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Microcap & Penny Stocks : Green Oasis Environmental, Inc. (GRNO)
GRNO 0.00Nov 26 4:00 PM EST

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To: Charles A. King who wrote (375)12/2/1996 12:28:00 PM
From: Hawkmoon   of 13091
 
Charles,

It doesn't specify how long that royalty agreement with last, but from my past conversations with Bill and Bo, royalties are an inherent part of GRNO's business strategy. They figure that each of these units has a life span of up 20 years due to the relativly simple hardware involved. GRNO will continue to update and monitor software requirements as needed. And since the software is what is so important about this machine, it maintains customer loyalty to the company. Bill stated to me that royalties from overseas clients will be a substantial source of reoccuring income for GRNO year after year as more processors come online around the world.

Considering that these processors are new, their lifespan is difficult to assess. However, a customer would see a 100% return on investment within 24 months, wherein everything after that would be complete profit. If these things only worked 5-10 years, (hypothetically speaking) all it would do is create more demand for units as replacement orders were taken. Maybe Bill should incorporate "planned Obsolescence" into his units.... :0)

Regards,

Ron
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