Common use of Adjustment of Number of Underlying Securities Clause in Contracts

Adjustment of Number of Underlying Securities. If a Receipt for the Preliminary Prospectus has not been issued on or before 5:00 p.m. (Calgary time) on the date that is 60 days following the Closing Date or in the event that a Receipt for the Prospectus has not been issued on or before 5:00 p.m. (Calgary time) on the date that is 90 days following the Closing Date, each unexercised Special Warrant will thereafter entitle the holder to receive, upon the exercise thereof, at no additional cost, an additional one half (1/2) of one non-transferable common share purchase warrant at the same terms of the Underlying Warrants (collectively, the "Penalty Warrants"), and 1.10 Units (inclusive of the Penalty Warrants) per Special Warrant (the "Penalty Units") on the Deemed Exercise Date, provided that nothing shall require the Company to issue fractional Units, Underlying Shares or Underlying Warrants and any fractions resulting from the application fee of the Penalty Ratio shall be rounded down to the nearest whole number. At the applicable time, and in any event, no later than two business days after the Penalty Warrants and the Penalty Units becoming issuable, the Corporation shall provide the Special Warrant Agent with a written direction for the issuance of the Penalty Warrants and the Penalty Units.