Document:

Exhibit 4.1

    

     

      

  

   CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THE EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE OF INFORMATION THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL. INFORMATION THAT WAS
      OMITTED HAS BEEN NOTED IN THIS DOCUMENT WITH A PLACEHOLDER IDENTIFIED BY THE MARK “[***]”.

    
    
       

      

      OPTION AGREEMENT

      

      

      THIS OPTION AGREEMENT (this “Agreement”)
        is made and entered into effective as of October 20th, 2021 (the “Effective Date”), by and among Hyperion Materials & Technologies, LLC, a
        North Carolina limited liability company (“Hyperion”), Hyperion Metals Limited, an Australian public limited liability company listed on the
        Australian Securities Exchange (ASX: HYM) ("HYM"), Blacksand Technology, LLC, a Utah limited liability company (“Blacksand”), Zhigang Zak Fang (“Zak”), Wenfang Bian Fang, Pei Sun, and
        Madapusi K. Keshavan (each a “Member” and collectively, the “Members”).  The parties to this Agreement are each referred to as a “Party” and collective the “Parties”.

      

      

      Background:

      

      

      A.

      Hyperion is engaged in the business of developing commercial uses and applications of titanium and titanium
        alloy powders and other metals and materials.

      

      

      B.

      Blacksand is engaged in the business of developing proprietary and patented technologies to produce low-cost
        titanium including the processes for making titanium primary metal from titanium minerals and titanium powders for use with additive manufacturing and near net shape manufacturing of metal parts.

      

      

      C.

      Blacksand is a party to a certain License Agreement, dated August 31, 2015, between the University of Utah
        Research Foundation (“UURF”) as licensor, and Blacksand as licensee (as amended, the “License Agreement”).

      

      

      D.

      The Members collectively own all of the membership interests of Blacksand as more particularly set forth on Exhibit A (each a “Membership Interest” and collectively,
        the “Membership Interests”).

      

      

      E.

      The Parties desire to enter into this Agreement to grant Hyperion the option to purchase the Membership
        Interests and thereby acquire 100% of the ownership interests of Blacksand.

      

      

      NOW, THEREFORE, in consideration of the mutual representations, warranties, covenants and agreements contained herein and for other
        good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, and upon the terms and subject to the conditions hereinafter set forth, the Parties hereto, intending to be legally bound hereby, hereby agree as follows:

      

      

      1.

      Definitions.

      

      

      (a)

      “Additional
          Amount” means 0.5% multiplied by Net Sales after Closing in excess of $300,000,000.

      

      

      (b)

      “Affiliate”
        means with respect to any specified Person, any Person that, directly or indirectly, controls, is controlled by, or is under common control with, such specified Person, through one or more intermediaries or otherwise.

      

      

      (c)

      “Agreement”
        has the meaning set forth in the introductory paragraph.

      

      

      (d)

      “Blacksand”
        has the meaning set forth in the introductory paragraph.

      

      

      
        
          

      

      
      

      

      (e)

      “Blacksand
          Real Property” means all real property owned, leased, or used by Blacksand, and all other real property for which Blacksand has the option to purchase, lease or otherwise acquire or use, including but not limited to the Covered Property.

      

      

      (f)

      “Business
          Day” means any day other than a Saturday, a Sunday, or a day on which banks in the State of North Carolina are required or authorized to be closed.

      

      

      (g)

      “Claim”
        means any claim, action, demand, lawsuit, or other proceeding of any nature brought against a Person entitled to indemnification in accordance with this Agreement.

      

      

      (h)

      “Closing”
        has the meaning set forth in Section 3(a).

      

      

      (i)

      “Closing
          Date” has the meaning set forth in Section 3(a).

      

      

      (j)

      “Company
          Paid Amount” has the meaning set forth in Section 2(c).

      

      

      (k)

      “Conditions
          Precedent” has the meaning set forth in Section 3(b)(i).

      

      

      (l)

      “Confidential
          Information” has the meaning set forth in Section 11(a).

      

      

      (m)

      “Covered
          Property” means the Blacksand Real Property set forth on Exhibit B.

      

      

      (n)

      “Disclosing
          Party” has the meaning set forth in Section 11(a).

      

      

      (o)

      “Dollars”
        or “$” means United States Dollars.

      

      

      (p)

      “Effective
          Date” has the meaning set forth in the introductory paragraph.

      

      

      (q)

      "Employment
          Agreement" means any agreement as of the Effective Date between a Member and Blacksand which governs the Member’s terms of employment, consultancy or contractor arrangement with Blacksand (as applicable).

      

      

      (r)

      “Encumbrance”
        means all liens (statutory or otherwise), charges, mortgages, pledges, hypothecations, leases, subleases, occupancy agreements, title retention agreements, adverse interests, title defects, security interests, deeds of trust, claims, licenses,
        rights of way, servitudes, deemed statutory trusts for taxes,  preferences, priorities, options, warrants, rights of first refusal, rights of first offer, preemptive rights, voting trusts or agreements, proxies, community property interests,
        security agreements, easements, encroachments, covenants, restrictions, burdens or other encumbrances of any kind or nature whatsoever.

      

      

      
        2

        
          

      

      

      

      (s)

      “Exercise
          Date” has the meaning set forth in Section 2(b).

      

      

      (t)

      “Governmental
          Authority” means (i) the United States of America or any other nation, any state, province, local or other political subdivision thereof, (ii) any entity, agency, instrumentality, commission, department, board, bureau, tribunal, court or
        authority exercising any executive, legislative, judicial, regulatory or administrative functions of government, whether international, foreign, provincial, domestic, federal, state, province, municipal or local, (iii) any arbitrator or mediator,
        and (iv) any other agency, body, exchange, authority or organization similar to the foregoing having jurisdiction or regulatory authority over Blacksand.

      

      

      (u)

      "Group"
        means Blacksand (from and after the Closing Date), Hyperion, HYM and any of their Affiliates.

      

      

      (v)

      “Hyperion”
        has the meaning set forth in the introductory paragraph.

      

      

      (w)

      "HYM"
        has the meaning set forth in the introductory paragraph.

      

      

      (x)

      "HYM Share"
        means a fully paid ordinary share in HYM.

      

      

      (y)

      "Members HYM Shares" means such number of HYM Shares equal to the Members Paid Amount, with the issue price of each HYM Share being the greater of:

      

      

      (i)

      AUS$0.85; and

      

      

      (ii)

      Seventy five percent (75%) of the volume weighted average price of HYM Shares in the 10-day trading period
        on the applicable securities exchange (currently the Australian Securities Exchange (“ASX”)) immediately preceding the Closing Date; subject to a maximum issue price for each HYM Share of AUS $3.00.

      

      

      (z)

      “Master
          Services Agreement” means that Master Services Agreement between the Parties dated February 13, 2021.

      

      

      (aa)

      “Member”
        and “Members” have the meaning set forth in the introductory paragraph.

      

      

      (bb)

      “Membership
          Interest” and “Membership Interests” has the meaning set forth in Recital C.

      

      

      (cc)

      “Member
          Paid Amount” has the meaning set forth in Section 2(c).

      

      

      (dd)

      “Net Sales”
        means the cumulative gross revenues—net of taxes, duties, customs and similar fees—relating to or arising from Blacksand, or any of Blacksand’s assets or properties existing as of the Exercise Date, from the period beginning as of the Closing Date
        until the applicable measurement date.

      

      

      (ee)

      “Organizational
          Document” of any Person means the documents by which such Person (other than an individual) establishes its legal existence or which govern its internal affairs or the rights or obligations of the holders of the equity interests (including
        the Membership Interests) thereof (including any certificate of formation, certificate of incorporation or other incorporation or formation document, any charters or bylaws, constitution, memorandum and articles of association, other organizational
        documents, and any operating agreements, partnership agreements, shareholders’ agreement, investor rights agreement, voting agreement, co-sale agreement, registration rights agreement, drag-along agreement, right of first refusal agreement or other
        similar documents).

      

      

      (ff)

      “Option
          Notice” has the meaning set forth in Section 2(b).

      

      

      (gg)

      “Option
          Payment” has the meaning set forth in Section 5.

      

      

      (hh)

      “Option
          Period” means the period beginning on the Effective Date and terminating upon the earliest to occur of (i) the Closing Date, (ii) termination of the Master Services Agreement, (iii) December 31, 2022, or (iv) the termination of this
        Agreement.

      

      

      (ii)

      “Party”
        and “Parties” have the meaning set forth in the introductory paragraph.

      

      

      (jj)

      “Person”
        means an individual, corporation (including any non-profit corporation), general partnership, limited partnership, joint venture, association, limited liability company, trust, estate, unincorporated organization, Governmental Authority, or other
        entity, enterprise, association, organization, or group in any jurisdiction.

      

      

      (kk)

      “Pro Rata
          Share” has the meaning set forth on Exhibit A.

      

      

      (ll)

      “Property
          Agreements” has the meaning set forth in Section 8(e)(i).

      

      

      (mm)

      “Purchase
          Price” has the meaning set forth in Section 2(c)(i).

      

      

       

      

      (nn)

      “Purchase
          Option” has the meaning set forth in Section 2(a).

      

      

      (oo)

      “Receiving
          Party” has the meaning set forth in Section 11(a).

      

      

      (pp)

      "Restrained
          Business" the business of commercializing any granted U.S. patents licensed to Blacksand, or any other Intellectual Property Rights held by Blacksand, as of the Exercise Date; provided that, for the avoidance of doubt, such term shall not
        include any legal obligation of academic service of Zak to the University of Utah or any affiliate thereof.

      

      

      
        3

        
          

      

      

      

      (qq)

      “Restrained
          Customer” means any Person who is during the Restraint Period or was during the twelve (12) month period immediately preceding the Restraint Period, a customer of Blacksand or the Group (as applicable) and with whom, with respect to each
        Member, such Member had work or other business-related dealings in connection with Blacksand or the Group during the Restraint Period or the during the twelve (12) month period immediately preceding the Restraint Period.

      

      

      (rr)

      “Restrained
          Employee” means any individual who is during the Restraint Period an employee, independent contractor, officer, and/or agent of Blacksand or the Group (as applicable) and with whom, with respect to each Member, such Member had work or
        other business-related dealings in connection with Blacksand or the Group during the Restraint Period or the during the twelve (12) month period immediately preceding the Restraint Period. “Restrained Supplier” means any Person who is during the Restraint Period or was during the twelve (12) month period immediately preceding the Restraint Period, a supplier of Blacksand or the Group
        (as applicable) and with whom, with respect to each Member, such Member had work or other business-related dealings in connection with Blacksand or the Group during the Restraint Period or the during the twelve (12) month period immediately
        preceding the Restraint Period.  "Restraint Area" means the world.

      

      

      (ss)

      "Restraint
          Period" means, with respect to each Member, the period beginning on the Effective Date and ending on the third (3rd) anniversary of the Closing Date, provided the Restraint Period shall be tolled for a Member during any period
        in which the Member is in default of its obligations under Section 10 herein.

      

      

      (tt)

      "Shareholder
          Approval" means the approval of holders of HYM Shares for the issue of the Members HYM Shares to the Members.

      

      

      (uu)

      “Transfer”
        means the sale, assignment, transfer, lease, disposition or other Encumbrance of the Membership Interests.

      

      

      2.

      Purchase
            Option.

      

      

      (a)

      Grant of Purchase Option.  Subject to and upon the terms and conditions of this Agreement, each Member hereby grants to Hyperion the exclusive and continuing option (but not obligation) to purchase all of the Membership Interests,
        which Membership Interests shall constitute 100% of the ownership interests in Blacksand (the “Purchase Option”).  The Purchase Option shall be irrevocable for the duration of the Option Period, except as expressly provided for in this Agreement.  If Hyperion does not exercise
        its Purchase Option for any reason, it shall have no further obligation or liability whatsoever to Blacksand or the Members except as expressly provided for in this Agreement.

      

      

      (b)

      Exercise of Purchase Option.  Hyperion may exercise the Purchase Option at any time during the Option Period, provided that Hyperion is then current in its obligations under the Master Services Agreement.  In the event Hyperion,
        in its sole and absolute discretion, desires to exercise the Purchase Option, Hyperion shall exercise the Purchase Option by delivering written notice of such exercise (the “Option Notice”) to Blacksand and/or the Members in the manner provided in Section 14(f).  The date on which Hyperion issues the Option Notice shall be the “Exercise Date”.

      

      

      
        4

        
          

      

      

      

      (c)

      Purchase Price.  If Hyperion exercises the Purchase Option:

      

      

      (i)

      At the Closing, Hyperion shall:

      

      

      (1)

      Pay or contribute to Blacksand an amount reasonably determined by Blacksand to satisfy certain verified (by written
        supporting documentation) indebtedness and account payables of Blacksand, not to exceed $3,000,000 (the “Company Paid Amount”); and

      

      

      (2)

      Pay the Members their Pro Rata Share of (i) $12,000,000 (ii) plus the amount of any U.S. federal grant that Blacksand
        receives between the Effective Date and the Exercise Date, (iii) minus the Company Paid Amount (the “Member Paid Amount”), which shall be paid in
        the form of seventy percent (70%) cash, and, subject to HYM obtaining Shareholder Approval (which Hyperion shall use its reasonable best efforts to obtain) thirty percent (30%) HYM Shares.

      

      

      (ii)

      If Hyperion obtains Shareholder Approval to satisfy part of the Members Paid Amount through the issue of
        the Members HYM Shares, each Member agrees to be bound by the constitution of HYM, to the extent that such constitution applies to all owners of HYM Shares.

      

      

      (iii)

      At the Closing, Hyperion shall also commit to donate $1,000,000 towards the establishment of an endowed
        chair professorship at the University of Utah, which shall be used to support research and development related to Blacksand, Hyperion, other members of the Group, and other related technologies in the field of titanium, critical metals, and
        minerals. Establishment of the endowed chair professorship shall be subject to the approval/acceptance of the University of Utah, and the Members shall provide support and cooperation and lead the coordination of the endowed chair professorship and
        the relationship between Blacksand and the University of Utah in that regard. $300,000 of such amount shall be contributed or set aside by the first anniversary of the Effective Date, $300,000 of such amount shall be contributed or set aside by the
        second anniversary of the Effective Date, and $400,000 of such amount shall be contributed or set aside by the third anniversary of the Effective Date.  In the event the endowed chair professorship has not been approved/accepted by the University
        of Utah within five (5) years of Closing, the committed funds shall revert back to Hyperion.

      

      

      (iv)

      If, from and after the Closing Date, Net Sales exceed $300,000,000, then Hyperion shall pay the Members
        their Pro Rata Share of the Additional Amount on an annual basis, within thirty (30) days after the end of each applicable calendar year.

      

      

      3.

      Closing of
            Purchase Option.

      

      

      (a)

      Closing Generally.  If Hyperion exercises its Purchase Option, the closing of the purchase and sale of the Membership Interests as described in this Agreement (the “Closing”) shall be held on or before five (5) days after the satisfaction or waiver of the Conditions Precedent and the deliverables and actions required under Section 3(c) below (the “Closing Date”).  For purposes of clarity, the Closing Date may extend beyond the Option Period as long as the Option Notice was delivered during the
        Option Period.   Unless otherwise agreed, Closing shall take place by the exchange of signatures by facsimile, electronic mail or other electronic transmission or, if such electronic exchange is not practicable, at the offices of Johnston, Allison
        & Hord, P.A., 1065 E. Morehead Street, Charlotte, North Carolina, USA.

      

      

      
        5

        
          

      

      

      

      (b)

      Conditions
          Precedent.

      

      

      (i)

      Closing is conditional on the satisfaction or waiver of the following conditions precedent (“Conditions Precedent”):

      

      

      (1)

      no material adverse change in the business, results, operations, prospects, condition (financial or otherwise) or assets of
        Blacksand between the date of the Exercise Date and the Closing Date;

      

      

      (2)

      all necessary governmental and other third party approvals and consents are obtained, including without limitation an
        Estoppel and Consent from the UURF under the License Agreement;

      

      

      (3)

      all necessary shareholder approvals are obtained by Hyperion and, if Hyperion elects to satisfy all or part of the Members
        Paid Amount through the issuance of the Members HYM Shares, HYM;

      

      

      (4)

      no law, regulation, or order exists that renders it impossible or impracticable to commercially exploit titanium and
        titanium alloy powders;

      

      

      (5)

      no material liabilities of Blacksand exist other than liabilities under the Master Services Agreement or other liabilities
        entered into in the ordinary course of Blacksand’s operations;

      

      

      (6)

      Blacksand has the ongoing right to own, occupy, or have the option to purchase all of the Blacksand Real Property;

      

      

      (7)

      Blacksand is in compliance with its obligations under the Master Services Agreement; and

      

      

      (8)

      no material breach of warranty or other terms and provisions of this Agreement.

      

      

      (ii)

      The Conditions Precedent are for the benefit of Hyperion and can only be waived by Hyperion.

      

      

      
        6

        
          

      

      

      

      (c)

      Closing Deliverables and Actions.

      

      

      (i)

      On the Closing Date, Hyperion shall contribute the Company Paid Amount and pay to each Member its Pro Rata
        Share of the Member Paid Amount, in accordance with clause 2(c)(i);

      

      

      (ii)

      On or before the Closing Date, Blacksand must hold a meeting of the Members pursuant to Blacksand’s
        Organizational Documents and applicable law to approve, and provide Hyperion reasonably satisfactory written resolutions and/or duly executed minutes of each such meeting relating to, the following matters:

      

      

      (1)

      transfer of the Blacksand Membership Interests to Hyperion and the documenting of Hyperion as the sole legal and beneficial
        owner of the Blacksand Membership Interests to the extent legally permissible and otherwise in such form as approved by Hyperion;

      

      

      (2)

      issuance of written confirmation of Hyperion as the sole owner of the Blacksand Membership Interests;

      

      

      (3)

      resignation of all managers and officers of Blacksand and appointment of Hyperion’s nominees as managers and officers of
        Blacksand (in the manner specified by Hyperion in writing prior to Closing);

      

      

      (4)

      revocation of each existing authority to operate any bank account of Blacksand and approval of such new authority as may be
        requested by Hyperion before Closing;

      

      

      (5)

      revocation of any existing powers of attorney granted by Blacksand; and

      

      

      (6)

      any other reasonable business of which Hyperion has given notice to Blacksand prior to Closing.

      

      

      

      

      (iii)

      Blacksand and the Members must deliver to Hyperion:

      

      

      (1)

      completed transfers of the Blacksand Membership Interests in favor of Hyperion as transferee duly executed by each Member as
        transferor, to the extent legally permissible and otherwise in such form as approved by Hyperion;

      

      

      (2)

      all registers, resolutions, minute books and other record books and financial records of Blacksand, including asset
        registers, management accounts, budgets, ledgers, journals, books of account and other records of Blacksand, and the common seal, if any, of Blacksand;

      

      

      
        7

        
          

      

      

      

      (3)

      possession of all title documents relating to the Blacksand Real Property and other documents held by Blacksand in
        connection with the Blacksand Real Property; and

      

      

      (4)

      if requested by Hyperion, executed escrow agreements (in the form provided by Hyperion) to give effect to any ASX-imposed
        escrow in relation to the Members HYM Shares.

      

      

      4.

      Access and
            Rights of Hyperion. Hyperion shall have the following rights.

      

      

      (a)

      Access to Blacksand Real Property.  From the Effective Date to the Closing Date, in each case subject to the conditions in the applicable Property Agreement, reasonable confidentiality (including as set forth in the MSA) and
        intellectual property-related limitations as Blacksand may reasonably request (the “Limitations”), Blacksand shall grant Hyperion and its
        representatives, as Blacksand’s agent, reasonable access, with advance notice and during reasonable business hours, to the Blacksand Real Property for purposes of inspecting and reviewing material analyses, intellectual property, reports, service
        contracts, purchase orders, customer lists, and periodic financial reports in Blacksand’s possession relating to Blacksand’s business, products or services (the “Materials”).

      

      

      (b)

      Access to Blacksand Materials. From the Effective Date to the Closing Date, subject to Blacksand’s confidentiality obligations to third parties and the Limitations, Blacksand shall provide Hyperion, and its representatives,
        copies of the Materials.

      

      

      5.

      Purchase
            Option Consideration.

      

      

      Upon the Effective Date, as consideration for the Purchase Option, Hyperion shall pay Blacksand $250,000, in cash
        or other immediately available funds to an account designated by Blacksand (“Option Payment”).

      

      

      It is acknowledged and agreed that, as the Members own all of the Membership Interests, such Option Payment paid by
        Hyperion to Blacksand shall provide substantial economic and other benefits to the Members, and therefore such Option Payment shall be deemed adequate consideration for the Members’ grant of the Purchase Option to Hyperion.

      

      

      6.

      Obligations
            of Blacksand and the Members.  During the Option Period, without the prior written consent of Hyperion where relevant, which shall not be unreasonably withheld, delayed or conditioned:

      

      

      (a)

      Blacksand and the Members shall provide Hyperion with copies of all Organizational Documents and any
        amendments and restatements to or of the Organizational Documents.

      

      

      (b)

      Neither Blacksand nor any Member shall, or shall attempt, agree or purport to: (i) create, authorize,
        designate, reclassify, modify, or issue any class or series of new Membership Interests or any rights, options, warrants, or other securities convertible into or exchangeable for any Membership Interests, to any Person or (ii) voluntarily or
        involuntarily Transfer all or any of the Membership Interests.

      

      

      
        8

        
          

      

      

      

      (c)

      Each of Blacksand and the Members shall use commercially reasonable efforts not to allow any Encumbrance
        upon the Membership Interests or upon the properties or assets of Blacksand.

      

      

      (d)

      Blacksand shall be and remain, and the Members shall cause Blacksand to be and remain, in good standing
        and duly qualified to do business under the laws of the State of Utah, and any other jurisdiction where the nature of the property owned or leased by it or the nature of the business conducted by it makes such qualification necessary.

      

      

      (e)

      Blacksand shall use commercially reasonable efforts to comply, and the Members shall use commercially
        reasonable efforts to cause Blacksand to comply, in all material respects with all applicable laws and permits issued by Governmental Authorities.

      

      

      (f)

      Blacksand shall use commercially reasonable efforts to comply, and the Members shall cause Blacksand to
        use commercially reasonable efforts to comply, in all material respects with all Property Agreements, as they may be amended, modified, or supplemented from time to time (provided that no such amendment may be made without the consent of Hyperion).

      

      

      (g)

      Blacksand and the Members  shall promptly notify Hyperion: (i) of any fact, circumstances, event or action
        the existence, occurrence, or taking of which has had, or could reasonably be expected to expected to have, individually or in the aggregate, a material adverse effect on Blacksand or Blacksand’s business, and (ii) of any material change in zoning
        or environmental regulations affecting the Blacksand Real Property to the extent such change may reasonably interfere with Blacksand’s business.

      

      

      (h)

      The Members shall, and shall cause Blacksand to: (i) conduct Blacksand’s business in the ordinary course
        of business consistent with past practice and (ii) use commercially reasonable efforts to maintain and preserve intact the current organization and business of Blacksand and to preserve the rights, goodwill, and relationships of its employees,
        customers, lenders, suppliers, regulators, and others having business relationships with Blacksand.

      

      

      (i)

      Blacksand shall file all applicable tax returns as and when due and shall pay all local, state, and
        federal taxes owed by it.

      

      

      (j)

      Blacksand shall not:

      

      

      (i)

      alter or agree to alter its Organizational Documents;

      

      

      (ii)

      distribute any material assets outside of the ordinary course of its business or distribute any cash other
        than (a) distributions to allow Members to pay tax consequences of ownership in Blacksand, and (b) distributions that do not impair Blacksand’s ability to continue its operations in the ordinary course;

      

      

      (iii)

      cause to occur, by act or omission, an event or series of events, whether related or not, which would have
        a material adverse effect on the business, assets or financial condition of Blacksand or on the transactions contemplated by this Agreement; or

       

      

       

      

      

      

      
        (iv)

        sell, assign or dispose of any legal or beneficial interest in Blacksand’s assets other than in the
          ordinary course of business consistent with past practice.

        

        

      

      
        9

        
          

      

      

      

      (k)

      Blacksand covenants that it will and the Members agree to ensure that Blacksand will:

      

      

      (i)

      During the Option Period, use commercially reasonable efforts to observe and perform all material
        stipulations and conditions relating to the Property Agreements (including, without limitation, expenditure conditions prescribed under any applicable laws or regulations), all statutory obligations relating to activities on the Covered Property
        and all agreements related to Blacksand’s Intellectual Property Rights, including without limitation the License Agreement;

      

      

      (ii)

      During the Exercise Period, work with Hyperion to obtain all necessary governmental approvals and consents
        required for transfer of the Membership Interests;

      

      

      (iii)

      Not relinquish any portion of any of the Property Agreements except with the agreement of Hyperion, such
        agreement not to be unreasonably withheld;

      

      

      (iv)

      During the Option Period, use commercially reasonable efforts to promptly pass to Hyperion any notice or
        communication from any third party or government authority in any way affecting the Property Agreements, the Covered Property or the License Agreement; and

      

      

      (v)

      Maintain in good standing and free from Encumbrance, all of Blacksand’s Intellectual Property Rights.

      

      

      (l)

      Blacksand shall not grant licenses or sublicenses for any technology or other property owned or licensed
        by Blacksand, including, without limitation, any Intellectual Property Rights.

      

      

      (m)

      Blacksand shall use good faith efforts to pursue an amendment to the License Agreement with UURF as deemed
        reasonably necessary by Hyperion to insure that all of Blacksand’s Intellectual Property Rights as shown and designated as “U-No.” on Exhibit C hereto are covered and properly referenced in the License Agreement.  Otherwise, Blacksand shall not
        amend, alter, expand or terminate the License Agreement.

      

      

      (n)

      Blacksand shall use good faith efforts to pursue execution and recording by the original inventors and/or
        the University of Utah, as the case may be, of any assignment deemed reasonably necessary by Hyperion to confirm that Blacksand’s Intellectual Property Rights as shown and designated as “U-No.” on Exhibit C hereto are currently owned by UURF,
        including assignments of provisional patent applications, formal patent applications, issued patents, divisionals, continuations, continuations in part and foreign applications.

      

      

      (o)

      Blacksand shall use good faith efforts to license the intellectual property known as “Production of
        Titanium Dioxide Pigment” and having University of Utah and UURF reference number U-4606, pursuant to a license agreement to be approved by Hyperion.

      
        10

        
          

      

      

      

      7.

      Representations
            of the Members.  Each Member hereby represents and warrants to Hyperion solely as to such Member and not with respect to any other Member (on the Effective Date and each day until Closing or the termination of this Agreement), as
        follows:

      

      

      (a)

      Member Authority.  Such Member has the capacity to execute, deliver and perform or consummate the transactions contemplated by this Agreement. This Agreement has been duly and validly executed and delivered by such Member and
        constitutes the valid and binding obligation of such Member, enforceable against such Member in accordance with their respective terms, except as such enforcement shall be limited by bankruptcy, insolvency, moratorium or similar law affecting
        creditors’ rights generally and subject to general principles of equity.

      

      

      (b)

      No Member Conflicts.  The execution, delivery and performance by such Member of this Agreement, and the consummation by such Member of the transactions contemplated hereby does not and will not violate any provision of any law to
        which such Member is subject.  The execution, delivery and performance by such Member of this Agreement, and the consummation by such Member of the transactions contemplated hereby does not and will not, with or without the giving of notice or the
        lapse of time, or both, (i) violate or result in a breach of or constitute a default under, conflict with, require the consent of (or notice to) any third party under any contract or permit issued by a Governmental Authority, or (ii) result in the
        creation or imposition of any Encumbrance of any nature whatsoever upon any of any portion of the Membership Interest held by such Member.  No notices to, filings with, or authorizations, consents or approvals of any Governmental Authority or any
        other Person are necessary for the execution, delivery or performance by such Member of this Agreement or the consummation by such Member of the transactions contemplated hereby.

      

      

      (c)

      Title to Membership Interests.  Such Member is the record and beneficial owner of the Membership Interest set forth opposite such Member’s name on Exhibit
            A, and has good and valid title to his or its Membership Interest, as applicable, free and clear of all Encumbrances and other any restrictions imposed by applicable United States securities laws.

      

      

      (d)

      Intellectual Property Rights.  Such Member does not own, license or otherwise control patents, patent applications or other intellectual property related to Blacksand’s Intellectual Property Rights.

      

      

      8.

      Representations
            of Blacksand.  Blacksand hereby represents and warrants to Hyperion (on the Effective Date, and each day until the Closing Date, as follows:

      

      

      (a)

      Organization. Blacksand is a limited liability company, duly formed, validly existing and in good standing under the laws of the State of Utah.  Blacksand has all requisite power and authority to own, lease and operate its
        properties and carry on its business as it is now being conducted.  Blacksand is duly qualified to do business and is in good standing in all other jurisdictions where the nature of the property owned or leased by it or the nature of the business
        conducted by it makes such qualification necessary.

      

      

      
        11

        
          

      

       

      (b)

      Company Authority.  Blacksand has all requisite power and authority to execute, deliver and perform this Agreement and to perform its obligations hereunder and to consummate the transactions contemplated hereby.  The execution,
        delivery and performance by Blacksand of this Agreement, and the consummation by Blacksand of the transactions contemplated hereby have been duly authorized by all necessary action on the part of Blacksand.  No other limited liability company
        proceedings on the part of Blacksand are necessary to authorize such execution, delivery or performance or to consummate the transactions contemplated by this Agreement.  This Agreement has been duly and validly executed and delivered by Blacksand
        and constitutes the valid and binding obligation of Blacksand, enforceable against Blacksand in accordance with its terms, except as such enforcement shall be limited by bankruptcy, insolvency, moratorium or similar law affecting creditors’ rights
        generally and subject to general principles of equity.

      

      

      (c)

      No Company Conflicts.  The execution, delivery and performance by Blacksand of this Agreement and the consummation by Blacksand of the transactions contemplated hereby does not and will not (i) violate any provision of any law to
        which Blacksand is subject, or (ii) violate or breach any provision of any Organizational Document of Blacksand.  The execution, delivery and performance by Blacksand of this Agreement, and the consummation by Blacksand of the transactions
        contemplated hereby does not and will not, with or without the giving of notice or the lapse of time, or both, (x) violate or result in a breach of or constitute a default under, conflict with, require the consent of (or notice to) any third party
        under, or result in or permit the termination, cancellation, modification, or amendment of any provision of, or result in or permit the acceleration of the maturity or cancellation of performance of any obligation under any contract (including any
        Property Agreement) or any permit issued by a Governmental Authority to which Blacksand is a party or by which Blacksand may be bound or affected, or (y) result in the creation or imposition of any Encumbrance of any nature whatsoever upon any of
        the assets or properties of Blacksand or give to others any interests or rights therein.  No notices to, filings with, or authorizations, consents or approvals of any Governmental Authority or any other Person are necessary for the execution,
        delivery or performance by Blacksand of this Agreement or the consummation by Blacksand of the transactions contemplated hereby.

      

      

      (d)

      Capitalization.  All of the issued and outstanding Membership Interests have been duly authorized and validly issued, fully paid and non-assessable, and none of the issued and outstanding Membership Interests are subject to or
        were issued in violation of any applicable securities laws, purchase option, call option, right of first refusal, preemptive right, subscription right or any similar right under any provision of applicable law, the Organizational Documents of
        Blacksand or any contract to which Blacksand is a party.  All of the issued and outstanding membership interests of Blacksand are held of record and beneficially owned by the Members as set forth on Exhibit A, in each case in the class and amounts so indicated thereon. There are no obligations or commitments for Blacksand to issue any additional membership interests or equity interests beyond those
        already issued and outstanding. There are no outstanding or authorized options, warrants, purchase rights, subscription rights, conversion rights, convertible securities, exchange rights, calls, puts, preemptive rights, rights of first refusal,
        tag-along right, drag-along rights or other contracts, rights, agreements, arrangements or commitments of any character that would require Blacksand to issue, sell, purchase or otherwise cause to become outstanding, or cause to be repurchased or
        redeemed, any Membership Interests or any other membership or equity interest in Blacksand.  There are no voting trusts, equityholder agreements, shareholders agreements, proxies or other agreements or understandings in effect with respect to the
        voting or Transfer of any Membership Interests.

      

      

      
        12

        
          

      

       

      (e)

      Real Property.

      

      

      (i)

      Exhibit B sets
        forth a true, correct and complete list of all property owned by Blacksand and all written or oral leases, subleases, licenses, option agreements, rights to purchase, rights of first refusal, or other occupancies of the Blacksand Real Property
        (including all amendments, extensions, renewals and guaranties with respect thereto) (collectively, the “Property Agreements”) to which Blacksand
        is a party (as lessor, lessee, sublessee, licensee, option holder, or otherwise).  Blacksand has delivered or made available to Hyperion a true, correct and complete copy of each of the Property Agreements and all amendments, modifications and
        supplemental agreements thereto.  Each of the Property Agreements is in full force and effect and is valid, binding and enforceable against the Blacksand and each of the other parties thereto, in accordance with its terms and has not been modified
        or amended except as disclosed on Exhibit B.

      

      

      (ii)

      (1) Blacksand has not received from the other party to any Property Agreement any notice claiming that
        Blacksand is in default thereunder for which such default has not been cured; (2) all payments required to be paid by Blacksand pursuant to the Property Agreements have been paid prior to such payments becoming delinquent; (3) there has not
        occurred any event which would constitute a breach of or default in the performance of any covenant, agreement or condition contained in any Property Agreement which has not been cured, nor has there occurred any uncured event which with the
        passage of time or the giving of notice or both would constitute such a breach or default;  and (4) Blacksand has not received any written notice from the other party to any Property Agreement of the termination or proposed termination thereof.

      

      

      (iii)

      Blacksand presently enjoys peaceful and undisturbed possession of the Blacksand Real Property.  There are
        no matters affecting the right, title and interest of Blacksand in and to the Blacksand Real Property which, in the aggregate, would adversely affect the ability to carry on the Business upon the Blacksand Real Property substantially in the manner
        in which such operations are currently carried on.  No Person other than Blacksand has any right to use or occupy the Blacksand Real Property.

      

      

      (iv)

      The current use of the Blacksand Real Property in the conduct of Blacksand’s business does not violate any
        Property Agreement in any respect.  Blacksand is not in violation of any covenant, condition, restriction, easement or order of any Governmental Authority having jurisdiction over the Blacksand Real Property or the use or occupancy thereof. 
        Blacksand has not received written notice from any Governmental Authority, with respect to the Blacksand Real Property, of any violation or claimed violation by Blacksand of applicable building, zoning, subdivision, conservation, fire, health and
        safety and other land use and similar applicable laws, rules and regulations, permits, licenses, and certificates of occupancy.

      

      

      (v)

      None of the transactions contemplated by this Agreement constitutes an assignment of Blacksand’s rights
        under any Property Agreement, and such transactions do not require the consent of any Person under any Property Agreement.

      

      

      (vi)

      Each use of the Blacksand Real Property by Blacksand is and has been valid, permitted and conforming uses
        in accordance with the current zoning classification of the Blacksand Real Property, and there are no outstanding variances or special use permits affecting the Blacksand Real Property or their uses.  The operation of the Business on the Blacksand
        Real Property complies with all applicable laws, all applicable permits issued by Governmental Authorities, and all Property Agreements.

      
        13

        
          

      

      

      

       

      (f)

      Intellectual Property:

      

      

      (i)

      Exhibit C sets
        forth a true, correct and complete list, reference or link to all the intellectual property and software legally and beneficially owned or licensed by Blacksand, including all registered or unregistered business names, trade or service marks,
        patents, and patent applications, other than off-the-shelf and shrink-wrap or click-wrap software requiring payments of less than $2,500 per year (“Intellectual
          Property Rights”).

      

      

      (ii)

      Blacksand owns or is legally entitled to use all the assets, systems, hardware and software required to
        operate the information technology functions of Blacksand.

      

      

      (iii)

      Blacksand does not require the use of any Intellectual Property Rights other than those specified in
        Exhibit C in the course of conducting its business.

      

      

      (iv)

      The information technology systems, including hardware and software, utilized by Blacksand in the
        operations of its business as of the Effective Date are sufficient for the conduct of the business Blacksand as currently conducted.

      

      

      (v)

      Neither Blacksand nor any of its Affiliates are in material breach of a material term of any agreement or
        license relating to the Intellectual Property Rights to which it is a party (whether as licensor or licensee) and so far as Blacksand is aware no third party is in breach of any such agreement.

      

      

      (vi)

      To Blacksand’s knowledge, neither Blacksand nor any of its Affiliates have infringed any Intellectual
        Property Rights of any third party or is aware of any circumstances which is likely to give rise to any infringement.

      

      

      (vii)

      Blacksand is not aware of any unauthorized use by any person of any Intellectual Property Rights or
        confidential information of Blacksand or any of its Affiliates.

      

      

      (viii)

      There is not currently any unresolved challenge, dispute or claim which has been made or threatened by any
        person with respect to any of the Intellectual Property Rights used in connection with Blacksand's business.

      

      

      (g)

      Compliance with Laws; Permits.  Blacksand has been, during the three (3) year period prior to the Effective Date, and is currently in compliance in all material respects with all applicable laws and permits issued by Governmental
        Authorities.

      

      

      (h)

      Legal Proceedings.  There are no actions pending or threatened against or by Blacksand: (a) relating to or affecting Blacksand’s business or the Membership Interests; or (b) that challenge or seek to prevent, enjoin or otherwise
        delay the transactions contemplated by this Agreement.  No event has occurred or circumstances exist that may give rise to, or serve as a basis for, any such action.  There are no outstanding orders of Governmental Authorities and no unsatisfied
        judgments, penalties or awards against, relating to or affecting Blacksand’s business.

      

      

      
        14

        
          

      

      

      

       

      (i)

      Taxes.

      

      

      (i)

      From and after Blacksand’s date of formation (September 3, 2013), Blacksand has been taxed as a
        partnership or as a disregarded entity.

      

      

      (ii)

      All tax returns required to be filed by Blacksand for any period prior to the Effective Date have been, or
        will be, timely filed.  Such tax returns are, or will be, true, complete, and correct in all respects. All taxes due and owing by Blacksand (whether or not shown on any tax return) have been, or will be, timely paid.

      

      

      (iii)

      Blacksand has withheld and paid each tax required to have been withheld and paid in connection with
        amounts paid or owing to any of its employees, independent contractors, creditors, customers, shareholders or other persons, and has complied with all information reporting and backup withholding provisions of applicable law.

      

      

      (iv)

      No extensions or waivers of statutes of limitations have been given or requested with respect to any taxes
        of Blacksand.

      

      

      (v)

      All deficiencies asserted, or assessments made, against Blacksand as a result of any examinations by any
        taxing authority have been fully paid.

      

      

      (vi)

      Blacksand is not a party to any action by any taxing authority.  There are no pending or threatened
        actions by any taxing authority.

      

      

      (vii)

      There are no Encumbrances for taxes upon any of the Membership Interests nor is any taxing authority in
        the process of imposing any Encumbrances for taxes on any of the Membership Interests (other than for current taxes not yet due and payable).

      

      

      (j)

      Subsidiaries:  Blacksand does not have any subsidiaries.

      

      

      (k)

      No other operations or assets: Other than the business described in the Recitals above, Blacksand does not have any operations, assets or agreements.

      

      

      (l)

      Employees and contractors: Other than as disclosed to Hyperion, Blacksand does not have any employees and contractors.

      

      

      (m)

      Liabilities: Other than as disclosed to the Hyperion, Blacksand does not have any liabilities, other than the Company Paid Amounts, obligations to UURF, and other payables and similar obligations incurred in the ordinary course of
        Blacksand’s business.

      

      

      (n)

      Consistency with other agreements: The terms of this Agreement are not inconsistent with and do not contravene the provisions of any other agreements or contract to which Blacksand is a party.

      

      

      
        15

        
          

      

      

      

      9.

      Employee/Advisor/Consultant Retention.

      

      

      During the period commencing from the Effective Date to the Closing Date, Blacksand and the Members will:

      

      

      (i)

      use commercially reasonable efforts to maintain the services of all of the officers, employees and
        consultants of Blacksand;

      

      

      (ii)

      without the prior written consent of Hyperion, not terminate, vary or amend any agreements with or
        encourage the resignation of any of the officers, employees and consultants of Blacksand; and

      

      

      (iii)

      work in good faith with Hyperion to conduct a review to determine key officers and employees of Blacksand
        who will be offered continued employment and the terms and conditions of such employment, including without limitation any covenants similar to the covenants set forth in Section 10 below.

      

      

      In addition, by execution of this Agreement, Zak agrees to remain as an advisor and consultant to Hyperion for at
        least twenty-four (24) months following Closing, obligated to continue providing the level of service, assistance and support currently being provided to Blacksand/Hyperion for compensation in the amount as set forth in any then current Consulting
        Agreement between Zak and Hyperion, subject to the terms and conditions of any such then current Consulting Agreement.

      

      

      10.

      Non-Compete Covenants.

      

      

      (a)

      Each Member agrees that he will not, either d irectly or by, with, or through any other Person, do any of
        the following:

      

      

      (i)

      during the Restraint Period and within the Restraint Area, carry on, promote, participate in, operate,
        engage in or be involved in any way (whether as an employee, agent, director, consultant, partner, promoter, owner, investor, lender, financier, guarantor, co-obligor, or however otherwise) in any Restrained Business;

      

      

      (ii)

      to the extent not covered in the immediately preceding clause, during the Restraint Period and within the
        Restraint Area, act as an adviser, independent contractor, consultant, director, manager, agent, employee or in any other capacity whatsoever in or to any Restrained Business;

      

      

      (iii)

      during the Restraint Period, solicit, provide and/or accept business that is or is similar to the
        Restrained Business or goods or services of a similar type to those provided by Blacksand or the Group to any Restrained Customer;

      

      

      (iv)

      during the Restraint Period, solicit, any Restrained Supplier, to cease to supply, or to restrict or vary
        the terms of supply to, Blacksand or the Group (as applicable), attempt to do any of the foregoing with respect to any such Restrained Supplier, or otherwise interfere with any relationship between Blacksand or the Group (as applicable) and any
        such Restrained Supplier;

      

      

      
        16

        
          

      

      

      

      (v)

      during the Restraint Period, solicit, lure, entice, call, and/or induce any Restrained Customer, to cease
        purchasing goods and/or services from, or the restrict or vary the terms of the purchase of goods and/or services from, Blacksand or the Group, attempt to do any of the foregoing with respect to any such Restrained Customer, or otherwise interfere
        with any relationship between Blacksand or the Group (as applicable) and any such Restrained Customer;

      

      

      (vi)

      during the Restraint Period, solicit, lure, entice, call, and/or induce any Restrained Employee to leave
        the employment of, cease providing services to, reduce or lessen the provision of services to, or otherwise vary the terms of such Restrained Employee’s provision of services to, Blacksand or the Group (as applicable), or otherwise interfere with
        the relationship between Blacksand or the Group (as applicable) and any such Restrained Employee;

      

      

      (vii)

      reveal, report, publish, disclose or transfer any Confidential Information of Blacksand or the Group to
        any Person (other than Blacksand and/or the Group), use any such Confidential Information for any purpose, or use any such Confidential Information for the benefit of any Person (other than Blacksand and/or the Group); or

      

      

      (viii)

      procure any other Person to do or assist any other Person in doing any of the things referred to in
        clauses 10(a)(i) to 10(a)(vii) inclusive.

      

      

      (b)

      Prior written consent: The covenants in this clause 10 do not apply in circumstances where the Member has obtained the prior
        written consent of Blacksand and Hyperion.

      

      

      (c)

      Acknowledgment: The Members agree and acknowledge that:

      

      

      (i)

      the Members will obtain Confidential Information during the Employment, the disclosure of which could
        materially harm the Group;

      

      

      (ii)

      the covenants in clause 10(a) are fair and reasonable and necessary for the protection of the Confidential
        Information and the Group's goodwill and legitimate business interests, particularly in relation to the Group's core business activities;

      

      

      (iii)

      the remuneration and other benefits provided to the Members by virtue of the Option Payment and the
        Company Paid Amount constitute adequate consideration for the Members' agreement to be bound by the covenants under this clause 10;

      

      

      (iv)

      their willingness to be bound by the covenants in clause 10(a) was and is a material inducement to
        Hyperion’s willingness to enter into this Agreement and potentially exercise the Purchase Option, and Hyperion would not have entered into this Agreement and would not be willing to exercise the Purchase Option but for the Members’ willing to be
        bound by the covenants in clause 10;

      

      

      
        17

        
          

      

      

      

      (v)

      the covenants in clause 10(a) do not unreasonably restrict the Members' right to practice in their
        profession or calling;

      

      

      (vi)

      damages may be inadequate to protect the Group's interests and the Group is entitled to seek and obtain
        injunctive relief, or any other remedy, in any court for any breach or threatened breach of the Members' obligations under this clause 10, without the need to post bond or any other form of security therefor;

      

      

      (vii)

      each covenant contained in clause 10(a) (resulting from any combination of the wording in clause 10(a) and
        the definitions of Restraint Period and Restraint Area) constitutes a separate and independent covenant, severable from the other covenants therein; and

      

      

      (viii)

      if any covenants are determined to be unenforceable in whole or in part, the enforceability of the remaind
        er of that restraint and any other restraint will not be affected.

      

      

      (d)

      Continuing Obligations: For the avoidance of doubt, the Members' obligations under this clause 10 survive termination of any Employment Agreement.

      

      

      11.

      Other
            Agreements.

      

      

      (a)

      Confidentiality.  From time to time during the term of this Agreement, a Party (as the “Disclosing Party”) may disclose or make
        available to another Party (as the “Receiving Party”) information about its business affairs, products, services, confidential intellectual
        property, trade secrets, third-party confidential information and other sensitive or proprietary information (collectively, “Confidential Information”). 
        Confidential Information shall not include information that, at the time of disclosure: (i) is or becomes generally available to and known by the public other than as a result of, directly or by, with, or through any other Person, any breach by the
        Receiving Party or any of its representatives; (ii) is or becomes available to the Receiving Party on a non-confidential basis from a third-party source, provided that such third party is not and was not prohibited from disclosing such Confidential
        Information; (iii) was known by or in the possession of the Receiving Party or its representatives before being disclosed by or on behalf of the Disclosing Party; or (iv) was or is independently developed by the Receiving Party without reference to
        or use, in whole or in part, of any of the Disclosing Party’s Confidential Information.  The Receiving Party shall: (A) protect and safeguard the confidentiality of the Disclosing Party’s Confidential Information with at least the same degree of
        care as the Receiving Party would protect its own Confidential Information, but in no event with less than a commercially reasonable degree of care; (B) not use the Disclosing Party’s Confidential Information, or permit it to be accessed or used,
        for any purpose other than to exercise its rights or perform its obligations under this Agreement; and (C) not disclose any such Confidential Information to any person or entity, except to the Receiving Party’s representatives who need to know the
        Confidential Information to assist the Receiving Party, or act on its behalf, to exercise its rights or perform its obligations under the Agreement.  The Receiving Party shall be responsible for any breach of this Section 11(a) caused by any of its
        representatives.  In the event the Disclosing Party’s Confidential Information is required to be disclosed under applicable federal, state or local law, regulation or a valid order issued by a court or Governmental Authority of competent
        jurisdiction, the Receiving Party shall promptly notify the Disclosing Party of such requirement and reasonably assist the Disclosing Party (at the Disclosing Party’s expense) to enable it to obtain a protective order or otherwise take appropriate
        measures to prevent the disclosure of its Confidential Information.  In the event the Disclosing Party is unable to prevent the disclosure of such Confidential Information, the Receiving Party shall disclose only that portion of such Confidential
        Information that the Receiving Party is legally required to disclose.  On the expiration or termination of the Agreement, at the Disclosing Party’s written request, the Receiving Party shall promptly return, and shall require its representatives to
        return to the Disclosing Party all copies, whether in written, electronic or other form or media, of the Disclosing Party’s Confidential Information, or destroy all such copies and certify in writing to the Disclosing Party that such Confidential
        Information has been destroyed. Notwithstanding this clause, (a) Hyperion may use any Confidential Information they require for the purposes of raising capital or pursuing an Exchange listing, and (b) Zak may use and disclose certain Confidential
        Information as required by, or consistent with, Zak’s academic obligations to the University of Utah and its affiliates.

       

      

       

      

       

      

       

      

       

      

      

      

      
        18

        
          

      

      

      

      (b)

      Exclusivity.  During the Option Period, the Parties agree that Hyperion is and shall be the exclusive holder of the Purchase Option.  In light of the foregoing, during the Option Period, Blacksand and/or the Members shall not,
        directly or by, with, or through any other Person, in any capacity whatsoever: (i) solicit, initiate, entertain, encourage, accept any inquiries, proposals, or offers from any Person other than Hyperion for the acquisition of the Membership
        Interests or to engage in transactions similar to the transactions contemplated hereby; (ii) grant any Person other than Hyperion any right or option to purchase the Membership Interests, all or substantially all of the assets of Blacksand, or
        otherwise to acquire or succeed to the Business;  (iii) grant any Person other than Hyperion the right to access the Covered Property for purposes exploring, evaluating, mining, or removing Mineral Products; (iv) provide any Person other than
        Hyperion with access to any  reports, surveys, historical exploration results, and data relating to the Covered Property, Mineral Products that may be located on or under the Covered Property, and other geological attributes of the Covered
        Property, or relating to the Business; or (v) otherwise circumvent, avoid, bypass, or obviate the intent of this Agreement and the observance and performance of all the terms and provisions hereof.  The Parties agree that this Section shall be
        strictly construed and the violation of this Section 11(b) shall be an incurable material breach of this Agreement.

      

      

      (c)

      Further Assurances.  If Hyperion exercises the Purchase Option, following the Closing, the Parties shall, and shall cause their respective representatives to, execute and deliver such additional documents, instruments,
        conveyances, and assurances and take such further actions as may be reasonably required to carry out the provisions hereof and give effect to the transactions contemplated by this Agreement.

      

      

      12.

      Indemnification.

      

      

      Indemnification by
          Blacksand and Members.  Blacksand (during the term of this Agreement) and the Members (during and thereafter), jointly and severally,
        shall indemnify, defend, and hold harmless Hyperion, and its officers, directors, employees, agents, representatives, affiliates, successors, and permitted assigns, from and against any and all losses, damages, liabilities, costs, or expenses
        arising out of or resulting from any breach by Blacksand or any Member of any representation, warranty, or covenant set forth in this Agreement.

      

      

      Indemnification by
          Hyperion.  Hyperion shall indemnify, defend, and hold harmless Blacksand, the Members, and Blacksand’s officers, managers, employees,
        agents, representatives, affiliates, successors, and permitted assigns, from and against any and all losses, damages, liabilities, costs, or expenses arising out of or resulting from any breach by Hyperion of any representation, warranty, or
        covenant set forth in this Agreement.

      

      

      13.

      Termination.

      

      

      (a)

      Events of Termination.

      

      

      (i)

      This Agreement may be terminated at any time by the mutual agreement of all Parties.

      

      

      (ii)

      This Agreement shall terminate upon the expiration of the Option Period (unless the Option Notice has been
        given).

      

      

      (iii)

      This Agreement may be terminated by Hyperion at any time and for any reason (or for no reason), upon sixty
        (60) days’ notice to Blacksand.

      

      

      (iv)

      This Agreement may be terminated by Hyperion if there has been a breach, inaccuracy in, or failure to perform any representation, warranty, covenant or agreement made by Blacksand or any
          Member pursuant to this Agreement, and such breach, inaccuracy, or failure has not been cured by Blacksand or the Members (as applicable) within thirty (30) days
          of receipt of written notice of such breach from Hyperion.  Notwithstanding the foregoing, there shall be no cure period for a breach of Section 11(a) (Confidentiality) or Section 11(b) (Exclusivity).

      

      

      (v)

      This Agreement may be terminated by Blacksand if there has been a breach, inaccuracy in, or failure to perform any representation, warranty, covenant or agreement made by Hyperion pursuant
          to this Agreement, and such breach, inaccuracy, or failure has not been cured by Hyperion within thirty (30) days of receipt of written notice of such breach
          from Blacksand.

      

      

      
        19

        
          

      

      

      

      
        (b)

        Effects of Termination.

        

        

      

      (i)

      Following the termination of this Agreement, the Parties shall have no further rights, obligations, duties
        under this Agreement, except pursuant to Section 11(a) (Confidentiality), Section 12 (Indemnification), Section 13(b) (Effects of Termination), and Section 14 (Miscellaneous), all of which shall survive the termination of this Agreement.  The
        Parties’ indemnification obligations under Section 12, and the representations and warranties set forth herein, shall survive for a period of one (1) year following the termination of this Agreement.

      

      

      (ii)

      Upon termination of this Agreement, Hyperion shall have no further obligations to make the Option Payment
        under Section 5.

      

      

      (iii)

      Following the termination of this Agreement, Hyperion shall have thirty (30) days from the date of
        termination to remove all of its representatives, vehicles, and other property from the Covered Property.

      

      

      (iv)

      If this Agreement is terminated due to the uncured breach of one Party, the non-breaching party shall
        retain all of its rights and remedies at law and in equity.

      

      

      14.

      Miscellaneous.

      

      

      (a)

      Entire Agreement.  This Agreement (including the Exhibits attached hereto) constitutes the entire understanding and agreement of the Parties with respect to the transactions contemplated by this Agreement and supersedes any other
        agreements, whether written or oral, that may have been made or entered into by or among any of the Parties or any of its respective Affiliates relating to the transactions contemplated hereby or thereby or the subject matter hereof or thereof.

      

      

      (b)

      Successors and Assigns.  The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and permitted assigns of the Parties hereto; provided, however, that this Agreement
        may not be assigned by any Party hereto without the prior written consent of the other parties hereto, except that Hyperion and HYM may without the consent of any other Party (A) assign this Agreement (in whole or in part) and their rights and
        obligations hereunder to (i) one or more Affiliates of Hyperion, or (ii) to an acquirer to all or a substantial portion of the capital stock (or other equity interests) or all or a substantial portion of the assets or business of Hyperion in any
        form of transaction, or (B) change the legal name of Hyperion or HYM.  Any assignment in violation of this Section is be void ab initio.

      

      

      (c)

      Modification and Waiver.  No amendment, modification, or alteration of the terms or provisions of this Agreement shall be binding unless the same shall be in writing and duly executed by the Parties.  Notwithstanding the
        foregoing, Exhibit B and the corresponding definition of “Covered Property” may be amended by a writing executed solely by Blacksand and Hyperion.  Any of
        the terms or provisions of this Agreement may be waived in writing at any time by the Party that is entitled to the benefits of such waived term or provision.  No single waiver of any of the provisions of this Agreement shall be deemed to or shall
        constitute, absent an express statement otherwise, a continuous waiver of such provision or a waiver of any other provision hereof (whether or not similar).  No delay on the part of any Party in exercising any right, power, or privilege hereunder
        shall operate as a waiver thereof, and no course of dealing between or among the Parties shall be deemed effective to modify, amend or discharge any part of this Agreement or any rights or obligations of any party hereto under or by reason of this
        Agreement.

      

      

      
        20

        
          

      

       

      (d)

      Severability.  Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or
        invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Agreement.

      

      

      (e)

      Expenses. Except as otherwise expressly provided in this Agreement, all costs and expenses, including, without limitation, fees and disbursements of
          counsel, financial advisors and accountants, incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party
          incurring such costs and expenses.

      

      

      (f)

      Notices.  Any notice, request, instruction, or other document to be given hereunder by any Party hereto to any other Party shall be in writing and shall be given by delivery in person, by electronic mail, by electronic facsimile
        transmission, by overnight courier or by registered or certified mail, postage prepaid (and shall be deemed given when delivered if delivered by hand or by electronic mail, when transmission confirmation is received if delivered by facsimile, one
        Business Day after deposited with an overnight courier service if delivered by overnight courier and three days after mailing if mailed), as follows:

      

      

      	 	
              If to Hyperion or HYM:

            	 	
              [***]

            
	 	 	 	 
	 	
              with copy to:

            	 	
              [***]

            
	 	 	 	 
	 	
              If to Blacksand:

            	 	
              [***]

            
	 	 	 	 
	 	 	 	 
	 	
              If to Member Zhigang Zak Fang:

            	 	
              [***]

            
	 	 	 	 
	 	
              If to Wenfang Bien Fang:

            	 	
              [***]

            
	 	 	 	 
	 	
              If to Pei Sun:

            	 	
              [***]

            
	 	 	 	 
	 	
              If to Madapusi K. Keshavan:

            	 	
              [***]

            

      

      

      (g)

      Specific Performance.  The Parties agree that irreparable damage would occur if any provision of this Agreement were not performed in accordance with the terms hereof and that the Parties shall be entitled to specific performance
        of the terms hereof, in addition to any other remedy to which they are entitled at law or in equity.

      

      

      (h)

      Attorneys’ Fees and Expenses.  In the event any suit, action, or other proceeding arising out of or relating to this Agreement or any transaction contemplated hereby is commenced by any Party hereto, the prevailing Party in such
        suit, action, or proceeding shall be entitled to recover its reasonable attorneys’ fees and expenses from the other Party(s) as determined by the court in accordance with N.C. Gen. Stat. § 6-21.6.  The parties to this Agreement hereby acknowledge
        this agreement is a contract entered into primarily for business or commercial purposes.

      

      

      (i)

      Governing Law.  This Agreement shall be governed by and interpreted and enforced in accordance with the laws of the State of North Carolina, without giving effect to any choice of law or conflict of laws rules or provisions
        (whether of the State of North Carolina or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of North Carolina.

      

      

       

      (j)

      No Third Party Beneficiaries. This Agreement is intended and agreed to be solely for the benefit of the Parties and their successors and permitted assigns, and no other party or Person shall be entitled to rely on this Agreement
        or accrue any benefit, claim, or right of any kind whatsoever pursuant to, under, by, or through this Agreement

      

      

      (k)

      Counterparts; Electronic Signatures.  This Agreement may be executed in multiple counterparts, each of which shall for all purposes be deemed to be an original and all of which shall constitute the same instrument.  This Agreement
        and any amendments hereto, to the extent signed and delivered by electronic transmission in portable document format (pdf), or by other electronic transmission, shall be considered to have the same binding legal effect as if it were the original
        signed version thereof delivered in person.

      

      

      
        21

        
          

      

      

      

      IN WITNESS WHEREOF, the Parties have executed this Agreement by their duly authorized representatives as of the Effective Date.

      

      

      	 	
              HYPERION:

            
	 	 
	 	
              Hyperion Materials & Technologies, LLC

            
	 	 
	 	 
	 	
              By:

            	
              /s/ Anastasios Arima

            
	 	 	 
	 	
              Name:  

            	
              Anastasios Arima

            
	 	 	 
	 	
              Title:

            	
              Manager

            

      

      

      

      

      	 	
              Blacksand:

            
	 	 
	 	
              Blacksand Technology, LLC

            
	 	 
	 	 
	 	
              By:

            	
              /s/ Madapusi K. Keshavan

            
	 	 
	 	
              Name:  

            	
              Madapusi K. Keshavan

            
	 	 
	 	
              Title:

            	
              President

            

      

      

      

      

      

      

      	 	
              MEMBERS:

            
	 	 
	 	 
	 	
              /s/ Zhigang Zak Fang

            
	 	
              Zhigang Zak Fang

            
	 	 
	 	 
	 	
              /s/ Wenfang Bian Fang

            
	 	
              Wenfang Bian Fang

            
	 	 
	 	 
	 	
              /s/ Pei Sun

            
	 	
              Pei Sun

            
	 	 
	 	 
	 	
              /s/ Madapusi K. Keshavan

            
	 	
              Madapusi K. Keshavan

            

      

      

      

      

      

      

      

      

      
        
          

      

      

      

       

      	 	
              HYM:

            
	 	 
	 	 
	 	
              Hyperion Metals Limited

            
	 	 
	 	 
	 	
              By:

            	
              /s/ Anastasios Arima

            
	 	 
	 	
              Name:  

            	
              Anastasios Arima

            
	 	 
	 	
              Title:

            	
              Director

            
	 	 
	 	 
	 	 
	 	
              By:

            	
              /s/ Gregory Swan

            
	 	 
	 	
              Name:  

            	
              Gregory Swan

            
	 	 
	 	
              Title:

            	
              Company Secretary

            

      

      

      

      

      NOTE:

      

      

      HYM joins in the execution of this Agreement solely to satisfy any conditions of issuance of the Members HYM Shares in the event Hyperion elects to satisfy
        all or part of the Members Paid Amount through the issue of the Members HYM Shares.tenx_ex414.htm

  
 Exhibit 4.14
  
 DESCRIPTION OF THE REGISTRANT’S SECURITIES
 REGISTERED PURSUANT TO SECTION 12 OF THE
 SECURITIES EXCHANGE ACT OF 1934
  
 The authorized capital stock of Tenax Therapeutics, Inc. consists of 400,000,000 shares of common stock, $0.0001 par value per share (“Common Stock”), and 10,000,000 shares of preferred stock, par value $0.0001 per share (“Preferred Stock”). The following description summarizes the material terms of our capital stock. Because it is only a summary, it does not contain all the information that may be important to you. For a complete description of our capital stock, you should refer to our certificate of incorporation, as amended, or our “Charter”, and our third amended and restated bylaws, or our “Restated Bylaws”, which are included as exhibits to this Annual Report on Form 10-K, and to the provisions of applicable Delaware law.
  
 As used in this exhibit, the terms “Tenax Therapeutics, Inc.”, “Tenax”, the “Company,” “we”, “us”, and “our” mean Tenax Therapeutics, Inc.
  
 Common Stock
  
 Our Charter authorizes the issuance of 400,000,000 shares of Common Stock. 
  
 Our authorized but unissued shares of Common Stock are available for issuance without further action by our stockholders unless such action is required by applicable law or the rules of any securities exchange or automated quotation system on which our securities may be listed or traded. Holders of our Common Stock are entitled to the following rights.
  
  	  
	 ● 
	 Voting Rights. The holders of our Common Stock are entitled to one vote for each share of Common Stock held on all matters submitted to a vote of the stockholders, including the election of directors. Our Charter and our Restated Bylaws do not provide for cumulative voting rights.

	  
	  
	  

	  
	 ● 
	 Dividend Rights. The holders of outstanding shares of our Common Stock are entitled to receive ratably any dividends declared by our board of directors out of assets legally available for the payment of dividends, at the times and in the amounts as our board may from time to time determine.

	  
	  
	  

	  
	 ● 
	 No Preemptive or Similar Rights. The holders of our Common Stock have no preemptive, conversion, or subscription rights, and there are no redemption or sinking fund provisions applicable to our Common Stock.

	  
	  
	  

	  
	 ● 
	 Right to Receive Liquidation Distributions. In the event of our liquidation, dissolution or winding up, holders of Common Stock are entitled to receive, pro rata, our assets which are legally available for distribution, after payments of all debts and other liabilities and subject to the preferential rights, if any, on any outstanding shares of Preferred Stock and payment of other claims of creditors.

	  
	  
	  

	  
	 ● 
	 Fully Paid and Non-Assessable. All of the outstanding shares of our Common Stock are fully paid and non-assessable.

	  
	  
	  

	  
	 ● 
	 Potential Adverse Effect of Future Preferred Stock. The rights, preferences and privileges of the holders of Common Stock are subject to, and might be adversely affected by, the rights of the holders of shares of any series of our Preferred Stock that we may designate and issue in the future.

 	 
	
	

	 

  
   
 Preferred Stock
  
 Our board of directors has the authority, without further action by our stockholders, unless such action is required by applicable law or the rules of any securities exchange or automated quotation system on which our securities may be listed or traded, to issue up to 10,000,000 shares of Preferred Stock in one or more series and to fix the designations, powers, rights, preferences, qualifications, limitations and restrictions thereof. These designations, powers, rights and preferences could include voting rights, dividend rights, dissolution rights, conversion rights, exchange rights, redemption rights, liquidation preferences, and the number of shares constituting any series or the designation of such series, any or all of which may be greater than the rights of Common Stock. The issuance of Preferred Stock could adversely affect the voting power of holders of Common Stock and the likelihood that such holders will receive dividend payments and payments upon liquidation. In addition, the issuance of Preferred Stock could have the effect of delaying, deferring or preventing a change in our control or other corporate action.
  
 Series A Convertible Preferred Stock
  
 On December 10, 2018, we filed a certificate of designations (the “Certificate of Designations”) with the Secretary of State of the State of Delaware creating our Series A Convertible Preferred Stock (the “Series A Preferred Stock”) and establishing the designations, preferences, and other rights of the Series A Preferred Stock, which became effective upon filing. 
  
 The holders of our Series A Preferred Stock are entitled to the following rights.
  
  	  
	 ● 
	 Voting Rights. Shares of Series A Preferred Stock will generally have no voting rights, except as required by law and except that the consent of holders of a majority of the then outstanding Series A Preferred Stock will be required to amend the terms of the Series A Preferred Stock or to take other action that adversely affects the rights of the holders of Series A Preferred Stock.

	  
	  
	  

	  
	 ● 
	 Dividend Rights. In the event the Company pays dividends on its shares of Common Stock, the holders of the Series A Preferred Stock will be entitled to receive dividends on shares of Series A Preferred Stock equal, on an as-if-converted basis, to and in the same form as paid on the Common Stock. No other dividends will be paid on the shares of Series A Preferred Stock.

	  
	  
	  

	  
	 ● 
	 No Preemptive or Similar Rights. The holders of our Series A Preferred Stock have no preemptive, or subscription rights, and there are no redemption or sinking fund provisions applicable to our Series A Preferred Stock.

	  
	  
	  

	  
	 ● 
	 Right to Receive Liquidation Distributions. Upon any liquidation, dissolution or winding up of the Company after payment or provision for payment of debts and other liabilities of the Company, the holders of Series A Preferred Stock shall be entitled to be paid out of the assets of the Company available for distribution to its stockholders an amount equal to the amount that a holder of Common Stock would receive if the Series A Preferred Stock were fully converted to Common Stock, which amounts will be paid pari passu with all holders of Common Stock.

	  
	  
	  

	  
	 ● 
	 Conversion Rights. Subject to the ownership limitations described below, the Series A Preferred Stock is convertible at any time at the option of the holder into shares of Common Stock at a conversion ratio determined by dividing the stated value of the Series A Preferred Stock by a conversion price of $1.93 per share. The conversion price is subject to adjustment in the case of stock splits, stock dividends, combinations of shares and similar recapitalization transactions.

	  
	  
	  

	  
	 ● 
	 Forced Conversion. Subject to the beneficial ownership limitation described below, the Company has the right to cause each holder of the Series A Preferred Stock to convert all or part of such holder’s Series A Preferred Stock in the event that (i) the volume weighted average price of our Common Stock for any 30 consecutive trading days (the “Measurement Period”), exceeds $5.79 (subject to typical adjustments), (ii) the average daily trading volume for such Measurement Period exceeds $175,000 per trading day, and (iii) the holder is not in possession of any information that constitutes or might constitute, material non-public information which was provided by the Company.

	  
	  
	  

	  
	 ● 
	 Beneficial Ownership Limitation. The Company will not effect any redemption or conversion of the Series A Preferred Stock, nor shall a holder convert its shares of Series A Preferred Stock, to the extent that such conversion would cause the holder to have acquired, through conversion of the Series A Preferred Stock or otherwise, beneficial ownership of a number of shares of Common Stock in excess of 4.99% (or, at the election of the holder prior to the issuance of any shares of Series A Preferred Stock, 9.99%) of the Common Stock outstanding after giving effect to such exercise.

  
  	 
	
	

	 

  
 CERTAIN PROVISIONS OF DELAWARE LAW, 
  
 OUR RESTATED CERTIFICATE AND RESTATED BYLAWS
  
 The provisions of Delaware law, our Charter, and our Restated Bylaws may have the effect of delaying, deferring, or discouraging another person from acquiring control of our Company.
  
 Delaware Law
  
 We are governed by the provisions of Section 203 of the Delaware General Corporation Law. In general, Section 203 prohibits a public Delaware corporation from engaging in a “business combination” with an “interested stockholder” for a period of three years after the date of the transaction in which the person became an interested stockholder unless:
  
 			  
 prior to such time, the board of directors approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder;

			  
 upon consummation of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding shares owned by persons who are directors and also officers and by specified employee stock plans; or

			  
 at or subsequent to the date of the transaction, the business combination is approved by the board of directors and authorized at an annual or special meeting of stockholders by the affirmative vote of at least 66 2/3% of the outstanding voting stock which is not owned by the interested stockholder.

  
 A “business combination” includes mergers, asset sales or other transactions resulting in a financial benefit to the stockholder. In general, an “interested stockholder” is a person who, together with affiliates and associates, owns, or within three years did own, 15% or more of the corporation’s outstanding voting stock. These provisions may have the effect of delaying, deferring, or preventing a change in our control. 
  
 Charter and Restated Bylaw Provisions 
  
 Various provisions of our Charter and Restated Bylaws could deter hostile takeovers or delay or prevent changes in control of our management team, including the following: 
  
  	  
	 ● 
	 Undesignated Preferred Stock. The ability to authorize undesignated preferred stock makes it possible for our board of directors to issue one or more series of preferred stock with voting or other rights or preferences that could impede the success of any attempt to change control of our company.

	  
	  
	  

	  
	 ● 
	 Removal of Directors and Filling of Vacancies. Our Restated Bylaws require the vote of stockholders representing not less than two-thirds of our issued and outstanding capital stock entitled to voting power in order to remove a director from office, with or without cause. In addition, vacancies on our board of directors (including vacancies created by the removal of directors) may be filled by a majority of the remaining directors, even if less than a quorum, or by a sole remaining director, and each director so appointed shall hold office until his or her successor is elected at an annual or a special meeting of our stockholders.

	  
	  
	  

	  
	 ● 
	 Special Meeting of Stockholders. Our Restated Bylaws provide that a special meeting of stockholders may be called only by a majority of our board of directors, our president, the chairperson of our board of directors or such other person as our board of directors may designate, in each case, for the purpose specified in the notice of meeting. Our stockholders are not permitted to propose business to be brought before a special meeting of our stockholders.

  	 
	
	

	 

  
  	  
	  
	  

	  
	 ● 
	 Advance Notice Requirements. Our Restated Bylaws establish advance notice procedures with respect to stockholder proposals and the nomination of candidates for election as directors, other than nominations made by or at the direction of our board of directors or a committee of the board of directors. These provisions may have the effect of deterring unsolicited offers to acquire our company or delaying stockholder actions, even if they are favored by the holders of a majority of our outstanding voting securities.

	  
	  
	  

	  
	 ● 
	 No Cumulative Voting. Our Charter does not permit cumulative voting. Without cumulative voting, a minority stockholder may not be able to gain as many seats on our board of directors as the stockholder would be able to gain if cumulative voting were permitted. The absence of cumulative voting makes it more difficult for a minority stockholder to gain a seat on our board of directors to influence our board of directors’ decision regarding a takeover.

  
 
 Transfer Agent and Registrar
  
 The transfer agent and registrar for our common stock is Issuer Direct Corporation.
  
 Listing on the Nasdaq Capital Market
  
 Our Common Stock is listed on the Nasdaq Capital Market under the symbol “TENX”.

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