license agreement parties : this agreement is between : licensor : gregory ruff of 6411 south auer street, spokane wa 99223 licensee : qe brush inc., a nevada corporation summary : - type of license : exclusive - invention : 2 sided toothbrush - patent royalty rate : 20 % of the net factory sales price. - option granted : licensor grants licensee a 3 year exclusive term to market the toothbrush and in return, the licensee agrees to pay for patent, development, manufacturing and marketing costs of the qe toothbrush. recitals : licensor is developing an invention having the above title and warrants that the licensor is in the process of filing a us patent application in the us patent and trademark office and will take all the necessary steps in obtaining such said patent. licensor does not warrant that they will be successful in obtaining such patent though. whatever right the licensor has or will obtain in the future, licensor grants this right and license to licensee. licensee desires to market the toothbrush exclusively for 3 years and in return, the licensee agrees to pay for patent, development, manufacturing and marketing costs of the qe toothbrush. if patent application continues with no reasons to deny the patent, licensee will continue with the recitals made herein. if at any stage the patent application is unable to proceed to a patent license or becomes abandoned, licensee has the right to stop all patent, development, manufacturing and marketing costs of the qe toothbrush and terminate this agreement. licensor shall immediately notify licensee in writing of such an event. licensee also has the right to continue if they so desire. however, no reimbursement of any kind for any costs incurred to date from licensee shall be given or demanded from licensor. assignment of obligations and duties ; either party may assign their obligations and duties to a 3rd party upon notification to the other party. any sublicensee hereunder shall be bound by all the terms applying herein and shall be responsible for the obligations and duties of its sublicensees. late payments : payment from licensee to licensor shall be made semi - annually. if it is not timely paid, the unpaid balance shall bear interest at an annual rate of 10 % until the delinquent balance is paid. such interest shall be compounded monthly. net factory sales price : net factory sales