Common use of Acceleration Notice Clause in Contracts

Acceleration Notice. In the event that: (i) the Current Market Price of the Common Shares on the Principal Market at any time commencing after December 31, 2008 is equal to or greater than: (A) US$7.50 per share, prior to the Production Date, and (B) US$9.00 per share, on or after the Production Date; (ii) the Warrant Shares are registered under an effective Registration Statement (as such term is defined in the Registration Rights Agreement); (iii) the Common Shares are listed for trading on the Principal Market and the TSX and the Warrant Shares are approved for listing thereon, subject only to official notice of issuance; and (iv) the exercise of all outstanding Warrants would not result in the imposition on the Warrantholder of restrictions in trading the Common Shares or the imposition on the Company of any reporting requirement, where such trading restrictions or reporting requirement were not in effect prior to the full exercise of the Warrants; then the Company may at any time thereafter accelerate the Expiration Date of this Warrant to any date not less than twenty-one (21) Exchange Business Days after the date on which written notice to the Warrantholder of such acceleration (the “Acceleration Notice”) has become effective pursuant to Section 17 hereof (the “Accelerated Expiration Date”). With respect to Section 6(a)(iv), the Warrantholder shall notify the Company in writing within fourteen (14) Exchange Business Days of its receipt of an Acceleration Notice of whether or not full exercise of the Warrants would result in the imposition on the Warrantholder of restrictions in the trading of the Common Shares not in effect prior to such full exercise, in which case the Acceleration Notice shall be deemed to be withdrawn and of no effect, and the Expiration Date shall remain the original Expiration Date.