XTD.PR.A TDb Split Corp

TDb Split Corp. ("the Company") was created to provide exposure to the common
shares of Toronto Dominion Bank ("TD Bank") through two classes of securities,
the Priority Equity Shares and the Class A Shares (a "Unit"). Since inception of
the Company on August 7, 2007 (21 months ago) the price of TD Bank has declined
28% from $69.03 to $49.84 on May 19, 2009. Descending to a closing low of $32.80
on February 23, 2009.

 
This sharp decline in TD Bank has resulted in the Company's net asset value
being reduced significantly and as mentioned in previous updates, has required
the Company to implement the Priority Equity Portfolio Protection Plan (the
"Plan") in accordance with the prospectus. As a result of implementing the Plan,
the Company has been required to sell a significant amount of the TD Bank common
shares held in the Portfolio and acquire fixed income securities.


The Company's total net asset value is approximately $10.78 per unit as at May
19, 2009, consisting of less than 60% common shares of TD Bank. The reduced
exposure to TD Bank will limit the future impact of price movements of TD Bank
shares on the net asset value of the Company and lower the ability of the
Company to generate income from dividends and its covered call option writing
program.


The significant price decline of TD Bank and the resultant implementation of the
Priority Equity Protection Plan have made it extremely difficult to achieve the
original stated objectives for both classes of shares. The Company established a
normal course issuer's bid which allows the Company to re-purchase units in the
market when trading prices are at a discount to the net asset value.


The portfolio is continually rebalanced and adjusted based on market conditions
to provide both security for Priority Equity shareholders and upside potential
for Class A shareholders. The Company may buy or sell additional shares of TD
Bank, the Permitted Repayment Securities, and/or option positions based on
market conditions and provided that the Company remains in compliance with the
Priority Equity Portfolio Protection Plan.

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