SETTLEMENT AGREEMENT REACHED BETWEEN THE MSC AND BMO NESBITT BURNS AND THOMAS WAITT

Winnipeg May 9,2001 -

The Manitoba Securities Commission today approved a settlement agreement between staff of the Commission and BMO Nesbitt Burns Inc. and Thomas Waitt relating to matters involving the timeliness and effectiveness of its supervision of three Winnipeg based representatives.

The settlement agreement requires BMO Nesbitt Burns Inc. and Thomas Waitt to make a $100,000 payment plus $60,000 in costs. This represents the largest payment of its kind made to the Commission. "Effective supervision by a firm of its salespeople is critical to ensure that investors are not exposed to unnecessary risks. A firm must not only identify problems, but be in a position to respond to those problems in a timely manner to minimize the risk of additional harm to investors," said Doug Brown, Director of Legal and Enforcement for the Commission.

The Manitoba Securities Commission and the Investment Dealers Association of Canada, with the cooperation of BMO Nesbitt Burns Inc. and Thomas Waitt, conducted a compliance review of the Winnipeg office. The review confirmed that BMO Nesbitt Burns Inc. has organized policies and procedures in place for the supervision of its representatives. BMO Nesbitt Burns Inc. is in a position to effectively deal with similar circumstances in the future.

(Note: Charles Edward Griffith referred to in the Statement of Allegations and Settlement Agreement is not Edward Russell Griffith of Scotia McLeod Inc.)