Document:

Exhibit 10.1 06 13 2007

    EXHIBIT
      10.1

    

    PROPOSAL
      2

    APPROVAL
      OF THE SECOND AMENDED AND RESTATED POZEN INC. 2000 EQUITY COMPENSATION
      PLAN

    

    You
      are
      being asked to approve the second amendment and restatement of our 2000 Equity
      Compensation Plan, as amended and restated (the “2000 Plan”), which was
      originally approved at the annual meeting of POZEN’s stockholders in May 2000
      and amended and restated in 2004. The Board approved the second amendment and
      restatement of the 2000 Plan on April 12, 2007, subject to stockholder approval
      at the Annual Meeting. The
      Board
      recommends that stockholders approve the second amendment and restatement of
      the
      2000 Plan, as so amended and restated, the Second Amended and Restated POZEN
      Inc. 2000 Equity Compensation Plan (the “Restated Plan”). 

    

    The
      Restated Plan provides for an increase in the number of shares of common stock
      authorized for issuance under the Plan from 5,500,000 to 6,500,000, clarifies
      and sets forth the terms of the stock units that may be granted under the
      Restated Plan, makes certain other changes in order to address compliance with
      Section 409A of the Internal Revenue Code of 1986, as amended (the Code) and
      the
      Fair Labor Standards Act of 1938, as amended, updates the Plan to clarify or
      modify certain mechanical provisions and to conform to changes in applicable
      law
      and continues the various performance criteria which may be used in establishing
      specific targets to be attained as a condition to the vesting of one or
      more cash or stock-based awards under the Plan so as to qualify the compensation
      attributable to those awards as performance-based compensation under
      Section 162(m) of the Internal Revenue Code. The Restated Plan does not
      change the limit on the number of shares (2,000,000 shares) that may be issued
      pursuant to grants other than options under the Plan. 

    

    We
      believe that the availability of an additional 1,000,000 shares of common stock
      will ensure that we continue to have a sufficient number of shares authorized
      for issuance under the Restated Plan based on our current expectations regarding
      the number of shares we believe will be needed to fund awards to new hires
      and
      additional awards to our existing employees and directors over the next two
      years.
      As of
      March 30, 2007, grants under the 2000 Plan were outstanding with respect to
      4,312,314 shares of common stock, leaving 434,690 shares available for
      issuance.
      As of
      such date, there were approximately 44 employees, officers and directors
      eligible to participate in the 2000 Plan. Individuals who may serve as
      consultants and advisers to the company are also eligible to participate in
      the
      2000 Plan. Further, there are grants outstanding with respect to 98,403 shares
      of common stock under our original stock option plan, under which no additional
      awards are permitted to be made. 

    

    We
      believe that the number of shares currently available for issuance under the
      Plan is not sufficient in view of our compensation structure and philosophy.
      The
      use of stock-based incentives is a key component of our overall compensation
      philosophy and is a practice that we plan to continue. We have historically
      awarded stock options to all of our full-time employees. Employee stock
      ownership is a core value of our operating culture, and we believe that stock
      ownership encourages our executives and other employees to create value for
      our
      company over the long term. In addition, our Board has concluded that our
      ability to attract, retain and motivate top quality management and employees,
      as
      well as directors, is critical to our success and would be enhanced by our
      continued ability to grant equity-based compensation. 

    
      
        
        

      

      
        
          

        

      

      
        
        

      

    

    As
      a
      result of changes under FASB Statement of Financial Accounting Standards No.
      123
      (R), Share-Based
      Payment,
      the
      accounting treatment of stock options is no longer more favorable to us than
      the
      treatment of other stock-based awards.  We
      also
      understand the concern of stockholders regarding the potential dilutive impact
      of our equity plans, and we believe that grants of alternative equity-based
      compensation, including stock units, could have a lesser dilutive effect on
      stockholders; however, in our view these alternative vehicles may be less
      directly related to stock performance than options. We have begun to evaluate
      the benefits and possible broader use of other forms of equity-base awards,
      including restricted stock units, in addition to options, and the Restated
      Plan
      includes additional provisions relating to the terms under which restricted
      stock units may be granted. Effective January 2007, we amended the compensation
      program for our non-employee directors to provide for annual grants consisting
      of a combination of stock options and restricted stock units in lieu of solely
      stock options. We will continue to monitor changes in the long-term compensation
      practices of the companies in our peer group and, as appropriate, will
      re-evaluate alternative equity-based compensation vehicles in future periods
      in
      light of changing or evolving practices. 

    

    We
      are
      seeking to have the stockholders approve the Restated Plan as proposed,
      including the setting of performance goals for performance-based awards, as
      set
      forth in Section 10 of the Restated Plan. Approval is required for the increase
      in the shares authorized for issuance under the Restated Plan and to ensure
      that
      options and other awards granted under the Restated Plan will continue to
      qualify for the performance-based exception to the deduction limitations of
      Section 162(m) of the Internal Revenue Code (Code Section 162(m)). See paragraph
      below entitled Performance-Based
      Awards.
      

    

    A
      copy of
      the Restated Plan is attached as Appendix A to this proxy statement.

    

    Summary
      of the Restated Plan 

    

    The
      following is a summary of the principal provisions of the Restated Plan, as
      proposed. This summary is qualified in its entirety by reference to the full
      text of the Restated Plan, a copy of which is attached to this proxy statement
      as Appendix A. 

    

    Purpose
      

    

    The
      purpose of the Restated Plan is to provide all employees of the company and
      our
      subsidiaries, including employees who are also members of our Board, our
      non-employee directors, and consultants and advisors who perform bona fide
      services for us or any of our subsidiaries, with the opportunity to receive
      grants under the Restated Plan of incentive stock options, nonqualified stock
      options, stock awards, including restricted stock, stock units, performance
      units and other stock-based awards. We believe that grants under the Restated
      Plan will encourage the participants of the Restated Plan to contribute
      materially to our growth, by more closely aligning their economic interests
      with
      those of the stockholders.

    

    Administration
      

    

    The
      Compensation Committee of our Board administers the Restated Plan, and has
      broad
      authority under the Restated Plan, including to: 

    
      
        
        

      

      
        -
          2
          -

        
          

        

      

      
        
        

      

    

    

    
      	·  	
              determine
                which of our employees, non-employee directors, and eligible consultants
                and advisers will receive grants under the Restated Plan;
                

            

    

    
      	·  	
              determine
                the type, size and terms of grants to be made to each such individual;
                

            

    

    
      	·  	
              determine
                the time when grants will be made and the duration of any applicable
                exercise or restriction period, including the criteria for exercisability
                and the acceleration of exercisability, such as upon termination
                of
                employment; 

            

    

    
      	·  	
              amend
                the terms of any previously issued grant; and

            

    

    
      	·  	
              make
                decisions with respect to any other matters arising under the Restated
                Plan. 

            

    

    

    The
      Compensation Committee has the full power and authority to administer, implement
      and interpret the Restated Plan. To the extent it deems appropriate, the
      Compensation Committee may delegate certain authority under the Restated Plan
      to
      one or more subcommittees and, to the extent permitted under applicable law,
      to
      one or more officers of POZEN. Pursuant to its authority, the Compensation
      Committee has granted authority to our chief executive officer to make awards
      to
      new non-executive officer employees in connection with their initial employment
      and annual awards to our non-executive officer employees based on certain
      guidelines and an aggregate limit on the number of shares subject to such awards
      established by the Compensation Committee. In addition, the Board, in its
      discretion, retains the right to grant and/or ratify awards under the Restated
      Plan. 

    

    Types
      of Awards; Eligible Participants

    

    Grants
      to
      participants under the Restated Plan may include: 

    

    
      	·  	
              options
                to purchase shares of our common stock, including incentive stock
                options
                (ISOs), which may be granted only to employees of POZEN or its
                subsidiaries, and nonqualified stock options (NQSOs), which may be
                granted
                to employees, non-employee directors and eligible consultants and
                advisers
                to POZEN; and 

            

    

    
      	·  	
              stock
                awards, including restricted stock, performance units, stock units
                and
                other stock-based awards, all of which may be granted to employees,
                non-employee directors and eligible consultants and advisers to
                POZEN.

            

    

    

    Stock
      Options 

    

    The
      per
      share exercise price of any option granted under the Restated Plan will be
      determined by the Compensation Committee and may be equal to or greater than
      the
      fair market value of our common stock on the day the option is granted. The
      option exercise price may be paid for by the optionee in cash or, with the
      approval of the Compensation Committee, by delivery of shares of common stock
      owned by the participant or any other method that the Compensation Committee
      may
      approve, provided that full payment must be made before the issuance of the
      shares of common stock issuable upon such exercise. The Compensation Committee
      determines the vesting and exercisability of options granted under the Restated
      Plan, including (other than in the case of termination for cause) the period
      following termination of employment or engagement with us during which an option
      may be exercised. The term of any option granted under the Restated Plan may
      not
      exceed ten years from the date of grant. No ISOs may be granted to a participant
      who, at the time of grant, owns common stock giving him or her more than 10
      percent of the total combined voting power of all classes of our stock or the
      stock of any parent or subsidiary of ours, unless the per share exercise price
      of the option is not less than 110% of the fair market value of our common
      stock
      on the date of grant and the term of the ISO is not greater than five years
      from
      the date of grant.

    
      
        
        

      

      
        -
          3
          -

        
          

        

      

      
        
        

      

    

    Stock
      Awards 

    

    Stock
      awards may be granted with or without restrictions on transferability, for
      some
      or no consideration, or subject to other conditions, such as the achievement
      of
      specific performance goals or lapse of a specified period of time. The
      Compensation Committee has the authority to make all determinations about any
      restrictions or other conditions, including without limitation, acceleration
      and
      duration of exercisability, or extension, of such awards.

    

    Stock
      Units 

    

    Restricted
      stock units may be granted with or without consideration and subject to terms
      set by the Compensation Committee. Restricted stock units represent the right
      to
      receive shares at a specified date in the future, subject to forfeiture of
      such
      right due to termination of services or failure to meet specified performance
      goals or other conditions applicable to such units as determined by the
      Compensation Committee. Restricted stock units will be evidenced by a written
      agreement between us and the participant, and the terms and conditions
      applicable to restricted stock units may vary from participant to participant.
      The Committee will determine all terms of restricted stock units, including,
      without limitation, the number of shares subject to the grant, any vesting
      provisions, the time or times during which the restricted stock units may be
      paid or settled, the consideration (cash, shares or some combination of cash
      and
      shares) to be distributed upon settlement of the restricted stock units and
      the
      effect of termination of a recipient’s services on the restricted stock units.
      If a restricted stock unit is based on the achievement of performance goals,
      then the Compensation Committee will determine the nature, length and starting
      date of any performance period, establish the specific performance goals to
      be
      considered and determine the number of shares subject to such performance-based
      grant. Restricted stock units may be paid in the form of cash or whole shares
      or
      a combination of cash and shares, either in a lump sum payment or in
      installments, as the Compensation Committee may determine with respect to any
      specific grant. 

    

    Performance
      Units 

    

    Each
      performance unit represents the right of a grantee to receive an amount based
      on
      the value of the performance unit, which will be equal to the fair market value
      of our common stock on the day of grant, if the related performance goals or
      other conditions set by the Compensation Committee are met. Payments with
      respect to performance units will be made in shares of our common stock, or
      a
      combination of common stock or cash, as determined by the Compensation
      Committee, provided that the cash portion may not exceed 50% of the amount
      to be
      distributed. 

    

    Other
      Stock-Based Awards 

    

    Other
      stock-based awards which may include any awards based on or measured by our
      capital stock (such as stock appreciation rights and similar rights) may be
      made
      under terms and conditions determined by the Compensation
      Committee.

    

    Other
      Plan Limitations

    

    Under
      the
      terms of the Restated Plan, no individual may receive grants in any one calendar
      year relating to more than 1,000,000 shares of common stock. Generally, awards
      are not transferable and only a participant, during his or her lifetime, may
      exercise rights under a grant of an ISO, NQSO, stock award, stock unit,
      performance unit or other stock-based award. 

    

    
      
        
        

      

      
        -
          4
          -

        
          

        

      

      
        
        

      

    

    Performance-Based
      Awards 

    

    The
      Restated Plan permits the Compensation Committee to impose and specify
      objectively determinable performance goals that must be met with respect to
      grants of stock awards, stock units, performance units and other stock-based
      awards that are intended to be performance-based. Pursuant to Code Section
      162(m), as a public corporation, we are generally not permitted to a tax
      deduction for compensation paid to our chief executive officer or any of our
      four other most highly compensated officers in excess of $1,000,000 in any
      year
      unless such compensation is qualified as “performance-based compensation.” The
      Restated Plan is designed to comply with Code Section 162(m) so that
      performance-based awards that are conditioned on pre-established performance
      goals (as described below) will be excluded from the $1,000,000 cap, and
      therefore, remain fully deductible. The Compensation Committee will determine
      the performance periods for the performance goals. Forfeiture of all or part
      of
      any such grant will occur if the performance goals are not met, as determined
      by
      the Compensation Committee. Prior to, or soon after the beginning of, the
      performance period, the Compensation Committee will establish in writing the
      performance goals that must be met, the applicable performance periods, the
      amounts to be paid if the performance goals are met, and any other conditions.
      Stock awards, stock units, performance units and other stock-based awards
      granted to any employee as performance-based compensation may not consist of
      more than 1,000,000 shares of common stock for any performance
      period.

    

    The
      performance goals of performance-based awards, to the extent designed to meet
      the requirements of Code Section 162(m), will be based on one or more of the
      following measures, or a combination of such measures, applicable to a business
      unit or POZEN and its subsidiaries (as applicable) as a whole, as specified
      in
      the Restated Plan: stock price, earnings per share, net earnings, operating
      earnings, return on assets, stockholder return, return on equity, growth in
      assets, unit volume, sales, market share, scientific goals, pre-clinical or
      clinical goals, regulatory approvals, or strategic business criteria consisting
      of one or more objectives based on meeting specified revenue goals, market
      penetration goals, geographic business expansion goals, cost targets, goals
      relating to acquisitions or divestitures, or strategic
      partnerships.

    

    Consequences
      of a Change of Control 

    

    In
      the
      event of a change of control of POZEN, as defined in the Restated Plan, unless
      the Compensation Committee determines otherwise, all outstanding options will
      automatically accelerate and become fully exercisable, all restrictions on
      outstanding stock awards will automatically lapse, all outstanding performance
      units and restricted stock units will become fully vested and will be paid,
      and
      all other outstanding stock-based awards will become fully vested, exercisable
      or payable in full, as the case may be. In the event of a change of control
      where POZEN is not the surviving corporation (or survives only as a subsidiary
      of another corporation), unless otherwise determined by the Compensation
      Committee, all outstanding ISOs and NQSOs will be assumed by or replaced with
      comparable options or rights by the surviving corporation (or a parent of the
      surviving corporation), and all other outstanding grants will be converted
      to
      similar grants of the surviving corporation (or a parent of the surviving
      corporation). In the event of a change of control, the Compensation Committee
      may also take any of the following actions: 

    

    
      	·  	
              require
                surrender of outstanding ISOs or NQSOs in exchange for payment or
                payments
                of cash or common stock in an amount by which the fair market value
                of the
                common stock exceeds the exercise price of the option under such
                terms as
                the Compensation Committee may determine; or

            

    

    
      	·  	
              after
                giving participants the opportunity to exercise outstanding ISOs
                or NQSOs,
                terminate any or all unexercised
                options.

            

    

    
      
        
        

      

      
        -
          5
          -

        
          

        

      

      
        
        

      

    

    Amendment;
      Termination 

    

    The
      Board
      may amend or terminate the Restated Plan at any time. However, stockholder
      approval is required for any change that is required to be approved by the
      stockholders by law, under the rules of the Nasdaq Stock Market or any other
      applicable stock exchange, or in order for any grant to meet applicable
      requirements of the Internal Revenue Code. The Restated Plan will terminate
      on
      June 12, 2017, the day immediately preceding the tenth anniversary of the
      effective date of the Restated Plan, unless the Board terminates the Restated
      Plan earlier or extends it with approval of our stockholders.

    

    Forfeitures;
      Changes in our Stock 

    

    If
      any
      grant made under the Restated Plan expires, is cancelled, surrendered or
      otherwise terminated, shares subject to such grant will again be available
      for
      grants under the Restated Plan. In addition, if there is any change in the
      number or kind of our common stock outstanding, such as because of a stock
      dividend, stock split, merger, or other extraordinary event, the Compensation
      Committee shall make appropriate adjustments to reflect such change, including
      by adjusting the maximum number of shares available for grants under the
      Restated Plan or to an individual in any calendar year. 

    

    
      
        
        

      

      
        -
          6
          -Filed by Automated Filing Services Inc. (604) 609-0244 - Stockgroup Information Systems Inc. - Exhibit 10.3

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT
BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
“1933 ACT”). THESE SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED ONLY (A) TO THE COMPANY, (B) OUTSIDE THE UNITED STATES IN COMPLIANCE
WITH REGULATION S UNDER THE 1933 ACT, (C) IN COMPLIANCE WITH THE EXEMPTION FROM
THE REGISTRATION REQUIREMENTS UNDER THE 1933 ACT PROVIDED BY RULE 144
THEREUNDER, IF AVAILABLE, AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES
LAWS, OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE 1933
ACT OR ANY APPLICABLE STATE LAWS, AND THE HOLDER HAS, PRIOR TO SUCH SALE,
FURNISHED TO THE COMPANY AN OPINION OF COUNSEL OR OTHER EVIDENCE OF EXEMPTION,
IN EITHER CASE REASONABLY SATISFACTORY TO THE COMPANY. DELIVERY OF THIS
CERTIFICATE MAY NOT CONSTITUTE “GOOD DELIVERY” IN SETTLEMENT OF TRANSACTIONS ON
STOCK EXCHANGES IN CANADA. 

THE HOLDER HEREOF WILL NOT, DIRECTLY OR INDIRECTLY, ENGAGE
IN ANY HEDGING TRANSACTION WITH REGARD TO THIS SECURITY, EXCEPT AS PERMITTED BY
THE 1933 ACT. 

UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF
THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE SEPTEMBER 16, 2007. 

WITHOUT PRIOR WRITTEN APPROVAL OF THE TSX VENTURE EXCHANGE
AND COMPLIANCE WITH ALL APPLICABLE SECURITIES LEGISLATION, THE SECURITIES
REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, TRANSFERRED, HYPOTHECATED OR
OTHERWISE TRADED ON OR THROUGH THE FACILITIES OF THE TSX VENTURE EXCHANGE OR
OTHERWISE IN CANADA OR TO OR FOR THE BENEFIT OF A CANADIAN RESIDENT UNTIL
SEPTEMBER 16, 2007. 

THE WARRANTS REPRESENTED HEREBY WILL BE VOID AND OF NO VALUE
UNLESS EXERCISED WITHIN THE TIME LIMIT HEREIN PROVIDED. 

	STOCKGROUP INFORMATION SYSTEMS INC. 
	750 West Pender Street, Suite 500 
	Vancouver, British Columbia, V6C 2T7 
	  
	(Incorporated under the Business Corporations Act
      (Colorado)) 

	Certificate No. <> 	<> Warrants 

UNDERWRITER’S WARRANTS 

THIS IS TO CERTIFY THAT, for value received, [HOLDER],
of [ADDRESS] is the holder (the “Holder”) of the number of
transferable share purchase warrants (the “Warrants”) specified above and
is thereby entitled to subscribe for and purchase one fully paid and
non-assessable Common Share (a “Common Share”) of Stockgroup
Information Systems Inc. (the “Company”) for each such Warrant 

at any time prior to 5:00 p.m. local time in Vancouver, British
Columbia, Canada, on May 15, 2008 at an exercise price of $1.50 per Common
Share. 

The rights to acquire Common Shares of the Company granted by
this Warrant Certificate may be exercised by the Holder, in whole or in part
(but not as to a fractional Common Share), by: 

	 	(a) 	
      duly completing in the manner indicated and executing the
      subscription form attached hereto as Schedule “A”;

	 	 	 
	 	(b) 	
      delivering and surrendering this Warrant Certificate at
      the offices of the Company’s Registrar and Transfer Agent, <> at
      [address]; and

	 	 	 
	 	(c) 	
      concurrently delivering to the Transfer Agent a certified
      cheque or bank draft made payable to the Company for the amount then due
      to the Company for the number of Common Shares purchased on the exercise
      of this Warrant Certificate.

In the event of any exercise of the Warrants, certificates for
the Common Shares purchased shall be delivered to the Holder within a reasonable
time not exceeding three business days after the Warrants shall have been so
exercised, and, unless the Warrants have expired, a new Warrant Certificate
granting the right to acquire that number of Common Shares, if any, with respect
to the Warrants that shall not then have been exercised shall also be issued to
the Holder within such time. 

The Company covenants to and agrees with the Holder that all
Common Shares which may be issued upon the exercise of the Warrants shall, upon
issuance, be fully paid and non-assessable and free of all liens, charges and
encumbrances. The Company further covenants and agrees that during the period
within which the Warrants may be exercised, the Company shall at all times have
authorized and reserved a sufficient number of Common Shares to provide for the
exercise of all of the Warrants. 

Neither the Warrants nor the Common Shares issuable upon
exercise thereof have been or will be registered under the United States
Securities Act of 1933, as amended (the “1933 Act”) nor under the
laws of any state of the United States. Subject to certain limited exceptions,
(i) Warrants may not be exercised within the United States and (ii) no Common
Shares issuable upon exercise of Warrants will be delivered to any address in
the United States unless the Warrant and the underlying securities have been
registered under the 1933 Act and the applicable securities legislation of any
such state or an exemption from such registration requirements is available.

THE FOLLOWING ARE THE TERMS AND CONDITIONS REFERRED TO IN THIS
WARRANT CERTIFICATE: 

1. As used herein, the term “Common Shares” shall mean
and include the Company’s presently authorized common voting shares without par
value; the term “Warrant Certificate” shall mean this certificate
representing the right to purchase such number of Common Shares as set forth
above; and the term “Warrants” shall mean the warrants of the Company
evidenced by this Warrant Certificate. 

2. Upon the occurrence of one or more events involving the
capital reorganization, reclassification, subdivision or consolidation of the
shares of the Company, or the merger, amalgamation or other corporate
combination of the Company with one or more other entities, or of any other
events in which new securities of any nature are delivered in exchange for the
issued Common Shares and such issued Common Shares are cancelled (any such event
being referred to as a “Fundamental Change”), then at the time of any
exercise of the Warrants taking place after such Fundamental Change, and in lieu

of issuing the Common Shares which, but for such Fundamental
Change and this provision, would have been issued upon such exercise, the
Company or its successor shall issue instead such number of new securities as
would have been delivered as a result of the Fundamental Change in exchange for
those Common Shares which the Holder would have been entitled to receive upon
such exercise if such exercise had occurred prior to the occurrence of the
Fundamental Change. 

3. The Warrants shall not entitle the Holder to any rights as a
shareholder of the Company, including without limitation, voting rights. 

4. In case at any time: 

	 	(a) 	
      the Company shall pay any dividend payable in stock upon
      its Common Shares or make any distribution to the holders of its Common
      Shares;

	 	 	 
	 	(b) 	
      the Company shall offer for subscription pro rata to the
      holders of its Common Shares any additional shares of stock of any class
      or other rights;

	 	 	 
	 	(c) 	
      there shall be a voluntary or involuntary dissolution,
      liquidation or winding-up of the Company; or

	 	 	 
	 	(d) 	
      in case of any Fundamental
Change;

then, and in any one or more of such cases, the Company shall
give to the Holder at least 15 business days’ prior written notice of the date
on which the books of the Company shall close or a record shall be taken for the
purpose of such dividend, distribution or offer, or for determining rights to
vote with respect to such Fundamental Change, dissolution, liquidation or
winding-up and in the case of such Fundamental Change, dissolution, liquidation
or winding-up, at least 15 business-days’ prior written notice of the date when
the same shall take place. Such notice in accordance with the foregoing clause
shall also specify, in the case of any such dividend, distribution or offer, the
date on which the holders of Common Shares shall be entitled thereto, and such
notice in accordance with the foregoing shall also specify the date on which the
holders of Common Shares shall be entitled to exchange their Common Shares for
securities or other property deliverable upon such Fundamental Change,
dissolution, liquidation or winding-up, as the case may be. Each such written
notice shall be given by first class mail, registered postage prepaid, addressed
to the Holder at the address of such Holder, as shown on the books of the
Company. 

5. Subject to the terms hereof and the terms set forth in the
Transfer Form attached hereto, the Warrants may be transferred. No transfer of
the Warrants will be effective unless this Warrant Certificate, accompanied by a
duly executed Transfer Form or other instrument of transfer in such form as the
Company may from time to time prescribe, together with such evidence of the
genuineness of each endorsement, execution and authorization and of other
matters as may reasonably be required by the Company, are delivered to the
Company. No transfer of the Warrants will be made if in the opinion of counsel
to the Company such transfer would result in the violation of any applicable
securities laws. 

6. If the Holder wishes to transfer Warrants, the Company may
charge to the Holder requesting the transfer of the Warrants a reasonable sum
for each new warrant certificate issued, and the cost of review of the transfer
by Company’s legal counsel, and payment of such charges and reimbursement of the
Company for any and all charges required to be paid will be made by the Holder
requesting the transfer of the Warrants as a condition precedent thereto. 

7. Time shall be of the essence hereof. 

8. This Warrant Certificate shall be interpreted in accordance
with the laws of the Province of British Columbia, Canada. 

9. The Holder acknowledges that any Common Shares issued upon
exercise of the Warrants may bear the following legends (in addition to any
legend required by the laws of the jurisdiction in which the Holder resides):

THE SECURITIES REPRESENTED HEREBY HAVE
NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED (THE “1933 ACT”). THESE SECURITIES MAY BE OFFERED, SOLD,
PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) OUTSIDE THE UNITED
STATES IN COMPLIANCE WITH REGULATION S UNDER THE 1933 ACT, (C) IN COMPLIANCE
WITH THE EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER THE 1933 ACT
PROVIDED BY RULE 144 THEREUNDER, IF AVAILABLE, AND IN ACCORDANCE WITH APPLICABLE
STATE SECURITIES LAWS, OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE
REGISTRATION UNDER THE 1933 ACT OR ANY APPLICABLE STATE LAWS, AND THE HOLDER
HAS, PRIOR TO SUCH SALE, FURNISHED TO THE COMPANY AN OPINION OF COUNSEL OR OTHER
EVIDENCE OF EXEMPTION, IN EITHER CASE REASONABLY SATISFACTORY TO THE COMPANY.
DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE “GOOD DELIVERY” IN SETTLEMENT OF
TRANSACTIONS ON STOCK EXCHANGES IN CANADA. 

THE HOLDER HEREOF WILL NOT, DIRECTLY OR
INDIRECTLY, ENGAGE IN ANY HEDGING TRANSACTION WITH REGARD TO THIS SECURITY,
EXCEPT AS PERMITTED BY THE 1933 ACT. 

UNLESS PERMITTED UNDER SECURITIES
LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE
SEPTEMBER 16, 2007. 

WITHOUT PRIOR WRITTEN APPROVAL OF THE
TSX VENTURE EXCHANGE AND COMPLIANCE WITH ALL APPLICABLE SECURITIES LEGISLATION,
THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, TRANSFERRED,
HYPOTHECATED OR OTHERWISE TRADED ON OR THROUGH THE FACILITIES OF THE TSX VENTURE
EXCHANGE OR OTHERWISE IN CANADA OR TO OR FOR THE BENEFIT OF A CANADIAN RESIDENT
UNTIL SEPTEMBER 16, 2007. 

IN WITNESS WHEREOF the Company has caused this Warrant
Certificate to be executed this 15th day of May, 2007. 

STOCKGROUP INFORMATION SYSTEMS INC. 

	 Per: 		 
	 	Authorized Signatory 	 

SCHEDULE “A” 

SUBSCRIPTION FORM 

The undersigned hereby exercises the right to purchase shares
and hereby subscribes for the undernoted number of the Common Shares referred to
in this Warrant Certificate according to the conditions hereof and herewith
makes payment of the purchase price in full for the said shares. The undersigned
hereby certifies that at the time of exercise, the undersigned is not within the
United States and that the undersigned is not a U.S. Person for the purposes of
Regulation S of the United States Securities Act of 1933, as amended.

	  	  	Number of 	Payment 
	Name in Full 	Address 	Shares
    	Enclosed 

DATED at _________________________, this ________day of
____________, 200__. 

	 	 
	Signature 	 

TRANSFER FORM 

For value received, the undersigned hereby sells, transfers and
assigns

	unto
      _________________________________________________________________________________
	               
                         
         (please print name of transferee) 
	  
	of
  ____________________________________________________
	  
	    
      ____________________________________________________
	  
	    
      ____________________________________________________
	               
                         
         (please print address of transferee) 
	  
	______________________________________________________  warrants
      of Stockgroup Information Systems Inc. 
	(please insert number of warrants to be transferred) 
	represented by the enclosed certificate.

DATED this ___ day of _____________________, 20_____
. 

	 	 
	 	
      NOTICE: THE SIGNATURE TO THIS TRANSFER MUST CORRESPOND
      WITH THE NAME AS WRITTEN UPON THE FACE OF THE WARRANT CERTIFICATE, IN
      EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT, OR ANY CHANGE
      WHATEVER 

	 Signature 		 
	 guaranteed by: 		 
	 	
      NOTICE: THE SIGNATURE OF THE TRANSFEROR SHOULD BE
      GUARANTEED BY A BANK, FINANCIAL INSTITUTION OR STOCK BROKER WHOSE
      SIGNATURE IS ACCEPTABLE TO THE COMPANY. 
	 

* The signature of this transfer must correspond exactly with
the name as written on the face page hereof. 

Warrants shall only be transferable in accordance with
applicable laws and the resale of warrants and shares issuable upon exercise of
warrants may be subject to restrictions under such laws.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]