Document:

<PAGE>   1
                                 AMENDMENT NO. 1

          AMENDMENT NO. 1 dated as of February 15, 2000 among the following:

                  (a) HEALTH MANAGEMENT SYSTEMS, INC., a corporation duly
         organized and validly existing under the laws of the State of New York
         (the "Borrower");

                  (b) each of the Subsidiaries of the Borrower identified under
         the caption "Guarantors" on the signature pages hereto (individually, a
         "Guarantor" and, collectively, the "Guarantors"); and

                  (c) THE CHASE MANHATTAN BANK, a New York State bank (the
         "Bank").

         The Borrower, the Guarantors and the Bank are parties to a Credit
Agreement and Guaranty dated as of February 15, 2000 (as heretofore modified and
supplemented and in effect on the date hereof, the "Credit Agreement"),
providing, subject to the terms and conditions thereof, for extensions of credit
(by making loans and issuing letters of credit) to be made by the Bank to the
Borrower in an aggregate principal or face amount not exceeding $10,000,000. The
Borrower, the Guarantors and the Bank wish to amend the Credit Agreement in
certain respects and, accordingly, the parties hereto hereby agree as follows:

         Section 1. Definitions. Except as otherwise defined in this Amendment
No. 1, terms defined in the Credit Agreement are used herein as defined therein.

         Section 2. Amendment. Subject to the satisfaction of the conditions
precedent specified in Section 4 below, but effective as of the date hereof,
Section 8.06 of the Credit Agreement (Investments) shall be amended by deleting
the word "and" at the end of clause (5) thereof, by replacing the period at the
end of clause (6) thereof with "; and" and by adding the following new clause
(7) to read as follows:

         "; and (7) Investments consisting of advances made by the Borrower to
         subcontractors in the ordinary course of business as currently
         conducted in an aggregate amount not to exceed $3,000,000 at any one
         time outstanding."

         Section 3. Representations and Warranties. Each of the Borrower and the
Guarantors represents and warrants to the Bank that the representations and
warranties set forth in Article VI of the Credit Agreement are true and complete
on the date hereof as if made on and as of the date hereof and as if each
reference in said Article VI to "this Agreement" or the "Loan Documents"
included reference to this Amendment No. 1.

         Section 4. Conditions Precedent. As provided in Section 2 above, the
amendments to the Credit Agreement set forth in said Section 2 shall become
effective, as of the date hereof, upon the satisfaction of the following
conditions precedent:

         4.01. Execution by All Parties. This Amendment No. 1 shall have been
executed and delivered by each of the parties hereto.

         4.02. Amendment Fee. The Borrower shall have paid to the Bank an
amendment fee in an amount equal to $3,500.
<PAGE>   2
         4.03. Legal Fees and Expenses. The Borrower shall have paid to the Bank
the reasonable fees and expenses of the Bank's counsel in connection with this
Amendment No. 1.

         Section 5. Miscellaneous. Except as herein provided, the Credit
Agreement shall remain unchanged and in full force and effect. This Amendment
No. 1 may be executed in any number of counterparts, all of which taken together
shall constitute one and the same amendatory instrument and any of the parties
hereto may execute this Amendment No. 1 by signing any such counterpart. This
Amendment No. 1 shall be governed by, and construed in accordance with, the law
of the State of New York.

                                      -2-
<PAGE>   3
         IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1
to be duly executed and delivered as of the day and year first above written.

                        BORROWER

                        HEALTH MANAGEMENT SERVICES, INC.

                        By_____________________________________________________
                              Alan L. Bendes
                              Senior Vice President and Chief Financial Officer

                         GUARANTORS

                         ACCELERATED CLAIMS PROCESSING, INC.

                        By_____________________________________________________
                              Paul J. Kerz
                              Secretary

                         QUALITY MEDI-CAL ADJUDICATION INCORPORATED

                        By_____________________________________________________
                              Paul J. Kerz
                              Secretary

                         HEALTH CARE MICROSYSTEMS, INC.

                        By_____________________________________________________
                               Paul J. Kerz
                               Secretary

                         CDR ASSOCIATES, INC.

                        By_____________________________________________________
                              Paul J. Kerz
                              Secretary

                         HSA MANAGED CARE SYSTEMS, INC.

                        By_____________________________________________________
                              Paul J.  Kerz
                              President

                                      -3-
<PAGE>   4
                        HEALTH RECEIVABLES MANAGEMENT, INC.

                        By_____________________________________________________
                             Alan L. Bendes
                             Vice President

                        BANK

                        THE CHASE MANHATTAN BANK

                        By_____________________________________________________
                          Dele Akinla II
                          Vice President

                                      -4-AMENDED & RESTATED SUPPORT AND EXCHANGE AGREEMENT

AMENDED AND RESTATED SUPPORT AND EXCHANGE AGREEMENT

AGREEMENT made as of the 13th day of April, 2000

BETWEEN:

		
	 	
	TD WATERHOUSE GROUP, INC., a corporation existing under
	the laws of the State of Delaware (“TD Waterhouse”),

-and -

		
	 	
	TD WATERHOUSE INVESTOR SERVICES (CANADA) INC., a
	corporation existing under the laws of Ontario (the
	“Corporation”),

-and -

		
	 	
	TD WATERHOUSE HOLDINGS, INC., a corporation existing under
	 the laws of the State of Delaware (“WISI”),

-and -

		
	 	
	TD SECURITIES INC., a corporation incorporated under the
	laws of Ontario (“TDSI”),

-and -

		
	 	
	THE TORONTO-DOMINION BANK, a chartered bank existing under
	 the laws of Canada (the “Bank”),

-and -

		
	 	
	CT FINANCIAL SERVICES INC., a corporation incorporated
	under the laws of Canada (“CTFSI”).

     
WHEREAS the Corporation, TD Waterhouse, WISI, TDSI and the
 Bank wish by these presents to amend and restate a Support and
Exchange Agreement dated June 28, 1999 made between such
parties (the “Initial Agreement”) for the purpose of,
among other things, adding CTFSI as a party;

     
WHEREAS Waterhouse Investor Services Inc., one of the
parties of the Initial Agreement, has changed its corporate name
to TD Waterhouse Holdings, Inc.;

     
WHEREAS the Corporation has issued Exchangeable Shares (as
 hereinafter defined) to each of TDSI, the Bank and CTFSI (TDSI,
the Bank and CTSFI being herein referred to as the “Initial
Holders”);

     
AND WHEREAS the Initial Holders may, at any time and from
time to time, transfer Exchangeable Shares to any Bank Affiliate
(as defined herein);

     
NOW THEREFORE, in consideration of the respective
covenants and agreements provided in this agreement and for other
 good and valuable consideration (the receipt and sufficiency of
which are hereby acknowledged), the parties agree to amend and
restate the Initial Agreement as follows:

ARTICLE 1

DEFINITIONS AND INTERPRETATION

1.1  Definitions

     
In this agreement, unless something in the subject matter or
context is inconsistent therewith:

     
“Affiliate” has the meaning set forth in the
Bank Act (Canada).

     
“Automatic Exchange Rights” means the automatic
exchange of shares of WISI Common Stock for Exchangeable Shares
pursuant to Section 5.3 of the Exchangeable Share
Provisions.

     
“Bank Affiliate” means any Affiliate of the
Bank.

     
“Board of Directors” means the board of
directors of the Corporation.

     
“Business Day” means any day other than:
(i) a Saturday, (ii) a Sunday; and (iii) a day on
which banks are not open for business in either or both of
New York City and Toronto, Ontario.

     
“Canadian Dollar Equivalent” means, in respect
of an amount expressed in a foreign currency (the “Foreign
Currency Amount”) at any date, the product obtained by
multiplying (a) the Foreign Currency Amount by (b) the
official noon spot exchange rate on such date for such foreign
currency as reported by the Bank of Canada or, in the event that
such spot exchange rate is not available, such exchange rate on
such date for such foreign currency as may be deemed by the Board
 of Directors to be appropriate for such purpose.

     
“Current Market Price” means, in respect of a
share of TD Waterhouse Common Stock on any date, the
Canadian Dollar Equivalent of the average closing sale price of
shares of TD Waterhouse Common Stock during a period of
20 consecutive trading days ending not more than
five trading days before such date on the NYSE or, if the
shares of TD Waterhouse Common Stock are not then listed on
the NYSE, on such other stock exchange or automated quotation
system on which the shares of TD Waterhouse Common Stock are
 listed or quoted, as the case may be, as may be selected by the
Board of Directors for such purpose; provided, however, that if
in the opinion of the Board of Directors the public distribution
or trading activity of TD Waterhouse Common Stock during
such period is inadequate to create a market that reflects the
fair market value of TD Waterhouse Common Stock, then the
Current Market Price of a share of TD Waterhouse Common
Stock shall be determined by the Board of Directors based upon
the advice of such qualified independent financial advisors as
the Board of Directors may deem to be appropriate, and provided
further that any such selection, opinion or determination by the
Board of Directors shall be conclusive and binding.

     
“Dividend Amount” has the meaning set out in
Section 1.1 of the Exchangeable Share Provisions.

     
“Effective Date” means the date on which the
Corporation first issues Exchangeable Shares, being June 28,
 1999.

     
“Exchange Right” has the meaning set out in
section 2.1 hereof.

     
“Exchangeable Share Provisions” means the
rights, privileges, restrictions and conditions attaching to the
Exchangeable Shares.

     
“Exchangeable Shares” means the Exchangeable
Shares of the Corporation, certain of which will be issued as
consideration for the acquisition of the Assets from TDSI and the
 Bank.

     
“Holders” means the registered holders of
Exchangeable Shares.

     
“Initial Holders” means TDSI, the Bank and
CTFSI.

     
“Liquidation Amount” has the meaning set out in
Section 5.1(1) of the Exchangeable Share Provisions.

-2-

     
“Liquidation Call Right” has the meaning set out
 in Section 5.2(1) of the Exchangeable Share Provisions.

     
“NYSE” means The New York Stock Exchange.

     
“Officer’s Certificate” means, with respect
 to WISI, TD Waterhouse or the Corporation, as the case may
be, a certificate signed by any one of the Chairman of the Board,
 any Vice-Chair, the President, any Vice President or any other
executive officer of WISI, TD Waterhouse or the Corporation,
 as the case may be.

     
“Retracted Shares” has the meaning set out in
section 2.8 hereof.

     
“Retraction Call Right” has the meaning set out
in Section 6.2(1) of the Exchangeable Share Provisions.

     
“Retraction Price” has the meaning set out in
Section 6.1(1) of the Exchangeable Share Provisions.

     
“Subsidiary” means, when used with reference to
any corporation, any corporation of which that corporation, one
or more other Subsidiaries of that corporation, or that
corporation and one or more of its other Subsidiaries owns,
directly or indirectly, outstanding stock carrying more than 50%
of the votes attaching to all outstanding stock of such
corporation.

     
“Successor” has the meaning set out in section
4.1 hereof.

     
“TD Waterhouse Board of Directors” means the
board of directors of TD Waterhouse.

     
“TD Waterhouse Common Stock” means the shares of
 Common Stock of TD Waterhouse having voting rights of one
vote per share, and any other securities into which such shares
may be changed or for which such shares may be exchanged (whether
 or not TD Waterhouse shall be the issuer of such other
securities) or any other consideration which may be received by
the holders of such shares, pursuant to a recapitalization,
reconstruction, reorganization or reclassification of, or
amalgamation, merger, liquidation or similar transaction,
affecting such shares.

     
“TD Waterhouse Sub” means TD Waterhouse Sub
 Limited, a wholly-owned Subsidiary of TD Waterhouse
existing under the laws of the Province of Ontario.

     
“Tender Offer” has the meaning set out in
section 3.10 hereof.

     
“Transfer Agent” has the meaning set out in
Section 1.1 of the Exchangeable Share Provisions.

1.2  Interpretation not Affected by Headings, etc.

     
The division of this agreement into articles and sections and the
 insertion of headings are for reference purposes only and shall
not affect the interpretation of this agreement. Unless otherwise
 indicated, any reference in this agreement to an article or
section refers to the specified article or section of this
agreement.

1.3  Number, Gender and Persons

     
In this agreement, unless the context otherwise requires, words
importing the singular number include the plural and vice versa,
words importing any gender include all genders and words
importing persons include individuals, corporations,
partnerships, companies, associations, trusts, unincorporated
organizations, governmental bodies and other legal or business
entities of any kind.

1.4  Date for any Action

     
If any date on which any action is required to be taken under
this agreement is not a Business Day, such action shall be
required to be taken on the next succeeding Business Day.

1.5  Payments

     
All payments to be made hereunder will be made without interest
and less any tax required by Canadian law to be deducted and
withheld.

-3-

1.6  Currency

     
In this agreement, unless stated otherwise, all dollar amounts
are in Canadian dollars.

ARTICLE 2

WISI EXCHANGE RIGHT AND TD WATERHOUSE SUPPORT

2.1  Grant and Ownership of the Exchange Right

     
TD Waterhouse hereby grants to WISI the right (the “Exchange
 Right”), at any time, to require TD Waterhouse (or, at
 the option of TD Waterhouse, TD Waterhouse Sub) to
purchase from WISI all or any part of the Exchangeable Shares
held by WISI, all in accordance with the provisions of this
agreement. TD Waterhouse hereby acknowledges receipt from
WISI of good and valuable consideration (and the adequacy
thereof) for the grant of the Exchange Right by
TD Waterhouse.

2.2  Purchase Price

     
The purchase price payable by TD Waterhouse or
TD Waterhouse Sub for each Exchangeable Share to be
purchased by TD Waterhouse or TD Waterhouse Sub under
the Exchange Right shall be an amount per share equal to
(a) the Current Market Price of a share of
TD Waterhouse Common Stock on the last Business Day prior to
 the day of closing of the purchase and sale of such Exchangeable
 Share under the Exchange Right, which shall be satisfied in full
 by causing to be delivered to WISI one share of
TD Waterhouse Common Stock, plus (b) the Dividend
Amount, if any. The purchase price for each such Exchangeable
Share so purchased may be satisfied only by TD Waterhouse or
 TD Waterhouse Sub delivering or causing to be delivered to
WISI, one share of TD Waterhouse Common Stock and a cheque
for the balance, if any, of the purchase price without interest.

2.3  Exercise Instructions

     
Subject to the terms and conditions herein set forth, WISI shall
be entitled, at any time, to exercise the Exchange Right with
respect to all or any part of the Exchangeable Shares registered
in the name of WISI on the books of the Corporation. To exercise
the Exchange Right, WISI shall deliver to the registered office
of TD Waterhouse, the certificates representing the
Exchangeable Shares which WISI desires TD Waterhouse to
purchase, duly endorsed in blank, and accompanied by such other
documents and instruments as may be required to effect a transfer
 of Exchangeable Shares under the Business Corporations Act
(Ontario) and such additional documents and instruments as
TD Waterhouse or the Corporation may reasonably require
together with (a) a duly completed form of notice of
exercise of the Exchange Right, in the form attached hereto as
Schedule “A”, stating (i) that WISI has elected to
 exercise the Exchange Right so as to require TD Waterhouse
to purchase from WISI the number of Exchangeable Shares specified
 therein, (ii) that WISI has good title to and owns all such
 Exchangeable Shares to be acquired by TD Waterhouse free
and clear of all liens, claims and encumbrances, (iii) the
names in which the certificates representing TD Waterhouse
Common Stock issuable in connection with the exercise of the
Exchange Right are to be issued and (iv) the names and
addresses of the persons to whom such new certificates should be
delivered and (b) payment (or evidence satisfactory to the
Corporation and TD Waterhouse of payment) of the taxes (if
any) payable as contemplated by section 2.5 of this
agreement. If only a portion of the Exchangeable Shares
represented by any certificate delivered to TD Waterhouse
are to be purchased by TD Waterhouse or TD Waterhouse
Sub under the Exchange Right, a new certificate for the balance
of such Exchangeable Shares shall be issued to WISI at the
expense of the Corporation.

2.4  Delivery of TD Waterhouse Common Stock; Effect of
 Exercise

     
Promptly after receipt of the certificates representing the
Exchangeable Shares that WISI desires TD Waterhouse to
purchase under the Exchange Right (together with such documents
and instruments of transfer and a duly completed form of notice
of exercise of the Exchange Right) duly endorsed for transfer to

-4-

TD Waterhouse, TD Waterhouse shall immediately
thereafter deliver or cause TD Waterhouse Sub to deliver to
WISI (or to such other persons, if any, properly designated by
WISI), a share certificate representing the number of shares of
TD Waterhouse Common Stock deliverable in connection with
such exercise of the Exchange Right (which shares shall be duly
issued as fully paid and non-assessable and shall be free and
clear of any lien, claim or encumbrance, security interest or
adverse claim) and a cheque for the balance, if any, of the
purchase price therefor, without interest; provided, however,
that no such delivery shall be made unless and until WISI shall
have paid (or provided evidence satisfactory to Corporation and
TD Waterhouse of the payment of) the taxes (if any) payable
as contemplated by section 2.5 of this agreement.
Immediately upon the giving of notice by WISI to
TD Waterhouse and the Corporation of the exercise of the
Exchange Right, as provided in this Article 2, the closing
of the transaction of purchase and sale contemplated by the
Exchange Right shall be deemed to have occurred, and WISI shall
be deemed to have transferred to TD Waterhouse (or, at TD
Waterhouse’s option, to TD Waterhouse Sub) all of its
right, title and interest in and to such Exchangeable Shares and
the related interest hereunder and WISI shall not be entitled to
exercise any of the rights of a holder in respect thereof, other
than the right to receive its proportionate part of the total
purchase price therefor, unless the requisite number of shares of
 TD Waterhouse Common Stock (together with a cheque for the
balance, if any, of the total purchase price therefor, without
interest) is not delivered by TD Waterhouse or
TD Waterhouse Sub to WISI (or to such other persons, if any,
 properly designated by WISI), within five Business Days of the
date of the giving of such notice, in which case the rights of
WISI shall remain unaffected until such shares of
TD Waterhouse Common Stock are so delivered and any such
cheque is so delivered and paid. Concurrently with the closing of
 the transaction of purchase and sale contemplated by the
Exchange Right, WISI shall be considered and deemed for all
purposes to be the holder of the shares of TD Waterhouse
Common Stock delivered to it pursuant to the Exchange Right.

2.5  Stamp or Other Transfer Taxes

     
Upon WISI’s sale of Exchangeable Shares to
TD Waterhouse or TD Waterhouse Sub pursuant to the
Exchange Right, the share certificate or certificates
representing TD Waterhouse Common Stock to be delivered in
connection with the payment of the total purchase price therefor
shall be issued in the name of WISI or in such names as WISI may
otherwise direct in writing without charge to WISI, provided,
however, that WISI (a) shall pay (and none of
TD Waterhouse, TD Waterhouse Sub or the Corporation
shall be required to pay) any documentary, stamp, transfer or
other similar taxes that may be payable in respect of any
transfer involved in the issuance or delivery of such shares to a
 person other than WISI or (b) shall have established to the
 satisfaction of TD Waterhouse and the Corporation that such
 taxes, if any, have been paid.

2.6  Call Rights

     
The Liquidation Call Right, the Retraction Call Right and the
Automatic Exchange Right are hereby agreed, acknowledged and
confirmed, and it is agreed and acknowledged that such rights are
 granted as part of the consideration for the obligations of WISI
 under this agreement.

2.7  Grant and Ownership of Automatic Exchange Rights

     
WISI hereby grants the Automatic Exchange Rights to the Holders.
WISI hereby acknowledges receipt from the Holders of good and
valuable consideration (and the adequacy thereof) for the grant
of the Automatic Exchange Rights.

2.8  Deemed WISI Retraction Call Right Subsequent to
Retraction

     
In the event that a Holder has exercised its right under
Article 6 of the Exchangeable Share Provisions to require
the Corporation to redeem any or all of the Exchangeable Shares
held by the Holder (the “Retracted Shares”) and is
notified by the Corporation pursuant to Section 6.1(4) of
the Exchangeable Share Provisions that the Corporation will not
be permitted as a result of solvency requirements of applicable
law to redeem all such Retracted Shares, subject to receipt by
the Holder of written notice to that effect from the Corporation
and provided that WISI shall not have exercised its Retraction
Call Right with respect to the Retracted Shares and that the
Holder shall not have revoked the retraction request delivered by
 the Holder to the

-5-

Corporation pursuant to Section 6.1(5) of the Exchangeable
Share Provisions, WISI shall be deemed to have exercised the
Retraction Call Right with respect to those Retracted Shares that
 the Corporation is unable to redeem pursuant to a WISI Call
Notice which WISI shall be deemed to have delivered to the
Corporation on the same day the Holder receives written notice of
 the Corporation’s inability to redeem all such Retracted
Shares and, as a consequence, WISI will be required to purchase
the Retracted Shares that the Corporation is unable to redeem at
the Retraction Price in the manner provided in Section 6.2
of the Exchangeable Share Provisions. In any such event, the
Corporation hereby agrees with the Holder immediately to notify
the Holder of such prohibition against the Corporation redeeming
all of the Retracted Shares and immediately to forward or cause
to be forwarded to the Holder all relevant materials delivered by
 the Holder to the Corporation or to the Transfer Agent
(including without limitation a copy of the retraction request
delivered pursuant to Section 6.1(1) of the Exchangeable
Share Provisions) in connection with such proposed redemption of
the Retracted Shares.

ARTICLE 3

COVENANTS, REPRESENTATIONS AND WARRANTIES

3.1  Covenants of TD Waterhouse Regarding Exchangeable
 Shares

     
So long as any Exchangeable Shares are outstanding,
TD Waterhouse will:

			
	 	(a) 	
	not declare or pay any dividend on TD Waterhouse Common
	Stock unless (i) the Corporation will have sufficient money
	or other assets or authorized but unissued securities available
	to enable the due declaration and the due and punctual payment in
	 accordance with applicable law, of an equivalent dividend on the
	 Exchangeable Shares and (ii) the Corporation shall
	simultaneously declare or pay, as the case may be, an equivalent
	dividend on the Exchangeable Shares;
	 
	 	(b) 	
	advise the Corporation sufficiently in advance of the declaration
	 by TD  Waterhouse of any dividend on TD Waterhouse
	Common Stock and take all such other actions as are necessary, in
	 cooperation with the Corporation, to ensure that the respective
	declaration date, record date and payment date for a dividend on
	the Exchangeable Shares shall be the same as the declaration
	date, record date and payment date for the corresponding dividend
	 on TD Waterhouse Common Stock;
	 
	 	(c) 	
	ensure that the record date for determining shareholders entitled
	 to receive any dividend declared on TD Waterhouse Common
	Stock is not less than 10 Business Days after the
	declaration date for such dividend or such shorter period within
	which applicable law may be complied with; and
	 
	 	(d) 	
	not exercise its vote as a shareholder to initiate the voluntary
	liquidation, dissolution or winding up of the Corporation or any
	other distribution of the assets of the Corporation among its
	shareholders for the purpose of winding up its affairs nor take
	any action or omit to take any action that is designed to result
	in the liquidation, dissolution or winding up of the Corporation
	or any other distribution of the assets of the Corporation among
	its shareholders for the purpose of winding up its affairs.

3.2  Certain Representations

     
TD Waterhouse hereby represents, warrants and covenants that
 it has irrevocably reserved for issuance and will at all times
keep available, free from pre-emptive and other rights, out of
its authorized and unissued capital stock such number of shares
of TD Waterhouse Common Stock (or other shares or securities
 into which TD Waterhouse Common Stock may be reclassified
or changed as contemplated by section 3.7 hereof)
(i) as is equal to the sum of (x) the number of
Exchangeable Shares issued and outstanding from time to time and
(y) the number of Exchangeable Shares issuable upon the
exercise of all rights to acquire Exchangeable Shares outstanding
 from time to time and (ii) as is now and may hereafter be
required to enable and permit

-6-

TD Waterhouse to meet its obligations hereunder and under
any other security or commitment pursuant to which,
TD Waterhouse or TD Waterhouse Sub may now or hereafter
 be required to issue and/ or deliver shares of
TD Waterhouse Common Stock.

3.3  Notification of Certain Events

     
In order to assist each of WISI and TD Waterhouse to comply
with their respective obligations hereunder, the Corporation will
 give WISI and TD Waterhouse notice of each of the following
 events at the time set forth below:

			
	 	(a) 	
	in the event of any determination by the Board of Directors to
	institute voluntary liquidation, dissolution or winding-up
	proceedings with respect to the Corporation or to effect any
	other distribution of the assets of the Corporation among its
	shareholders for the purpose of winding up its affairs, at least
	60 days prior to the proposed effective date of such
	liquidation, dissolution, winding up or other distribution;
	 
	 	(b) 	
	immediately, upon the earlier of (i) receipt by the
	Corporation of notice of, and (ii) the Corporation otherwise
	 becoming aware of, any threatened or instituted claim, suit,
	petition or other proceeding with respect to the involuntary
	liquidation, dissolution or winding up of the Corporation or to
	effect any other distribution of the assets of the Corporation
	among its shareholders for the purpose of winding up its affairs;
	 
	 	(c) 	
	immediately, upon receipt by the Corporation of a Retraction
	Request (as defined in the Exchangeable Share Provisions); and
	 
	 	(d) 	
	as soon as practicable upon the issuance by the Corporation of
	any Exchangeable Shares or rights to acquire Exchangeable Shares.

3.4  Delivery of Shares of WISI Common Stock

     
Upon notice of any event that requires the Corporation to cause
to be delivered shares of WISI Common Stock to any holder of
Exchangeable Shares, WISI shall, in any manner deemed appropriate
 by it, provide such shares or cause such shares to be provided
to the Corporation, which shall forthwith deliver the requisite
shares of WISI Common Stock to or to the order of the former
holder of the surrendered Exchangeable Shares, as the Corporation
 shall direct. All such shares of WISI Common Stock shall be duly
 issued as fully paid, non-assessable, free of pre-emptive rights
 and shall be free and clear of any lien, claim, encumbrance,
security interest or adverse claim.

3.5  Qualification of Shares of WISI Common Stock

     
WISI covenants that it will make such filings and seek such
regulatory consents and approvals as are necessary so that the
shares of WISI Common Stock to be issued on the exchange of
Exchangeable Shares will be issued in compliance with applicable
securities laws.

3.6  Qualification of Shares of TD Waterhouse Common
Stock

     
TD Waterhouse covenants that it will make such filings and seek
such regulatory consents and approvals as are necessary so that
the shares of TD Waterhouse Common Stock to be issued to
WISI on the exercise of the Exchange Right will be issued in
compliance with applicable securities laws.

3.7  Economic Equivalence

     
(1).  TD Waterhouse will not without the prior approval of
the Corporation, the Holders and WISI:

			
	 	(a) 	
	issue or distribute shares of TD Waterhouse Common Stock (or
	 securities exchangeable for or convertible into or carrying
	rights to acquire shares of TD Waterhouse Common Stock) to
	the holders of all or substantially all of the then outstanding
	TD Waterhouse Common Stock by way of stock dividend or other
	 distribution, other than an issue of shares of TD 
	Waterhouse

-7-

			
	 		
	Common Stock (or securities exchangeable for or convertible into
	or carrying rights to acquire shares of TD Waterhouse Common
	 Stock) to holders of shares of TD Waterhouse Common Stock
	who exercise an option to receive dividends in TD 
	Waterhouse Common Stock (or securities exchangeable for or
	convertible into or carrying rights to acquire shares of
	TD Waterhouse Common Stock) in lieu of receiving cash
	dividends;
	 
	 	(b) 	
	issue or distribute rights, options or warrants to the holders of
	 all or substantially all of the then outstanding shares of
	TD  Waterhouse Common Stock entitling them to subscribe for
	or to purchase shares of TD Waterhouse Common Stock (or
	securities exchangeable for or convertible into or carrying
	rights to acquire shares of TD Waterhouse Common Stock); or
	 
	 	(c) 	
	issue or distribute to the holders of all or substantially all of
	 the then outstanding shares of TD Waterhouse Common Stock
	(i)  shares or securities of TD Waterhouse of any class
	 other than TD Waterhouse Common Stock (other than shares
	convertible into or exchangeable for or carrying rights to
	acquire shares of TD Waterhouse Common Stock), (ii) 
	rights, options or warrants other than those referred to in
	section 3.7(1) (b) above, (iii) evidences of
	indebtedness of TD Waterhouse or (iv) assets of
	TD  Waterhouse;

unless (x) the Corporation is permitted under applicable law
 to issue or distribute the economic equivalent on a per share
basis of such rights, options, securities, shares, evidences of
indebtedness or other assets to the Holders and (y) the
Corporation shall issue or distribute such rights, options,
securities, shares, evidences of indebtedness or other assets
simultaneously to the Holders.

     
(2).  TD Waterhouse will not without the prior approval
 of the Corporation, the Holders and WISI:

			
	 	(a) 	
	subdivide, redivide or change the then outstanding shares of
	TD Waterhouse Common Stock into a greater number of shares
	of TD  Waterhouse Common Stock; or
	 
	 	(b) 	
	reduce, combine or consolidate or change the then outstanding
	shares of TD  Waterhouse Common Stock into a lesser number
	of shares of TD Waterhouse Common Stock; or
	 
	 	(c) 	
	reclassify or otherwise change the shares of TD Waterhouse
	Common Stock or effect an amalgamation, merger, reorganization or
	 other transaction affecting the shares of TD Waterhouse
	Common Stock;

unless (x) the Corporation is permitted under applicable law
 to simultaneously make the same or an economically equivalent
change to, or in the rights of holders of, the Exchangeable
Shares and (y) the same or an economically equivalent change
 is made to, or in the rights of the holders of, the Exchangeable
 Shares.

     
(3).  TD Waterhouse will ensure that the record date
for any event referred to in section 3.7(1) or 3.7(2) above,
 or (if no record date is applicable for such event) the
effective date for any such event, is not less than
20 Business Days after the date on which such event is
declared or announced by TD Waterhouse (with simultaneous
notice thereof to be given by TD Waterhouse to the
Corporation).

     
(4).  The Board of Directors shall determine, in good faith
and in its sole discretion (with the assistance of such reputable
 and qualified independent financial advisors and/ or other
experts as the board may require), economic equivalence for the
purposes of any event referred to in section 3.7(1) or
3.7(2) and each such determination shall be conclusive and
binding on TD Waterhouse. In making each such determination,
 the following factors shall, without excluding other factors
determined by the board to be relevant, be considered by the
Board of Directors:

			
	 	(a) 	
	in the case of any stock dividend or other distribution payable
	in shares of TD  Waterhouse Common Stock, the number of such
	 shares issued in proportion to the number of shares of
	TD Waterhouse Common Stock previously outstanding;
	 
	 	(b) 	
	in the case of the issuance or distribution of any rights,
	options or warrants to subscribe for or purchase shares of
	TD Waterhouse Common Stock (or securities exchangeable for
	or convertible into or carrying rights to acquire shares of
	TD Waterhouse Common Stock), the relationship between the
	exercise price of each such right, option or warrant and the
	current

-8-

			
	 		
	market value (as determined by the Board of Directors in the
	manner above contemplated) of a share of TD Waterhouse
	Common Stock;
	 
	 	(c) 	
	in the case of the issuance or distribution of any other form of
	property (including, without limitation, any shares or securities
	 of TD Waterhouse of any class other than TD Waterhouse
	 Common Stock, any rights options or warrants other than those
	referred to in section 3.7(4)(b) above, any evidences of
	indebtedness of TD Waterhouse or any assets of
	TD Waterhouse), the relationship between the fair market
	value (as determined by the Board of Directors in the manner
	above contemplated) of such property to be issued or distributed
	with respect to each outstanding share of TD Waterhouse
	Common Stock and the current market value (as determined by the
	Board of Directors in the manner above contemplated) of a share
	of TD Waterhouse Common Stock;
	 
	 	(d) 	
	in the case of any subdivision, redivision or change of the then
	outstanding shares of TD Waterhouse Common Stock into a
	greater number of shares of TD Waterhouse Common Stock or
	the reduction, combination or consolidation or change of the then
	 outstanding shares of TD Waterhouse Common Stock into a
	lesser number of shares of TD Waterhouse Common Stock or any
	 amalgamation, merger, reorganization or other transaction
	affecting TD Waterhouse Common Stock, the effect thereof
	upon the then outstanding shares of TD  Waterhouse Common
	Stock; and
	 
	 	(e) 	
	in all such cases, the general taxation consequences of the
	relevant event to holders of Exchangeable Shares to the extent
	that such consequences may differ from the taxation consequences
	to holders of shares of TD Waterhouse Common Stock as a
	result of differences between taxation laws of Canada and the
	United States (except for any differing consequences arising as a
	 result of differing marginal taxation rates and without regard
	to the individual circumstances of holders of Exchangeable
	Shares;

     
For purposes of the foregoing determinations, the current market
value of any security listed and traded or quoted on a securities
 exchange shall be the weighted average of the daily trading
prices of such security during a period of not less than
20 consecutive trading days ending not more than
five trading days before the date of determination on the
principal securities exchange on which such securities are listed
 and traded or quoted; provided, however, that if in the opinion
of the Board of Directors the public distribution or trading
activity of such securities during such period does not create a
market that reflects the fair market value of such securities,
then the current market value thereof shall be determined by the
Board of Directors, in good faith and in its sole discretion
(with the assistance of such reputable and qualified independent
financial advisors and/ or other experts as the board may
require), and provided further that any such determination by the
 Board of Directors shall be conclusive and binding on
TD Waterhouse.

3.8  Due Performance

     
On and after the Effective Date, each of TD Waterhouse and
WISI shall duly and punctually perform all of their respective
obligations provided for herein and that may arise under the
Exchangeable Share Provisions, and each of TD Waterhouse and
 WISI shall be responsible for the due and punctual performance
of all of such obligations hereunder and under the Exchangeable
Share Provisions.

3.9  Issue of Additional Shares

     
During the term of this agreement, TD Waterhouse will not
issue any Special Voting Shares in addition to the Special Voting
 Share to be issued to WISI concurrently herewith.

3.10  Tender Offers, etc.

     
In the event that a cash offer, share exchange offer, issuer bid,
 take-over bid or similar transaction with respect to
TD Waterhouse Common Stock (each, a “Tender
Offer”) is proposed by TD Waterhouse or is proposed to
TD Waterhouse or its shareholders and is recommended by the
board of directors of TD

-9-

Waterhouse, or is otherwise effected or to be effected with the
consent or approval of the board of directors of
TD Waterhouse, TD Waterhouse will use reasonable
efforts (to the extent, in the case of a Tender Offer by a third
party, within its control) expeditiously and in good faith to
take all such actions and do all such things as are necessary or
desirable to enable and permit WISI to participate in such Tender
 Offer in respect of TD Waterhouse Common Stock issuable
upon the exercise by WISI of the Exchange Right to the same
extent and on an economically equivalent basis as the holders of
shares of TD Waterhouse Common Stock, without
discrimination. Without limiting the generality of the foregoing,
 TD Waterhouse will use reasonable efforts expeditiously and
 in good faith to ensure that WISI may participate in all such
Tender Offers without the holder of Exchangeable Shares being
first required to retract Exchangeable Shares as against the
Corporation and without WISI being first required to exercise its
 Retraction Call Right and without WISI being first required to
exercise the Exchange Right (or, if so required, to ensure that
any such retraction of Exchangeable Shares and exercise of the
Retraction Call Right and/ or Exchange Right shall be effective
only upon, and shall be conditional upon, the closing of the
Tender Offer and only to the extent necessary to tender or
deposit to the Tender Offer).

ARTICLE 4

TD WATERHOUSE AND WISI SUCCESSORS

4.1  Certain Requirements in Respect of Combination,
etc.

     
Neither of TD Waterhouse nor WISI shall enter into any
transaction (whether by way of reconstruction, reorganization,
consolidation, merger, transfer, sale, lease or otherwise)
whereby all or substantially all of its undertaking, property and
 assets would become the property of any other person or, in the
case of a merger, of the continuing corporation resulting
therefrom unless, but may do so if:

			
	 	(a) 	
	such other person or continuing corporation (the
	“Successor”), by operation of law, becomes, without
	more, bound by the terms and provisions of this agreement or, if
	not so bound, executes, prior to or contemporaneously with the
	consummation of such transaction an agreement supplemental hereto
	 and such other instruments (if any) as are, necessary or
	advisable to evidence the assumption by the Successor of
	liability for all money payable and property deliverable
	hereunder and the covenant of such Successor to pay and deliver
	or cause to be delivered the same and its agreement to observe
	and perform all the covenants and obligations of TD Waterhouse or
	 WISI, as the case may be, under this agreement; and
	 
	 	(b) 	
	such transaction shall, be upon such terms as substantially to
	preserve and not to impair in any material respect any of the
	rights of any person hereunder.

4.2  Wholly-Owned Subsidiaries

     
Nothing herein shall be construed as preventing the amalgamation
or merger of any wholly-owned Subsidiary of TD Waterhouse or
 WISI with or into TD Waterhouse or WISI, as the case may
be, or the winding up, liquidation or dissolution of any
wholly-owned Subsidiary of TD Waterhouse or WISI provided that
all of the assets of such Subsidiary are transferred to
TD Waterhouse or WISI, as the case may be, or another
wholly-owned Subsidiary of TD Waterhouse or WISI, as the
case may be, and any such transactions are expressly permitted by
 this Article 4.

ARTICLE 5

AMENDMENTS

5.1  Amendments, Modifications, etc.

     
This agreement may not be amended or modified except by an
agreement in writing executed by the Corporation, WISI,
TD Waterhouse and the Initial Holders or their permitted
assigns.

-10-

5.2  Changes in Capital of TD Waterhouse and the
Corporation

     
At all times after the occurrence of any event effected pursuant
to section 3.7 of this agreement, as a result of which
either TD Waterhouse Common Stock or the Exchangeable Shares
 or both are in any way changed, this agreement shall forthwith
be amended and modified as necessary in order that it shall apply
 with full force and effect, mutatis mutandis, to all new
securities into which TD Waterhouse Common Stock or the
Exchangeable Shares or both are so changed and the parties hereto
 (or, in the case of the Initial Holders, their permitted
assignees) shall execute and deliver a supplemental agreement
giving effect to and evidencing such necessary amendments and
modifications.

ARTICLE 6

TERMINATION

6.1  Term

     
This agreement shall continue in effect until no Exchangeable
Shares remain outstanding.

ARTICLE 7

GENERAL

7.1  Severability

     
If any provision of this agreement is held to be invalid, illegal
 or unenforceable, the validity, legality or enforceability of
the remainder of this agreement shall not in any way be affected
or impaired thereby and this agreement shall be carried out as
nearly as possible in accordance with its original terms and
conditions.

7.2  Enurement

     
This agreement shall be binding upon and enure to the benefit of
the parties hereto and their respective successors and permitted
assigns and to the benefit of the Holders.

7.3  Assignment

     
Except as set forth in this section 7.3, no party may assign
 any interest or right in this agreement without the prior
written consent of the other parties. Any Initial Holder may, at
any time and from time to time, assign all or any part of its
interest hereunder to a Bank Affiliate to which it transfers
Exchangeable Shares without the requirement to obtain the consent
 of the other parties (and any such Bank Affiliate may
subsequently assign its interest hereunder, in whole or in part,
to any Bank Affiliate to which it transfers Exchangeable Shares,
and so on). Upon any such transfer of Exchangeable Shares, the
parties agree that the Bank Affiliate to whom such Exchangeable
Shares are transferred shall, immediately upon such transfer, be
entitled to enjoy the rights and privileges and be subject to the
 obligations of an Initial Holder hereunder and, in such event,
the parties agree to execute an instrument supplemental to this
agreement to evidence the foregoing.

-11-

7.4  Notices to Parties

     
All notices and other communications between the parties
hereunder shall be in writing and shall be deemed to have been
given if delivered personally or by confirmed telecopy to the
parties at the following addresses (or at such other address for
such party as shall be specified in like notice):

			
	 	(a) 	
	if to TD Waterhouse or to the Corporation, at: 

TD Waterhouse Group, Inc. 

 100 Wall Street 

 New York, New York 10005 

U.S.A. 

Attention:  Richard H. Neiman, Executive Vice President and
General Counsel 

Telecopy:  (212) 509-9099

			
	 	(b) 	
	if to the Bank, TDSI or CTFSI at: 

The Toronto-Dominion Bank 

 12th Floor 

 Toronto Dominion Bank Tower 

 Toronto-Dominion Centre 

 Toronto, Ontario 

 M5K 1A2 

Attention:  Christopher A. Montague, Executive Vice
President, General Counsel and Secretary 

Telecopy:  (416) 868-0792

			
	 	(c) 	
	if to WISI, at: 

TD Waterhouse Holdings, Inc. 

 100 Wall Street 

 New York, New York 10005 

 U.S.A. 

Attention:  Richard H. Neiman, Executive Vice President and
General Counsel 

Telecopy:  (212) 509-9099

     
Any notice or other communication given personally shall be
deemed to have been given and received upon delivery thereof and
if given by telecopy shall be deemed to have been given and
received on the date of receipt thereof unless such day is not a
Business Day in which case it shall be deemed to have been given
and received upon the immediately following Business Day.

7.5  Notice to Holders

     
Any notice, request or other communication to be given to a
Holder shall be in writing and shall be valid and effective if
given by mail (postage prepaid or by delivery to the address of
the Holder recorded in the securities register of the Corporation
 or, in the event of the address of any such Holder not being so
recorded, then at the last known address of such Holder. Any such
 notice, request or other communication, if given by mail, shall
be deemed to have been given and received on the fifth day
following the date of mailing and, if given by delivery, shall be
 deemed to have been given and received on the date of delivery.
Accidental failure or omission to give any notice, request or
other communication to one or more Holders, or any defect in such
 notice, shall not invalidate or otherwise alter or affect any
action proceeding to be taken pursuant thereto.

-12-

7.6  Risk of Payments by Post

     
Whenever payments are to be made or certificates or documents are
 to be sent hereunder, the making of such payment or sending of
such certificate or document sent through the post shall be at
the risk of the sender.

7.7  Counterparts

     
This agreement may be executed by manual or facsimile signature
in counterparts, each of which shall be deemed an original, but
all of which taken together shall constitute one and the same
instrument.

7.8  Jurisdiction

     
This agreement shall be construed and enforced in accordance with
 the laws of the Province of Ontario and the laws of Canada
applicable therein.

7.9  Attornment

     
The parties agree that any action or proceeding arising out of or
 relating to this agreement may be instituted in the courts of
Ontario, waive any objection which any such party may have now or
 hereafter to the venue of any such action or proceeding,
irrevocably submit to the jurisdiction of the said courts in any
such action or proceeding, agree to be bound by any judgment of
the said courts and agree not to seek, and hereby waive, any
review of the merits of any such judgment by the courts of any
other jurisdiction and TD Waterhouse and WISI hereby appoint
 the Corporation at its registered office in the Province of
Ontario as its attorney for service of process.

-13-

     
IN WITNESS WHEREOF, the parties hereto have caused this
agreement to be duly executed as of the date first above written.

		
	 	
	TD WATERHOUSE GROUP, INC.

 

			
		/s/  STEPHEN D. MCDONALD	

		
	 	
	

	 	
	Name:  Stephen D. McDonald

			
	 	Title: 	
	Chief Executive Officer and

		
	 	
	Deputy Chairman
	 
	 	
	

	 	
	Name:
	 	
	Title:
	 
	 	
	TD WATERHOUSE INVESTOR SERVICES (CANADA) INC.

 

			
		/s/  KATHLEEN DEVENNY	

		
	 	
	

	 	
	Name:  Kathleen Devenny

			
	 	Title: 	
	Director, Senior Vice-President

		
	 	
	and Chief Financial Officer
	 
	 	
	

	 	
	Name:
	 	
	Title:
	 
	 	
	TD WATERHOUSE HOLDINGS, INC.

 

			
		/s/  STEPHEN D. MCDONALD	

		
	 	
	

	 	
	Name:  Stephen D. McDonald
	 	
	Title:  Deputy Chairman
	 
	 	
	

	 	
	Name:
	 	
	Title:

-14-

		
	 	
	TD SECURITIES INC.

 

			
		/s/  CHRISTOPHER A. MONTAGUE	

		
	 	
	

	 	
	Name:  Christopher A. Montague
	 	
	Title:  Director
	 
	 	
	

	 	
	Name:
	 	
	Title:
	 
	 	
	THE TORONTO-DOMINION BANK

 

			
		/s/  CHRISTOPHER A. MONTAGUE	

		
	 	
	

	 	
	Name:  Christopher A. Montague

			
	 	Title: 	
	Executive Vice-President, General Counsel

		
	 	
	and Secretary
	 
	 	
	

	 	
	Name:
	 	
	Title:
	 
	 	
	CT FINANCIAL SERVICES INC.

 

			
		/s/  CHRISTOPHER A. MONTAGUE	

		
	 	
	

	 	
	Name:  Christopher A. Montague

			
	 	Title: 	
	Executive Vice-President, General Counsel

		
	 	
	and Secretary

-15-

SCHEDULE “A”

NOTICE OF EXERCISE OF EXCHANGE RIGHT

To:  TD Waterhouse Group, Inc.

     
This notice is given pursuant to Section 2.3 of an Amended
and Restated Support and Exchange Agreement entered into between
the Corporation, TD Waterhouse, the Bank, TDSI, CTFSI and
WISI (the “Exchange Agreement”). All capitalized words
and expressions used in this notice that are defined in the
Exchange Agreement have the meanings ascribed to such words and
expressions in the Exchange Agreement.

     
The undersigned hereby notifies TD Waterhouse that the
undersigned desires to have TD Waterhouse purchase,
forthwith following receipt of this notice by TD Waterhouse
in accordance with Section 2.1 through 2.4 of the Exchange
Agreement:

     
all share(s) represented by the accompanying certificate; or

     
          share(s)
 only.

     
The undersigned hereby represents and warrants to
TD Waterhouse that the undersigned has good title to, and
owns, the share(s) represented by this certificate to be acquired
 by TD Waterhouse, free and clear of all liens, claims,
encumbrances, security interests and adverse claims.

	 	 	 
	
		

	
	(Date)		
	(Signature of officer of WISI)

     
Please check box if the TD Waterhouse shares issuable in
connection with the exercise of the Exchange Right are to be held
 for pick-up by WISI at the registered office of the Corporation
in New York, failing which the securities will be mailed to
the registered office of WISI.

			
	 	[   ] 	
	Hold for pick up

NOTE:  This panel must be completed and, together with such
additional documents as TD Waterhouse may require, must be
deposited with TD Waterhouse at its registered office. The
securities issuable as consideration for the purchase of the
Exchangeable Shares will be issued and registered in the name of
WISI unless the form appearing below is duly completed and all
exigible transfer taxes are paid.

Date 

Name of Person in Whose Name

Securities Are To Be Registered,

Issued or Delivered (please print)

	 	 	 
	
		

	
	Street Address or P.O. Box		
	Signature of WISI
	 
	
		

	
	City — Province — State		

		
	NOTE:	
	If the notice of exercise of the Exchange Right is for less than
	all of the Exchangeable Shares represented by the tendered share
	certificate, TD Waterhouse will cause the Corporation to
	issue a certificate representing the remaining Exchangeable
	Shares and register such shares in the name of WISI or as WISI
	may otherwise direct.

-2-

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