the Transferee;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| | (ff) |  | Tangible Assetsmean all the tangible assets, including
motor vehicles, computer equipment (but not software), other
equipment and machinery, desks, chairs, other furniture and fixtures
beneficially owned by TD Transferor and used exclusively in
connection with the Service Operations;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|
| | (gg) |  | 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 Service
Operations or any other Persons and of whether any amount in respect of
them is recoverable from any other Person;
|
| | (hh) |  | Tax Actmeans the Income Tax Act(Canada) 1985 R.S.C. (5th Supp.), c.1,
as amended;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

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| | (ii) |  | TD Assetsmean all of the assets, properties and undertakings owned,
used or held by TD Transferor which exclusively relate to the Service
Operations, including but not limited to, to the extent they are owned,
used or held by TD Transferor and exclusively relate to the Service
Operations, the Service Operations Information, the Service Operations
IPR, Tangible Assets, Books and Records, and the benefits of the
Commitments (including the rights and benefits of the TD Transferor under
the master service agreement dated January 1, 1996 between TD Securities
Inc. and TD Transferor) but excluding the Excluded Assets;                                                                                                                
| | ---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (jj) |  | TD Assumed Liabilitiesmean all liabilities and obligations of TD
Transferor relating to or in respect of the Service Operations, 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 TD Assets or
the use of thereof, Assurances, Commitments (including all payment
obligations thereunder), causes of action, claims and lawsuits presently
or hereafter in existence whether known or unknown which relate to or are
in respect of the Service Operations (including without limitation, causes
of action, claims and lawsuits made by Employees) but excluding the
Excluded Liabilities;
|
| | (kk) |  | TD Exchangeable Sharesmean 2,375,000 exchangeable preferred shares of
the Transferee having the share conditions set forth in Schedule C
hereto;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| | (ll) |  | TD Promissory Notemeans the promissory note in the principal amount of
$0.00 to be made and delivered by the Transferee in favour of TD
Transferor;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|
| | (mm) |  | TD Purchase Considerationhas the meaning ascribed thereto in Section
2.3;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|
| | (nn) |  | TD Purchase Pricehas the meaning ascribed thereto in Section 2.3;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| | (oo) |  | "Third Party means any Person other than a Party;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| | (pp) |  | "this Agreement, herein, hereto, hereof and similar expressions
refer to this Transfer and Assumption Agreement as amended from time to
time;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| | (qq) |  | Transferee Indemnified Partieshas the meaning ascribed
thereto in Section 6.2 hereof; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|
| | (rr) |  | Transferor Indemnified Partieshas the meaning ascribed thereto in
section 6.1 hereof.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      




1.2        Article, Section and Schedule References

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| |                                                                                                                                                                                                                                            
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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;                         
|            
|            
|            
|            
|Schedule C |  | - |  | Share Conditions of Transferees Exchangeable Shares; and
|            
|            
|            
|            
|Schedule D |  | - |  | Pension Arrangements.                                    




ARTICLE 2PURCHASE AND SALE




2.1        Transfer



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




2.2        Assumption of Assumed Liabilities, Etc.



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

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2.3        Purchase Price



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




2.4        Allocation of the TD Purchase Consideration



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

| | (i)  |  | to each of the TD Assets which is an Eligible Property, other than
Tangible Assets and computer software, to the extent of the amount agreed
to by the TD 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 TD Assets which is not an Eligible Property, a Tangible
Asset or computer software, 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 TD Exchangeable Shares shall be allocated to each of the TD 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 TD Purchase Price does not include any Sales Taxes, which are or may
become exigible in connection with the transfer of the TD Assets.                                                                                                                                    
| | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (b) |  | The Transferee shall pay to the TD Transferor any applicable goods and
services tax or harmonized sales tax payable under the Excise Tax Act
(Canada) and any applicable tax payable under An Act Respecting Quebec
Sales Taxin connection with the transfer of the TD Assets.

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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



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | TD 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 TD Assets which is an eligible property within
the meaning of subsection 85(1.1) of the Tax Act and in respect of which
TD 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 TD Transferor.




4.2        Unearned Amounts



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | TD Transferor agrees with the Transferee that TD Transferor is
transferring assets with a fair market value equal to the amount of TD
Transferors obligations in respect of undertakings which arise from the
operations of the Service Operations and to which paragraph 12(1)(a) of
the Tax Act applies and, in respect of such transfer by TD Transferor to
the Transferee at TD Transferors option, the Transferee will jointly
elect with TD 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.

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4.3        Transfer Taxes



| |                                                                                                                                                                                                                                                                  
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The Transferee shall be liable for all Sales Taxes that may be imposed or
assessed in connection with the transfer of TD Assets and the Transferee
shall, subject to Section 2.5(b) hereof, pay such Sales Taxes directly to
the relevant governmental authority.




ARTICLE 5REPRESENTATIONS AND WARRANTIES




5.1        Representations and Warranties of TD Transferor



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



| | (a) |  | TD Transferor Standing: TD Transferor is a Canadian chartered bank, duly
organized and validly existing under the laws of Canada and now has the
requisite corporate power and authority to perform its obligations in
accordance with the 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 TD Transferor;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|
| | (c) |  | Execution of Documents: this Agreement has been duly executed and
delivered by TD Transferor and all other documents (including the Specific
Conveyances) executed and delivered by TD Transferor pursuant hereto will
be duly executed and delivered by TD Transferor, and this Agreement does,
and such documents will, constitute legal, valid and binding obligations
of the TD Transferor enforceable in accordance with their respective
terms;                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|
| | (d) |  | Sufficiency of Assets and Services: As a result of: the
transfer to the Transferee of the TD Assets, the assets transferred
by TD Securities Inc. to the Transferee as of the date hereof
pursuant to a separate transfer and assumption agreement, the
provisions of Article 7 herein and of Article 7 of such separate
transfer and assumption agreement, and the services to be provided
by TD Transferor and certain of its affiliates to the Transferee
pursuant to the master services agreement made as of June 1, 1999
between TD Transferor and TD Waterhouse Group, Inc., the Transferee
will have all assets or services required to carry on the Canadian
discount brokerage business presently or heretofore carried on by TD
Securities Inc. through its division known as Green Line Investor
Services and the Canadian brokerage clearing business presently
and/or heretofore carried on by TD Securities Inc.

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| | (e) |  | Encumbrances: to the best of its knowledge, immediately after the
transfer provided for in Section 2.1, any Encumbrances applicable to the
TD Assets will not in any material way prevent the Transferee from using
the TD Assets in the manner in which they were used immediately prior to
such time. Furthermore, TD Transferor has not created or permitted the
creation of any Encumbrance on the TD Assets, except in connection with
the conduct of the Service Operations;
| | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (f) |  | Residency: TD Transferor is not a non-resident of Canada within the
meaning of the provisions of the Tax Act; and                                                                                                                                                                                                                                                                                                                                                                 
|
| | (g) |  | Registration Numbers: TD Transferor is registered under the Excise Tax
Act(Canada) and An Act Respecting Quebec Sales Taxand its respective
registration numbers are 105255145 and 100042923.                                                                                                                                                                                                                                                                                     




5.2        Representations and Warranties of the Transferee



| |                                                           
| | ----------------------------------------------------------
| | The Transferee represents and warrants TD 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 TD Exchangeable Shares are
validly created, allotted and issued as fully-paid and non-assessable
shares, are registered in the name of TD Transferor, except for one common
share, 1,000,000 Class Ashares and 2,375,000 exchangeable preference
shares issued to TD Securities Inc., are the only issued and outstanding
shares of the Transferee and are free and clear of any Encumbrance.           

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5.3        Limitation



| |                                                                                                                                                                                                                                               
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | No claim under this Article 5 shall be made or be enforceable by the TD
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.




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 TD 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 TD 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 TD Transferor to indemnify and
save harmless TD 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 TD Assumed Liabilities, (b) the
use of any Service Operations IPR in the Service Operations, whether
before or after the Effective Time, (c) the operation of the Service
Operations 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 TD Assets
or (f) any misstatement or omission relating to the Service Operations 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 TD Transferor



| |                                                                                                                                                                                                                                                                                                                                                  
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | TD 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

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| |                                                                                                                        
| | -----------------------------------------------------------------------------------------------------------------------
| | of the Transferee
Indemnified Parties may suffer or incur directly or indirectly as a
result of, or in connection with:



| | (a) |  | the operation by TD Transferor of any business or operations
other than the Service Operations, whether before or after the
Effective Time; or
| | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------
|
| | (b) |  | any breach of TD 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 TD Assets from TD Transferor to the Transferee,
to ensure that no Commitments or Assurances relating to the Service
Operations are breached and that the Transferee may operate the Service
Operations. 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

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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | given such notices prior to the Release Time. After the
Release Time, TD Transferor shall provide reasonable co-operation and
assistance to the Transferee to obtain any outstanding licences, permits
and consents. Each of the TD 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 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 TD 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, TD
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 TD 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 TD Transferor under such Commitment, as agent
for or sub-contractor to TD Transferor and indemnify the
Transferor Indemnified Parties in respect of such    

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| |  |  | 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, at the cost of the
Transferee and to the extent that the TD 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, TD 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
TD Transferor is a party extend to both the Service Operations and
any other operation or business of TD Transferor (in this Section
7.3(c) a Retained Business), TD Transferor and the Transferee
agree that:
|

| | (i)  |  | the Commitment shall remain with the TD
Transferor which shall hold all rights under such
Commitment to the extent they relate to the Service
Operations for the benefit of the Transferee;      
| | ---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (ii) |  | to the extent that any rights under
such Commitment are held by TD Transferor for the benefit
of the Transferee, TD 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 TD Transferor as
may reasonably be requested by the Transferee, to
the extent TD 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 TD Transferor which
are necessary to ensure that all                                                           

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

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

| | (iii) |  | the Transferee shall indemnify and
save harmless TD 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 TD Transferor in its capacity as holder of the
Commitment (including, any such actions taken by TD
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 of the Service Operations informing
them of the transfer of the Service Operations and the Transferees
assumption of the TD Assumed Liabilities.




7.5        Release of the Assurances



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The Transferee covenants that, at the written request of TD 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 TD Transferor to any Person in respect of
any obligation or liability of the Service Operations, 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 TD
Transferor. Pending such release and discharge, the Transferee hereby
agrees with the TD 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 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.
| | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (b) |  | The Transferee will recognize, to the extent previously
recognized by the TD Transferor, accrued vacation, and other
similar entitlements of Employees and the past service of the
Employees with the TD Transferor and any prior service for which
the TD 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 TD
Transferor or Transferee of an Employee or termination thereof by
the TD Transferor or Transferee,
except that the TD Transferor shall bear any termination costs
owing as a direct result of the transfer of the Service
Operations, other than those termination costs attributable to
an Employees refusal to accept employment with the
Transferee; or (ii) the retainer by TD Transferor or the
Transferee of an Independent Contractor or termination of that
retainer by TD 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 Service Operations.                                                                                                                                                                                                                                                                                                                                   
|
| | (e) |  | The Parties agree to comply with the provisions relating to
pensions set out in Schedule D hereof.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| | (f) |  | It is acknowledged that the TD Transferor provides an
unfunded benefit plan known as Executive Benefit Plan for some of
the Employees and it is agreed by the parties that the TD
Transferor will continue to provide such benefits with respect to
employment with the TD Transferor prior to the Employee Transfer
Date and with respect to employment with the Transferee on and
after the Employee Transfer Date.                                                                                                                                                                                                                                                                            




7.7        Amounts Received in Respect of the TD Assets

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

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7.8        Transfer of Legal Title

All parties acknowledge and agree that the legal transfer of the TD 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
Transferee is entitled to receive the net economic benefit derived from the
operation of the Service Operations from and after the Effective Time, as
provided in Section 2.1.




ARTICLE 8GENERAL




8.1        Further Assurances



| |                                                                                                                                                                                                                                                                                                  
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Each Party will, from time to time and at all times after the Release
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.

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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                                                                                                                                               
|
| | (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, TD 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:

|              |                                                 
|------------- | ------------------------------------------------
|TD Transferor | Toronto-Dominion Centre                         
|              | P.O. Box 1, 12th Floor                          
|              | Toronto, Ontario                                
|              | M5K 1A2                                         
|             
|             
|             
|             
|              | Attention:     Senior Vice-President, Compliance
|              | Fax:                 (416) 944-6932             

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|                |                                                            
|--------------- | -----------------------------------------------------------
|               
|               
|               
|               
|The Transferee: | c/o TD Waterhouse Group, Inc.                              
|                | 100 Wall Street                                            
|                | New York, New York                                         
|                | 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:



| | (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

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| |                                                                                                                                                                                       
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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.




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 Release Time, the Transferee shall permit TD Transferor and
its representatives to continue to have full and complete access to the
books and records of the Service Operations and its personnel as TD
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 TD 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 TD 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 TD 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 TD Transferor on behalf of the
Transferor Indemnified Parties in respect of all matters concerning this
Agreement without any obligation

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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | whatsoever to investigate the authority
of the TD Transferor and notwithstanding anything contained herein, TD
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 mutandisto 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.

|                              |  |                                              
|----------------------------- |  | ---------------------------------------------
|THE TORONTO-DOMINION BANK     |  | TD WATERHOUSE INVESTOR SERVICES (CANADA) INC.
|                             
|Per:      Geoffery Horrocks |  | Per:      Geoffery Horrocks                
|                              |  |                                              
|Authorized Signatory          |  | Authorized Signatory                         
|                             
|Per:                          |  | Per:                                         
|                              |  |                                              

- 22 -



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SCHEDULE A TO A TRANSFER AND ASSUMPTION AGREEMENT BETWEEN THE
TORONTO-DOMINION BANK AND TD WATERHOUSE INVESTOR SERVICES (CANADA) INC.

---

|                  |  | 
|----------------- |  | 
|List of Employees
|



---



SCHEDULE B TO A TRANSFER AND ASSUMPTION AGREEMENT BETWEEN THE
TORONTO-DOMINION BANK AND TD WATERHOUSE INVESTOR SERVICES (CANADA) INC.

---

|                                |  | 
|------------------------------- |  | 
|List of Independent Contractors
|



---



SCHEDULE C TO A TRANSFER AND ASSUMPTION AGREEMENT BETWEEN THE
TORONTO-DOMINION BANK AND TD WATERHOUSE INVESTOR SERVICES (CANADA) INC.

---

|                                                     |  | 
|---------------------------------------------------- |  | 
|Share Conditions of Transferee's Exchangeable Shares
|



---



SCHEDULE D TO A TRANSFER AND ASSUMPTION AGREEMENT BETWEEN THE
TORONTO-DOMINION BANK AND TD WATERHOUSE INVESTOR SERVICES (CANADA) INC.

---

|                     |  | 
|-------------------- |  | 
|Pension Arrangements
|



---



|                                                                          |   
|------------------------------------------------------------------------- | --
|TABLE OF CONTENTS                                                        
|ARTICLE 1                                                                
|INTERPRETATION                                                           
|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                                                        
|2.1                 Transfer                                              | 8 
|2.2                 Assumption of Assumed Liabilities, Etc.               | 8 
|2.3                 Purchase Price                                        | 8 
|2.4                 Allocation of the TD Purchase Consideration           | 8 
|2.5                 GST                                                   | 9 
|2.6                 Bulk Sales Act Legislation                            | 9 
|                                                                         
|                                                                         
|                                                                         
|                                                                         
|ARTICLE 3                                                                
|TRANSFERS                                                                
|3.1                 Specific Conveyances and Specific Assumptions         | 9 
|                                                                         
|                                                                         
|                                                                         
|                                                                         
|ARTICLE 4                                                                
|TAXES                                                                    
|4.1                 Section 85                                            | 10
|4.2                 Unearned Amounts                                      | 10
|4.3                 Transfer Taxes                                        | 10
|                                                                         
|                                                                         
|                                                                         
|                                                                         
|ARTICLE 5                                                                
|REPRESENTATIONS AND WARRANTIES                                           
|5.1                 Representations and Warranties of TD Transferor       | 10
|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                                                              
|6.1                 General Indemnity of Transferee                       | 13
|6.2                 General Indemnity of TD Transferor                    | 13
|6.3                 Conduct of Third Party Claims                         | 13
|                                                                         
|                                                                         
|                                                                         
|                                                                         
|ARTICLE 7                                                                
|CERTAIN RIGHTS AND OBLIGATIONS                                           
|7.1                 Third Party Consents                                  | 14



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|                                                                 |   
|---------------------------------------------------------------- | --
|7.2                 Absence of Consent                           | 15
|7.3                 Commitments                                  | 15
|7.4                 Letters to Suppliers                         | 17
|7.5                 Release of the Assurances                    | 17
|7.6                 Employees and Independent Contractors        | 17
|7.7                 Amounts Received in Respect of the TD Assets | 19
|7.8                 Transfer of Legal Title                      | 19
|                                                                
|                                                                
|                                                                
|                                                                
|ARTICLE 8                                                       
|GENERAL                                                         
|8.1                 Further Assurances                           | 19
|8.2                 No Merger                                    | 19
|8.3                 Entire Agreement                             | 19
|8.4                 Governing Law                                | 19
|8.5                 Assignment, Enurement, Etc.                  | 20
|8.6                 Time of Essence                              | 20
|8.7                 Notices                                      | 20
|8.8                 Invalidity of Provisions                     | 21
|8.9                 Waiver                                       | 22
|8.10               Remedies Generally                            | 22
|8.11               Amendment                                     | 22
|8.12               Counterpart Execution                         | 22
|8.13               Access to Books, Records and Personnel        | 22
|8.14               Agency For Indemnities                        | 23

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