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PURCHASE AGREEMENT

 

 

 

 

 

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TABLE OF CONTENTS

1. DEFINITIONS 2       1.2 Currency 9       2. TCS SHARE TRANSACTIONS 9      
2.1 Purchase and Sale of Benelux Shares 9 2.2 Purchase and Sale of Iberian
Shares 9       3. THE STOCKGROUP TRANSACTIONS 9       3.1 Purchase and Sale 9
3.2 Assumption of Liabilities 9 3.3 Payment of Purchase Price 9 3.4 Additional
Consideration 10 3.5 Allocation 10       4. THE CLOSING 11             5.
DELIVERIES AT THE CLOSING 11       5.1 Deliveries to Stockgroup Systems from TCS
11 5.2 Deliveries to Stockgroup Media from TCS 12 5.3 Deliveries to Stockgroup
from TCS Holdings 12 5.4 Deliveries to TCS by Stockgroup 12 5.5 Deliveries by
Stockgroup Systems to TCS 13 5.6 Deliveries by TCS to Stockgroup 13       6.
REPRESENTATIONS AND WARRANTIES OF THE SELLERS 13       6.1 Organization of the
Sellers 13 6.2 Authorization of Transactions 13 6.3 Noncontravention 13 6.4
Brokers' Fees 14 6.5 Title to Assets 14 6.6 Title to TCS Ltd. Shares, Benelux
Shares and Iberian Shares 14 6.7 Title to Aether Shares 14 6.8 Title to Acquired
Shares at Closing 15 6.9 Title to Benelux Shares and Iberian Shares at Closing
15 6.10 Title to Acquired Assets 15 6.11 Subsidiaries 15 6.12 Financial
Statements 16 6.13 Events Subsequent to Most Recent Fiscal Quarter End 17 6.14
Undisclosed Liabilities 19

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- ii -

6.15 Legal Compliance 19 6.16 Tax Matters 20 6.17 Real Property 21 6.18
Intellectual Property 23 6.19 Sufficiency of Assets 24 6.20 Condition of Assets
24 6.21 Permits 24 6.22 Contracts 24 6.23 Notes and Accounts Receivable 26 6.24
Insurance 26 6.25 Litigation 26 6.26 Product Liability 26 6.27 Employees 27 6.28
Employee Benefits 27 6.29 Guaranties 27 6.30 Environmental, Health, and Safety
Matters 27 6.31 Securities Representations 27       7. REPRESENTATIONS AND
WARRANTIES OF STOCKGROUP 28       7.1 Organization of Stockgroup 28 7.2
Authorization of Transaction 29 7.3 Noncontravention 29 7.4 Brokers' Fees 29 7.5
Corporate 29 7.6 Claims and Proceedings 30 7.7 Securities Act 30 7.8
Availability of Funds 30 7.9 No Other Representations 30       8. PRE-CLOSING
COVENANTS 30       8.1 General 30 8.2 Operation of Business 31 8.3 Preservation
of Business 31 8.4 Full Access 31 8.5 Notice of Developments 31 8.6 Exclusivity
32 8.7 Leases 32 8.8 Resale Restrictions 32 8.9 Legending of Purchaser Shares 32
8.10 Cash of Acquired Entities At Closing 33       9. CONDITIONS TO OBLIGATION
TO CLOSE 33       9.1 Conditions to Obligation of Stockgroup 33 9.2 Conditions
to Obligation of the Sellers 34

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10. SURVIVAL OF REPRESENTATIONS; INDEMNIFICATION 35       10.1 Survival; Right
to Indemnification 35 10.2 Sellers’ Indemnity 36 10.3 Purchasers’ Indemnity 36
10.4 Procedure for Indemnification – Third Party Claims. 37 10.5 Procedure for
Indemnification – Other Claims 38 10.6 Time Limitations; Indemnification by
Securityholders 38 10.7 Monetary Limitations 39 10.8 Losses Net of Insurance;
Taxes 39 10.9 Purchase Price Adjustment 39 10.10 No Double Recovery 39       11.
TAX LIABILITY 40       11.1 Liability for Taxes 40 11.2 Post Closing Tax Matters
41       12. RECORDS/LITIGATION AND TAX MATTERS 42       12.1 Records/Litigation
42       13. TERMINATION 43       13.1 Termination of Agreement 43       14.
POST-CLOSING MATTERS 44       14.1 Piggy-Back Registration. 44 14.2 Payment for
Preparation of Most Recent Financial Statements 44 14.3 Name Change 44 14.4 UK
Lease 44 14.5 No Competition 45       15. MISCELLANEOUS 45       15.1 Press
Releases and Public Announcements 45 15.2 No Third-Party Beneficiaries 45 15.3
Entire Agreement 45 15.4 Succession and Assignment 45 15.5 Counterparts 45 15.6
Headings 46 15.7 Notices 46 15.8 Governing Law 47 15.9 Amendments and Waivers 47
15.10 Severability 47 15.11 Expenses 47 15.12 Construction 47

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15.13 Disclosure Schedule 48 15.14 Incorporation of Schedules 48 15.15 Bulk
Transfer Laws 48

Schedule A – List of Acquired Assets Schedule B – List of Trademarks Schedule C
– List of Fixed Assets Schedule D – Notarial Deed of Transfer (Benelux) Schedule
E – Notarial Deed of Transfer (Iberian) Schedule F – Owings Mills Sublease
Schedule G – Allocation of the Purchase Price Schedule H – Transition Services
Agreement Schedule I – Disclosure Schedule Schedule J – Trademark Assignment
Schedule K – Domain Name Assignment Schedule L – Assignment and Assumption
Agreement – General Schedule M – General Assignment and Bill of Sale Schedule N
– Assignment and Assumption Agreement – Eight Black Schedule O – Customer Lists
Schedule P – Accredited Investor Questionnaire

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PURCHASE AGREEMENT

THIS AGREEMENT entered into effective as of January 24, 2007.

AMONG:

> > > > STOCKGROUP INFORMATION SYSTEMS INC., a Colorado corporation
> > > > 
> > > > ("Stockgroup")

AND:

> > > > STOCKGROUP SYSTEMS LTD., a Nevada corporation
> > > > 
> > > > ("Stockgroup Systems")

AND:

> > > > STOCKGROUP MEDIA INC., a British Columbia corporation
> > > > 
> > > > ("Stockgroup Media")

AND:

> > > > TELECOMMUNICATION SYSTEMS, INC., a Maryland corporation
> > > > 
> > > > ("TCS")

AND:

> > > > TELECOMMUNICATION SYSTEMS (HOLDINGS) LIMITED, a company incorporated in
> > > > England and Wales, U.K.
> > > > 
> > > > ("TCS Holdings")

WHEREAS:

                    This Agreement contemplates a series of transactions in
which Stockgroup, Stockgroup Systems and Stockgroup Media will, in the
aggregate, purchase the Business (as hereinafter defined) from TCS and TCS
Holdings through the acquisition of all of the issued and outstanding securities
of TeleCommunication Systems Limited, TeleCommunication Systems Benelux BV,
TeleCommunication Systems Iberian SA and Aether Systems (UK) Limited, and the
acquisition of specific assets of TCS.

NOW THEREFORE, in consideration of the premises and the mutual promises herein
made, and in consideration of the representations, warranties and covenants
herein contained, the parties hereto do hereby agree as follows:

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1.

DEFINITIONS

      (a)

“2007 Gross Profit” means the amount of Gross Profit derived by Stockgroup,
Stockgroup Systems and Stockgroup Media from the operation of the Business for
the period beginning on the Closing Date and ending December 31, 2007.

      (b)

"Accounts Receivable" means (i) all accounts receivable of the Acquired
Entities; (ii) all accounts receivable under agreements or contracts for
services or products provided by the Sellers in respect of the Acquired Assets
and the Eight Black Agreement, and other rights to payment from customers of the
Business and the full benefit of all security for such accounts or right to
payment; (iii) all other accounts or notes receivable of the Acquired Entities
or either of the Sellers in respect of the Acquired Assets and the Eight Black
Agreement, or otherwise with respect to the Business and the full benefit of all
security for such accounts or notes; (iv) costs and estimated earnings in excess
of billings on uncompleted contracts with respect to the Business and (v) any
claim, remedy or other right relating to any of the foregoing.

      (c)

"Acquired Assets" means all of the assets of TCS that are used in the Business
and identified on the list of assets attached to this Agreement as Schedule “A”.

      (d)

“Acquired Entities” means TCS Ltd., Benelux, Iberian and Aether.

      (e)

“Acquired Shares” means all of the issued and outstanding common shares in the
capital of TCS Ltd.

      (f)

“Accredited Investor” shall have the meaning set forth in Rule 501(a) of
Regulation D promulgated under the Securities Act.

      (g)

“Additional Consideration” shall have the meaning set forth in Section 3.4,
below.

      (h)

“Aether” means Aether Systems (UK) Limited, a company organized under the laws
of the United Kingdom having Company No. 01831719.

      (i)

“Aether Shares” means all of the issued and outstanding common shares in the
capital of Aether.

      (j)

"Affiliate" means, with respect to any Person, any Person which directly or
indirectly through stock ownership, other arrangements or otherwise either
controls, or is controlled by or is under common control with, such Person.

      (k)

"Assumed Liabilities" means the liabilities listed on the November 30, 2006
Statement of Net Assets, which is attached at Section 6.12 of the Disclosure
Schedule (Schedule I) to this Agreement.

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  (l)

"Basis" means any past or present fact, situation, circumstance, status,
condition, activity, practice, plan, occurrence, event, incident, action,
failure to act, or transaction that forms or could form the basis for any
specified consequence.

        (m)

“Benelux” means TeleCommunication Systems Benelux BV, a company organized under
the laws of the Netherlands (Company No. 33297036).

        (n)

“Benelux Note” means a simple demand promissory note, without interest, to be
made at Closing by TCS Ltd. and payable to the order of TCS Holdings in the
amount of the Benelux Share Price.

        (o)

“Benelux Shares” means all of the issued and outstanding securities in the
capital of Benelux.

        (p)

“Benelux Share Price” means the sum of One Thousand Dollars ($1,000).

        (q)

“Business” means the business of providing a portfolio of products and services
that provide financial market data for wireless devices to consumers and
enterprise that was owned and operated, in the aggregate, by TCS and the
Acquired Entities up to the Closing Date and that will be owned and operated by
Stockgroup Systems, Stockgroup Media and the Acquired Entities after the Closing
Date.

        (r)

“Business Day” means any day that commercial banks are open for business in both
Baltimore, Maryland and Vancouver, British Columbia.

        (s)

"Cash" means cash and cash equivalents (including marketable securities and
short term investments) calculated in accordance with GAAP applied on a basis
consistent with the preparation of the Financial Statements.

        (t)

"Claims" means any action, cause of action, suit, claim or counterclaim or
legal, administrative or arbitral proceeding or investigation, whether or not
the defense thereof, or any Liability in respect thereof, is covered by
insurance and whether under consumer laws, equity or statute, including
employment protection legislation.

        (u)

"Closing" has the meaning set forth in Section 4 below.

        (v)

"Closing Date" has the meaning set forth in Section 4 below.

        (w)

"Disclosure Schedule" has the meaning set forth in Section 6 below.

        (x)

“Eight Black Agreement” means the MarketStream Distributor Agreement between the
Eight Black Partnership Pty. Ltd. and TCS, effective as of March 4, 2006.

        (y)

"Employee Benefit Plan" means any employee benefit plan or similar program
maintained by any of the Acquired Entities or maintained by TCS and made

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available to any employees providing, or who have in the past provided, services
in or to the Business.

        (z)

"Environmental, Health and Safety Requirements" shall mean all federal,
provincial, state and local statutes, regulations, ordinances and other
provisions having the force or effect of law, all judicial and administrative
orders and determinations, all contractual obligations and all common law
concerning public health and safety, worker health and safety, and pollution or
protection of the environment, including without limitation all those relating
to the presence, use, production, generation, handling, transportation,
treatment, storage, disposal, distribution, labelling, testing, processing,
discharge, release, threatened release, control, or cleanup of any hazardous
materials, substances or wastes, chemical substances or mixtures, pesticides,
pollutants, contaminants, toxic chemicals, petroleum products or by-products,
asbestos, polychlorinated biphenyls, noise or radiation, each as amended and as
now or hereafter in effect.

        (aa)

“Excluded Liabilities” means any Liability that is not an Assumed Liability.

        (bb)

“Excluded Software” shall have the meaning set forth in Section 6.18 of the
Disclosure Schedule.

        (cc)

"Financial Statement" has the meaning set forth in Section 6.12 below.

        (dd)

"Fiscal Year End Statements" has the meaning set forth in Section 6.12 below.

        (ee)

"GAAP" means U.S. generally accepted accounting principles as in effect from
time to time.

        (ff)

“Gross Profit” means total revenue less costs for data feeds (Reuters), Imperial
Software (IST), airtime, exchange fees, other direct costs of revenue and U.S.
labor costs (collectively, “cost of revenue”), calculated in a manner
substantially as calculated by TCS in its operation of the Business.

        (gg)

“Iberian” means TeleCommunication Systems Iberian SA, a company organized under
the laws of Spain (CIF No. A81968760).

        (hh)

“Iberian Note” means a simple demand promissory note, without interest, to be
made at Closing by TCS Ltd. and payable to the order of TCS Holdings in the
amount of the Iberian Share Price.

        (ii)

“Iberian Shares” means all of the issued and outstanding common shares in the
capital of Iberian.

        (jj)

“Iberian Share Price” means the sum of One Thousand Dollars ($1,000).

        (kk)

"Intellectual Property" means all of the (i) Know-how, (ii) Trademarks, (iii)
copyrights, copyright registrations and applications for registration, (iv)
Software Programs (other than Excluded Software) and (v) all other intellectual
property

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rights whether registered or not, in each case that are licensed to or owned by
TCS and used in the Business as currently operated or which are licensed to or
owned by the Acquired Entities, including:

  (i)

all service marks, trade dress, logos, slogans, trade names, corporate names
(including the name "Aether" in any form or combination with other words),
Internet domain names and rights in telephone numbers, together with all
translations, adaptations, derivations, and combinations thereof and including
all goodwill associated therewith, and all applications, registrations, and
renewals in connection therewith;

        (ii)

all copyrightable works, all copyrights, and all applications, registrations,
and renewals in connection therewith;

        (iii)

all mask works and all applications, registrations, and renewals in connection
therewith;

        (iv)

all trade secrets and confidential business information (including ideas,
research and development, know-how, formulas, compositions, manufacturing and
production processes and techniques, technical data, designs, drawings,
specifications, customer and supplier lists, pricing and cost information, and
business and marketing plans and proposals);

        (v)

all computer software (including source code, executable code, data, databases
and related documentation);

        (vi)

all advertising and promotional materials;

        (vii)

all other proprietary rights; and

        (viii)

all copies and tangible embodiments thereof (in whatever form or medium),

 

but excluding any patents or patent applications issued to or owned by TCS.

        (ll)

“Know-how” means any and all product specifications, processes, methods, product
designs, plans, trade secrets, ideas, concepts, inventions, manufacturing,
engineering and other manuals and drawings, physical and analytical, safety,
quality control, technical information, data, research records, all promotional
literature, customer and supplier lists and similar data and information, and
any and all other confidential or proprietary technical and business information
which are licensed to or owned by TCS and used in the Business as currently
operated or which are licensed to or owned by any of the Acquired Entities.

        (mm)

"Knowledge" means actual knowledge after reasonable investigation.

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  (nn)

“Lease Consents” means, as to each of the Leases that prohibits assignment
without the written consent of the landlord, a written consent for the
assignment thereof in form and substance satisfactory to Stockgroup, acting
reasonably.

        (oo)

"Leased Real Property" means all leasehold or subleasehold estates and other
rights to use or occupy any land, buildings, structures, improvements, fixtures
or other interest in real property held by any of the Sellers in connection with
the operation of the Business or held by any of the Acquired Entities.

        (pp)

"Leases" means all leases, subleases, licenses, concessions and other agreements
(written or oral), including all amendments, extensions, renewals, guaranties
and other agreements with respect thereto, pursuant to which any of the Acquired
Entities holds any Leased Real Property or pursuant to which either of the
Sellers holds any Leased Real Property that is used, or intended to be used, in
the conduct of the Business, including the right to all security deposits and
other amounts and instruments deposited by or on behalf of any of the TCS
Entities thereunder.

        (qq)

"Liability" means any liability (whether known or unknown, whether asserted or
unasserted, whether absolute or contingent, whether accrued or unaccrued,
whether liquidated or unliquidated, and whether due or to become due), including
any liability for Taxes.

        (rr)

"Losses" means any and all losses, demands, Claims, allegations, assertions,
Liabilities, costs, damages, judgments, obligations (including corrective or
remedial obligations), debts, settlements, assessments, deficiencies, Taxes,
penalties, interest, fines or expenses, whether or not arising out of any Claims
by or on behalf of a third party, including interest, penalties, reasonable
attorney’s fees and expenses and all reasonable amounts paid in investigation,
defense or settlement of any of the foregoing, but specifically excluding any
consequential, special or punitive damages.

        (ss)

"Material" means, with respect to any matter, that a reasonable person would
consider the matter significant under the circumstances.

        (tt)

"Material Adverse Effect" means a Material and adverse effect upon (i) the
business, operations, assets, liabilities, conditions (financial or otherwise),
operating results, prospects, or customer, supplier or employee relations of the
Business or (ii) the ability of the Purchasers or Sellers to consummate the
transactions contemplated hereby or perform their respective obligations
hereunder.

        (uu)

"Most Recent Fiscal Year End" has the meaning set forth in Section 6.12(b)
below.

        (vv)

"Ordinary Course of Business" means the ordinary course of business consistent
with past custom and practice.

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  (ww)

"Person" means an individual, a partnership, a corporation, an association, a
joint stock company, a trust, a joint venture, an unincorporated organization,
or a governmental entity (or any department, agency, or political subdivision
thereof).

          (xx)

“Purchase Price” means Five Hundred Seventy Thousand Dollars ($570,000) plus the
assumption, by Stockgroup Systems, of the Assumed Liabities.

          (yy)

"Purchaser Indemnitees" shall mean Stockgroup, Stockgroup Systems and Stockgroup
Media, together with their respective Affiliates (including, after Closing, the
Acquired Entities) and their respective Representatives.

          (zz)

“Purchasers” means Stockgroup, Stockgroup Systems and Stockgroup Media.

          (aaa)

“Purchaser Shares” means One Million Five Hundred Thousand (1,500,000) common
shares in the capital of Stockgroup to be issued to TCS at a deemed price of
$0.38 per share in payment of the Purchase Price.

          (bbb)

“Pro-Rata Portion” means the following percentages of any Additional
Consideration that may be earned and paid pursuant to Section 3.4 of this
Agreement, below:

          (i)

as to Stockgroup Systems, ninety-eight and two-tenths percent (98.20%),

  (ii)

as to Stockgroup Media, one and one-tenth percent (1.1%), and

  (iii)

as to Stockgroup, seven-tenths of one percent (0.7%).

          (ccc)

"Real Property" means all land, together with all buildings, structures,
improvements and fixtures located thereon, including all electrical, mechanical,
plumbing and other building systems, fire protection, security and surveillance
systems, telecommunications, computer, wiring and cable installations; utility
installations, water distribution systems, and landscaping, together with all
easements and other rights and interests appurtenant thereto (including air,
oil, gas, mineral and water rights).

          (ddd)

"Real Property Laws" has the meaning set forth in Section 6.17(e) below.

          (eee)

“Representatives” shall mean a Person’s directors, officers, Affiliates,
employees, attorneys, accountants, representatives, lenders, consultants,
independent contractors, stockholders, members and other agents.

          (fff)

"Securities Act" means the United States’ Securities Act of 1933, as amended.

          (ggg)

"Securities Exchange Act" means the United States’ Securities Exchange Act of
1934, as amended.

          (hhh)

"Security Interest" means any mortgage, pledge, lien, encumbrance, charge, or
other security interest, other than liens for Taxes not yet due and payable;

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  (iii)

"Seller Indemnitees" shall mean TCS and TCS Holdings, together with their
respective Affiliates and their respective Representatives.

  (jjj)

"Sellers" means TCS and TCS Holdings.

        (kkk)

“Straddle Period” means any Tax period beginning before and ending after the
close of business on the Closing Date.

  (lll)

"Tax" means any federal, state, provincial, local, or foreign income, gross
receipts, license, payroll, employment, excise, severance, stamp, occupation,
premium, windfall profits, environmental, customs duties, capital stock,
franchise, profits, withholding, social security (or similar), unemployment,
disability, real property, personal property, sales, use, transfer,
registration, value added, alternative or add-on minimum, estimated, or other
tax of any kind whatsoever, including any interest, penalty, or addition
thereto, whether disputed or not.

(mmm)

“Tax Assets” shall mean any refund, abatement or credit of, and all other assets
comprising receivables or deferred assets or prepayments for, Taxes arising or
resulting from the conduct of the Business or the ownership of the Acquired
Assets, the TCS Ltd. Shares, the Benelux Shares, the Iberian Shares or the
Aether Shares by the Sellers or any of their Affiliates, or the ownership of any
of the Acquired Entities or any of their respective Affiliates for taxable
periods or portions thereof ending on or before the Closing Date.

  (nnn)

“Tax Liabilities” shall mean all Liabilities for Taxes arising or resulting from
the conduct of the Business or the ownership of the Acquired Assets by the
Sellers (or either of them), any of the Acquired Entities or any of their
respective Affiliates for taxable periods or portions thereof ending on or
before the Closing Date.

        (ooo)

"Tax Return" means any return, declaration, report, claim for refund, or
information return or statement relating to Taxes, including any schedule or
attachment thereto, and including any amendment thereof.

        (ppp)

“TCS Entities” means TCS, TCS Holdings and the Acquired Entities.

        (qqq)

“TCS Ltd.” means TeleCommunication Systems Limited, a company organized under
the laws of England and Wales, U.K. (Company No. 03968661).

        (rrr)

“TCS Ltd. Shares” means all of the issued and outstanding common shares in the
capital of TCS Ltd.

        (sss)

“Transition Services Agreement” means the agreement, substantially in the form
of Schedule H to this Agreement, whereby TCS will provide certain services to
the Purchasers.

        (ttt)

“Trademarks” means all of the Trademarks listed on Schedule B attached to this
Agreement.

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  (uuu)

"TSX-V" means the TSX Venture Exchange, a Canadian stock exchange.

        (vvv)

“UK Lease” means the lease for Number 6 Dyers’ Buildings in the City of London
dated January 14, 1999.

1.2

Currency

   

In this Agreement, any reference to currency is to the lawful currency of the
United States of America unless the context clearly requires otherwise.

    2.

TCS SHARE TRANSACTIONS

    2.1

Purchase and Sale of Benelux Shares

   

Prior to Closing TCS Ltd. shall purchase from TCS Holdings, and TCS Holdings
shall sell, transfer, convey and deliver to TCS Ltd., all of the Benelux Shares
for the Benelux Share Price. TCS Ltd. shall pay the Benelux Share Price by
delivering the Benelux Note to TCS Holdings. Documentation of the transfer will
conform to the requirements of Applicable Law and filing requirements, including
the execution and delivery of a Notarial Deed of Transfer substantially in the
form attached hereto as Schedule D.

    2.2

Purchase and Sale of Iberian Shares

   

Prior to Closing, TCS Ltd. shall purchase from TCS Holdings, and TCS Holdings
shall sell, transfer, convey and deliver to TCS Ltd., all of the Iberian Shares
for the Iberian Share Price. TCS Ltd. shall pay the Iberian Share Price by
delivering the Iberian Note to TCS Holdings. Documentation of the transfer will
conform to the requirements of Spanish law and filing requirements, including
the execution and delivery of a Notarial Deed of Transfer substantially in the
form attached hereto as Schedule E.

    3.

THE STOCKGROUP TRANSACTIONS

    3.1

Purchase and Sale

   

Subject to the terms and conditions of this Agreement, Stockgroup shall purchase
from TCS, and TCS shall sell, assign, transfer, convey, and deliver to
Stockgroup and its nominees Stockgroup Systems and Stockgroup Media as provided
herein, all of the Acquired Assets, the Eight Black Agreement and the TCS Ltd.
Shares at the Closing in exchange for the Purchase Price.

    3.2

Assumption of Liabilities

   

None of the Purchasers will assume or have any liability for, or responsibility
with respect to, any Excluded Liability.

    3.3

Payment of Purchase Price

   

At the Closing,

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  (i)

Stockgroup shall issue to TCS the Purchase Shares;

        (ii)

Stockgroup Systems shall assume the Assumed Liabilities;

        (iii)

Stockgroup Systems shall deliver to Stockgroup a promissory note in the amount
of Five Hundred Sixty One Thousand Dollars ($561,000) as consideration for the
transfer to Stockgroup Systems, at the Closing, of the Acquired Assets; and

        (iv)

Stockgroup Media shall deliver to Stockgroup a promissory note in the amount of
Six Thousand Dollars ($6,000) as consideration for the transfer to Stockgroup
Media of the Eight Black Agreement.

3.4

Additional Consideration

      (a)

The Purchase Price may be increased by the Additional Consideration, which shall
be determined by Stockgroup pursuant to Section 3.4(b), below, within ninety
(90) days after the first anniversary of the Closing Date.

      (b)

The Additional Consideration shall be equal to fifty percent (50%) of the
amount, if any, by which 2007 Gross Profit exceeds $3,000,000, but excluding any
portion of 2007 Gross Profit that is in excess of $4,000,000. For clarity,
Additional Consideration cannot exceed $500,000. Stockgroup shall send notice to
Sellers of the amount of 2007 Gross Profit on or before April 1, 2008, which
notice shall enclose payment of any Additional Consideration due, if any,
pursuant to this Section 3.4. Additional Consideration shall be paid by each of
Stockgroup, Stockgroup Systems and Stockgroup Media in respect of their
respective Pro-Rata Portion.

      (c)

If TCS objects to the calculation of Additional Consideration by written notice
to Stockgroup within ten days of receipt of Stockgroup’s notice of the amount of
2007 Gross Profit, TCS and Stockgroup shall attempt in good faith to agree upon
the Additional Consideration amount by no later than May 1, 2008.

      3.5

Allocation

     

The Parties agree to allocate the Purchase Price for all purposes (including
financial, accounting and Tax purposes) in accordance with the allocation
schedule attached hereto as Schedule G. The Parties shall report and file all
Tax Returns (including amended Tax Returns and claims for refund) consistent
with the allocation shown on Schedule G and shall not voluntarily take a
position contrary thereto or inconsistent therewith (including, without
limitation, in any audits or examinations by any Governmental Authority or any
other proceedings). The Parties shall cooperate in the filing of any forms
(including “Form 8594” under Section 1060 of the Code) with respect to such
allocation, including any amendments thereto.

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4.

THE CLOSING

     

The closing of all of the transactions contemplated by this Agreement (the
"Closing") shall take place beginning at 9:00 a.m. Pacific Standard Time on the
second business day following the satisfaction or waiver of all conditions to
the obligations of the Parties to consummate those transactions (other than
conditions with respect to actions the respective Parties will take at the
Closing itself) or such other date as the Parties may mutually determine (the
"Closing Date"); provided, however, that the Closing Date shall be no later than
January 31, 2007. The Closing may take place by exchange of the appropriate
solicitor's undertakings, which will involve each party's solicitors delivering
to his or her counterpart all required consideration and documentation, to be
held in trust and not released until all required closing deliveries have been
made and all conditions to closing have been satisfied or waived by the party
which has the benefit of such conditions.

      5.

DELIVERIES AT THE CLOSING

      5.1

Deliveries to Stockgroup Systems from TCS

     

At the Closing TCS will deliver the following to Stockgroup Systems:

      (a)

the various certificates, instruments, and documents referred to in, or that are
necessary to remove the conditions specified in, Section 9.1 below;

      (b)

an executed counterpart of the Transition Services Agreement;

      (c)

an assignment of Trademarks in the form attached as Schedule J hereto and
documents necessary to effect transfer of registrations in respect thereof to
Stockgroup Systems;

      (d)

an assignment of the domain names set out in the form of assignment attached as
Schedule K hereto and documents necessary to effect transfer of registrations in
respect thereof to Stockgroup Systems;

      (e)

a general assignment and assumption agreement in a form attached as Schedule L
hereto;

      (f)

a bill of sale in the form attached as Schedule M hereto in respect of the
Acquired Assets;

      (g)

all necessary consents in respect of the sale, transfer, conveyance, and
assignment of the Acquired Assets; and

      (h)

such other instruments of sale, transfer, conveyance, and assignment of the
Acquired Assets as Stockgroup Systems and its counsel reasonably may request.

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5.2

Deliveries to Stockgroup Media from TCS

     

At the Closing TCS will deliver the following to Stockgroup Media, as
applicable:

      (a)

an assignment in respect of all of TCS's right, title and interest under the
Eight Black Agreement in the form attached as Schedule N hereto; and

      (b)

all necessary consents in respect of the transfer of assignment of the Eight
Black Agreement.

      5.3

Deliveries to Stockgroup from TCS Holdings

     

At the Closing TCS will deliver the following to Stockgroup:

      (a)

list of all of the employees of each of the Acquired Entities as at the Closing;

      (b)

share certificates representing all of the issued and outstanding shares of TCS
Ltd. duly endorsed for transfer to Stockgroup;

      (c)

the share registers of each of Aether, Benelux and Iberian showing that TCS Ltd.
is the sole registered holder of all the issued and outstanding shares in the
capital of each of Aether, Benelux and Iberian;

      (d)

the minute books and records of all of the Acquired Entities;

      (e)

the originals (or copies where necessary) of all agreements, documents and deeds
executed, entered into or granted by any of the Acquired Entities;

      (f)

the written resignation of each director and officer of each of the Acquired
Entities effective immediately following the Closing.

      (g)

the Benelux Note, duly cancelled;

      (h)

the Iberian Note, duly cancelled; and

      (i)

such other instruments of sale, transfer, conveyance, and assignment as
Stockgroup and its counsel reasonably may request.

      5.4

Deliveries to TCS by Stockgroup

     

At the Closing Stockgroup will deliver the following to TCS:

      (a)

an executed counterpart of the Transition Services Agreement;

      (b)

the various certificates, instruments, and documents referred to in, or that are
necessary to remove the conditions specified in, Section 9.2 below;

      (c)

the Purchaser Shares.

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  (d)

Internal Revenue Service Form 8594 – Asset Acquisition Statement (to be provided
after Closing and not later than August 15, 2007)

5.5

Deliveries by Stockgroup Systems to TCS

   

At the Closing Stockgroup Systems will deliver to TCS an assumption of the
Assumed Liabilities in the form attached as Schedule L hereto.

    5.6

Deliveries by TCS to Stockgroup

   

At the Closing TCS will deliver to Stockgroup a completed and executed
Accredited Investor Questionnaire in the form attached hereto as Schedule P.

    6.

REPRESENTATIONS AND WARRANTIES OF THE SELLERS

   

Sellers do hereby jointly and severally represent and warrant to Purchasers that
the statements contained in this Article 6 are correct and complete as of the
date of this Agreement and will be correct and complete as of the Closing Date
(as though made then and as though the Closing Date were substituted for the
date of this Agreement throughout this Article 6), except as set forth in the
disclosure schedule accompanying this Agreement and initialled by the Parties
(the "Disclosure Schedule"). The Disclosure Schedule will be arranged in
paragraphs corresponding to the lettered and numbered paragraphs contained in
this Article 6.

    6.1

Organization of the Sellers

   

Each of the TCS Entities is a corporation duly incorporated, organized, validly
existing and in good standing under the laws of the jurisdiction of its
incorporation.

    6.2

Authorization of Transactions

   

Each of the Sellers has all necessary power and authority (including all
necessary corporate power and authority) to execute and deliver this Agreement
and to perform its respective obligations hereunder. Without limiting the
generality of the foregoing, the board of directors of each of the Sellers, and
TCS in its capacity as the sole shareholder of TCS Holdings, has duly authorized
the execution, delivery, and performance of this Agreement by the Sellers. This
Agreement constitutes the valid and legally binding obligation of each of the
Sellers and is enforceable in accordance with its terms and conditions. The
Board of Directors of each of Benelux and Iberian has duly consented to the
transfer of the Benelux Shares and the Iberian Shares, respectively, to TCS Ltd.
pursuant to the terms of this Agreement, and the Board of Directors of TCS Ltd.
has duly authorized (a) the acquisition of the Benelux Shares and the Iberian
Shares by TCS Ltd. and (b) the transfer of the TCS Ltd. Shares from TCS Holdings
to Stockgroup.

    6.3

Noncontravention

   

Neither the execution and the delivery of this Agreement, nor the consummation
of the transactions contemplated hereby, will:

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  (a)

violate any constitution, statute, regulation, rule, injunction, judgment,
order, decree, ruling, charge, or other restriction of any government,
governmental agency, or court to which any of the TCS Entities is subject or any
provision of the charter or bylaws of any of them; or

        (b)

conflict with, result in a breach of, constitute a default under, result in the
acceleration of, create in any party the right to accelerate, terminate, modify,
or cancel, or require any notice under any agreement, contract, lease, license,
instrument, or other arrangement to which any of the TCS Entities is a party or
by which they (or any of them) are bound or to which any of their assets are
subject (or result in the imposition of any Security Interest upon any of their
assets except as set out in this Agreement). Except as set out in the Disclosure
Schedule, none of the TCS Entities needs to give any notice to, make any filing
with, or obtain any authorization, consent, or approval of any government or
governmental agency in order for the Parties to consummate the transactions
contemplated by this Agreement.

6.4

Brokers' Fees

   

None of the TCS Entities has any Liability or obligation to pay any fees or
commissions to any broker, finder, or agent with respect to the transactions
contemplated by this Agreement except for Signal Hill Capital and/or Ridgecrest
Capital Partners, whose fees and expenses will be paid by TCS.

    6.5

Title to Assets

   

Except as set forth in Section 6.5 of the Disclosure Schedule, each of the
Acquired Entities has good and marketable title to, or a valid leasehold
interest in, their assets, free and clear of all Security Interests or
restriction on transfer except such restrictions on transfer of any common stock
as may be imposed by applicable securities laws.

    6.6

Title to TCS Ltd. Shares, Benelux Shares and Iberian Shares

   

At the date of this Agreement, TCS Holdings has good and marketable title to the
TCS Ltd. Shares, the Benelux Shares and the Iberian Shares, free and clear of
all Security Interests or restrictions on transfer except such restrictions on
transfer as may be imposed by applicable securities laws.

    6.7

Title to Aether Shares

   

At the date of this Agreement, TCS Ltd. has good and marketable title to the
Aether Shares, free and clear of all Security Interests or restrictions on
transfer except such restrictions on transfer as may be imposed by applicable
securities laws.

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- 15 -

6.8

Title to Acquired Shares at Closing

     

At the date of Closing, TCS Holdings will have good and marketable title to the
TCS Ltd. Shares, free and clear of all Security Interests or restrictions on
transfer except such restrictions on transfer as may be imposed by applicable
securities laws.

      6.9

Title to Benelux Shares and Iberian Shares at Closing

     

At the date of Closing, TCS Ltd will have good and marketable title to the
Benelux Shares and the Iberian Shares, free and clear of all Security Interests
or restrictions on transfer except such restrictions on transfer as may be
imposed by applicable securities laws.

      6.10

Title to Acquired Assets

     

Except as set forth in Section 6.10 of the Disclosure Schedule, TCS has good and
marketable title to, or a valid leasehold interest in, the Acquired Assets and
the Eight Black Agreement, free and clear of all Security Interests or
restriction on transfer.

      6.11

Subsidiaries

     

Section 6.11 of the Disclosure Schedule sets forth for each of TCS Holdings and
the Acquired Entities:

      (a)

its name and jurisdiction of incorporation;

      (b)

the number of shares of authorized capital stock of each class of its capital
stock;

      (c)

the number of issued and outstanding shares of each class of its capital stock,
the names of the holders thereof, and the number of shares held by each such
holder;

      (d)

the number of shares of its capital stock held in treasury; and

      (e)

the names and titles of its directors and officers.

     

Each of the TCS Entities is duly authorized to conduct business and is in good
standing under the laws of each jurisdiction where such qualification is
required. Each of the TCS Entities has all necessary corporate power and
authority and all licenses, permits, and authorizations necessary to carry on
the Business and to own and use the properties owned and used by it. TCS has
delivered to Stockgroup correct and complete copies of the charter and bylaws of
the Acquired Entities (as amended to date). All of the issued and outstanding
shares of capital stock of each of the Acquired Entities have been duly
authorized and are validly issued, fully paid and nonassessable. TCS holds of
record and owns beneficially all of the issued and outstanding securities of TCS
Holdings. TCS Holdings holds of record and owns beneficially all of the Acquired
Shares. All of the Acquired Shares are free and clear of any restrictions on
transfer (other than restrictions under applicable securities laws), Taxes,
Security Interests, options, warrants, purchase rights, contracts, commitments,
equities, claims, and demands. There are no outstanding

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or authorized options, warrants, purchase rights, subscription rights,
conversion rights, exchange rights, or other contracts or commitments that could
require TCS or any of the Acquired Entities to sell, transfer, or otherwise
dispose of any capital stock of any of TCS Holdings and the Acquired Entities or
that could require any of the Acquired Entities to issue, sell, or otherwise
cause to become outstanding any of its own capital stock (other than as
contemplated in this Agreement). There are no outstanding stock appreciation,
phantom stock, profit participation, or similar rights with respect to any of
the Acquired Entities. There are no voting trusts, proxies, or other agreements
or understandings with respect to the voting of any capital stock of any of TCS
Holdings and the Acquired Entities. The minute books (containing the records of
meetings of the stockholders, the board of directors, and any committees of the
board of directors), the stock certificate books, and the stock record books of
the Acquired Entities are correct and complete. None of the Acquired Entities is
in default under or in violation of any provision of its charter or bylaws. None
of the Acquired Entities controls directly or indirectly or has any direct or
indirect equity participation in any corporation, partnership, trust, or other
business association except that TCS Ltd. owns all of the Aether Shares and
will, at Closing, own all of the Benelux Shares and the Iberian Shares.

    6.12

Financial Statements

  (a)

Attached hereto as Section 6.12 of the Disclosure Schedule is the November 30,
2006 Statement of Net Assets prepared by TCS and relating to the Business (the
"Financial Statement").

        (b)

Promptly after Closing, but in no event later than forty-five (45) days after
the Closing, Seller will deliver to Purchaser audited consolidated balance
sheets and consolidated statements of income, changes in stockholders' equity,
and cash flow (the "Fiscal Year End Statements") as of and for the fiscal years
ended December 31, 2005 and 2006 (the "Most Recent Fiscal Year End") for the
Business;

        (c)

Upon receipt, Seller shall use the Fiscal Year End Statements to prepare a
statement of net assets for the Business as of the Most Recent Fiscal Year End
(the “Closing Statement of Net Assets”). Stockgroup and TCS will reconcile the
Closing Statement of Net Assets to the Fiscal Year End Statements. For the
avoidance of doubt, the results of operations beginning January 1, 2007, shall
be for the benefit of the Purchasers; and

        (d)

Within thirty (30) days of Closing, or such other date as TCS and Stockgroup
mutually agree, TCS will deliver to Stockgroup a reconciliation of the cash
arising out of operation of the Acquired Assets to account for receipts and
disbursements occurring after December 31, 2006. This reconciliation will be
reconciled by Stockgroup and TCS to the Fiscal Year End Statements.

        (e)

The Fiscal Year End Statements (including the notes thereto) will be prepared in
accordance with GAAP applied on a consistent basis throughout the periods
covered thereby, present fairly the financial condition of the and the results
of

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operations of the Business for such periods, are correct and complete, and are
consistent with the books and records of the Sellers and the Acquired Entities
(which books and records are correct and complete).

6.13

Events Subsequent to Most Recent Fiscal Quarter End

     

Since November 30, 2006 and except for matters described in or contemplated by
this Agreement, there has not been any Material adverse change in the business,
financial condition, operations, results of operations, or future prospects of
the Business or any of the TCS Entities. Except as set out in Section 6.13 of
the Disclosure Schedule and without limiting the generality of the foregoing,
since the Most Recent Fiscal Quarter End:

      (a)

none of TCS Holdings or the Acquired Entities has sold, leased, transferred, or
assigned any of its assets, tangible or intangible, other than in the Ordinary
Course of Business;

      (b)

TCS has not sold, leased, transferred or assigned any of the assets used in the
operation of the Business, tangible or intangible, other than in the Ordinary
Course of Business;

      (c)

none of TCS Holdings or the Acquired Entities has entered into any new agreement
(or series of related agreements) either involving more than $5,000 or that was
outside the Ordinary Course of Business;

      (d)

TCS has not entered into any new agreement or series of related agreements with
respect to the Business either involving more than $5,000 or that was outside
the Ordinary Course of Business;

      (e)

no party (including any of the TCS Entities) has accelerated, terminated,
modified, or cancelled any agreement, contract, lease, or license (or series of
related agreements, contracts, leases, and licenses) involving more than $5,000
to which any of TCS Holdings and the Acquired Entities is a party or by which
any of them is bound other than the modification to the agreement with Imperial
Software Technology of which Stockgroup is already aware;

      (f)

no party (including any of the TCS Entities) has accelerated, terminated,
modified, or cancelled any agreement, contract, lease, or license (or series of
related agreements, contracts, leases, and licenses) pertaining to the Business,
involving more than $5,000 and to which TCS is a party or by which it is bound;

      (g)

no Security Interest has been imposed upon any of the Acquired Assets or the
Eight Black Agreement or the assets, tangible or intangible, of any of the
Acquired Entities;

      (h)

none of the Acquired Entities has made any capital expenditure (or series of
related capital expenditures) either involving more than $5,000 or outside the
Ordinary Course of Business;

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  (i)

none of the Acquired Entities has made any capital investment in, any loan to,
or any acquisition of the securities or assets of, any other Person (or series
of related capital investments, loans, and acquisitions) either involving more
than $5,000 or outside the Ordinary Course of Business;

        (j)

none of the Acquired Entities has issued any note, bond, or other debt security
or created, incurred, assumed, or guaranteed any indebtedness for borrowed money
or capitalized any lease obligation involving more than $5,000;

        (k)

none of the Acquired Entities has cancelled, compromised, waived, or released
any right or claim (or series of related rights and claims) either involving
more than $5,000 or outside the Ordinary Course of Business;

        (l)

none of the TCS Entities has granted any license or sublicense of any rights
under or with respect to any Intellectual Property that is either used in the
Business, constitutes an Acquired Asset or is an asset of any of the Acquired
Entities;

        (m)

there has been no change made or authorized in the charter or bylaws of any of
the Acquired Entities;

        (n)

none of the Acquired Entities has declared, set aside or paid any dividend or
made any distribution with respect to its capital stock (whether in cash or in
kind) or redeemed, purchased, or otherwise acquired any of its capital stock;

        (o)

none of the Acquired Entities has experienced any Material damage, destruction,
or loss (whether or not covered by insurance) to its property;

        (p)

none of the Acquired Entities has made any loan to, or entered into any other
transaction with, any of its directors, officers and employees outside the
Ordinary Course of Business;

        (q)

none of the Acquired Entities has entered into any employment contract or
collective bargaining agreement, written or oral, or modified the terms of any
existing such contract or agreement;

        (r)

none of the Acquired Entities has granted any increase in the base compensation
of any of its directors, officers, and employees outside the Ordinary Course of
Business;

        (s)

none of the Acquired Entities has adopted, amended, modified, or terminated any
bonus, profit sharing, incentive, severance, or other plan, contract, or
commitment for the benefit of any of its directors, officers, and employees (or
taken any such action with respect to any other Employee Benefit Plan);

        (t)

none of the Acquired Entities has made any other change in employment terms for
any of its directors, officers, and employees outside the Ordinary Course of
Business;

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  (u)

none of the Acquired Entities has made or pledged to make any charitable or
other capital contribution outside the Ordinary Course of Business;

        (v)

except as contemplated by the terms of this Agreement, there has not been any
other Material occurrence, event, incident, action, failure to act, or
transaction outside the Ordinary Course of Business involving any of the
Acquired Entities; and

        (w)

none of the Acquired Entities has committed to any of the foregoing.

Disclosure of any fact in respect of any subsection of this Section 6.13 in the
Disclosure Schedule shall be deemed to constitute disclosure of that fact with
respect to any other subsection of this Section 6.13, if a reasonable person
would find such disclosure relevant to such subsection.

    6.14

Undisclosed Liabilities

   

None of the Acquired Entities has any Liability (and to Sellers’ Knowledge there
is no Basis for any present or future action, suit, proceeding, hearing,
investigation, charge, complaint, claim, or demand against any of them giving
rise to any Liability), except for:

  (a)

Liabilities set forth on the face of the November 30, 2006 Statement of Net
Assets (rather than in any notes thereto);

        (b)

Liabilities which have arisen after November 30, 2006 in the Ordinary Course of
Business (none of which results from, arises out of, relates to, is in the
nature of, or was caused by any breach of contract, breach of warranty, tort,
infringement, or violation of law); and

        (c)

Liabilities set forth in Section 6.14 of the Disclosure Schedule.

6.15

Legal Compliance

      (a)

Since January 13, 2004, each of the Acquired Entities has complied in all
Material respects with all applicable laws (including rules, regulations, codes,
plans, injunctions, judgments, orders, decrees, rulings, and charges thereunder)
of federal, provincial, state, local, and foreign governments (and all agencies
thereof), and no action, suit, proceeding, hearing, investigation, charge,
complaint, claim, demand, or notice has been filed or commenced against any of
them alleging any failure so to comply.

      (b)

To Sellers’ Knowledge, prior to January 13, 2004, each of the Acquired Entities
and their respective predecessors complied in all Material respects with all
applicable laws (including rules, regulations, codes, plans, injunctions,
judgments, orders, decrees, rulings, and charges thereunder) of federal,
provincial, state, local, and foreign governments (and all agencies thereof),
and no action, suit, proceeding, hearing, investigation, charge, complaint,
claim, demand, or notice

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- 20 -

 

has been filed or commenced against any of them alleging any failure so to
comply.

        (c)

Each of the Sellers, to the extent that they have engaged in the conduct of the
Business or as a result of ownership of the Acquired Assets, has complied in all
Material respects with all applicable laws (including rules, regulations, codes,
plans, injunctions, judgments, orders, decrees, rulings, and charges thereunder)
of federal, provincial, state, local, and foreign governments (and all agencies
thereof), and no action, suit, proceeding, hearing, investigation, charge,
complaint, claim, demand, or notice has been filed or commenced against any of
them alleging any failure so to comply.

6.16

Tax Matters

       

Except as set out in Section 6.16 of the Disclosure Schedule:

        (a)

Each of the Acquired Entities has filed all Tax Returns that it was required to
file. All such Tax Returns were correct and complete in all Material respects.
All Taxes owed by any of the Acquired Entities (whether or not shown on any Tax
Return) have been paid. None of the Acquired Entities currently is the
beneficiary of any extension of time within which to file any Tax Return. Since
January 13, 2004 (and, to any of the TCS Entities Knowledge, prior to January
13, 2004), no claim has ever been made by an authority in a jurisdiction where
any of the Acquired Entities does not file Tax Returns that it is or may be
subject to taxation by that jurisdiction. There are no Security Interests on any
of the Acquired Assets that arose in connection with any failure (or alleged
failure) to pay any Tax.

        (b)

Each of the Acquired Entities has withheld and paid all Taxes required to have
been withheld and paid in connection with amounts paid or owing to any employee,
independent contractor, creditor, stockholder, or other third party.

        (c)

Each of TCS and TCS Holdings has withheld and paid all Taxes required to have
been withheld and paid in connection with amounts paid or owing to any employee,
independent contractor, creditor, stockholder, or other third party pertaining
to the Acquired Assets or otherwise pertaining to the Business.

        (d)

No officer (or employee responsible for Tax matters) of any of the Sellers
expects any authority to assess any additional Taxes in respect of the Business
or any of the Acquired Entities for any period for which Tax Returns have been
filed. There is no dispute or claim concerning any Tax Liability of any of the
Sellers in respect of the Acquired Assets or the Business or of any of the
Acquired Entities either:

        (i)

claimed or raised by any authority in writing; or

        (ii)

as to which any of the officers (and employees responsible for Tax matters) of
the Sellers has Knowledge based upon personal contact with

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- 21 -

any agent of such authority. Section 6.16 of the Disclosure Schedule lists all
federal, state, provincial, local, and foreign income Tax Returns filed with
respect to any of the Acquired Entities for taxable periods ended on or after
December 31, 2004, indicates those Tax Returns that have been audited, and
indicates those Tax Returns that currently are the subject of audit. The Sellers
have delivered to Stockgroup correct and complete copies of all Tax Returns,
examination reports, and statements of deficiencies assessed against or agreed
to by any of the Sellers since December 31, 2004.

  (e)

None of the TCS Entities has waived any statute of limitations in respect of
Taxes or agreed to any extension of time with respect to a Tax assessment or
deficiency.

          (f)

At the Closing, TCS will provide to Stockgroup the following information with
respect to each of the Acquired Entities, as applicable, as of the most recent
practicable date:

          (i)

the net assets of each of the Acquired Entities;

          (ii)

the investment of TCS Holdings in the TCS Ltd. Shares, the Benelux Shares and
the Iberian Shares;

         

the amount of

          (iii)

the non capital loss carry forward, investment tax credit, the undepreciated
capital cost and the pool of deductible research and development expenditures as
at December 31, 2005.

6.17

Real Property

        (a)

Except for its interest in the Leased Real Property, none of the Acquired
Entities owns any interest in any Real Property.

        (b)

Section 6.17 of the Disclosure Schedule sets forth the address of each parcel of
Leased Real Property, and a true and complete list of all Leases for each such
parcel of Leased Real Property (including the date and name of the parties to
such Lease). Sellers have delivered to Stockgroup a true and complete copy of
each such Lease document, and in the case of any oral Lease, a written summary
of the material terms of such Lease. Except as set forth in Section 6.17 of the
Disclosure Schedule, with respect to each of the Leases:

        (i)

such Lease is legal, valid, binding, enforceable and in full force and effect;

        (ii)

the transactions contemplated by this Agreement do not require the consent of
any other party to such Lease, will not result in a breach of or default under
such Lease, and will not otherwise cause such Lease to cease to be legal, valid,
binding, enforceable and in full force and effect on identical terms following
the Closing;

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  (iii)

possession and quiet enjoyment of the Leased Real Property under such Lease has
not been disturbed and there are no disputes with respect to such Lease;

        (iv)

none of the TCS Entities or, to the Sellers’ Knowledge, any other party to the
Lease is in Material breach or default under such Lease and to the Sellers’
Knowledge no event has occurred or circumstance exists which, with the delivery
of notice, the passage of time or both, would constitute such a breach or
default, or permit the termination, modification or acceleration of rent under
such Lease;

        (v)

no security deposit or portion thereof deposited with respect to such Lease has
been applied in respect of a breach or default under such Lease which has not
been redeposited in full;

        (vi)

none of the TCS Entities owe, or will based on the facts as they are at Closing
owe in the future, any brokerage commissions or finder's fees with respect to
such Lease;

        (vii)

the other party to such Lease is not an affiliate of, and otherwise does not
have any economic interest in, any of the TCS Entities;

        (viii)

none of the TCS Entities has subleased, licensed or otherwise granted any Person
the right to use or occupy such Leased Real Property or any portion thereof;

        (ix)

none of the TCS Entities has collaterally assigned or granted any other security
interest in such Lease or any interest therein; and

        (x)

there are no liens or encumbrances on the estate or interest created by such
Lease.

  (c)

The Leased Real Property identified in the Disclosure Schedule comprises all of
the Real Property used in the Business.

        (d)

There is no condemnation, expropriation or other proceeding in eminent domain,
pending or to Sellers’ Knowledge threatened, affecting any parcel of Leased Real
Property or any portion thereof or interest therein. To the Sellers’ Knowledge,
there is no injunction, decree, order, writ or judgment outstanding, nor any
claims, litigation, administrative actions or similar proceedings, pending or
threatened, relating to the lease, use or occupancy of the Leased Real Property
or any portion thereof, or the operation of the Sellers' businesses as currently
conducted thereon.

        (e)

To the Knowledge of the TCS Entities, the Leased Real Property is in compliance
in all Material respects with all applicable building, zoning, subdivision,
health and safety and other land use laws and all insurance requirements
affecting the Leased Real Property (collectively, the "Real Property Laws"), and
the current use and occupancy of the Leased Real Property and the operation of
the Business

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thereon does not violate any Real Property Laws in any Material respect. None of
the TCS Entities has received any notice of violation of any Real Property Law
and, to the Knowledge of the TCS Entities, there is no basis for the issuance of
any such notice or the taking of any action for such violation. The TCS Entities
have no Knowledge of any pending or anticipated change in any Real Property Law
that will have a Material Adverse Effect on the lease, use or occupancy of any
of the Leased Real Property or any portion thereof in the continued operation of
the Business as currently conducted thereon.

6.18

Intellectual Property

      (a)

Section 6.18(a) of the Disclosure Schedule contains a true and complete list of
any registrations (or applications for registration) for any trademarks,
servicemarks, copyrights or domain names included in the Intellectual Property
and the current status of the same. Except as set forth in Section 6.18(a) of
the Disclosure Schedule, all of the foregoing are and remain valid and
subsisting, with all fees, payments and filings due as of the Closing Date duly
made. All of the foregoing are, to Seller’s Knowledge, enforceable.

      (b)

Section 6.18(b) of the Disclosure Schedule includes a true and complete list of
all of Sellers’ and the Acquired Entities’ computer software programs, products
and services which are material to the uninterrupted or unimpeded operation of
the Business, included in the Intellectual Property, other than so called
“off-the-shelf” shrink-wrap computer software programs and Excluded Software.

      (c)

The Intellectual Property consists solely of items and rights which are: (i)
owned by TCS or the Acquired Entities; or (ii) used by Seller or the Acquired
Entities pursuant to a valid license, sublicense, consent or other similar
written Contract.

      (d)

Except as set forth in Section 6.18(d) of the Disclosure Schedule, Sellers or
the Acquired Entities own and possess the Intellectual Property free and clear
of any and all encumbrances.

      (e)

Except pursuant to Contracts set forth in Section 6.18(e) of the Disclosure
Schedule, neither Sellers nor the Acquired Entities owe any royalties or other
payments to third parties in respect of the Intellectual Property, and any
royalties or other payments that have accrued prior to the Closing have been
paid.

      (f)

Although Section 6.18 of the Disclosure Schedule is intended to be complete, to
the extent any intellectual property rights or assets of the Sellers related to
the Business are otherwise necessary for the ownership and operation of the
Business as currently conducted, but are not properly itemized or do not appear
on Section 6.18 of the Disclosure Schedule, then, unless this Agreement
otherwise provides directly for Purchasers to provide for or obtain such rights
or assets in a different way, the Sellers will deliver such further intellectual
property rights or assets that it owns as may be necessary for the continued
operation of the Business as operated by Sellers immediately prior to the
Closing.

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6.19

Sufficiency of Assets

     

Except as listed in Section 6.18(a) of the Disclosure Schedule, after the
Closing, the Purchasers will collectively own or lease, either directly through
the acquisition of the Acquired Assets and the Eight Black Agreement or
indirectly through the acquisition of the Acquired Entities, all tangible and
intangible assets necessary for the conduct of the Business as currently
conducted by the TCS Entities.

      6.20

Condition of Assets

     

To Sellers’ Knowledge, each tangible asset comprising the Acquired Assets or
owned by any of the Acquired Entities is free from Material defects (patent and
latent), has been maintained in accordance with normal industry practice, is in
good operating condition and repair (subject to normal wear and tear), and is
suitable for the purposes for which it presently is used.

      6.21

PermitsEach of the Acquired Entities possesses all governmental approvals and
permits necessary to conduct the Business as currently operated by the TCS
Entities. No such government approval or permit has been suspended or cancelled
nor is any such suspension or cancellation pending or, to Seller’s Knowledge,
threatened. Except for permits the loss of which is not reasonably expected to
have a Material Adverse Effect, none of these governmental authorizations or
permits will terminate by reason of this transaction. None of the Sellers and
the Acquired Entities is in conflict in any material respect with or in material
default or violation of any of these governmental authorization or permits.

      6.22

Contracts

     

Section 6.22 of the Disclosure Schedule lists the following contracts and other
agreements to which any of the Sellers and the Acquired Entities is a party (or
otherwise to which any of the Purchasers must be a party after Closing in order
to operate the Business as it is presently conducted):

      (a)

any agreement (or group of related agreements) for the lease of personal
property to or from any Person providing for lease payments in excess of $10,000
per annum;

      (b)

any agreement (or group of related agreements) for the purchase or sale of raw
materials, commodities, supplies, products, or other personal property, or for
the furnishing or receipt of services, the performance of which will extend over
a period of more than one year, result in a material loss to any of the Acquired
Entities, or involve consideration in excess of $10,000;

      (c)

any agreement concerning a partnership or joint venture;

      (d)

any agreement (or group of related agreements) under which any of the Acquired
Entities has created, incurred, assumed, or guaranteed any indebtedness for
borrowed money, or any capitalized lease obligation, in excess of $10,000 or

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under which any of the TCS Entities has imposed a Security Interest on any of
the Acquired Assets or the assets of any of the Acquired Entities, tangible or
intangible;

        (e)

any profit sharing, stock option, stock purchase, stock appreciation, deferred
compensation, severance, or other material plan or arrangement for the benefit
of any employees engaged in the conduct of the Business and any current or
former directors, officers, and employees of any of the Acquired Entities or to
which any of them is otherwise a party;

        (f)

any collective bargaining agreement;

        (g)

any agreement for the employment by any of the Acquired Entities of any
individual on a full-time, part-time, consulting, or other basis providing
annual compensation in excess of $10,000 or providing severance benefits;

        (h)

any agreement under which any of the Acquired Entities has advanced or loaned
any amount to any of its directors, officers, and employees outside the Ordinary
Course of Business; and

        (i)

any agreement under which the consequences of a default or termination could, in
the opinion of the officers and directors of the TCS Entities, have a Material
Adverse Effect on the Business or on the financial condition, operations,
results of operations, or future prospects of any of the Acquired Entities.

As of the Closing, the Sellers will have delivered to Stockgroup a correct and
complete copy of each written agreement listed in Section 6.22 of the Disclosure
Schedule (as amended to date) and a written summary setting forth the terms and
conditions of each Material oral agreement referred to in Section 6.22 of the
Disclosure Schedule. With respect to each agreement to which any of the Acquired
Entities is a party or that will be assumed by any of the Purchasers at the
Closing:

  (j)

the agreement is legal, valid, binding, enforceable, and in full force and
effect;

        (k)

to the Knowledge of the TCS Entities and subject to receipt of the required
consents to assignment of the agreements listed in Section 6.22of the Disclosure
Schedule, the agreement will continue to be legal, valid, binding, enforceable
and in full force and effect on identical terms following the consummation of
the transactions contemplated hereby;

        (l)

the TCS Entities are not and, to the Sellers’ Knowledge, no other party is in
breach or default, and no event has occurred which with notice or lapse of time
would constitute a breach or default, or permit termination, modification, or
acceleration, under the agreement;

        (m)

To Sellers’ Knowledge, none of the parties to any agreement intends to terminate
or alter the provisions thereof by reason of the transactions contemplated
hereby; and

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  (n)

the TCS Entities have not and, to the Sellers’ Knowledge, no other party has
repudiated any provision of the agreement.

6.23

Notes and Accounts Receivable

      (a)

All notes and accounts receivable of the Acquired Entities, and all notes and
accounts receivable of the Sellers pertaining to the Business, the Acquired
Assets or the Eight Black Agreement are reflected properly on their respective
books and records, are valid receivables subject to no setoffs or counterclaims,
are current and collectible subject only to the reserve for doubtful accounts
set forth in the November 30, 2006 Statement of Net Assets (including any notes
thereto) as adjusted for the passage of time through the Closing Date.

      (b)

All Accounts Receivable are valid obligations arising from transactions actually
made or services actually performed in the Ordinary Course of Business. Unless
paid prior to the Closing Date, the Accounts Receivable are or will as of the
Closing Date be good and collectible. Neither the Sellers nor any of the
Acquired Entities has received written notice of, nor to Sellers' Knowledge is
there any contest, claim, defence or right of set-off related to any Accounts
Receivable other than returns in the Ordinary Course of Business. Except for the
Accounts Receivable, none of the Acquired Entities have extended any credit to
any Person.

      6.24

Insurance

     

During the period of time that Sellers and their Affiliates have owned and
operated the Business, the Business has been insured by way of adding the
Acquired Entities as additional named insureds on one or more insurance policies
maintained by TCS. There are no current claims with respect to the Business
under any of these insurance policies.

      6.25

Litigation

     

None of the TCS Entities:

      (a)

is subject to any outstanding injunction, judgment, order, decree, ruling, or
charge that affects the Business, the Acquired Assets, the Acquired Entities or
the Eight Black Agreement; or

      (b)

is a party or, to the Sellers’ Knowledge, is threatened to be made a party to
any action, suit, proceeding, hearing, or investigation of, in, or before any
court or quasi-judicial or administrative agency of any federal, provincial,
local, or foreign jurisdiction or before any arbitrator.

      6.26

Product Liability

     

None of the Sellers has any Liability (and to the Sellers' Knowledge there is no
Basis for any present or future action, suit, proceeding, hearing,
investigation, charge, complaint, claim, or demand against any of them giving
rise to any Liability) arising out of any

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- 27 -

injury to individuals or property since January 13, 2004 as a result of the
ownership, possession, or use of any product manufactured, sold, leased, or
delivered by any of the Acquired Entities or in respect of the Acquired Assets.

      6.27

Employees

     

To the Sellers’ Knowledge, no current employee of any of the Acquired Entities,
and no person that was employed by any of the Acquired Entities within the 120
day period ending on the Closing Date, has filed any grievance, claim of unfair
labour practices or otherwise made any Claim arising out of employment against
any of the TCS Entities.

      6.28

Employee Benefits

      (a)

Since November 30, 2006, none of the Acquired Entities has agreed to pay any
bonus or increase the income of any of its employees.

      (b)

Except as listed in Section 6.28 of the Disclosure Schedule, none of the TCS
Entities maintains, contributes to or has an obligation to contribute to, or has
any material Liability or potential Liability with respect to, any Employee
Welfare Benefit Plan providing medical, health, or life insurance or other
welfare-type benefits for current or future retired or terminated directors,
officers or employees of any of the Acquired Entities (or any spouse or other
dependent thereof).

      6.29

Guaranties

     

None of the Acquired Entities is a guarantor or otherwise is liable for any
Liability or obligation (including indebtedness) of any other Person except for
the obligations of TCS Ltd. pursuant to the Iberian Note and the Benelux Note.

      6.30

Environmental, Health, and Safety Matters

     

To Seller’s Knowledge, the Business is in compliance with the applicable
Environmental Health and Safety Requirements, except for such non-compliance is
reasonably expected not have a Material Adverse Effect. Neither Seller nor the
Acquired Entities have received any written notice, report or other information
regarding any actual or alleged violation of the Environmental Health and Safety
Requirements, and any Liabilities or potential Liabilities, including any
investigatory, remedial or corrective obligations, relating to the Business or
its facilities arising under the Environmental Health and Safety Requirements,
the subject of which is reasonably expected to have a Material Adverse Effect.

      6.31

Securities Representations

      (a)

TCS is an “Accredited Investor” in both Canada (as that term is defined in
National Instrument 45-106, as adopted by the British Columbia Securities
Commission) and the United States (as defined in Rule 501 of Regulation D,
promulgated under the Securities Act);

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  (b)

TCS is acquiring the Securities as principal for its own account, for investment
purposes only, and not with a view to, or for, resale, distribution or
fractionalisation thereof, in whole or in part, and no other person has a direct
or indirect beneficial interest in such Securities;

        (c)

TCS is aware that an investment in Stockgroup is speculative and involves
certain risks, including the possible loss of the entire investment and it has
carefully read and considered the matters set forth under the heading “Risk
Factors” appearing in the Company’s Form 10-KSB and any other filings filed with
the Securities and Exchange Commission;

        (d)

TCS is not an underwriter of, or dealer in, the common shares of Stockgroup, nor
is TCS participating, pursuant to a contractual agreement or otherwise, in the
distribution of the Purchaser Shares;

        (e)

TCS understands and agrees that none of the Purchaser Shares have been or will
be registered under the Securities Act, or under any state securities or “blue
sky” laws of any state of the United States, and, unless so registered, may not
be offered or sold in the United States or, directly or indirectly, to U.S.
Persons, as that term is defined in Regulation S promulgated under the
Securities Act, except pursuant to an effective registration statement under the
Securities Act or pursuant to an exemption from, or in a transaction not subject
to, the registration requirements of the Securities Act and in each case only in
accordance with applicable state securities laws; and

        (f)

TCS is not acquiring the Purchaser Shares as a result of any form of general
solicitation or general advertising including advertisements, articles, notices
or other communications published in any newspaper, magazine or similar media or
broadcast over radio, or television, or any seminar or meeting whose attendees
have been invited by general solicitation or general advertising.

7.

REPRESENTATIONS AND WARRANTIES OF STOCKGROUP

   

The Purchasers jointly and severally represent and warrant to each of the
Sellers that the statements contained in this Article 7 are correct and complete
as of the date of this Agreement and will be correct and complete as of the
Closing Date (as though made then and as though the Closing Date were
substituted for the date of this Agreement throughout this Article 7), except as
set forth in the Disclosure Schedule. The Disclosure Schedule will be arranged
in paragraphs corresponding to the lettered and numbered paragraphs contained in
this Article 7.

    7.1

Organization of Stockgroup

   

Each of the Purchasers is a corporation duly incorporated, organized, validly
existing, and in good standing under the laws of the jurisdiction of its
incorporation.

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7.2

Authorization of Transaction

     

Each of the Purchasers has all necessary power and authority (including all
necessary corporate power and authority) to execute and deliver this Agreement
and to perform its respective obligations hereunder. This Agreement constitutes
the valid and legally binding obligation of each of the Purchasers, enforceable
in accordance with its terms and conditions. Without limiting the generality of
the foregoing, the Board of Directors of each of the Purchasers has duly
authorized the execution, delivery and performance of this Agreement by the
respective Purchasers.

      7.3

Noncontravention

     

Neither the execution and the delivery of this Agreement, nor the consummation
of the transactions contemplated hereby will:

      (a)

violate any constitution, statute, regulation, rule, injunction, judgment,
order, decree, ruling, charge, or other restriction of any government,
governmental agency, or court to which any of the Purchasers is subject or any
provision of its charter or bylaws; or

      (b)

conflict with, result in a breach of, constitute a default under, result in the
acceleration of, create in any party the right to accelerate, terminate, modify,
or cancel, or require any notice under any agreement, contract, lease, license,
instrument, or other arrangement to which that Purchaser is a party or by which
it is bound or to which any of its assets is subject (or result in the
imposition of any Security Interest upon any of its assets). Except as
contemplated in this Agreement or as otherwise required pursuant to Applicable
Law or the policies of the TSX-V, none of the Purchasers need to give any notice
to, make any filing with, or obtain any authorization, consent, or approval of
any government or governmental agency in order for the Parties to consummate the
transactions contemplated by this Agreement.

      7.4

Brokers' Fees

     

None of the Purchasers has any Liability or obligation to pay any fees or
commissions to any broker, finder, or agent with respect to the transactions
contemplated by this Agreement.

      7.5

Corporate

     

Stockgroup is a corporation duly incorporated, validly existing, and in good
standing under the laws of the State of Colorado. Stockgroup Systems is a
corporation duly incorporated, validly existing, and in good standing under the
laws of the State of Nevada. Stockgroup Media is a corporation duly
incorporated, validly existing, and in good standing under the laws of the
Province of British Columbia. Each of the Purchasers is duly authorized to
conduct business and is in good standing under the laws of each jurisdiction
where such qualification is required.

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7.6

Claims and Proceedings

   

There is no outstanding order of any governmental authority against or involving
any of the Purchasers that could defeat, defer or negatively impact the
consummation of the transactions contemplated by this Agreement, and (ii) there
is no Claim pending, or, to the knowledge of Purchasers, threatened against
Purchasers, involving this Agreement or the transactions contemplated hereby.

    7.7

Securities Act

   

The TCS Ltd. Shares are being acquired by Stockgroup for investment only and not
with a view to any public distribution thereof, and Stockgroup shall not offer
to sell or otherwise dispose of the TCS Ltd. Shares so acquired by it in
violation of Applicable Law.

    7.8

Availability of Funds

   

Purchasers have sufficient cash available to enable them to consummate the
transactions contemplated by this Agreement and consistent with the provisions
of this Agreement and to satisfy the Assumed Liabilities as they become due in
the ordinary course of the Business.

    7.9

No Other Representations

   

Purchasers acknowledge that Sellers makes no representation or warranty with
respect to any projections, estimates or budgets delivered to or made available
to Purchasers of future revenues, future results of operations (or any component
thereof), future cash flows or future financial condition (or any component
thereof) of the Business, the Acquired Entities or the Acquired Assets or the
future business and future operations thereof or any other information or
documents made available to Purchaser or its counsel, accountants or advisors
with respect to the Business, the Acquired Entities or the Acquired Assets or
the businesses or operations thereof.

    8.

PRE-CLOSING COVENANTS

The Parties agree as follows with respect to the period between the execution of
this Agreement and the Closing.

8.1

General

   

Each of the Parties will use commercially reasonable efforts to take all action
and to do all things necessary in order to consummate and make effective the
transactions contemplated by this Agreement (including satisfaction, but not
waiver, of the closing conditions set forth in Article 9 below). Promptly
following execution of this Agreement, each Party shall, assisted by the other
Parties as necessary, commence the process of applying for and obtaining all
regulatory approvals to the transactions contemplated by this Agreement, and
shall diligently prosecute the same to completion. Notices and Consents

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The Sellers will give any notices to third parties, and they will use
commercially reasonable efforts to obtain any third party consents that the
Purchasers reasonably may request in connection with the transactions
contemplated in this Agreement or that are otherwise necessary to the
consummation thereof.

      8.2

Operation of Business

     

The Sellers will not, and they will act to ensure that the Acquired Entities
will not, engage in any practice, take any action, or enter into any transaction
outside the Ordinary Course of Business between the date of this Agreement and
the Closing. Without limiting the generality of the foregoing and except as
expressly required by the terms of this Agreement, none of the Acquired Entities
will, without Stockgroup’s prior written consent which Stockgroup will not
unreasonably withhold:

      (a)

issue any capital stock;

      (b)

declare, set aside, or pay any dividend or make any distribution with respect to
its capital stock or redeem, purchase, or otherwise acquire any of its capital
stock;

      (c)

make or accept any loans, or accept any advances on any existing loans, nor will
they or any of them grant any Security Interest in any of their assets without
Stockgroup's prior written consent in each instance, which consent Stockgroup
may grant or withhold at its sole discretion; or

      (d)

otherwise engage in any practice, take any action, or enter into any transaction
of the sort described in Section 6.13 above.

      8.3

Preservation of Business

     

The Sellers will keep the Business, the Acquired Assets and the Acquired
Entities substantially intact, including the present operations, physical
facilities, working conditions, and relationships with lessors, licensors,
suppliers, customers, and employees.

      8.4

Full Access

     

The TCS Entities will permit representatives of Stockgroup to have full access
during normal business hours to all premises, properties, personnel, books,
records (including Tax records), contracts, and documents of or pertaining to
each of the Acquired Entities, the Acquired Assets, the Eight Black Agreement or
the Business.

      8.5

Notice of Developments

     

Each Party will give prompt written notice to the other Party of any material
adverse development causing a breach of any of its own representations and
warranties made in this Agreement. No disclosure by any Party pursuant to this
Section 8.5, however, shall be deemed to amend or supplement the Disclosure
Schedule or to prevent or cure any misrepresentation, breach of warranty, or
breach of covenant.

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8.6

Exclusivity

     

The Sellers will not:

      (a)

solicit, initiate, or encourage the submission of any proposal or offer from any
Person relating to the acquisition of the Business, the capital stock or other
voting securities of the Acquired Entities, the Acquired Assets or any
substantial portion of the assets of the Acquired Entities (including any
acquisition structured as a merger, consolidation, or share exchange); or

      (b)

participate in any discussions or negotiations regarding, furnish any
information with respect to, assist or participate in, or facilitate in any
other manner any effort or attempt by any Person to do or seek any of the
foregoing. The Sellers will notify Stockgroup immediately if any Person makes
any proposal, offer, inquiry, or contact with respect to any of the foregoing.

      8.7

Leases

     

None of the TCS Entities shall amend, modify, extend, renew or terminate any
lease pertaining to the Business, nor shall any of the Acquired Entities enter
into any new lease, sublease, license or other agreement for the use or
occupancy of any real property, without the prior written consent of Stockgroup.

      8.8

Resale Restrictions

     

TCS acknowledges that any resale of the Purchaser Shares will be subject to
resale restrictions contained in the securities legislation applicable to it or
any proposed transferee. TCS acknowledges that the Purchaser Shares have not
been registered under the Securities Act or the securities laws of any state of
the United States or any Province of Canada. The Securities may not be offered
or sold in the United States or any Province of Canada unless registered in
accordance with Applicable Law, including the federal, state and provincial
securities laws of the United States and Canada.

      8.9

Legending of Purchaser Shares

TCS hereby acknowledges that that upon the issuance thereof, and until such time
as the same is no longer required under the applicable securities laws and
regulations, the certificates representing any of the Purchaser Shares will bear
a U.S. securities law legend in substantially the following form:

“THESE SECURITIES WERE ISSUED PURSUANT TO AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933
ACT”). ACCORDINGLY, NONE OF THE SECURITIES TO WHICH THIS CERTIFICATE RELATES
HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS AND,
UNLESS SO REGISTERED, NONE MAY BE OFFERED OR SOLD IN THE UNITED STATES (AS
DEFINED HEREIN) OR, DIRECTLY OR INDIRECTLY, TO U.S. PERSONS (AS DEFINED HEREIN)
EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR PURSUANT TO AN
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE

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1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES
LAWS.

and a Canadian securities law legend in substantially the following form:

“UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST
NOT TRADE THE SECURITY BEFORE [INSERT THE DATE THAT IS 4 MONTHS AND A DAY AFTER
THE DISTRIBUTION DATE].”

TCS hereby acknowledges and agrees that Stockgroup may make a notation on its
records or give instructions to its registrar and transfer agent in order to
implement the restrictions on transfer set forth and described in this
Agreement.

8.10

Cash of Acquired Entities At Closing

     

TCS shall, immediately prior to Closing, cause each of the Acquired Entities to
pay to it cash in an amount equal to the cash balance shown for each of them at
December 31, 2006, on the Closing Statement of Net Assets. At Stockgroup's
election, Stockgroup may elect to purchase all or any portion of this cash by
written notice to TCS not less than 48 hours prior to Closing, in which event
each of the Acquired Entities will retain the purchased cash in their respective
bank accounts and at the Closing Stockgroup shall pay to TCS an amount equal to
the purchased cash and TCS will cause the Acquired Entities to remit to it only
an amount equal to the cash that was not purchased.

      9.

CONDITIONS TO OBLIGATION TO CLOSE

      9.1

Conditions to Obligation of Stockgroup

     

The obligation of Stockgroup to consummate the transactions contemplated in this
Agreement, and to perform the obligations to be performed by it at or in
connection with the Closing, is subject to satisfaction of the following
conditions:

      (a)

the representations and warranties set forth in Article 6 above shall be true
and correct in all material respects at and as of the Closing Date and
Stockgroup shall have received a certificate confirming the foregoing, signed
for and on behalf of each of the Sellers and the Acquired Entities by senior
officers or directors of the Sellers, in form and substance satisfactory to
Stockgroup and its counsel;

      (b)

the Sellers shall have performed and complied with all of their covenants
hereunder in all material respects through the Closing and Stockgroup shall have
received a certificate confirming the foregoing, signed for and on behalf of
each of the Sellers by senior officers or directors of the Sellers, in form and
substance satisfactory to Stockgroup and its counsel acting reasonably;

      (c)

the Parties shall have received all necessary authorizations, consents and
approvals Material to the completion of the transactions contemplated by this
Agreement including, by way of example and not in limitation, the approval, if
required, of the TSX-V;

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  (d)

no action, suit, or proceeding shall be pending or threatened before any court
or quasi-judicial or administrative agency of any federal, provincial, local, or
foreign jurisdiction or before any arbitrator wherein an unfavourable
injunction, judgment, order, decree, ruling, or charge would:

          (i)

prevent consummation of any of the transactions contemplated by this Agreement;

          (ii)

cause any of the transactions contemplated by this Agreement to be rescinded
following consummation;

          (iii)

affect adversely the right of Stockgroup to own the Acquired Entities, the right
of Stockgroup Systems to own the Acquired Assets, the right of Stockgroup Media
to own the Eight Black Agreement and the right of the Purchasers in general to
operate the Business; or

          (iv)

affect adversely the right of any of the Acquired Entities to own its assets and
to operate its businesses (and no such injunction, judgment, order, decree,
ruling, or charge shall be in effect);

          (e)

the Acquired Entities shall have received the resignations, effective at the
Closing, of each director and officer of any of them, free of any claim for
severance, notice, wrongful dismissal and similar matters;

          (f)

the Sellers shall have obtained and delivered the Lease Consents to Stockgroup
Systems;

          (g)

no damage or destruction or other change has occurred with respect to any of the
Acquired Entities, the Acquired Assets or the Eight Black Agreement that,
individually or in the aggregate, would have a Material Adverse Effect on the
value thereof or the operation of the Business as currently conducted.

Stockgroup may waive any condition specified in this Section 9.1 if it executes
a writing so stating at or prior to the Closing.

9.2

Conditions to Obligation of the Sellers

     

The obligation of the Sellers to consummate the transactions to be performed by
them in connection with the Closing is subject to satisfaction of the following
conditions:

      (a)

the representations and warranties set forth in Article 7 above shall be true
and correct in all material respects at and as of the Closing Date and the
Sellers shall have received a certificate confirming the foregoing, signed for
and on behalf of Stockgroup by its President, in form and substance satisfactory
to TCS and its counsel acting reasonably;

      (b)

the Purchasers shall have performed and complied with all of their covenants
hereunder in all material respects through the Closing and TCS shall have

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received a certificate confirming the foregoing, signed for and on behalf of the
Purchasers by the President of Stockgroup, in form and substance satisfactory to
the Sellers and their counsel acting reasonably;

          (c)

no action, suit, or proceeding shall be pending or threatened before any court
or quasi-judicial or administrative agency of any federal, state, local, or
foreign jurisdiction or before any arbitrator wherein an unfavourable
injunction, judgment, order, decree, ruling, or charge would:

          (i)

prevent consummation of any of the transactions contemplated by this Agreement;
or

          (ii)

cause any of the transactions contemplated by this Agreement to be rescinded
following consummation (and no such injunction, judgment, order, decree, ruling,
or charge shall be in effect);

          (d)

the Parties shall have received all necessary authorizations, consents, and
approvals to the transactions contemplated in this Agreement including, by way
of example and not in limitation, the approval, if required, of the TSX-V; and

TCS may waive any condition specified in this Section 9.2 if it executes a
writing so stating at or prior to the Closing.

    10.

SURVIVAL OF REPRESENTATIONS; INDEMNIFICATION

    10.1

Survival; Right to Indemnification

   

All of the representations, warranties, covenants, agreements and Closing
certifications made by each of Sellers and Purchasers shall survive the
execution and delivery of this Agreement and the Closing hereunder for a period
of twelve (12) months following the Closing Date, except that (a) the
representations and warranties contained in Sections 6.1, Section 6.2, Section
6.3, Section 6.4, Sections 6.5 through Section 6.10, Section 6.11 and Sections
7.1 through 7.4, shall survive the Closing without time limit, (b) the
representations and warranties contained in Section 6.16, Section 6.30, and
Section 6.15 and Claims arising under Section 11 shall expire on the date that
is sixty (60) days after the last day of the shortest applicable federal or
state statute of limitations or if there is no applicable statue of limitations,
without time limit, (c) Claims related to fraud shall survive without time
limit, (d) Claims related to Section 10.2(c), (d) or (e) or Section 10.3(c) or
(d) shall survive without time limit, and (e) Claims with respect to covenants
to be performed post-Closing shall survive for a period of twelve (12) months
following the last date such applicable covenant required performance. Following
the Closing, the exclusive remedy pursuant to this Agreement and the
transactions contemplated hereby based upon the survival of such
representations, warranties, covenants, agreements and Closing certifications
will be the rights to indemnification, payment of Losses and other remedies
provided by this Section 9 and Section 10, except for Claims related to fraud.
There shall be no termination of any representations, warranties, covenants,
agreements and Closing certifications as to which a Claim has been asserted
prior to the termination of such survival period.

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10.2

Sellers’ Indemnity

     

Sellers shall jointly and severally indemnify, defend and hold the Purchaser
Indemnitees harmless from and against any Losses, subject to the limitations and
provisions of this Section 10, asserted against, imposed upon, resulting to,
required to be paid by, or incurred by any Purchaser Indemnities, directly or
indirectly, in connection with, arising out of, or which would not have occurred
but for:

      (a)

the breach of any representation or warranty made by Sellers in Section 6 of
this Agreement (other than Section 6.16, which shall be covered by Section 11 of
this Agreement), or in any certificate, document or agreement furnished pursuant
hereto by Sellers or either of them;

      (b)

any breach or nonfulfillment of any covenant or agreement of Sellers or either
of them under this Agreement (other than Section 11.2, which shall be covered by
Section 11.1) or under any certificate, document or agreement furnished pursuant
hereto by Sellers or either of them;

      (c)

any Liability, including any Sellers’ failure to satisfy any of its obligations
relating thereto, other than an Assumed Liability;

      (d)

Sellers’, an Acquired Entity’s or their respective Affiliates’ ownership,
operation or use of the Acquired Assets, the TCS Ltd. Shares, the Benelux
Shares, the Iberian Shares, the Aether Shares, the Business except to the extent
such Losses are an Assumed Liability or relate to or result from, directly or
indirectly, a breach of any representation or warranty of any of the Sellers
made in this Agreement;

      (e)

Seller’s failure to comply with any bulk sales, bulk transfer or fraudulent
transfer laws that may be applicable to this Agreement or the transactions
contemplated hereby.

      10.3

Purchasers’ Indemnity

     

Purchaser shall indemnify, defend and hold Seller Indemnitees harmless from and
against any Losses, subject to the limitations and provisions of this Section 10
asserted against, imposed upon, resulting to, required to be paid by, or
incurred by any Seller Indemnitees, directly or indirectly, in connection with,
arising out of, or which would not have occurred but for:

      (a)

the breach of any representation or warranty made by any of the Purchasers in
this Agreement or in any certificate, document or agreement furnished pursuant
hereto by a Purchaser;

      (b)

any breach or nonfulfillment by any of the Purchasers of any of their covenants
or agreements under this Agreement (other than Section 11.2, which shall be
covered by Section 11.1) or under any certificate, document or agreement
furnished pursuant hereto by any of the Purchasers;

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  (c)

the Assumed Liabilities, including Purchasers’ (and, after the Closing, an
Acquired Entity’s) failure to satisfy any of its obligations relating thereto,
except to the extent such Losses relate to or result from, directly or
indirectly, a breach of any representation or warranty of either of the Sellers
in this Agreement; and

        (d)

the ownership, operation or use of the Acquired Assets, the Acquired Entities,
the TCS Ltd. Shares, the Iberian Shares, the Benelux Shares, the Aether Shares
and the Business after the Closing by any of the Purchasers (and after the
Closing, an Acquired Entity) except for any of such matters for which any of the
Sellers are otherwise liable under this Agreement.

10.4

Procedure for Indemnification – Third Party Claims.

      (a)

Promptly after receipt by any Party entitled to indemnity hereunder of the
commencement of any Claim against such Party (the “Indemnified Party”), such
Indemnified Party will, if a Claim is to be made against an indemnifying party
under this Section 10, give notice to the party obligated to provide
indemnification pursuant to this Section 10 (the “Indemnifying Party”) of the
commencement of such Claim, specifying the factual basis of the Claim and the
amount thereof in reasonable detail to the extent then known by such Indemnified
Party, but the failure to notify the Indemnifying Party will not relieve the
Indemnifying Party of any Liability that it may have to any Indemnified Party,
except to the extent that the Indemnifying Party is actually prejudiced by the
Indemnified Party’s failure to give such notice.

      (b)

If any third party Claim referred to in Section 10.4(a) is brought against an
Indemnified Party, the Indemnified Party shall give notice to the Indemnifying
Party of the commencement of such third party Claim within ten (10) Business
Days after receipt by such Indemnified Party of notice of the third party Claim.
The Indemnified Party shall deliver to the Indemnifying Party, within five (5)
Business Days’ after receipt thereof, copies of all notices and documents
(including court papers) received by the Indemnified Party relating to the Third
Party Claim. Thereafter, the Indemnifying Party will be entitled, if it so
elects by written notice to the Indemnified Party within ten (10) days of
receiving the Indemnified Party’s notice of the Claim, to assume the defense
thereof with counsel reasonably acceptable to the Indemnified Party.
Notwithstanding the foregoing, (i) the Indemnified Party shall also have the
right to employ its own counsel in any such case, but the fees and expenses of
such counsel shall be at the expense of the Indemnified Party unless the
Indemnified Party shall reasonably determine that there is a conflict of
interest between the Indemnifying Party and the Indemnified Party with respect
to such third party Claim or there are or may be legal defenses available to the
Indemnified Party which are different from or in addition to those available to
the Indemnifying Party or a difference of position or potential difference of
position exists between the Indemnifying Party and the Indemnified Party that
would make such separate representation advisable in the reasonable opinion of
counsel to the Indemnified Party, in which case the reasonable fees and expenses
of such counsel will be borne by the Indemnifying

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Party unless such representation is advisable solely as the result of activities
of the Indemnified Party since the Closing for which no indemnity has been given
by the Indemnifying Party, and (ii) the Indemnified Party shall not have any
obligation to give any notice of any assertion of liability by a third party
unless such assertion is in writing. With respect to any assertion of liability
by a third party that results in a third party Claim, the parties hereto shall
make available to each other all relevant information in their possession that
is material to any such assertion.

        (c)

If the Indemnifying Party assumes the defense of a third party Claim, (i) no
compromise or settlement of such third party Claim may be effected by the
Indemnifying Party without the Indemnified Party’s consent unless (A) there is
no finding or admission of any violation by any Indemnified Party of any
Applicable Law or any violation by any Indemnified Person of the rights of any
Person, and (B) the sole relief provided is monetary damages that are paid in
full by the Indemnifying Party; (ii) the Indemnifying Party will have no
Liability with respect to any compromise or settlement of such third party Claim
effected without the Indemnifying Party’s consent (which shall not be
unreasonably withheld or delayed); and (iii) the Indemnified Party will
cooperate, at the expense of the Indemnifying Party, as the Indemnifying Party
may reasonably request in investigating, defending and subject to clause (i)
settling such third party Claim. If the Indemnifying Party elects not to defend
a third party Claim, is not permitted to defend such third party Claim for a
reason addressed in this Section 10.4 or fails to notify the Indemnified Party
of its election as herein provided, the Indemnified Party may pay, compromise,
settle or defend such third party Claim at the sole cost and expense of the
Indemnifying Party if the Indemnifying Party is determined to be liable to the
Indemnified Party hereunder. In any event, the Indemnified Party and the
Indemnifying Party may participate, at their own expense, in the defense of any
third party Claim.

10.5

Procedure for Indemnification – Other Claims

   

A Claim for indemnification for any matter not involving a third party Claim may
be asserted by notice from the Indemnified Party to the Indemnifying Party. Such
notice shall specify the factual basis of such Claim and the amount thereof in
reasonable detail to the extent then known by the Indemnified Party.

    10.6

Time Limitations; Indemnification by Securityholders

   

If the Closing occurs, the Indemnifying Party shall have no Liability pursuant
to Section 10.2 or Section 10.3 or of this Agreement unless an Indemnified Party
gives notice to the Indemnifying Party of an actual Claim under Section 10.2 or
Section 10.3 within the applicable timeframe, if any, specified in Section 10.1,
which notice shall specify the factual basis of that Claim in reasonable detail
to the extent then known by such Indemnified Party.

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10.7

Monetary Limitations

   

Subject to the following sentence, the aggregate amount of each of Seller’s
liability for Losses under Section 9.2(a) and Purchaser’s and TCS’s aggregate
liability for Losses under Section 9.2(b) shall be limited in each case to one
million five hundred thousand dollars ($1,500,000). The limitations set forth in
this Section 10.7 will not apply to any Claims for indemnification in connection
with, arising out of, or which would not have occurred but for fraud or
covenants to be performed in whole or in part, post-Closing.

    10.8

Losses Net of Insurance; Taxes

   

The amount of any Losses for which indemnification is provided under this
Section 10 or Section 11.1 shall be net of (i) any amounts recovered by the
Indemnified Party or any of its Affiliates pursuant to any indemnification by or
indemnification agreement with any third party, (ii) any insurance proceeds or
other cash receipts or sources of reimbursement received from the Indemnified
Party or any of its Affiliates as an offset against such Losses (each source
named in clauses (i) and (ii), a “Collateral Source”), and (iii) an amount equal
to the present value of the net Tax benefit or net Tax cost, if any, available
to or taken by the Indemnified Party or any of its Affiliates attributable to
such Loss. The parties acknowledge and agree that no right of subrogation shall
accrue or inure to the benefit of any Collateral Source hereunder. The
Indemnifying Party may require an Indemnified Party to assign the rights to seek
recovery pursuant to the preceding sentence; provided, that the Indemnifying
Party will then be responsible for pursuing such recovery at its own expense. If
the amount to be netted under this Section 10.8 from any payment required under
Section 10 is determined after payment by the Indemnifying Party of any amount
otherwise required to be paid to an Indemnified Party pursuant to this Section
10, the Indemnified Party shall repay to the Indemnifying Party, promptly after
such determination, any amount that the Indemnifying Party would not have had to
pay pursuant to this Section 10 had such determination been made at the time of
such payment.

    10.9

Purchase Price Adjustment

   

All indemnification payments under this Section 10 shall be deemed adjustments
to the Purchase Price for federal Tax purposes unless otherwise required by a
determination made by a Governmental Authority.

    10.10

No Double Recovery

   

Notwithstanding the fact that any Party may have the right to assert Claims for
indemnification under or in respect of more than one provision of this Agreement
or another agreement entered into in connection herewith in respect of any fact,
event, condition or circumstance, no Party shall be entitled to recover the
amount of any Losses suffered by such Party more than once under all such
agreements in respect of such fact, event, condition or circumstance, and an
Indemnifying Party shall not be liable for indemnification to the extent the
Indemnified Party has otherwise been fully compensated on a dollar for dollar
basis for such Losses.

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11.

TAX LIABILITY

      11.1

Liability for Taxes.

      (a)

Purchasers shall be jointly and severally liable for, and shall indemnify Seller
Indemnitees against, all Taxes arising or resulting from (i) the conduct of the
Business by any of Purchasers or the Acquired Entities or the ownership of the
Acquired Assets for taxable periods or portions thereof beginning after the
Closing Date or (ii) any transaction relating to the Business or the Acquired
Assets that Purchasers or any of its Affiliates causes to occur on or after the
Closing Date and the assumption of the Assumed Liabilities by Purchaser pursuant
to this Agreement.

      (b)

Sellers shall be jointly and severally liable for and they agree to indemnify,
defend and hold Purchaser Indemnities harmless from (i) any Tax imposed on an
Acquired Entity if and to the extent that such Tax arises in respect of a
taxable period ended on or before the Closing (a “Tax Indemnity Period”), (ii)
any Tax that constitutes a lien or Encumbrance on the Acquired Assets if and to
the extent that such Tax arises in respect of a Tax Indemnity Period, (iii) any
Tax or other Losses resulting from the inaccuracy or breach of any
representation or warranty set forth in Section 6.16 or the breach of any
covenants set forth in Section 11.2, and (iv) any costs and expenses (including,
without limitation, reasonable expenses of investigation and attorneys’ fees and
expenses) arising out of the imposition or assessment of any Tax, Losses or
other costs described in clause (i), (ii) or (iii) (“Other Costs”), and the
filing of any Returns for a taxable period ending on or before the Closing Date,
including those incurred in the contest of good faith of any such imposition,
assessment or assertion. Any Tax imposed as a result of the sale of the Business
and the Purchased Assets to Purchaser and the assumption of the Assumed
Liabilities by Purchaser pursuant to this Agreement shall be deemed to arise in
respect of a Tax Indemnity Period.

      (c)

For purposes of subsections (a) and (b) of this Section 11.1, whenever it is
necessary to determine the Liability for Taxes for a Straddle Period, such Taxes
shall be apportioned between Sellers and Purchasers (A) in the case of Taxes
other than income, sales and use and withholding taxes, on a per diem basis and
(B) in the case of income, sales and use and withholding taxes, as determined as
though the Straddle Period consisted of two taxable years or periods, one which
ended on the Closing Date and the other which began at the beginning of the day
following the Closing Date.

      (d)

Purchasers shall pay to Sellers the amounts received by Purchasers or any of
Purchasers’ Affiliates of any refund, abatement or credit of (A) Taxes which are
attributable to the conduct of the Business or the ownership of the Acquired
Assets on or prior to the Closing Date and (B) any other Tax Assets. In the case
of any Straddle Period, Purchasers shall pay to Sellers the amount received by
any of the Purchasers or any of their Affiliates of any refund, abatement or
credit of

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Taxes that would have been made had the Taxable Period ended on the Closing
Date.

        (e)

Any assessment or other Claim by a governmental authority seeking to enforce or
collect a Tax, Losses or Other Costs described in Section 11.1 shall be subject
to the provisions of Section 10.4, 10.5, 10.6, 10.8 and 10.9 of this Agreement
to the extent that Section 11.2 does not apply to such assessment or Claim.

        (f)

For the avoidance of doubt, notwithstanding any other contrary provisions of
this Agreement, Sellers shall not be liable for any Taxes or related Losses to
the extent such Taxes or related Losses are included in Assumed Liabilities.

11.2

Post Closing Tax Matters

      (a)

TCS will be responsible for the preparation and filing of all Tax Returns for
all periods ending on or prior to the Closing Date as to which Tax Returns are
due after the Closing Date (including the consolidated, unitary, and combined
Tax Returns for TCS which include the operations of the Business for any period
ending on or before the Closing Date). TCS shall permit Purchasers to review and
comment on each such Tax Return described in the preceding sentence prior to
filing. Seller will make all payments required with respect to any such Tax
Return; provided, however, that Purchasers will indemnify Seller pursuant to
Section 11.1(a), above, for any such Taxes that are Assumed Liabilities.

      (b)

Purchasers will be responsible for the preparation and filing of all Tax Returns
for the Business for all periods ending after the Closing Date as to which Tax
Returns are due after the Closing Date. Purchasers will also be responsible for
the preparation and filing of all Tax Returns for the Business for the Straddle
Period and Purchasers shall permit TCS to review and comment on each such Tax
Return described in this sentence, prior to filing. Purchasers will make all
payments required with respect to any such Tax Return; provided, however, that
TCS will indemnify the Purchasers to the extent any payment the Purchasers are
making is a Tax attributable to a taxable period ending on or before the Closing
Date based on the principles in Section 11.1(c), except to the extent that such
Taxes are Assumed Liabilities.

      (c)

With respect to the Acquired Entities:

  (i)

TCS will be responsible for the preparation and filing of all Tax Returns for
all periods ending on or prior to the Closing Date as to which Tax Returns are
due after the Closing Date. TCS shall permit Purchasers to review and approve
the content of each such Tax Return described in the preceding sentence prior to
filing. TCS will make all payments required with respect to any such Tax Return.

        (ii)

Purchasers will be responsible for the preparation and filing of all Tax Returns
for all periods ending after the Closing Date as to which Tax Returns are due
after the Closing Date including Tax Returns for the

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Straddle Period. Purchasers are not required to permit TCS to review and approve
the content of each such Tax Return described in the preceding sentence prior to
filing and Purchasers will only permit TCS to review and comment on such Tax
Returns to the extent that they (a) affect Tax Returns of the Acquired Entities
previously filed by the TCS, and (b) have an effect on TCS. Purchasers will make
all payments required with respect to any such Tax Return and TCS shall not be
liable for any Taxes with respect to such Tax Returns, except as otherwise
provided in Section 11.1, above.

        (iii)

Except to the extent required by Applicable Laws, Purchasers shall not, without
prior written consent of TCS, such consent not to be unreasonably withheld,
amend any Tax Return filed by, or with respect to, the Acquired Entities for any
taxable period, or portion thereof, ending before the Closing Date.

        (iv)

Except to the extent required by Applicable Laws, TCS shall not, without prior
written consent of the Purchasers, such consent not to be unreasonably withheld,
amend any Tax Return filed by, or with respect to, the Acquired Entities for any
taxable period, or portion thereof, ending before the Closing Date.

12.

RECORDS/LITIGATION AND TAX MATTERS

      12.1

Records/Litigation.

      (a)

For a period of five (5) years after the Closing Date, in the event and for so
long as any Party or an Acquired Entity or any of their respective Affiliates is
contesting or defending against any Claim in connection with (i) any transaction
contemplated under this Agreement or (ii) any fact, situation, circumstance,
status, condition, activity, practice, plan, occurrence, event, incident,
action, failure to act, or transaction on or prior to the Closing Date involving
any Party or an Acquired Entity or any of their respective Affiliates, the other
Party or Acquired Entity, as the case may be, will cooperate with the contesting
or defending party and its counsel in the contest or defense, make available its
personnel, and provide such testimony and access to its books and records as
shall be reasonably necessary in connection with the contest or defense, all at
the sole cost and expense of the contesting or defending party (unless the
contesting or defending party claims to be entitled to indemnification therefor
under this Agreement.

      (b)

For a period of three (3) years after the Closing Date, each Party shall provide
such assistance as any of the other Parties may from time to time reasonably
request in connection with the preparation of Tax Returns required to be filed,
any audit or other examination by any taxing authority, any judicial or
administrative proceeding relating to Liability for Taxes, or any claim for
refund in respect of such Taxes or in connection with any litigation and
proceedings related to the

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Business, including making available documents, witnesses, employees for
interviews, litigation preparation and testimony. The requesting party shall
reimburse the assisting party for the out-of-pocket costs incurred by the
assisting party.

13.

TERMINATION

        13.1

Termination of Agreement

       

Certain of the Parties may terminate this Agreement as provided below:

        (a)

Stockgroup and TCS may terminate this Agreement by mutual written consent at any
time prior to the Closing;

        (b)

Stockgroup may terminate this Agreement by giving written notice to TCS at any
time prior to the Closing:

        (i)

in the event that any of the Sellers or the Acquired Entities have breached any
material representation, warranty, or covenant contained in this Agreement in
any material respect, Stockgroup has notified TCS of the breach, and the breach
has continued without cure for a period of 10 days after the notice of breach;
or

        (ii)

if the Closing shall not have occurred on or before January 31, 2007, by reason
of the failure of any condition precedent under Section 9.1 hereof (unless the
failure results primarily from Stockgroup itself breaching any material
representation, warranty, or covenant contained in this Agreement); and

        (c)

TCS may terminate this Agreement by giving written notice to Stockgroup at any
time prior to the Closing:

        (i)

in the event Stockgroup has breached any material representation, warranty, or
covenant contained in this Agreement in any material respect, TCS has notified
Stockgroup of the breach, and the breach has continued without cure for a period
of 10 days after the notice of breach; or

        (ii)

if the Closing shall not have occurred on or before January 31, 2007, by reason
of the failure of any condition precedent under Section 9.2 hereof (unless the
failure results primarily from the Sellers themselves breaching any material
representation, warranty, or covenant contained in this Agreement).

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14.

POST-CLOSING MATTERS

      14.1

Piggy-Back Registration.

      (a)

If at any time after Closing Stockgroup decides to file a registration statement
under the Securities Act covering the distribution or sale of any of the common
shares of Stockgroup other than the Purchaser Shares (other than a registration
on Form S-8 or any similar form used for the purpose of registering equity
securities to be issued solely in connection with stock option or other employee
benefit plans), it shall forthwith give a written registration notice to TCS of
such decision. TCS shall have the right to elect, by written notice to be given
to Stockgroup not more than five (5) business days following receipt of the
registration notice, to have the registration statement cover the sale of the
Purchaser Shares by TCS.

      (b)

The piggyback registration rights granted pursuant to Section 14.1(a), above,
shall be subject to the right of Stockgroup to include none or a lesser number
of the Purchaser Shares for qualification under any registration statement at
the direction (made reasonably) of any underwriter or agent engaged by
Stockgroup in connection with the offering.

      (c)

The obligations of Stockgroup under Section 14.1(a), above, shall terminate and
be of no further effect when the Purchaser Shares are otherwise eligible for
resale pursuant to Rule 144 (or any successor provision) under the Securities
Act;

      14.2

Payment for Preparation of Most Recent Financial Statements

     

The preparation and delivery of the Fiscal Year End Statements shall be at the
sole cost and expense of TCS except to the extent of the incremental cost
incurred to obtain an independent auditor’s report from the James Cowper firm
covering information with respect to the Acquired Assets for inclusion in the
Fiscal Year End Statements, which incremental cost shall be paid by Stockgroup.

      14.3

Name Change

     

At or within a reasonable period of time after the Closing, each of TCS Ltd.,
Benelux and Iberian will change its name to a name that does not include
"TeleCommunication Systems".

      14.4

UK Lease

     

From and after Closing, TCS will pay monthly to TCS Ltd. a sum equal to fifty
percent (50%) of all charges payable by TCS Ltd. to the landlord under the UK
Lease, including monthly or annual rent, operating expenses or pass-throughs,
Tax pass-throughs and other charges for which TCS Ltd is liable under the UK
Lease. At the end of the current term of the UK Lease, TCS shall pay to TCS Ltd.
a sum equal to fifty percent (50%) of any charges assessed by the UK landlord or
otherwise incurred by TCS Ltd. with respect to the surrender of the premises,
including any charges incurred to modify the premises

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as required under the UK Lease to the extent that such charges are not otherwise
covered by the amount of leasehold deposit held by the landlord.

    14.5

No Competition

   

Each of the Sellers shall not for a period of three (3) years from the Closing
Date at any time, directly or indirectly, either individually or in partnership
or jointly or in conjunction with any Person or Persons as investor, advisor,
consultant, lender of funds, developer, agent, principal, shareholder, director,
officer, employee, associate or in any other manner or capacity whatsoever carry
on or be engaged in or be concerned with or interested in any business similar
to or in competition with the Business anywhere in the World.

    15.

MISCELLANEOUS

    15.1

Press Releases and Public Announcements

   

No Party shall issue any press release or make any public announcement relating
to the subject matter of this Agreement prior to the Closing without the prior
written approval of the other Party; provided, however, that any Party may make
any public disclosure it believes in good faith is required by applicable law or
any listing or trading agreement concerning its publicly-traded securities (in
which case the disclosing Party will use commercially reasonable efforts to
advise the other Party prior to making the disclosure).

    15.2

No Third-Party Beneficiaries

   

This Agreement shall not confer any rights or remedies upon any Person other
than the Parties. None of the Parties may assign this Agreement to any Person.

    15.3

Entire Agreement

   

This Agreement (including the Schedules and the documents referred to herein)
constitutes the entire agreement between the Parties and supersedes any prior
understandings, agreements, or representations by or between the Parties,
written or oral, to the extent they relate in any way to the subject matter
hereof.

    15.4

Succession and Assignment

   

This Agreement shall be binding upon and inure to the benefit of the Parties
named herein and their respective successors and permitted assigns. No Party may
assign either this Agreement or any of its rights, interests, or obligations
hereunder without the prior written approval of the other Party.

    15.5

Counterparts

   

This Agreement may be executed and delivered in one or more counterparts,
including counterparts delivered by facsimile, portable document format (known
by the acronym ‘.pdf’) or otherwise, each of which shall be deemed an original
document and each of

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which, taken together, shall constitute one and the same instrument. A party
providing its signature by facsimile, portable document format or otherwise
shall promptly forward to the other party the original of the executed copy of
this Agreement that was so delivered.

    15.6

Headings

   

The section headings contained in this Agreement are inserted for convenience
only and shall not affect in any way the meaning or interpretation of this
Agreement.

    15.7

Notices

   

All notices, requests, demands, claims, and other communications hereunder will
be in writing. Any notice, request, demand, claim, or other communication
hereunder shall be deemed duly given if it is hand delivered and addressed to
the intended recipient as set forth below:

   

If to the Sellers:

TeleCommunication Systems, Inc.
275 West Street
Annapolis, Maryland 21401

Attention:           Mr. Thomas Brandt, Chief Financial Officer
Fax: (410) 280-1048

Copy to:

Bruce White, Esq.
TeleCommunication Systems, Inc.
275 West Street
Annapolis, Maryland 21401

If to Stockgroup:

Stockgroup Information Systems Inc.
Suite 500, 750 West Pender Street
Vancouver, BC V6C 2T7

Attention:           Mr. Marcus New, President
Fax: (604) 331 1194

Copy to:

Clark Wilson LLP
800-885 West Georgia Street
Vancouver, British Columbia V6C 3H1

Attention:           Ethan Minsky

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- 47 -

Any Party may send any notice, request, demand, claim, or other communication
hereunder to the intended recipient at the address set forth above using any
other means (including personal delivery, expedited courier, messenger service,
telecopy, telex, ordinary mail, or electronic mail), but no such notice,
request, demand, claim, or other communication shall be deemed to have been duly
given unless and until it actually is received by the intended recipient. Any
Party may change the address to which notices, requests, demands, claims, and
other communications hereunder are to be delivered by giving the other Party
notice in the manner herein set forth.

    15.8

Governing Law

   

This Agreement shall be governed by and construed in accordance with the
domestic laws of the State of New York without giving effect to any choice or
conflict of law provision or rule (whether of the State of New York or any other
jurisdiction) that would cause the application of the laws of any jurisdiction
other than the State of New York.

    15.9

Amendments and Waivers

   

No amendment of any provision of this Agreement shall be valid unless the same
shall be in writing and signed by the Purchasers and the Sellers. No waiver by
any Party of any default, misrepresentation, or breach of warranty or covenant
hereunder, whether intentional or not, shall be deemed to extend to any prior or
subsequent default, misrepresentation, or breach of warranty or covenant
hereunder or affect in any way any rights arising by virtue of any prior or
subsequent such occurrence.

    15.10

Severability

   

Any term or provision of this Agreement that is invalid or unenforceable in any
situation in any jurisdiction shall not affect the validity or enforceability of
the remaining terms and provisions hereof or the validity or enforceability of
the offending term or provision in any other situation or in any other
jurisdiction.

    15.11

Expenses

   

Each of the Purchasers and the Sellers will bear its own costs and expenses
(including legal fees and expenses) incurred in connection with this Agreement
and the transactions contemplated hereby.

    15.12

Construction

   

The Parties have participated jointly in the negotiation and drafting of this
Agreement. In the event an ambiguity or question of intent or interpretation
arises, this Agreement shall be construed as if drafted jointly by the Parties
and no presumption or burden of proof shall arise favouring or disfavouring any
Party by virtue of the authorship of any of the provisions of this Agreement.
Any reference to any federal, state, provincial, local, or foreign statute or
law shall be deemed also to refer to all rules and regulations promulgated
thereunder, unless the context requires otherwise. The word "including" shall
mean including without limitation. Nothing in the Disclosure Schedule shall be

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deemed adequate to disclose an exception to a representation or warranty made
herein unless the Disclosure Schedule identifies the exception with
particularity and describes, where required, the relevant facts in detail.
Without limiting the generality of the foregoing, the mere listing (or inclusion
of a copy) of a document or other item shall not be deemed adequate to disclose
an exception to a representation or warranty made herein (unless the
representation or warranty has to do with the existence of the document or other
item itself and requires such listing). The Parties intend that each
representation, warranty, and covenant contained herein shall have independent
significance. If any Party has breached any representation, warranty, or
covenant contained herein in any respect, the fact that there exists another
representation, warranty, or covenant relating to the same subject matter
(regardless of the relative levels of specificity) which the Party has not
breached shall not detract from or mitigate the fact that the Party is in breach
of the first representation, warranty, or covenant.

    15.13

Disclosure Schedule

   

The headings contained in the Disclosure Schedule are for convenience of
reference only and shall not be deemed to modify or influence the interpretation
of the information contained in the Disclosure Schedule or the Agreement.
Disclosure of any fact or item in any Section of the Disclosure Schedule hereto
referenced by a particular Section in this Agreement shall be deemed to have
been disclosed with respect to every other Section of this Agreement if such
disclosure would permit a reasonable person to find such disclosure relevant to
such other Sections.

    15.14

Incorporation of Schedules

   

The Schedules identified in this Agreement are incorporated herein by reference
and made a part hereof.

    15.15

Bulk Transfer Laws

   

TCS will comply with any applicable bulk transfer laws.

[SIGNATURES APPEAR ON THE FOLLOWING PAGE]

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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the
date first above written.

STOCKGROUP INFORMATION SYSTEMS INC.

Per:  _______________________________________
         Authorized Signatory

STOCKGROUP SYSTEMS LTD.

Per:  _______________________________________
         Authorized Signatory

STOCKGROUP MEDIA INC.

Per:  _______________________________________
         Authorized Signatory

TELECOMMUNICATION SYSTEMS, INC.

Per:  _______________________________________
         Authorized Signatory

TELECOMMUNICATION SYSTEMS (HOLDINGS) LIMITED

Per:  _______________________________________
         Authorized Signatory

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SCHEDULE A
List of Acquired Assets

US Assets

US Customer Lists See Schedule O (Parts A, B, C, D) Eight Black MarketStream
Distribution Agreement
Section 6.22 (Contracts) of Schedule I
(Disclosure Schedule) Reuters Development License & Support Agreement
Section 6.22 (Contracts) of Schedule I
(Disclosure Schedule) USA Mobility Resell Agreement
Section 6.22 (Contracts) of Schedule I
(Disclosure Schedule) Vendor agreements as identified
Section 6.22 (Contracts) of Schedule I
(Disclosure Schedule) Fixed Assets Schedule C (List of Fixed Assets). Deposits
on exchange fees and US building lease
Section 6.12 (Statement of Net Assets) of
Schedule I (Disclosure Schedule) Intellectual Property
Section 6.18 (Intellectual Property) of
Schedule I (Disclosure Schedule) Domain names Attachment A to Schedule K
Accounts receivable
Section 6.12 (Statement of Net Assets) of
Schedule I (Disclosure Schedule) Deposit on US Building
Section 6.12 (Statement of Net Assets) of
Schedule I (Disclosure Schedule)

European Assets

Accounts receivable
Section 6.12 (Statement of Net Assets) of
Schedule I (Disclosure Schedule) Fixed Assets Schedule C (List of Fixed Assets)
Shares outstanding in Entities
Section 6.11 (Subsidiaries) of Schedule I
(Disclosure Schedule) UK Lease Agreement
Collin Estates Limited to Synamic Limited
dated January 14, 1999 Spanish Lease Agreement Modesto Saiz Gabaldon dated
October 23, 1996 List of Trademarks Schedule B (List of Trademarks) Customer
Lists See Schedule O (Parts E, F, G) Vendor agreements as identified
Section 6.22 (Contracts) of Schedule I
(Disclosure Schedule) Intellectual Property rights
Section 6.18 (Intellectual Property) of
Schedule I (Disclosure Schedule) Deposits and prepaids on UK and Spanish
Lease,VAT tax Section 6.12 (Statement of Net Assets) of receivable and other
prepaid expense. Schedule I (Disclosure Schedule) Employees
Section 6.22(g) (Employment Contracts) of
Schedule I (Disclosure Schedule) Advances to Imperial Software Technology
Section 6.12 (Statement of Net Assets) of
Schedule I (Disclosure Schedule) Inventory
Section 6.12 (Statement of Net Assets) of
Schedule I (Disclosure Schedule) Datafeed and exchange deposits
Section 6.12 (Statement of Net Assets) of
Schedule I (Disclosure Schedule)

January 24, 2007

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SCHEDULE B – LIST OF TRADEMARKS

Mark Country Filing Date/Status Reg. No. Int’l Class Designation FUTURES PAGER &
Design

UK

4/19/96; registered
11/29/96; renewal due
4/19/16. __ 2,069,214

36

®

FUTURES PAGER & Design

UK

1/23/91; registered
10/9/92; renewal due
1/23/08. 1,453,354

36

®

MOBIBROKER

EC

4/17/00; registered
8/21/01; renewal due
4/17/10. 001614130

9,35,36 & 38

®

MOBITRADE

EC

4/17/00; registered
7/24/01; renewal due
4/17/10. 001613520

9,35, 36 & 38

®

MOBITRADER

EC

4/17/00; registered
8/13/01; renewal due
4/17/10.
001614262

9,35,36 & 38

®

POCKETFUTURES

US

6/6/97; registered
12/21/99. Renewal due
12/21/08-09.
2,302,505

36

®

SCRAPPY

US

5/27/97; registered
6/16/98; renewal due
between 6/16/07 and
6/16/08. 2,165,800

9

®

SCRAPPY PAGER

US

5/27/97; registered
5/26/98; renewal due
between 5/26/07 and
5/26/08. 2,160,599

35

®

WIRELESS DATASCREEN
MARKETSTREAM
FX ALERT
ENERGY PAGER
ENERGY ALERT
MARKETCLIP
MARKETCLIP PLUS
MOBIQUOTE

TM

.

Purchase Agreement TCS Stockgroup Schedule B – List of Trademarks January 24,
2007 Page 1 of 1

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SCHEDULE D

Notarial Deed of Transfer (Benelux)

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SCHEDULE E

Notarial Deed of Transfer (Iberian)

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SCHEDULE F

SUBLEASE

          THIS SUBLEASE is made and entered into this 31st day of January, 2007,
by and between TeleCommunication Systems, Inc. ("Landlord"), and Stockgroup
Information Systems Inc., a Colorado corporation ("Tenant").

1. BASIC LEASE PROVISIONS AND DEFINITIONS. As used herein, the following terms
shall have the meanings hereafter ascribed to them:

  A. Sub-leased Premises:
The 678 square feet shown in Exhibit A attached hereto as the Mobile Finance
space, being a portion of the property commonly known as
    11460 Cronridge Road,     Owings Mills, MD         B. Tenant's Address
500-750 West Pender St.     Vancouver, British Columbia     V6C 2T7         C.
Landlord's Address (for notices): 275 West Street,     Annapolis, MD 21401    
Attn: Thomas Brandt, CFO         D. Prime Landlord:
Owings Mills, LLC , a Maryland limited liability company
        E. Prime Landlord's Address: c/o Berwind Property Group, Inc.     770
Township Line Road     Suite 150     Yardley, PA 19067         F. Identification
of Prime Lease
Industrial/Flex Lease Agreement between Prime Landlord and Landlord with a
Commencement Date of February 1, 2005.
        G. Sublease Term: From the date hereof,     Expiring March 31, 2008    
    H. Commencement Date: The date hereof

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  I. Expiration Date: March 31, 2008         J. Initial Base Rent: $24,000 per
annum     $2,000 per month         K. Base Annual Rent Adjustment:
No scheduled increases; See Section 7 for other potential adjustments.
        L. Payee of Rent: The Landlord         M. Address for Payment of Rent:
The Landlord’s Address         N. Sublease Share: 3%         O. Security
Deposit: N/A         P. Tenant's Use:
General office use and warehouse space data center, and for no other purpose.

2. PRIME LEASE. Landlord is the tenant under the Prime Lease identified in
Section 1(F) (the "Prime Lease") with the Prime Landlord identified in Section
1(D). Landlord represents and warrants to Tenant that (a) Landlord has delivered
to Tenant a full and complete copy of the Prime Lease and all other agreements
between Prime Landlord and Landlord relating to the leasing, use or occupancy of
the Premises, (b) the Prime Lease is, as of the date hereof, in full force and
effect, and (c) no event of default has occurred under the Prime Lease and, to
Landlord's knowledge, no event has occurred and is continuing which would
constitute an event of default but for the requirement of the giving of notice
and/or the expiration of the period of time to cure.

3. SUBLEASE. Landlord, for and in consideration of the rents herein reserved and
of the covenants and agreements herein contained on the part of the Tenant to be
performed, hereby subleases to the Tenant, and the Tenant accepts from the
Landlord, the Sub-leased Premises described in Section 1(A) situated on and a
part of the property leased under and described in the Prime Lease (the "Leased
Property"). Landlord further agrees to provide to Tenant the Basic Services set
forth in Exhibit B attached hereto and made a part hereof.

4. TERM. Subject to Section 5, the Sublease Term shall commence on the
Commencement Date and expire on the date Expiration Date, unless sooner
terminated as otherwise provided elsewhere in this Sublease. Notwithstanding the
foregoing, Tenant shall be entitled to terminate the Sublease prior to the
Expiration Date upon ninety (90) days advance written notice to Landlord.

5. POSSESSION. Landlord agrees to deliver possession of the Sub-leased Premises
on or before the Commencement Date in its condition as of the execution and
delivery hereof; that is to say, AS IS.

- 2 -

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6. TENANT'S USE. The Sub-leased Premises shall be used and occupied only for the
Tenant's Use set forth in Section I(P). Tenant shall have the right to the
reasonable use of, on a non exclusive basis with other tenants, the conference
room(s) and other common areas shown on Exhibit A. The reasonable use of the
common areas is subject to all pertinent provisions of this Sublease regarding
use of the Sub-leased Premises and Tenant shall not be permitted to use the same
in a manner that would hinder reasonable use by other tenants. In the event
Landlord in its discretion determines that Tenant is using any of the common
areas to an extent greater than the Sublease Share, Landlord reserves the right
to charge Tenant additional rent for its additional use of said common areas.

7. RENT. Beginning on the Commencement Date, Tenant agrees to pay the Base Rent
set forth in Section 1(J) to the Payee specified in Section 1(L), at the address
specified in Section 1(M), or to such other payee or at such other address as
may be designated by notice in writing from Landlord to Tenant, without prior
demand therefor and without any deduction whatsoever. Base Rent shall be paid in
equal monthly installments in advance on the first day of each month of the
Term, except that the first installment of Base Rent shall be paid by Tenant to
Landlord upon execution of this Sublease by Tenant. Base Rent shall be pro-rated
for partial months at the beginning and end of the Term. The Base Rent is not
scheduled to be adjusted under the Prime Lease; in the event the Landlord
subleases unused portions of the premises during the Term such that shared
expenses and any other costs can be re-allocated among all sub-lessees, then the
Base Rent shall be adjusted to reflect such savings or cost avoidance. All
charges, costs and sums required to be paid by Tenant to Landlord under this
Sublease in addition to Base Rent shall be deemed "Additional Rent", and Base
Rent and Additional Rent shall hereinafter collectively be referred to as
"Rent". Tenant's covenant to pay Rent shall be independent of every other
covenant in this Lease. If Rent is not paid when due, Tenant shall pay, relative
to the delinquent payment, an amount equal to the sum which would be payable by
Landlord to Prime Landlord for an equivalent default under the Prime Lease.

8. ADDITIONAL RENT.

     A. If and to the extent that Landlord is obligated to pay additional rent
under the Prime Lease, whether such additional rent is to reimburse Prime
Landlord for taxes, operating expenses, common area maintenance charges or other
expenses incurred by the Prime Landlord in connection with the Leased Property,
Tenant shall pay to Landlord, the percentage of such additional rent (to the
extent such additional rent is attributable to events occurring during the term
of this Sublease) which is set forth in Section 1(N) as the Sublease Share. Such
payment shall be due from Tenant to Landlord no fewer than five (5) days prior
to the date upon which Landlord's payment of such additional rent is due to the
Prime Landlord, provided that Tenant shall have been billed therefor at least
ten (10) days prior to such due date (which bill shall be accompanied by a copy
of Prime Landlord's bill and other material furnished to Landlord in connection
therewith).

     B. The Sublease Share provided for in Section 1(N) is calculated by
dividing the rentable area of the Sub-leased Premises by the rentable area of
the Leased Property leased by Prime Landlord to Landlord pursuant to the Prime
Lease. In the event the rentable area of the Sub-leased Premises or the area of
the premises leased pursuant to the Prime Lease shall be changed during the
Term, then the Sublease Share shall be recalculated.

- 3 -

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     C. The Basic Services shall be billed by Landlord and paid monthly as
additional rent, along with regular monthly installments of Base Rent as
provided in section 7 above. Landlord shall not be liable to Tenant due to any
failure to provide, or the inadequacy of , utilities or any other Basic Services
if beyond the reasonable control of Landlord.

9. TENANT'S OBLIGATIONS. Tenant shall be responsible for, and shall pay the
following:

     A. Tenant shall pay the Electric Share provided for in Section 1(N) of all
utility consumption costs, including without limitation, electric and other
charges incurred in connection with lighting, and providing electrical power to
the Sub-leased Premises. Tenant shall hold Landlord harmless from all costs or
expenses Landlord may incur from Tenant's failure to pay utility bills or to
perform any of its obligations with respect to the purchase of utilities.

     B. All maintenance, repairs and replacements as to the Sub-leased Premises
and its equipment, to the extent Landlord is obligated to perform the same under
the Prime Lease.

10. QUIET ENJOYMENT. Landlord represents that it has full power and authority to
enter into this Sublease, subject to the Prime Lease. So long as Tenant is not
in default in the performance of its covenants and agreements in this Sublease,
Tenant's quiet and peaceable enjoyment of the Sub leased Premises shall not be
disturbed or interfered with by Landlord, or by any person claiming by, through,
or under Landlord.

11. TENANT'S INSURANCE. Tenant shall procure and maintain, at its own cost and
expense, insurance insuring its personal property located within the Sub-leased
Premises. Tenant shall furnish to Landlord a certificate of Tenant's insurance
required hereunder not later than ten (10) days prior to Tenant's taking
possession of the Sub-leased Premises. Each party hereby waives claims against
the other for property damage provided such waiver shall not invalidate the
waiving party's property insurance; each party shall attempt to obtain from its
insurance carrier a waiver of its right of subrogation. Tenant hereby waives
claims against Prime Landlord and Landlord for property damage to the Sub-leased
Premises or its contents if and to the extent that Landlord waives such claims
against Prime Landlord under the Prime Lease. Tenant agrees to obtain, for the
benefit of Prime Landlord and Landlord, such waivers of subrogation rights from
its insurer as are required of Landlord under the Prime Lease. Landlord agrees
to use reasonable efforts in good faith to obtain from Prime Landlord a waiver
of claims for insurable property damage losses and an agreement from Prime
Landlord to obtain a waiver of subrogation rights in Prime Landlord's property
insurance, if and to the extent that Prime Landlord waives such claims against
Landlord under the Prime Lease or is required under the Prime Lease to obtain
such waiver of subrogation rights.

12. ASSIGNMENT OR SUBLETTING.

     A. Tenant shall not (i) assign, convey or mortgage this Sublease or any
interest under it; (ii) allow any transfer thereof or any lien upon Tenant's
interest by operation of law; (iii) further sublet the Sub-leased Premises or
any part thereof; or (iv) permit the occupancy of the Sub-leased Premises or any
part thereof by anyone other than Tenant. Landlord's consent to an assignment of
this Sublease or a further sublease of the Sub-leased Premises shall not be
unreasonably withheld, and if Landlord consents thereto, Landlord shall use
reasonable efforts to obtain the consent of

- 4 -

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Prime Landlord if such consent is required to be obtained under the Prime Lease.
Any cost of obtaining Prime Landlord's consent shall be borne by Tenant.

     B. No permitted assignment shall be effective and no permitted sublease
shall commence unless and until any default by Tenant hereunder shall have been
cured. No permitted assignment or subletting shall relieve Tenant from Tenant's
obligations and agreements hereunder and Tenant shall continue to be liable as a
principal and not as a guarantor or surety to the same extent as though no
assignment or subletting had been made.

13. RULES. Tenant agrees to comply with all rules and regulations that Prime
Landlord has made or may hereafter from time to time make for the Leased
Property. Landlord shall not be liable in any way for damage caused by the
non-observance by any of the other tenants of such similar covenants in their
leases or of such rules and regulations.

14. REPAIRS AND COMPLIANCE. Tenant shall promptly pay for the repairs set forth
in Section 9(B) hereof and Tenant shall, at Tenant's own expense, comply with
all laws and ordinances, and all orders, rules and regulations of all
governmental authorities and of all insurance bodies and their fire prevention
engineers at any time in force, applicable to the Sub-leased Premises or to
Tenant's particular use or manner of use thereof. As used herein, "structure" or
"structural" shall mean that portion of any building which is integral to the
integrity of the building as an existing enclosed unit and shall, in any event,
include footings, foundation, outside walls, skeleton, bearing columns and
interior bearing walls, floor slabs, roof and roofing system.

15. FIRE OR CASUALTY OR EMINENT DOMAIN. In the event of a fire or other casualty
affecting the Sub-lease Premises, or the Leased Properties, or of a taking of
all or a part of the Sub leased Premises or the Leased Properties under the
power of eminent domain, Landlord shall not exercise any right which may have
the effect of terminating the Prime Lease without first obtaining the prior
written consent of Tenant. In the event Landlord is entitled, under the Prime
Lease, to a rent abatement as a result of a fire or other casualty or as a
result of a taking under the power of eminent domain, then Tenant shall be
entitled to the Sublease Share of such rent abatement unless the effect on the
Sub-leased Premises of such fire or other casualty or such taking shall be
substantially disproportionate to the amount of the abatement, in which event
the parties shall equitably adjust the abatement as between themselves, based on
the relative impact of the fire or other casualty, or the taking, as the case
may be. If the Prime Lease imposes on Landlord the obligation to repair or
restore leasehold improvements or alterations, Tenant shall be responsible for
repair or restoration of leasehold improvements or alterations it shall have
installed in the Sub leased Premises, and Landlord shall be responsible for the
repair or restoration of the balance of the leasehold improvements or
alterations; Tenant shall make any insurance proceeds resulting from the loss
which Landlord is obligated to repair or restore available to Landlord and shall
permit Landlord to enter the Sub-leased Premises to perform the same, subject to
such conditions as Tenant may reasonably impose.

16. ALTERATIONS. Tenant shall, at Tenant’s sole cost and expense, make any
additions, changes, improvement or alterations to the Sub-leased Premises,
including structural alterations, which may be required by any governmental
authorities, including those required to continue to satisfy any licensure
requirements related to the operation of Tenant’s business, whether such changes
are required by Tenant’s use, changes in the law, ordinances, or governmental
regulations,

- 5 -

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defects existing as of the date of the Sublease, or any cause whatsoever. Tenant
shall provide Landlord with forty-five (45) days prior written notice to
Landlord of any changes to the Sub leased Premises pursuant to this section
which involves changes to the structural integrity thereof or materially affect
the operational capabilities thereof. All such additions, changes, improvements
or alterations shall be deemed to be an Alteration under the Prime Lease and
shall comply with all law relating to such alterations and with the provisions
of Section 8 of the Prime Lease. Tenant shall be responsible for compliance with
the requirements of Section 8 (d) of the Prime Lease relating to Removal
Alterations (as defined therein), and any cost or expense associated therewith.

17. SURRENDER. Upon the expiration of this Sublease, or upon the termination of
the Sublease or of the Tenant's right to possession of the Sub-leased Premises,
Tenant will at once surrender and deliver up the Sub-leased Premises, together
with all improvements thereon, to Landlord in good condition and repair,
reasonable wear and tear excepted; conditions existing because of Tenant's
failure to perform maintenance, repairs or replacements as required of Tenant
under this Sublease shall not be deemed "reasonable wear and tear". Said
improvements shall include all plumbing, lighting, electrical, heating, cooling
and ventilating fixtures and equipment used in the operation of the Premises (as
distinguished from operations incident to the business of Tenant). Tenant shall
surrender to Landlord all keys to the Sub-leased Premises and make known to
Landlord the explanation of all combination locks which Tenant is permitted to
leave on the Sub-leased Premises. All Alterations in or upon the Sub-leased
Premises made by Tenant shall become a part of and shall remain upon the
Premises upon such termination without compensation, allowance or credit to
Tenant; provided, however, Tenant shall have the right to remove those items
deemed Tenant’s goods and effects, as referenced in Section 24 of the Prime
Lease, in accordance with the requirements set forth in Sections 8 (d) and 24 of
the Prime Lease. If Landlord or Prime Landlord requires removal of any personal
property of Tenant and Tenant does not make such removal in accordance with
these Sections, Landlord may remove the same (and repair any damage occasion
thereby), and dispose thereof, or at its election, deliver the same to any other
place of business of Tenant, or warehouse the same. Tenant shall pay the costs
of such removal, repair, delivery and warehousing on demand.

18. HOLDING OVER. Tenant shall have no right to occupy the Sub-leased Premises
or any portion thereof after the expiration of this Sublease or after
termination of this Sublease or of Tenant's right to possession in consequence
of an Event of Default hereunder. Should Tenant, without the express written
consent of Landlord, continued to hold and occupy the Sub-leased Premises after
the expiration or earlier termination the Term or any Extension Term, as the
case may be, such holding over beyond the Term and acceptance or collection of
Rent by Landlord shall be construed as creating a tenancy from month-to-month
and not for any other term whatsoever. During any such holdover period Tenant
shall pay to landlord for each month (or portion thereof) Tenant remains in such
Sub-leased Premises, in lieu of Base Annual Rent for the Sub-leased Premises, an
amount equal to one hundred fifty (150%) percent of the Base Annual Rent (the
“Holdover Rate”), and (ii) as applicable, one hundred percent (100%) of the
Additional Rent for the Sub-leased Premises, each as in effect on the expiration
date. Said month-to-month tenancy may be terminated by Landlord by giving Tenant
twenty (20) days written notice, and at any time thereafter Landlord may
re-enter and take possession of the Sub-leased Premises.

19. ENCUMBERING TITLE. Tenant shall not do any act which shall in any way
encumber the title of Prime Landlord in and to the Sub-leased Premise or the
Leased Properties, nor shall the

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interest or estate of Prime Landlord or Landlord be in any way subject to any
claim by way of lien or encumbrance, whether by operation of law by virtue of
any express or implied contract by Tenant, or by reason of any other act or
omission of Tenant. Any claim to, or lien upon, the Sub leased Premises, the
Leased Properties arising from any act or omission of Tenant shall accrue only
against the subleasehold estate of Tenant and shall be subject and subordinate
to the paramount title and rights of Prime Landlord in and to the Leased
Properties and the interest of Landlord in the Sub-leased Premises. Without
limiting the generality of the foregoing, Tenant shall not permit the Sub-leased
Premises, or the Leased Properties to become subject to any mechanics',
laborers' or materialmen's lien on account of labor or material furnished to
Tenant or claimed to have been furnished to Tenant in connection with work of
any character performed or claimed to have been performed on the Sub-leased
Premises by, or at the direction or sufferance of, Tenant, provided, however,
that if so permitted under the Prime Lease, Tenant shall have the right to
contest in good faith and with reasonable diligence, the validity of any such
lien or claimed lien if Tenant shall give to Prime Landlord and Landlord such
security as may be deemed satisfactory to them to assure payment thereof and to
prevent any sale, foreclosure, or forfeiture of the Sub-leased Premises or the
Leased Properties by reason of non-payment thereof, provided further, however,
that on final determination of the lien or claim of lien, Tenant shall
immediately pay any judgment rendered, with all proper costs and charges, and
shall have the lien released and any judgment satisfied.

20. INDEMNITY. Tenant agrees to indemnify Landlord and hold Landlord harmless
from all losses, damages, liabilities and expenses which Landlord may incur, or
for which Landlord may be liable to Prime Landlord, arising from the acts or
omissions of Tenant which are the subject matter of any indemnity or hold
harmless of Landlord to Prime Landlord under the Prime Lease.

21. LANDLORD'S RESERVED RIGHTS. Landlord reserves the right, on 48 hours prior
notice, to inspect the Sub-leased Premises at any time during the Sublease Term.

22. DEFAULTS. Tenant further agrees that any one or more of the following events
shall be considered Events of Default as said term is used herein, that is to
say, if:

     A. Tenant shall be adjudged an involuntary bankrupt, or a decree or order
approving, as properly filed, a petition or answer filed against Tenant asking
reorganization of Tenant under the Federal bankruptcy laws as now or hereafter
amended, or under the laws of any State, shall be entered, and any such decree
or judgment or order shall not have been vacated or stayed or set aside within
sixty (60) days from the date of the entry or granting thereof; or

     B. Tenant shall file, or admit the jurisdiction of the court and the
material allegations contained in, any petition in bankruptcy, or any petition
pursuant or purporting to be pursuant to the Federal bankruptcy laws now or
hereafter amended, or Tenant shall institute any proceedings for relief of
Tenant under any bankruptcy or insolvency laws or any laws relating to the
relief of debtors, readjustment of indebtedness, reorganization, arrangements,
composition or extension; or

     C. Tenant shall make any assignment for the benefit of creditors or shall
apply for or consent to the appointment of a receiver for Tenant or any of the
property of Tenant; or

     D. Tenant shall admit in writing its inability to pay its debts as they
become due; or

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     E. The Sub-leased Premises are levied on by any revenue officer or similar
officer; or

     F. A decree or order appointing a receiver of the property of Tenant shall
be made and such decree or order shall not have been vacated, stayed or set
aside within sixty (60) days from the date of entry or granting thereof; or

     G. Tenant shall abandon the Sub-leaed Premises during the Term hereof; or

     H. Tenant shall default in any payment of Rent required to be made by
Tenant hereunder when due as herein provided and such default shall continue for
five (5) days after notice thereof in writing to Tenant; or

     I. Tenant shall default in securing insurance or in providing evidence of
insurance as set forth in Section 11 of this Sublease or shall default with
respect to lien claims as set forth in Section 19 of this Sublease and either
such default shall continue for five (5) days after notice thereof in writing to
Tenant; or

     J. Tenant shall, by its act or omission to act, cause a default under the
Prime Lease and such default shall not be cured within the time, if any
permitted for such cure under the Prime Lease; or

     K. Tenant shall default in any of the other covenants and agreements herein
contained to be kept, observed and performed by Tenant, and such default shall
continue for thirty (30) days after notice thereof in writing to Tenant.

     L. Default under any franchise or license pursuant to which Tenant conducts
business at the Sub-leased Premises, if in the Landlord’s judgment such default
in light of commercially reasonable standards and industry practice would have a
material adverse affect on the Sub-leased Premises, which default is not cured
within thirty (30) days after notice thereof in writing to Tenant.

23. REMEDIES. Upon the occurrence of any one or more Events of Default, Landlord
may exercise any remedy against Tenant which Prime Landlord may exercise for
default by Landlord under the Prime Lease.

24. SECURITY DEPOSIT. INTENTIONALLY OMITTED.

25. NOTICES AND CONSENTS. All notices, demands, requests, consents or approvals
which may or are required to be given by either party to the other shall be in
writing and shall be deemed given when received or refused if sent by United
States registered or certified mail, postage prepaid, return receipt requested
or if sent by overnight commercial courier service (a) if to Tenant, addressed
to Tenant at the address specified in Section 1(B) or at such other place as
Tenant may from time to time designate by notice in writing to Landlord or (b)
if for Landlord, addressed to Landlord at the address specified in Section 1(C)
or at such other place as Landlord may from time to time designate by notice in
writing to Tenant. Each party agrees promptly to deliver a copy of each notice,
demand, request, consent or approval from such party to Prime Landlord and
promptly to deliver to the other party a copy of any notice, demand, request,
consent or approval received from Prime Landlord. Such copies shall be delivered
by overnight commercial courier.

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26. PROVISIONS REGARDING SUBLEASE. This Sublease and all the rights of parties
hereunder are subject and subordinate to the Prime Lease. Each party agrees that
it will not, by its act or omission to act, cause a default under the Prime
Lease. In furtherance of the foregoing, the parties hereby confirm, each to the
other, that it is not practical in this Sublease agreement to enumerate all of
the rights and obligations of the various parties under the Prime Lease and
specifically to allocate those rights and obligations in this Sublease
agreement. Accordingly, in order to afford to Tenant the benefits of this
Sublease and of those provisions of the Prime Lease which by their nature are
intended to benefit the party in possession of the Sub-leased Premises, and in
order to protect Landlord against a default by Tenant which might cause a
default or event of default by Landlord under the Prime Lease:

     A. Provided Tenant shall timely pay all Rent when and as due under this
Sublease, Landlord shall pay, when and as due, all base rent, additional rent
and other charges payable by Landlord to Prime Landlord under the Prime Lease;

     B. Except as otherwise expressly provided herein, Landlord shall perform
its covenants and obligations under the Prime Lease which do not require for
their performance possession of the Sub-leased Premises and which are not
otherwise to be performed hereunder by Tenant on behalf of Landlord. For
example, Landlord shall at all times keep in full force and effect all insurance
required of Landlord as tenant under the Prime Lease.

     C. Except as otherwise expressly provided herein, Tenant shall perform all
affirmative covenants and shall refrain from performing any act which is
prohibited by the negative covenants of the Prime Lease, where the obligation to
perform or refrain from performing is by its nature imposed upon the party in
possession of the Sub-leased Premises. If practicable, Tenant shall perform
affirmative covenants which are also covenants of Landlord under the Prime Lease
at least five (5) days prior to the date when Landlord's performance is required
under the Prime Lease. Landlord shall have the right to enter the Sub-leased
Premises to cure any default by Tenant under this Section.

     D. Landlord shall not agree to an amendment to the Prime Lease which might
have an adverse effect on Tenant's occupancy of the Sub-leased Premises or its
use of the Sub-leased Premises for their intended purpose, unless Landlord shall
first obtain Tenant's prior written approval thereof.

     E. Landlord hereby grants to Tenant the right to receive all of the
services and benefits with respect to the Sub-leased Premises which are to be
provided by Prime Landlord under the Prime Lease. Landlord shall have no duty to
perform any obligations of Prime Landlord which are, by their nature, the
obligation of an owner or manager of real property. For example, Landlord shall
not be required to provide the services or repairs which the Prime Landlord is
required to provide under the Prime Lease. Landlord shall have no responsibility
for or be liable to Tenant for any default, failure or delay on the part of
Prime Landlord in the performance or observance by Prime Landlord of any of its
obligations under the Prime Lease, nor shall such default by Prime Landlord
affect this Sublease or waive or defer the performance of any of Tenant's
obligations hereunder except to the extent that such default by Prime Landlord
excuses performance by Landlord, under the Prime Lease. Notwithstanding the
foregoing, the parties contemplate that Prime Landlord shall,

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in fact, perform its obligations under the Prime Lease and in the event of any
default or failure of such performance by Prime Landlord, Landlord agrees that
it will, upon notice from Tenant, make demand upon Prime Landlord to perform its
obligations under the Prime Lease and, provided that Tenant specifically agrees
to pay all costs and expenses of Landlord and provides Landlord with security
reasonably satisfactory to Landlord to pay such costs and expenses, Landlord
will take appropriate legal action to enforce the Prime Lease.

27. PRIME LANDLORD'S CONSENT. This Sublease and the obligations of the parties
hereunder are expressly conditioned upon Landlord's obtaining prior written
consent hereto by Prime Landlord, if such written consent is required under the
Prime Lease. Tenant shall promptly deliver to Landlord any information
reasonably requested by Prime Landlord (in connection with Prime Landlord's
approval of this Sublease) with respect to the nature and operation of Tenant's
business and/or the financial condition of Tenant. Landlord and Tenant hereby
agree, for the benefit of Prime Landlord, that this Sublease and Prime
Landlord's consent hereto shall not (a) create privity of contract between Prime
Landlord and Tenant; (b) be deemed to have amended the Prime Lease in any regard
(unless Prime Landlord shall have expressly agreed in writing to such
amendment); or (c) be construed as a waiver of Prime Landlord's right to consent
to any assignment of the Prime Lease by Landlord or any further subletting of
premises leased pursuant to the Prime Lease, or as a waiver of Prime Landlord's
right to consent to any assignment by Tenant of this Sublease or any
sub-subletting of the Sub-leased Premises or any part thereof. Prime Landlord's
consent shall, however, be deemed to evidence Prime Landlord's agreement that
Tenant may use the Sub-leased Premises for the purpose set forth in Section 1(P)
and that Tenant shall be entitled to any waiver of claims and of the right of
subrogation for damage to Prime Landlord's property if and to the extent that
the Prime Lease provides such waivers for the benefit of Landlord.

28. FORCE MAJEURE. Landlord shall not be deemed in default with respect to any
of the terms, covenants and conditions of this Sublease on Landlord's part to be
performed, if Landlord's failure to timely perform same is due in whole or in
part to any strike, lockout, labor trouble (whether legal or illegal), civil
disorder, failure of power, restrictive governmental laws and regulations,
riots, insurrections, war, shortages, accidents, casualties, acts of God, acts
caused directly by Tenant or Tenant's agents, employees and invitees or any
other cause beyond the reasonable control of Landlord. This Section shall not be
applicable, however, if Landlord's failure timely to perform creates a default
by Landlord under the Prime Lease.

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29. WAIVER OF TRIAL BY JURY. Landlord and Tenant hereby waive trial by jury in
any action or proceeding or counterclaim brought by either party hereto against
the other party on any and every matter, directly or indirectly, arising out of
or with respect to this Sublease.

THE PARTIES have executed this Sublease the day and year first above written.

WITNESS/ATTEST:   LANDLORD:           TELECOMMUNICATION SYSTEMS, INC.          
      ________________________________________ (SEAL)           TENANT:        
  STOCKGROUP INFORMATION SYSTEMS INC.                
________________________________________ (SEAL)

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EXHIBIT A
FLOOR PLAN

 

 

[schedulesx40x1.jpg]

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EXHIBIT B

BASIC SERVICES

Service Vendor Per month  

            Per sq. ft./               yr.             $   Monthly rent c/o
Trammell Crow   40,881     14.68   Avg. override     4,300           Subtotal
landlord charges   45,181                         Utilities BGE   16,000        
Office Supplies Corporate Express   3,331         Janitorial Services BWC  
3,300         HVAC service SSS   1,564         Coffee/Soda Black Tie   1,392    
    Postage Purchase Power   1,317         Electrical Contractor Sunset
Electrical   1,000         Power Services JT Packard   801         Waste Removal
Allied   450         Fire supression service BFPE   241         Postage Meter
Pitney Bowes   230         Plumbing Contractor Spence Mechanical   200        
First Aid supplies Cintas   167         Shredding Mid-Atlantic Shredding   160  
      Data Center Cleaning Value Facility Service   100         Cable TV Direct
TV   89         Generator Services Alban   84         Exterminator Western Pest
Control   64           Subtotal shared services facilities              
expenses   30,490           Total for facility $ 75,671        

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Allocation among Owings Mills Tenants:

  Square feet         Mobile Asset Mgt. 14,807 58% $43,669 mobeo 10,173 40%
$30,002 Mobile Finance 678 3% $2,000                                        
 Subtotal 25,658 100% $75,671 Shared space 7,760             Total per lease
33,418    

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SCHEDULE G

Allocation of Purchase Price

  Net       Purchase     Allocation of Purchase price Price Earn Out   US 561
492 98.4% Australia 6 5 1.1%         UK 1 1 0.2% Spain 1 1 0.2% Benelux 1 1 0.2%
International 3 3 0.5%   570 500 100.0%

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Schedule H

TRANSITION SERVICES AGREEMENT

          This TRANSITION SERVICES AGREEMENT (this “Agreement”) is made as of
January 31, 2007, by and between TeleCommunication Systems, Inc., a Maryland
corporation (“TCS”), and Stockgroup Information Systems Inc., a Colorado
corporation (“Stockgroup”). Terms used but not otherwise defined herein, shall
have the meaning ascribed such terms in the Purchase Agreement, as defined
below.

WITNESSETH:

          WHEREAS, pursuant to that certain Purchase Agreement, dated as of
January 24, 2007, by and among Stockgroup and TCS relating to the purchase and
sale of certain assets of TCS comprising its Mobile Finance division (the
“Purchase Agreement”), TCS has agreed to sell, convey, transfer, assign and
deliver to Stockgroup, and Stockgroup has agreed to acquire certain assets and
to assume the Assumed Liabilities from TCS, in each case relating exclusively to
the Business, which the parties agree will be achieved pursuant to (i) the
purchase and sale of the Assets, and (ii) the assumption of the Assumed
Liabilities, all on the terms and subject to the conditions set forth in the
Purchase Agreement; and WHEREAS, in connection therewith, Stockgroup and TCS
desire that TCS provide Stockgroup with certain transition services upon the
terms and provisions and subject to the conditions of this Agreement.

          NOW, THEREFORE, in consideration of the foregoing premises and the
covenants and agreements set forth herein, Stockgroup and TCS agrees as follows:

          1. Transition Services. During the Transition Period (as defined in
Section 5), upon the request of Stockgroup, TCS agrees to provide, or cause its
Affiliates to provide, to Stockgroup from the date of this Agreement for the
period of time described on Annex A attached hereto with respect to each of the
services, the services set forth on Annex A. Such services shall be provided
under the terms and at the prices set forth on Annex A. TCS’s obligation to
deliver any service is conditioned upon TCS’s obtaining the consent, where
necessary, of any relevant third party provider. TCS shall use its commercially
reasonable efforts, and Stockgroup and TCS shall cooperate fully with TCS in all
respects, to obtain any consents that may be required from such licensors in
order to provide any of the services hereunder.

          2. Billing and Payment. In accordance with the provisions of this
Agreement, Stockgroup shall promptly pay for the actual costs including overhead
and profit of all services provided under or pursuant to this Agreement as set
forth in the invoices that it receives from TCS or its Affiliates. Such charges
shall be billed at the end of each calendar month during the Transition Period.
All invoices shall be paid by check in accordance with the instructions provided
by TCS in writing to Stockgroup not later than thirty (30) days following
receipt by Stockgroup of TCS’s invoice. Upon Stockgroup’s request, TCS shall
provide Stockgroup with supporting information for such bills and invoices.

Transition Services Agreement between TCS and Stockgroup January 24, 2007 Page 1
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          3. General Intent. TCS shall use its commercially reasonable efforts
to provide the transition services which are set forth on Annex A and such other
transition assistance as the parties may otherwise agree during the Transition
Period. Stockgroup and its Affiliates agree to use their respective commercially
reasonable efforts to terminate their need to use such assistance as soon as
reasonably possible and (unless the parties otherwise agree) in all events to
terminate such need with respect to each service specified in Annex A not later
than the end of the period specified in Annex A for the provision of each such
service.

          4. Validity of Documents. The parties hereto shall be entitled to rely
upon the genuineness, validity or truthfulness of any document, instrument or
other writing presented in connection with the Agreement unless such document,
instrument or other writing appears on its face to be fraudulent, false or
forged.

          5. Term of Agreement. The term of this Agreement shall commence on the
date hereof and shall continue (unless sooner terminated pursuant to the terms
hereof) for a period of six (6) months (such period the “Transition Period,” or
such other period as may be specified in Annex A with respect to particular
services described in Annex A.) Stockgroup has the option to renew the agreement
for a period extending up to March 31, 2008 for the MIS support identified in
Annex A. Upon termination of this Agreement, all rights and obligation of each
party, other than those set forth in Sections 8 and 11 of this Agreement and
other than any payments by Stockgroup for services provided through the date of
termination shall cease as of the effective date of such termination, and any
such unpaid amounts owed by Stockgroup shall be paid in accordance with the
payment provisions of Section 2.

          6. Partial Termination. Any and all of the services provided by TCS
and its Affiliates hereunder are terminable earlier than the period specified in
Annex A by Stockgroup only upon thirty (30) days prior written notice to TCS.
Any such termination shall be final.

          7. Assignment. This Agreement shall not be assignable in whole or in
part by Stockgroup without the prior written consent of TCS. TCS may assign,
sell, delegate or otherwise transfer this Agreement or any of its rights and
obligations hereunder as part of a merger, consolidation, corporate
reorganization, joint venture, lease, sale of all or a portion of its assets,
sale of stock or similar event; provided that in connection with any such
transaction (a) the resulting, surviving or transferee Person (any such Person,
a “Successor Company”) by operation of law, becomes, without more, bound by the
terms and provisions of this Agreement or, if not so bound, the Successor
Company expressly assumes the rights and obligations of TCS under this Agreement
which are being transferred to such Successor Company, and (b) TCS shall notify
Stockgroup in writing promptly (and in no event more than ten (10) days) after
any such assignment, sale, delegation or transfer.

          8. Confidentiality. Each party hereto agrees to hold, and use its best
efforts to cause its officers, directors, employees, accountants, counsel,
consultants, advisors and agents to hold, in confidence, unless compelled to
disclose by judicial or administrative process or by other requirements of law,
all confidential documents and information concerning this Agreement and any
services provided hereunder, provided, however, that to the extent that any of
them may become so legally compelled, they may only disclose such information if
they shall first have used best efforts to, and, if practicable, shall have
afforded the other party the opportunity to,

2

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obtain an appropriate protective order or other satisfactory assurance of
confidential treatment for the information required to be disclosed. If this
Agreement is terminated, Stockgroup will, and will use their best efforts to
cause their respective officers, directors, employees, accountants, counsel,
consultants, advisors and agents to, destroy or deliver to TCS, upon request,
all documents and other materials, and all copies thereof, obtained by
Stockgroup and its respective Affiliates or on their behalf from TCS or any of
its Affiliates in connection with this Agreement that are subject to such
confidence. Notwithstanding anything herein to the contrary, the parties agree
(and each affiliate and person acting on behalf of such party) agree that each
party (and each employee, representative, and other agent of such party) may
disclose to any and all persons without limitation of any kind, the tax
treatment and tax structure of the transaction and all materials of any kind
(including opinions and other tax analyses) that are provided to such party or
such persons relating solely to such tax treatment and tax structure, except to
the extent necessary to comply with any applicable federal or state securities
laws.

          9. Governing Law; Submission To Jurisdiction. This Agreement shall be
deemed to be made in and in all respects shall be interpreted, construed and
governed by and in accordance with the law of the State of Maryland without
regard to the conflict of law principles thereof.

          10. Limitation of Liability. TCS shall not be liable to Stockgroup,
its Affiliates or any third party for any special, consequential or exemplary
damages (including lost or anticipated revenues or profits relating to the same)
arising from any claim relating to this Agreement or any of the services
provided hereunder, whether such claim is based on warranty, contract, tort
(including negligence or strict liability) or otherwise, even if an authorized
representative of TCS is advised of the possibility or likelihood of the same.
In addition, TCS shall not be liable to Stockgroup, any of its Affiliates or any
third party for any direct damages arising from any claim relating to this
Agreement or any of the services provided hereunder or required to be provided
hereunder, except to the extent that such direct damages are caused by the gross
negligence or willful misconduct of TCS or its Affiliates.

          11. Default. In the event that (a) Stockgroup fails to pay any amount
when due under this Agreement within fifteen (15) days after written notice that
such payment is due; or (b) Stockgroup fails to perform, or breaches or defaults
under any other material term, condition or obligation of this Agreement, and
such failure, breach or default is not cured within thirty (30) days after
written notice thereof, TCS shall have the right to terminate this Agreement
without penalty to TCS and without prejudice to any other rights and remedies of
TCS and its Affiliates.

          12. Counterparts. This Agreement may be executed in one or more
counterparts (including by means of telecopied signature pages), all of which
shall be considered one and the same agreement, and shall become effective when
one or more such counterparts have been signed by each of the parties and
delivered to the other parties.

          13. Notices. All notices or other communications required or permitted
to be delivered hereunder shall be in writing and shall be delivered by hand or
sent by prepaid telex or telecopy, or sent, postage prepaid, by registered,
certified or express mail, or reputable overnight courier service and shall be
deemed delivered when so delivered by hand, telexed or telecopied with
acknowledged receipt, or if mailed, five (5) calendar days after mailing (one
(1) Business Day in the case of express mail or overnight courier service), as
follows:

Transition Services Agreement between TCS and Stockgroup January 24, 2007 Page 3
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If to TCS:

TeleCommunication Systems, Inc.
275 West Street
Annapolis, Maryland 21401
Attn: Thomas Brandt
Telephone: (410) 280-1001
Facsimile: (410) 280-1048

If to Stockgroup:

Stockgroup
500 – 750 West Pender Street
Vancouver, British Columbia
V6C 2T7
Attention: Susan Lovell
Telephone: (604) 331-0995 x 123
Facsimile: (604) 331-1194

or such other address or facsimile number as such party may hereafter specify in
writing for the purpose by notice to the other parties hereto.

          14. Amendment And Waiver. This Agreement may be amended, modified,
superseded or canceled, and any of the terms, covenants, representations,
warranties or conditions hereof may be waived, only by a written instrument
executed by the parties hereto, or, in the case of a waiver, by or on behalf of
the party waiving compliance. The failure of any party at any time or times to
require performance of any provision hereof shall in no manner affect the right
at a later time to enforce the same. No waiver by any party of any condition, or
of any breach of any term, covenant, representation or warranty contained in
this Agreement, in any one or more instances, shall be deemed to be or construed
as a further or continuing waiver of any such condition or breach or a waiver of
any other condition or of any breach of any other term, covenant, representation
or warranty.

          15. Interpretation. The headings and captions contained in this
Agreement and in Annex A attached hereto are for reference purposes only and
shall not affect in any way the meaning or interpretation of this Agreement. The
use of the word “including” and all variants thereof herein shall mean
“including without limitation.” 16. No Strict Construction. The language used in
this Agreement shall be deemed to be the language chosen by the parties hereto
to express their mutual intent, and no rule of strict construction shall be
applied against any person.

          17. Entire Agreement. This Agreement, the Purchase Agreement and the
other agreements contemplated therein contain the entire agreement and
understanding between the

Transition Services Agreement between TCS and Stockgroup January 24, 2007 Page 4
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parties hereto with respect to the subject matter hereof and supersede all prior
agreements and understandings, whether written or oral, relating to such subject
matter.

          18. Relationship of Parties. Except as specifically provided herein,
none of the parties shall act or represent or hold itself out as having
authority to act as an agent or partner of the other parties, or in any way bind
or commit the other party to any obligations. Nothing contained in this
Agreement shall be construed as creating a partnership, joint venture, agency,
trust or other association of any kind, each party being individually
responsible only for its obligations as set forth in this Agreement.

          19. Force Majeure. If TCS or any of its Affiliates is prevented from
complying, either totally or in part, with any of the terms or provisions of
this Agreement by reason of fire, flood, hurricane, storm, strike, lockout or
other labor trouble, any law, order, proclamation, regulation, ordinance, demand
or requirement of any governmental authority, riot, war, rebellion or other
causes beyond the reasonable control of TCS or its Affiliates or other acts of
God, then upon written notice to Stockgroup, the affected provisions and/or
other requirements of this Agreement shall be suspended during the period of
such disability and TCS and its Affiliates shall have no liability to Stockgroup
any of their respective Affiliates or any other party in connection herewith.
TCS shall use all commercially reasonable efforts to remove such disability
within thirty (30) days of giving notice of such disability.

[END OF PAGE]
[SIGNATURE PAGES FOLLOW]

Transition Services Agreement between TCS and Stockgroup January 24, 2007 Page 5
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          IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by their duly authorized representatives as of the date and year first
set forth above.

  TELECOMMUNICATION SYSTEMS,   INC.               By:
________________________________________          Name:          Title:      
STOCKGROUP INFORMATION   SYSTEMS INC,.               By:
________________________________________          Mr. Marcus New          CEO &
President

[Signature Page For Transition Services Agreement]

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ANNEX A
TO
TRANSITION SERVICES AGREEMENT

          This Annex A sets forth the transition services to be provided by TCS
to Stockgroup relating to the operation of the Business. To the extent that
transition services set forth on this Annex A may be provided to Stockgroup,
such services will be provided in a commercially reasonable manner. In the event
TCS reasonably determines that the performance of any of the transition services
is commercially unreasonable and TCS informs Stockgroup it intends to cease the
performance of such services, Stockgroup, on one hand, and TCS, on the other
hand, shall enter into prompt and good faith negotiations to resolve TCS’s
inability to provide the services in question.

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TRANSITION SERVICES AGREEMENT ANNEX A

TCS to StockGroup

          This Annex A sets forth the transition services to be provided by TCS
to Stockgroup relating to the operation of the Business. To the extent that
transition services set forth on this Annex A may be provided to Stockgroup,
such services will be provided in a commercially reasonable manner. In the event
TCS reasonably determines that the performance of any of the transition services
is commercially unreasonable and TCS informs Stockgroup it intends to cease the
performance of such services, Stockgroup, on one hand, and TCS, on the other
hand, shall enter into prompt and good faith negotiations to resolve the
inability of TCS to provide the services in question.

          In all cases, TCS will migrate to hardware supplied by Stockgroup.

Item

Service

Price

Transition
Period
  Human Resources     1) Since all Transferred Employees will be terminated
effective with the Closing Date, there will be no need for a payroll transition.
Terminating employees will receive a final pay check from TCS including a payout
of all accrued and unused paid time off in accordance with company policy. No
charge       2) Administration of Transferred Employees’ 401(k) Plan: All
Transferred Employees will be terminated from TCS’s 401(k) plan as a normal
termination. Any Transferred Employee who wishes to roll over a balance into
Stockgroup’s plan will do so as new hires of Stockgroup. Transferred Employees
will also have the option to keep their balances in TCS’s 401(k) Plan in
accordance with ERISA. No charge       3) Stock Option and Employee Stock
Purchase Plans – TCS will terminate each Transferred Employee’s participation in
said plans in accordance with both TCS’s customary policies and procedures, as
well as the terms and conditions of the respective plans. No charge       4)
Transition of TCS employees to Stockgroup Benefit Programs - Transferred
Employees will be terminated from all TCS Employee Benefits Plans effective as
of the date of Closing. Health, dental and vision coverage shall continue in
force through the end of the month in which the termination occurs. Transferred
Employees will be eligible to purchase COBRA through TCS if they so choose. No
charge       5) TCS will transfer copies of all employee HR files to Stockgroup.
No charge 1 Week of Closing

Page 1 of 3

Schedule H Annex A Transition Services Agmt tasks TCS to Stock Group 012207.doc

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  Legal Services     1) TCS shall make available employees in its legal
department, during normal business hours and on reasonable notice, to answer
questions regarding the Assigned Contracts, as is deemed reasonable by TCS No
charge 1 Month 2) TCS shall use reasonable means to notify vendors and customers
of the Business which exists as of the date of Closing of the sale of the
Business to Stockgroup. No charge       Accounting Services $4,000/ Month, after
one month of normal transition at no charge       1) TCS shall provide audited
financial statements of the consolidated US, UK, Benelux and Spain Mobile
Finance business for years 2005 and 2006. Estimated charge of £15,000 Target
within 45 days of closing 2) TCS shall provide Stockgroup with the databases
directly related to the business provided that TCS shall have rights to request
information based on those databases in the event of a future tax audit. Not
separately Priced Within 2 Weeks of Closing 3) TCS will provide copies of
invoices and other pertinent records that support the ending December 31, 2006
balance sheet Not separately Priced Within 2 Weeks of Closing 4)

For up to two (2) months after closing, TCS will perform the following services
for Stockgroup:

 * TCS will support the closings for two (2) months and provide an EBITDA
   statement and balance sheet information.
 * Preparation of all required information for reporting of sales tax and
   communication taxes for two (2) months after closing.
 * Reports necessary for the day-to-day operation of the division as they
   currently exist in TCS systems.
 * Purchasing services required to operate the business

Not separately Priced As Requested

Page 2 of 3

Schedule H Annex A Transition Services Agmt tasks TCS to Stock Group 012207.doc

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  MIS     1) TCS shall work with Stockgroup to ensure that all network access
and cutover to Stockgroup network systems, e-mail, etc. will be addressed to
maintain the proper security between Stockgroup and TCS networks. $3,000/ Month,
after
one month of
normal
transition at
no charge 1 Month 2) TCS will provide Stockgroup transition services to support
the network and access to necessary applications: 
        •   Telephony and related support 
        •   Desktop applications 
        •   E-mail Services. 
        •   Remote access: VPN (Network) and Outlook Web Access (OWA). 
        •   Data storage desk top support and print services for employees and
departments. 
        •   Internet access. 
        •   Wireless LAN. 1 Month 3) TCS shall provide Website hosting as it
exists at the time of this executed TSA for the following sites, and will
provide the site
content in an agreed upon format prior to the end of the TSA term. Some of these
sites may not be active, but the content will be
transitioned if required: 
                a.    http://rcs.reuters.com 
                b.    http://ota.marketstreamlive.com 
                c.    http://mobeoweb.com/mcpweb
$9,167.00/
Month
$65/Hr. T&M 3 Months 4)
TCS shall provide hosting services and database support for the following
services as they exist at the time of this executed TSA.
Assistance with significant upgrades/changes to the system will be performed on
a Time and Materials basis, or through a separate
agreement. 
                a.    RMDS Based MarketStream 
                b.    BridgeFeed Based MarketStream 
                c.    Hosted BES/Exchange for UK MarketStream 
                d.    MarketClip 
                e.    MarketClip Plus 
                f.    1-Way Pager Products 
                g.    2-Way Pager Products 
                h.    Mobile Finance specific business systems 3 Months
5) TCS shall provide building badge access services as they exist at the time of
this executed TSA. No Charge 3 Months 6) TCS shall provide Stockgroup access to
the Aether Instant Messaging (AIM) client through March 31, 2007. No Charge
Through March 31, 2007

Page 3 of 3

Schedule H Annex A Transition Services Agmt tasks TCS to Stock Group 012207.doc

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Schedule I

Disclosure Schedule

6.3(b)    Noncontravention NONE     6.5          Title to Assets NONE    
6.10        Title to Acquired Assets NONE

Purchase Agreement TCS Stockgroup Schedule I – Disclosure Schedule January 24,
2007 Page 1 of 12

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6.11 Subsidiaries

Company Name
Previous Name(s) Registration
Number Date of
Incorporation
Registered Office Address Authorized Share
Capital Issued Share
Capital
Directors
Shareholder                  

TeleCommunication Systems Ltd. Aether Management Services Ltd.
Sila Management Services Ltd.
Higherlinks Ltd.

03968661

10-Apr-00 6 Dyers Buildings
Holburn
London EC1N 2JT 1,000,000
Ordinary Shares
£1.00 each 800,001
Ordinary Shares
£1.00 each
Thomas Brandt
Maurice Tosé
TeleCommunication
Systems (Holdings) Ltd.

Aether Systems (UK) Ltd.

Sila Communications (UK) Ltd.
Futures Pager Ltd.

01831719

11-Jul-84
6 Dyers Buildings
Holburn
London EC1N 2JT 1,000 A
9,000 B
Ordinary Shares
£1.00 each 100 A
970 B
Ordinary Shares
£1.00 each

Thomas Brandt
Maurice Tosé

TeleCommunication
Systems Ltd.

TeleCommunication Systems
Iberian, SA Aether Systems SA
Sila Communications SA
Sila Communications Spain SA
IFX Finanzas Espana SA

A81968760

6-Mar-98

Paseo Castellana 161
28046 Madrid, Spain

25,000
Ordinary Shares

25,000
Ordinary Shares

Thomas Brandt
Maurice Tosé

TeleCommunication
Systems (Holdings) Ltd.

TeleCommunication Systems
Benelux BV Aether Systems Benelux BV
IFX (The Netherlands) BV
Sila Communication Systems
Benelux BV

33297036
(BV #: 606796)

14-Oct-97

Joop Geesingkweg 901-999
1096AZ Amsterdam
€91,000 of 901
Ordinary Shares
€100 each
€18,200 of 182
Ordinary Shares
€100 each
Charles Ancher
Thomas Brandt
Maurice Tosé

TeleCommunication
Systems (Holdings) Ltd.

Purchase Agreement TCS Stockgroup Schedule I – Disclosure Schedule January 24,
2007 Page 2 of 12

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6.12 Statement of Net Assets

Schedule 6.12
Mobile Finance November 30 Statement of Net Assets

[schedulesx56x1.jpg]

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2007 Page 3 of 12

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6.13

Events Subsequent to Most Recent Fiscal Quarter End

    (a) through (j) NONE         (k) TCS and FT Interactice Data (Europe) Ltd
(“Comstock”) have verbally agreed to settle a dispute over the termination of a
data feed agreement. The verbally agreed upon settlement terms require TCS to
pay Comstock’s invoices for service through October 2006 and Comstock agrees to
terminate the data feed agreement at the end of October 2006.           (l)
through (w) NONE                         6.14   Undisclosed Liabilities NONE

6.16

Tax Matters

    Company Jurisdiction   (d) TCS Limited England     Benelux Netherlands    
Spain Spain

All of the financial statements used to prepare tax returns were audited by
TCS’s independent auditors. None of the tax returns has been audited by the
respective taxing authorities and TCS is not aware of any impending audit of tax
returns.

    6.17

Real Property

  (b) 1) Paseo de la Castellana, 161-12A       28046 Madrid, Spain       Lease
Agreement dated 23 October 1996 (in Spanish) (the “Madrid       Lease”)     2) 6
Dyers Building       Holburn, London, EC1N2JT, England       Collin Estates
Limited to Synamic Limited Lease of Number 6 Dyers       Buildings dated 14
January 1999 (the “UK Lease”)     3) 11460 Cronridge Drive       Owings Mills,
Maryland, 21117 USA       Sublease Agreement set forth in Schedule F to the
Purchase Agreement         (b)(ii) per Article 9 of the Madrid Lease, the
landlord must consent to the assignment of the lease.       (b)(viii) The
Iberian entity has an informal arrangement with a third party who shares space
and pays rent to Iberian for the leased space set forth in Section 6.17(b) of
this Disclosure Schedule.           (c)   NONE

Purchase Agreement TCS Stockgroup Schedule I – Disclosure Schedule January 24,
2007 Page 4 of 12

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6.18

Intellectual Property

  (a)

(i) Trademarks: Include by reference here only the registered marks set forth on
Schedule B (List of Trademarks) to Purchase Agreement.

 

(ii) Domain Names:

  1.

docupro.com

  2.

marketclip.com

  3.

pocketfutures.com

  4.

Marketstreamlive.com

  5.

Wirelessdatascreen.com

  6.

Portabledatascreen.com

  7.

Mobiquote.com

  8.

Gotxt.com

  (b)

Proprietary software (including source code) for which TCS owns the intellectual
property rights to includes:

  1.

ASTRO/DINO/SCOOBY (customized Access 97 apps)

  2.

TCS intranet site for marketStream support (maintained by Dave Clarke)

  3.

FX Alert

  4.

Energy Pager/Energy Alert

  5.

Scrappy Pager/Scrappy

  6.

PocketFutures

  7.

MarketClip

  8.

MarketClip Plus

  9.

Wireless Datascreen (including Generic Real-time Information Manager)

  10.

MiniTerminal (including IFX)

Licensed software programs, products and services which are material to the
uninterrupted or unimpeded operation of the Business that TCS licenses from
third parties includes:

  1.

Server and Client Software licenses underlying the marketStream service all as
more specifically set forth in the Fourth Amendment and Restatement of the
Software License Agreement between Imperial Software Technology Limited (IST)
and TeleCommunication Systems Limited dated May 31, 2006 (the “IST License
Agreement”)

  2.

Solomon 4 v2.06 (customized)

  3.

Citrix

  4.

Reuters 3000Xtra HTA software v5

  5.

Reuters 3000Xtra Deployed (feed software) v5

  6.

Reuters Terminal software v3.91

  7.

Reuters Messenger software

  8.

Reuters eDAD datafeed access declaration software

Purchase Agreement TCS Stockgroup Schedule I – Disclosure Schedule January 24,
2007 Page 5 of 12

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  9.

Cognos ReportNet (for reporting from mStream production); parts include:
Configuration Manager, Framework Manager and Report Studio

  10.

Motorola CP-1250 pager programming software

  11.

Access ARIBA site

  12.

Bridgefeed BFClient App

Excluded software (“Excluded Software”) includes:

  1.

Except to the extent set forth in Schedule H (Transition Services Agreement),
access to the TSDA intranet site (used for provisioning AIM-based applications
including marketClip Plus) (uses AIM database)

  2.

POS Partner (credit card processing software for Solomon) by Merchant e
Solutions

  3.

Remedy software product and the Customer Support Software product that is
developed in Remedy and owned by TCS to provide customer support and trouble
ticket tracking and resolution (“CSS Support”)

  4.

UNICORN billing system

  5.

StarTeam change and configuration management software

  6.

Visual C++ 6.0 Enterprise Edition

  7.

Installshield 5.5 Professional Edition

  (d) Encumbrances NONE

  (e)

Royalty Payment

  1.

Payments to Imperial Software Technology Limited (IST) for the license to use
and redistribute components of marketStream service all as more specifically set
forth in Exhibit C (Fees and Costs) to the Fourth Amendment and Restatement of
the Software License Agreement between Imperial Software Technology Limited
(IST) and TeleCommunication Systems Limited dated May 31, 2006 as amended by the
Fifth Amendment dated January 15, 2007 (the “IST License Agreement”).

  2.

Commission payable to sales agents as set forth in their respective agreements:

  a.

Agency agreement executed by and between Chris Parker and mobeo, Inc. dated 8
Oct. 1999 (currently assigned to TeleCommunication Systems, Inc.)

  b.

Consultancy Agreement executed by and between Gavin Brown and Aether Systems
(UK) Ltd dated 1 July 2003 (currently assigned to TeleCommunication Systems
Ltd.)

  c.

There are currently four agency agreements that are being negotiated but as yet
unsigned. Each of these agency agreements would pay commissions on marketStream
customers. These agreements are being negotiated with Gavin Brown, Peter
Colleoni, Peter Sandstrom, and Patrick Heisch.

Purchase Agreement TCS Stockgroup Schedule I – Disclosure Schedule January 24,
2007 Page 6 of 12

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  3.

TCS makes an annual royalty payment of approximately USD$3,000.00 to Dealing
Object Technology for a software license (run-time version only) for components
that are used by TCS’ legacy pager products in the United States.

6.19   Sufficiency of Assets

          The Excluded Software set forth in Section 6.18(b) of the Disclosure
Schedule is included here by reference.

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2007 Page 7 of 12

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6.22 Contracts

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6.22(b) Schedule O (Customer Lists) is hereby incorporated by reference.    
6.22(g) Employment Agreements for:

Julius Beltrame
Wan-Tak Wong
Rebecca Henry
Christopher Lobb
Alexander Stephenson
Charles Ancher
Thomas Jaehnigen
Rebecca Sargent
Jennifer Gray
Charles Ikard
Maryanne Murphy
Gonzalo Esteban Cruz

Purchase Agreement TCS Stockgroup Schedule I – Disclosure Schedule January 24,
2007 Page 11 of 12

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6.28   Employee Benefits Plans

Benelux       Income Protection Amersfoort Pension Gererali

Great Britain           Group Critical Illness Canada Life C94021 Group Income
Protection UNUM 914772 Group Life Assurance Canada Life G721472/1/L Group
Personal Pension Scottish Equitable 76384 Group Permanent Health Insurance BUPA
20/23679600007

Purchase Agreement TCS Stockgroup Schedule I – Disclosure Schedule January 24,
2007 Page 12 of 12

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SCHEDULE J

Trademark Assignment

WHEREAS, TeleCommunication Systems, Inc., a Maryland corporation, with offices
at 275 West Main Street, Annapolis, Maryland (“ASSIGNOR”) owns certain
trademarks and/or service marks, and applications and/or registrations for such
marks, as listed in Attachment A attached hereto and incorporated herein by this
reference (“MARKS”);

WHEREAS, Stockgroup Systems Ltd., a Nevada corporation (“ASSIGNEE”), desires to
acquire all of the right, title and interest of ASSIGNOR in, to and under the
MARKS, together with the goodwill of the business symbolized by the MARKS;

WHEREAS, ASSIGNOR and ASSIGNEE have entered into a certain Asset Purchase
Agreement, dated as of January 24, 2007 (the “PURCHASE AGREEMENT”), assigning,
among other things, all right, title and interest in and to the MARKS from
ASSIGNOR to ASSIGNEE;

WHEREAS, ASSIGNEE is a successor to the business of the ASSIGNOR to which the
MARKS pertain.

NOW, THEREFORE, in consideration of the Asset Purchase Price (as defined in the
Purchase Agreement) and other good and valuable consideration paid by ASSIGNEE
to ASSIGNOR, the receipt and sufficiency of which hereby is acknowledged,
ASSIGNOR does hereby assign to ASSIGNEE its entire right, title and interest in
and to the MARKS, and to the applications and/or registrations for the MARKS,
together with the goodwill of the business symbolized by the MARKS and the
portion of the business of the ASSIGNOR to which the MARKS pertain, including
the right to sue for and collect damages incurred as a result of any past,
present or future infringement, misappropriation or violation of rights related
to the MARKS.

IN WITNESS WHEREOF, ASSIGNOR has caused this Assignment to be duly executed by
an authorized officer on this 31st day of January, 2007.

TELECOMMUNICATION SYSTEMS, INC.

 

By:      _____________________________________

Name: _____________________________________

Title:   _____________________________________

--------------------------------------------------------------------------------

ATTACHMENT A

Registered Trademarks

Mark
Country
Filing
Date/Status Reg. No.
Int’l Class
Designation
POCKETFUTURES

US

6/6/97; registered
12/21/99.
Renewal due
12/21/08-09 2,302,505

36

®

SCRAPPY

US

5/27/97;
registered
6/16/98; renewal
due between
6/16/07 and
6/16/08. 2,165,800

9

®

SCRAPPY PAGER

US

5/27/97;
registered
5/26/98; renewal
due between
5/26/07 and
5/26/08. 2,160,599

35

®

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SCHEDULE K

Domain Name Assignment

This Domain Names Assignment is delivered pursuant to the Closing under that
certain Purchase Agreement (the “Agreement”) dated as of January 24, 2007,
between TeleCommunication Systems, Inc., as the “Seller”, and Stockgroup Systems
Ltd., as the “Purchaser”. Capitalized terms used in this Domain Names Assignment
have the same meanings given to them in the Agreement.

The Seller has delivered this instrument signed by the Seller to enable the
Purchaser to file it with any appropriate agency to indicate ownership of the
intellectual property described below and for the other purposes set forth in
this instrument. This instrument supplements and is in addition to all other
rights of the Purchaser under the Agreement and other instruments of transfer
delivered in connection with the Agreement.

The Seller has adopted and registered the Internet Domain Names listed on the
attached Attachment A (the “Domain Names”) with Network Solutions, Inc.,
Register.com or other registrars throughout the world (each a “Registrar”) on
various dates.

For good and valuable consideration, receipt of which the Seller acknowledges,
and by signing and delivering this instrument, the Seller sells, assigns,
transfers, conveys, and delivers to the Purchaser all of the Seller’s right,
title and interest in and to the Domain Names and agrees as follows:

          1.      Successful Transfer. At the Closing Date or a commercially
reasonable timeframe thereafter, the Seller shall complete, or cause to be
completed, the formal transfer of the Domain Names to the Purchaser in
accordance with the applicable Domain Names transfer procedure of each Registrar
(the “Transfer Procedure”).

                    (a)      The Seller agrees that, for no additional
compensation, the Seller will execute any and all documents that may be
necessary or appropriate to perfect the Purchaser’s rights in and to the Domain
Names, including but not limited to all documents that may be necessary or
appropriate to effect the formal transfer of the Domain Names to the Purchaser
in accordance with the Transfer Procedure. In connection with the Transfer
Procedure, the Seller will provide any information required or requested by the
Registrar or the Purchaser, including but not limited to, the name or names
identified by the Purchaser for billing, administrative and technical contacts.

                    (b)      At any time, and from time to time after the
Closing, the Seller agrees, promptly upon the Purchaser’s written request, to
take any and all steps reasonably necessary to execute, acknowledge and deliver
to the Purchaser any and all further instruments and assurances necessary to
complete a Successful Transfer. “Successful Transfer” means for this purpose
that Purchaser owns and is accurately recognized as the registrant of the Domain
Names in the Network Solution, Inc.’s WHOIS database; that the Purchaser has all
rights, title and interest in and to the Domain Names; and the Purchaser is able
to use or allow others to use the Domain Names.

--------------------------------------------------------------------------------

- 2 -

          2.      Cease Use of Names. As of the Closing Date, the Seller will
stop all use of the Domain Names for any purpose, including, but not limited to,
use for an Internet site or for electronic mail. The Seller shall not adopt any
new uses of the Domain Names.

          3.      Non-Interference. Except as permitted under that certain
Trademark Assignment Agreement executed between Seller and Purchaser on January
31, 2007, Seller agrees not to challenge or object to the Purchaser’s (a) right
to register, use, own or transfer the Domain Names anywhere in the world, or (b)
right to register, use, own or transfer any trademarks, service marks, Domain
Names or trade names that include or consist of the Domain Names anywhere in the
world. The Seller also agrees not to take any action that would interfere with
any rights the Purchaser may have or acquire in the Domain Names and marks.

          4.      Representations and Warranties. Seller represents and warrants
to Purchaser as follows and acknowledges that Purchaser is relying on these
representations and warranties in entering into this Agreement:

  (a)

Seller is the sole registrant of the Domain Names and has sufficient authority
and right to enter into this Domain Names Assignment and perform its obligations
hereunder, and in particular, to transfer all title and ownership of the Domain
Names and the Domain Names registration to Purchaser as provided in this
Agreement, free and clear of all encumbrances;

        (b)

As at the Closing Date, there is not outstanding or pending any proceeding under
the Uniform Dispute Resolution Policy and there have been no third party claims
or demands against Seller in connection with Seller’s registration and/or use of
the Domain Names, including claims for infringement of third party trade-mark or
other intellectual property rights;

        (c)

There is no contract, option or any other right of any person binding upon
Seller, or which at any time may become binding upon Seller, to sell, transfer,
assign, license or in any other way dispose of or encumber the Domain Names or
the Domain Names registration other than pursuant to the provisions of this
Domain Names Assignment; and

        (d)

Neither Seller nor any entity controlled by or under common control with Seller
is the registrant or owner of any other Domain Names that is confusingly similar
to the Domain Names.

          The undersigned has signed this Domain Names Assignment on January 31,
2007.

[Remainder of page intentionally left blank; signature page to follow]

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- 3 -

TELECOMMUNICATION SYSTEMS, INC.

 

By:      _____________________________________

Name: _____________________________________

Title:   _____________________________________

STATE OF MARYLAND COUNTY OF ANNE ARUNDEL

On ____________________ before me, ______________________ (the undersigned
notary), personally appeared _______________________ personally known to me (or
proved to me on the basis of satisfactory evidence) to be the person whose name
is subscribed to the within instrument and acknowledged to me that he executed
the same in his authorized capacity, and that by his signature on the instrument
the person, or the entity upon behalf of which the person acted, executed the
instrument.

WITNESS my hand and official seal.

    Notary Public (seal)

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ATTACHMENT A

Domain Names Registration
Date Renewal
Date
Registrant docupro.com 9/13/2002 1/5/2011 TeleCommunication Systems, Inc.
marketclip.com 9/16/2002 2/17/2007 TeleCommunication Systems, Inc.
pocketfutures.com 6/10/1997 6/11/2007 TeleCommunication Systems, Inc.

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SCHEDULE L

Assignment and Assumption Agreement - General

          This Assignment and Assumption Agreement (this “Assignment and
Assumption Agreement”) is made and entered into as of January 31, 2007,
TeleCommunication Systems, Inc., a Maryland corporation, with offices at 275
West Street, Annapolis, Maryland (“Assignor”), and Stockgroup Systems Ltd., a
Nevada corporation (“Assignee”).

          WHEREAS, Assignor and Assignee are parties to that certain Asset
Purchase Agreement, dated as of January 24, 2007 (the “Purchase Agreement”);
WHEREAS, pursuant to the Purchase Agreement, Assignor has agreed to assign
unconditionally and absolutely certain rights to Assignee in respect of certain
agreements, and Assignee has agreed to assume certain obligations of Assignor in
respect thereof.

          NOW, THEREFORE, for and in consideration of the premises and the
mutual covenants contained herein, and for other good and valuable
consideration, the receipt, adequacy and legal sufficiency of which are hereby
acknowledged, the parties do hereby agree as follows:

          1.      Capitalized Terms. Capitalized terms used but not defined
herein shall have the meanings for such terms that are set forth in the Purchase
Agreement.

          2.      Assignment and Assumption. Assignor hereby assigns, sells,
transfers and sets over (collectively, the “Assignment”) to Assignee all of
Assignor’s right, title, benefit, privileges and interest in, to and under the
agreements and contracts set out in Attachment A hereto (the “Assumed
Benefits”), and all of Assignor’s burdens, obligations and liabilities in
connection therewith (the “Assumed Liabilities”) which shall become due for
payment, performance or discharge, from and after the Closing Date. Assignee
hereby accepts the Assignment and assumes and agrees to observe and perform all
of the duties, obligations, terms, provisions and covenants, and to pay and
discharge all of the liabilities of Assignor to be observed, performed, paid or
discharged in connection with such Assumed Liabilities from and after the
Closing Date.

          3.      Excluded Liabilities. Nothing contained herein shall be
construed to effect an assignment by Assignor or the assumption by Assignee of
any of the Excluded Liabilities.

          4.      Terms of the Purchase Agreement. The terms of the Purchase
Agreement are incorporated herein by this reference. In the event of any
conflict or inconsistency between the terms of the Purchase Agreement and the
terms hereof, the terms of the Purchase Agreement shall govern.

          5.      Further Actions. Each of the parties hereto covenants and
agrees, at its own expense, to execute and deliver, at the request of the other
party hereto, such further instruments of transfer and assignment and to take
such other action as such other party may reasonably request to more effectively
consummate the assignments and assumptions contemplated by this Assignment and
Assumption Agreement.

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2

          6.      Successor and Assigns. All of the terms and provisions of this
Assignment and Assumption Agreement shall be binding upon each party hereto and
their respective successors and assigns, and shall inure to the benefit of each
other party and its successors and assigns.

          7.      Governing Law. This Assignment and Assumption Agreement shall
be governed by and construed in accordance with the laws of the State of New
York.

          8.      Counterparts. This Assignment and Assumption Agreement may be
signed in two or more counterparts, all of which, taken together, shall be
deemed to constitute one original Assignment and Assumption Agreement.

          IN WITNESS WHEREOF, the parties have executed this Assignment and
Assumption Agreement as of the date first above written.

ASSIGNOR: ASSIGNEE:     TELECOMMUNICATION SYSTEMS, STOCKGROUP SYSTEMS LTD.,
INC., a Maryland corporation a Nevada corporation         By:     
_____________________________________ By:     
_____________________________________     Name:
_____________________________________ Name:
_____________________________________     Title:  
_____________________________________ Title:  
_____________________________________

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ATTACHMENT A

Assumed contracts and agreements include:

Exchange and Data Feed Agreements

1.

Internet Redistribution Addendum Order Form dated June 1, 2005 with Reuters.

    2.

Internet Redistribution Addendum Order Form dated August 31, 2005 with Reuters.

    3.

Master Services Agreement dated August 3, 2003 with Reuters America LLC, as
amended.

    4.

Market Data Agreement dated January 29, 1999 with New York Mercantile Exchange.

    5.

Market Databases Distribution Agreement dated November 30, 2001 with Euronext,
as amended.

    6.

Market Data Dissemination Agreement dated April 1, 2004 with Deutsch Borse AG.

    7.

Information Distribution Agreement dated January, 2004 with Chicago Mercantile
Exchange.

    8.

Market Data Vendor/Subvendor Agreement dated January 1, 2000 with Chicago Board
of Trade.

    9.

Distribution Agreement dated April 10, 1995 with GovPx.

    10.

Vendor Agreement for Level 1, Last Sale and NQDS Service dated August 5, 1998
with NASDAQ.

    11.

Standard Market Data Vendor Agreement dated July 17, 2000 with NYBOT.

    12.

Agreement for Receipt and Use of Market Data dated March 9, 2004 with New York
Stock Exchange.

    13.

Options Price Reporting Authority Vendor Agreement (Last Sale and Quotation
Information) dated December 4, 1998 with Options Price Reporting Authority
(including Dial-up Market Data Service Rider).

    14.

Price Vendor Agreement dated March 7, 2000 with Singapore Stock Exchange
Derivatives Trading Limited.

    15.

Agreement dated June 4, 1998 with London Metal Exchange.

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A-2

Airtime Resale Agreements

16.

Resale Agreement dated March 30, 1999 with U.S. Mobility.

Distribution Agreements.

17.

Development License and Support Agreement dated June 13, 2006 with Reuters.

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SCHEDULE M

General Assignment and Bill of Sale

          1.      Sale and Transfer of Fixed Assets. For good and valuable
consideration, the receipt, adequacy and legal sufficiency of which are hereby
acknowledged, and as contemplated by Section 2.1 of that certain Asset Purchase
Agreement dated as of January 24, 2007 (the “Purchase Agreement”), to which
TeleCommunication Systems, Inc., a Maryland corporation, with offices at 275
West Street, Annapolis, Maryland (“Seller”), and Stockgroup Systems Ltd., a
Nevada corporation (“Buyer”), are parties, Seller hereby sells, transfers,
assigns, conveys, grants and delivers to Buyer and its successors and assigns,
all of Seller’s right, title and interest in, under and to all of the fixed
assets (the "Fixed Assets") set out in Attachment A hereto which form part of
the Acquired Assets.

          2.      Capitalized Terms. Capitalized terms used but not defined
herein shall have the meanings ascribed to such terms in the Purchase Agreement.

          3.      Further Actions. Seller covenants and agrees to execute and
deliver, at the reasonable request of Buyer, and to take such other action as
Buyer may reasonably request to more effectively consummate the assignments
contemplated by this General Assignment and Bill of Sale.

          4.      Limited Power of Attorney. Subject to Section 9.4 (Procedure
for Indemnification - Third Party Claims) of the Purchase Agreement, Seller
hereby constitutes and appoints Buyer as its true and lawful agent and attorney
in fact, with full power of substitution and resubstitution, in whole or in
part, in the name and stead of Seller but on behalf and for the benefit of Buyer
and its successors and assigns, and limited solely to the following from time to
time:

                    (a)      to demand, receive and collect any and all of the
Fixed Assets being delivered hereby and to give receipts and releases for and
with respect to the same, or any part thereof;

                    (b)      to institute and prosecute, in the name of the
Seller or otherwise, any and all proceedings at law, in equity or otherwise,
that Buyer or its successors and assigns may deem proper in order to collect or
reduce to possession any of the Fixed Assets being delivered hereby and in order
to collect or enforce any claim or right of any kind hereby assigned or
transferred, or intended so to be; and

                    (c)      to do all things legally permissible, required or
reasonably deemed by Buyer to be required to recover and collect the Fixed
Assets being delivered hereby and to use Seller’s name in such manner as Buyer
may reasonably deem necessary for the collection and recovery of same, Seller
hereby declaring that the foregoing powers are coupled with an interest and are
and shall be irrevocable by Seller.

          5.      Terms of the Purchase Agreement. The terms of the Purchase
Agreement are incorporated herein by this reference. In the event of any
conflict or inconsistency between the

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terms of the Purchase Agreement and the terms hereof, the terms of the Purchase
Agreement shall govern.

          IN WITNESS WHEREOF, Seller has executed this General Assignment and
Bill of Sale as of January 31, 2007.

TELECOMMUNICATION SYSTEMS, INC., a Maryland Corporation

 

By:      _____________________________________

Name: _____________________________________

Title:   _____________________________________

AGREED AND ACKNOWLEDGED BY:

STOCKGROUP SYSTEMS LTD., a Nevada Corporation

 

By:      _____________________________________

Name: _____________________________________

Title:   _____________________________________

2

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ATTACHMENT A

Fixed Assets include:

1.

deposits on exchange fees;

    2.

the Accounts Receivable in respect of the Acquired Assets;

    3.

the Intellectual Property (including but not limited to pager technology),
except as otherwise set out in the Trademark Assignment and Domain Name
Assignment;

    4.

the inventory, maintenance and operating supplies used exclusively in the
Business as currently operated;

    5.

the books and records of the Business;

    6.

all data, records, files, manuals, blueprints and other documentation related
exclusively to the Acquired Assets and the operation of the Business including
service and warranty records, sales promotion materials, creative materials, art
work, photographs, public relations and advertising material, studies, reports,
correspondence and other similar documents and records used exclusively in the
Business, whether in electronic form or otherwise;

    7.

all client, customer and supplier lists, telephone numbers and electronic mail
addresses with respect to past, present or prospective clients, customers and
suppliers relating to the Business;

    8.

all catalogues and brochures relating exclusively to the Business, purchasing
records and records relating to suppliers;

    9.

all goodwill incident to the Business;

    10.

all permits, licenses, approvals, registrations, qualifications, rights,
variances, certificates, consents and other approvals of every nature whatsoever
required by, or issued to the Seller by any governmental authority; and

    11.

Mobile Finance Assets (US), as follows:

Mobile Finance Assets – US Page Technology Equipment – NOC Servers A-3

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Equipment on lease by TCS included in Servers and PCs A-4 Desk and laptop PCs
A-5 PC Software Licenses A-6 Wireless Equipment A-7 Office Furnishings A-12

A-2

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SCHEDULE N

ASSIGNMENT AND ASSUMPTION AGREEMENT – EIGHT BLACK

          This Assignment and Assumption Agreement (this “Assignment and
Assumption Agreement”) is made and entered into as of January 31, 2007,
TeleCommunication Systems, Inc., a Maryland corporation, with offices at 275
West Street, Annapolis, Maryland (“Assignor”), and Stockgroup Media Inc., a
British Columbia corporation (“Assignee”).

          WHEREAS, Assignor and Assignee are parties to that certain Asset
Purchase Agreement, dated as of January 24, 2007 (the “Purchase Agreement”);
WHEREAS, pursuant to the Purchase Agreement, Assignor has agreed to assign
unconditionally and absolutely certain rights to Assignee in respect of certain
agreements, and Assignee has agreed to assume certain obligations of Assignor in
respect thereof.

          NOW, THEREFORE, for and in consideration of the premises and the
mutual covenants contained herein, and for other good and valuable
consideration, the receipt, adequacy and legal sufficiency of which are hereby
acknowledged, the parties do hereby agree as follows:

          1.      Capitalized Terms. Capitalized terms used but not defined
herein shall have the meanings for such terms that are set forth in the Purchase
Agreement.

          2.      Assignment and Assumption. Assignor hereby assigns, sells,
transfers and sets over (collectively, the “Assignment”) to Assignee all of
Assignor’s right, title, benefit, privileges and interest in, to and under the
agreements and contracts set out in Attachment A hereto (the “Assumed
Benefits”), and all of Assignor’s burdens, obligations and liabilities in
connection therewith (the “Assumed Liabilities”) which shall become due for
payment, performance or discharge, from and after the Closing Date. Assignee
hereby accepts the Assignment and assumes and agrees to observe and perform all
of the duties, obligations, terms, provisions and covenants, and to pay and
discharge all of the liabilities of Assignor to be observed, performed, paid or
discharged in connection with such Assumed Liabilities from and after the
Closing Date.

          3.      Terms of the Purchase Agreement. The terms of the Purchase
Agreement are incorporated herein by this reference. In the event of any
conflict or inconsistency between the terms of the Purchase Agreement and the
terms hereof, the terms of the Purchase Agreement shall govern.

          4.      Further Actions. Each of the parties hereto covenants and
agrees, at its own expense, to execute and deliver, at the request of the other
party hereto, such further instruments of transfer and assignment and to take
such other action as such other party may reasonably request to more effectively
consummate the assignments and assumptions contemplated by this Assignment and
Assumption Agreement.

          5.      Successor and Assigns. All of the terms and provisions of this
Assignment and Assumption Agreement shall be binding upon each party hereto and
their respective successors and assigns, and shall inure to the benefit of each
other party and its successors and assigns.

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2

          6.      Governing Law. This Assignment and Assumption Agreement shall
be governed by and construed in accordance with the laws of the State of New
York.

          7.      Counterparts. This Assignment and Assumption Agreement may be
signed in two or more counterparts, all of which, taken together, shall be
deemed to constitute one original Assignment and Assumption Agreement.

          IN WITNESS WHEREOF, the parties have executed this Assignment and
Assumption Agreement as of the date first above written.

ASSIGNOR: ASSIGNEE:     TELECOMMUNICATION SYSTEMS, STOCKGROUP MEDIA INC., INC.,
a Maryland corporation a British Columbia corporation         By:     
_____________________________________ By:     
_____________________________________     Name:
_____________________________________ Name:
_____________________________________     Title:  
_____________________________________ Title:  
_____________________________________

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ATTACHMENT A

Assumed contracts and agreements include:

Distribution Agreements.

1.

MarketStream Distribution Agreement between Eight Black Partnership Pty. Ltd.
and TeleCommunication Systems, Inc. effective as of March 4, 2006.

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Schedule P

U.S. SECURITIES LAW QUESTIONNAIRE

The following questionnaire is to be completed by TeleCommunication Systems,
Inc. (the “Subscriber”) in furtherance of a share purchase transaction set out
in a purchase agreement dated January 24, 2007, (the “Agreement”) between
Stockgroup Information Systems Inc. (the “Company”), the Subscriber and others.
This questionnaire will be relied upon by the Company to complete the
transactions contemplated in the Agreement. All capitalized terms herein, unless
otherwise defined, have the meanings ascribed thereto in the Agreement.

1.

The Subscriber covenants, represents and warrants to the Company that:

      (a)

the Subscriber is a U.S. Person;

      (b)

the Subscriber has such knowledge and experience in financial and business
matters as to be capable of evaluating the merits and risks of the transactions
detailed in the Subscription Agreement and it is able to bear the economic risk
of loss arising from such transactions;

      (c)

the Subscriber is acquiring the Securities for investment only and not with a
view to resale or distribution and, in particular, it has no intention to
distribute either directly or indirectly any of the Securities in the United
States or to U.S. Persons; provided, however, that the Subscriber may sell or
otherwise dispose of any of the Securities pursuant to registration thereof
pursuant to the Securities Act of 1933 (the “1933 Act”) and any applicable State
securities laws unless an exemption from such registration requirements is
available or registration is not required pursuant to Regulation S under the
1933 Act or registration is otherwise not required under this 1933 Act;

      (d)

the Subscriber satisfies one or more of the categories indicated below (please
check the appropriate box):

[X] Category 1

An organization described in Section 501(c)(3) of the United States Internal
Revenue Code, a corporation, a Massachusetts or similar business trust or
partnership, not formed for the specific purpose of acquiring the Securities,
with total assets in excess of US $5,000,000;

   

[   ] Category 2

A natural person whose individual net worth, or joint net worth with that
person’s spouse, on the date of purchase exceeds US $1,000,000;

   

[   ] Category 3

A natural person who had an individual income in excess of US $200,000 in each
of the two most recent years or joint income with that person’s spouse in excess
of US $300,000 in each of those years and has a reasonable expectation of
reaching the same income level in the current year;

   

[   ] Category 4

A “bank” as defined under Section (3)(a)(2) of the 1933 Act or savings and loan
association or other institution as defined in Section 3(a)(5)(A) of the 1933
Act acting in its individual or fiduciary capacity; a broker dealer registered
pursuant to Section 15 of the Securities Exchange Act of 1934 (United States);
an insurance company as defined in Section 2(13) of the 1933 Act; an investment
company registered under the Investment Company Act of 1940 (United States) or a
business development company as defined in Section 2(a)(48) of such Act; a Small
Business Investment Company licensed by the U.S. Small Business Administration
under Section 301(c) or (d) of the Small

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- 2 -

Business Investment Act of 1958 (United States); a plan with total assets in
excess of $5,000,000 established and maintained by a state, a political
subdivision thereof, or an agency or instrumentality of a state or a political
subdivision thereof, for the benefit of its employees; an employee benefit plan
within the meaning of the Employee Retirement Income Security Act of 1974
(United States) whose investment decisions are made by a plan fiduciary, as
defined in Section 3(21) of such Act, which is either a bank, savings and loan
association, insurance company or registered investment adviser, or if the
employee benefit plan has total assets in excess of $5,000,000, or, if a self-
directed plan, whose investment decisions are made solely by persons that are
accredited investors;

   

[   ] Category 5

A private business development company as defined in Section 202(a)(22) of the
Investment Advisers Act of 1940 (United States);

   

 [   ] Category 6

A director or executive officer of the Company;

   

[   ] Category 7

A trust with total assets in excess of $5,000,000, not formed for the specific
purpose of acquiring the Securities, whose purchase is directed by a
sophisticated person as described in Rule 506(b)(2)(ii) under the 1933 Act; or

   

[   ] Category 8

An entity in which all of the equity owners satisfy the requirements of one or
more of the foregoing categories; and

  (e)

the Subscriber is not acquiring the Securities as a result of any form of
general solicitation or general advertising including advertisements, articles,
notices or other communications published in any newspaper, magazine or similar
media or broadcast over radio, or television, or any seminar or meeting whose
attendees have been invited by general solicitation or general advertising.

                          IN WITNESS WHEREOF, the undersigned has executed this
Questionnaire as of the 31st day of January, 2007.

If a Corporation, Partnership or Other Entity:   If an Individual:      
TeleCommunication Systems, Inc. ______________________     Print or Type Name of
Entity   Signature       ________________________________________________    
Signature of Authorized Signatory   Print or Type Name       Corporation
______________________________________     Type of Entity   Social Security/Tax
I.D. No.

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