Flyby,

According to the NR (see below), HPQ Nano now owns the intellectual property to the Purevap NSiR process, to produce nano silicon powders and wires.  Pyrogenesis has an exclusive worldwide license for all other uses of the system.  And Pyrogenesis can convert its 10% royalty stream into a 50% ownership of HPQ Nano.

I think that last sentence provides the required protection, no?  It seems to me Pyro could block a takeover of HPQ Nano if it owns 50% of the shares.  Or if it owned 50% and let the takeover go through, Pyro would make a lot of money on the takeover.  So we investors would make out with both HPQ and Pyrogenesis.  IMHO

Snowdrift

This Agreement includes $2.4MM for the sale of the intellectual property (IP) rights to the PUREVAP™ NSiR process, together with a 10 % royalty on the Client’s future sales (“Royalty”) (with set minimums). The IP sold relates exclusively to the manufacturing of nano silicon powders and wires by HPQ NANO. PyroGenesis will retain a royalty-free, exclusive, irrevocable, worldwide license to use the System for all other purposes. This Royalty stream can at any time be converted by PyroGenesis into a 50% ownership of the Client.