I'm sorry, it was 10%, not 40%. That is a big difference however there was more to the purchase agreement than just the figures you quoted.
Pursuant to the terms of the Purchase Agreement, in exchange for the Assets Petrosonic Energy, Inc. has paid to Sonoro the following consideration: (i) $250,000, (ii) a convertible debenture in the principal amount of $250,000 (the "Debenture") and (iii) a 10% royalty interest in our realized net revenues for a period of 10 years from the time we commence commercial operations, which is defined as the date upon which we process an average of 50 barrels of feed stock per day over a period of 30 consecutive days utilizing the technology acquired.
