Leafs went the 8-1 route, choosing to protect Holl over Kerfoot. I think they're hoping Seattle will take Kerfoot. Even though he's on a pretty good contract ($3.5M AAV), the Leafs need every dollar they can get. Considering Holl is one of their shut-down D-men, and they had a very good year defensively, I can understand why they did that. I don't think there's any chance of losing Simmonds or Spezza (the latter has said he'll retire before he reports anywhere else), so it's an understandable choice.
And yeah, I keep forgetting the Knights are exempt. That is a pant-load of BS though. It made sense with the 2000 draft for Atlanta/Nashville to be exempt, as they were only 1 and 2 years old respectively.