AGREEMENT OF SALE AND PURCHASE

Purchase and Sale Agreement

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This Purchase and Sale Agreement involves

Ameritrade Canada, Inc | Ameritrade Holding Corporation | DATEK ONLINE HOLDINGS CORP | TD WATERHOUSE CANADA INC | TD Waterhouse Group, Inc | TORONTO-DOMINION BANK

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Title: AGREEMENT OF SALE AND PURCHASE
Governing Law: Ontario Date: 9/12/2005
Industry: Investment Services Law Firm: Wilson Sonsini;Simpson Thacher Sector: Financial

EXECUTION COPY

AGREEMENT OF SALE AND PURCHASE

between

AMERITRADE HOLDING CORPORATION

and

DATEK ONLINE HOLDINGS CORP.

and

TD WATERHOUSE CANADA INC.

and

THE TORONTO-DOMINION BANK

Dated as of June 22, 2005

TABLE OF CONTENTS


			Page





ARTICLE I		THE PURCHASE AND SALE		1




	Section 1.1.	General		1




	Section 1.2.	Payment of Purchase Price		2




	Section 1.3.	Closing Date Adjustment		2




ARTICLE II		CLOSING PROCEDURES		3




	Section 2.1.	Closing		3




	Section 2.2.	Deliverables		4




ARTICLE III		REPRESENTATIONS AND WARRANTIES OF AMERITRADE AND DATEK		4




	Section 3.1.	Organization, Good Standing and Qualification		4




	Section 3.2.	Capitalization; Voting Rights		4




	Section 3.3.	Subsidiaries		5




	Section 3.4.	Authorization; Binding Obligations		5




	Section 3.5.	No Conflict		5




	Section 3.6.	Financial Statements		6




	Section 3.7.	Certain Agreements		6




	Section 3.8.	Changes		8




	Section 3.9.	Title to Properties and Assets; Liens, Condition, Etc		8




	Section 3.10.	Intellectual Property		8




	Section 3.11.	Compliance with Laws and Other Instruments; Consents and Approvals		9




	Section 3.12.	Litigation		11




	Section 3.13.	Tax Matters		11




	Section 3.14.	Benefit Plans		11




	Section 3.15.	Agreements with Regulators		13




	Section 3.16.	Undisclosed Liabilities		13




	Section 3.17.	Environmental Liability		13




	Section 3.18.	Transactions with Affiliates		14




	Section 3.19.	No Broker or Finders		14




	Section 3.20.	Insurance		14




	Section 3.21.	Accounting Controls		14




	Section 3.22.	Interest Rate Risk Management Instruments		15




	Section 3.23.	Labour and Employment Matters		15




	Section 3.24.	Personal Information		15




ARTICLE IV		REPRESENTATIONS AND WARRANTIES OF PURCHASER AND TD		15




	Section 4.1.	Organization, Good Standing and Qualification		15




	Section 4.2.	Authorization; Binding Obligations		15




	Section 4.3.	No Conflict		16




	Section 4.4.	No Broker or Finders		17




	Section 4.5.	Vote Required		17




ARTICLE V		COVENANTS		17




	Section 5.1.	Conduct of Business of Ameritrade Canada Prior to the Closing		17




	Section 5.2.	Legal Conditions		19


			Page





	Section 5.3.	Employee Benefit Plans		21




	Section 5.4.	Intercompany Matters		24




	Section 5.5.	Fees and Expenses		24




	Section 5.6.	Notification of Certain Matters		24




	Section 5.7.	Access to Information		24




	Section 5.8.	Section 116 Requirements		25




	Section 5.9.	Tax Matters		26




	Section 5.10.	Indemnification of Directors and Officers		27




ARTICLE VI		CONDITIONS TO CLOSING		27




	Section 6.1.	Conditions to Each Party’s Obligations		27




	Section 6.2.	Conditions to Obligation of Purchaser and TD		28




	Section 6.3.	Conditions to Obligation of Datek and Ameritrade		29




ARTICLE VII		TERMINATION; AMENDMENT; WAIVER		29




	Section 7.1.	Termination		29




	Section 7.2.	Effect of Termination		30




	Section 7.3.	Amendment		30




	Section 7.4.	Extension; Waiver		30




ARTICLE VIII		INDEMNIFICATION		30




	Section 8.1.	Survival; No Contribution		30




	Section 8.2.	Indemnification by Ameritrade		31




	Section 8.3.	Indemnification by TD		32




	Section 8.4.	Indemnification Procedures		33




	Section 8.5.	General		34




ARTICLE IX		MISCELLANEOUS		35




	Section 9.1.	Other Definitions		35




	Section 9.2.	Governing Law; Consent to Jurisdiction; Waiver of Jury Trial		37




	Section 9.3.	Successors and Assigns; Third Party Beneficiaries		37




	Section 9.4.	Interpretation		37




	Section 9.5.	Counterparts		37




	Section 9.6.	Entire Agreement		38




	Section 9.7.	Severability		38




	Section 9.8.	Other Remedies; Specific Performance		38




	Section 9.9.	Notices		38




	Section 9.10.	Publicity		40




	Section 9.11.	Guarantee		40

INDEX OF DEFINED TERMS






Affected Employees		26




Affiliate		43




Agreement		1




Ameritrade		1




Ameritrade Canada		1




Ameritrade Canada 2005 and 2006 Bonus Program		28




Ameritrade Canada Benefit Plans		14




Ameritrade Canada Facilities		10




Ameritrade Canada Filings		12




Ameritrade Canada Financial Statements		7




Ameritrade Canada Leases		10




Ameritrade Canada Permits		11




Ameritrade Canada Pre-Closing Taxes		43




Ameritrade Canada Shares		1




Ameritrade Disclosure Schedule		2




Ameritrade U.S. Damages		40




ARC		7




Benefit Plans		14




Business Day		43




Calculations		2




Claim Notice		41




Closing		4




Closing Date		4




Closing Date Balance Sheet		2




Closing Date Net Tangible Book Value		43




Competition Filings		24




control		43




Damages		38




Datek		1




De Minimis Claim		39




Divestiture		25




Encumbrance		43




Environmental Laws		16




Exchange Act		44




Final Statement		3




GAAP		44




Governmental Authority		7




Hazardous Materials		16




IDA		7




Indemnified Ameritrade Entities		39




Indemnified Entity		40




Indemnified TD Entities		38




Indemnifying Party		41

iii






Independent Auditor		3




Injunction		34




Intellectual Property		10




knowledge		44




Litigation		13




Material Adverse Effect		44




NASDAQ		44




No Action Letter		7




NYSE		44




Objection		2




Person		44




Personal Information		44




Post Tender Ownership Percentage		44




Pre-Closing Tax Periods		32




Prime Rate		4




Purchase Price		2




Purchaser		1




Requisite Regulatory Approvals		34




Returns