Common use of Grant of Participation Right Clause in Contracts

Grant of Participation Right. The Company agrees that, subject to Section 2.5 hereof, until the Investor (directly or through an Affiliate) ceases to own at least 5% of the Common Shares (calculated on a fully diluted basis), the Investor (directly or through an Affiliate) has the right (the “Participation Right”), to subscribe for and to be issued as part of an Offering at the subscription price per Offered Security pursuant to the Offering and otherwise on substantially the terms and conditions of the Offering (provided that, if the Investor is prohibited by Canadian Securities Laws or other applicable law from participating on substantially the terms and conditions of the Offering, the Company shall use commercially reasonable efforts to enable the Investor to participate on terms and conditions that are as substantially similar as circumstances permit): (a) in the case of an Offering of Common Shares, up to such number of Common Shares that will allow the Investor to maintain its as-issued percentage ownership interest in the Common Shares after the completion of the Offering as its as-issued percentage ownership interest in the Common Shares immediately prior to the Offering; and (b) in the case of an Offering of Offered Securities (other than Common Shares), up to such number of Offered Securities that will (after giving effect to the Offering and assuming conversion, exercise or exchange of all of the convertible, exercisable or exchangeable Offered Securities issued in connection with the Offering and issuable pursuant to this Section 2.2) allow the Investor to maintain its as-issued percentage ownership interest in the Common Shares after the completion of the Offering as its percentage as-issued ownership interest in the Common Shares immediately prior to the Offering.