Note 17 – Patent and License Fee Facility with Larson

Effective April 4, 2016 Mentor Capital, Inc. entered into a certain "Larson - Mentor Capital, Inc. Patent and License Fee Facility with Agreement Provisions for an -- 80% / 20% Domestic Economic Interest -- 50% / 50% Foreign Economic Interest" with Larson. Under this agreement, MCIP obtained rights in an international patent application for foreign THC and CBD cannabis vape pens under the provisions of the Patent Cooperation Treaty of 1970, as amended. Moreover, MCIP is expected to receive exclusive licensing rights in the United States for THC and CBD cannabis vape pen licensing over certain specified percentage concentration ranges, contingent upon the approval of the United States patent application for the same. Mentor paid Larson $25,000 of charges advanced by Larson for early patent work and has earned and paid for 15.7% of the domestic licensing rights and 41.4% of international licensing rights.

At Larson’s request, cash dividends will be paid based on 90% of the legally available MCIP cash after accounting, legal, operating or other costs provided by or through Mentor for MCIP are recovered. Larson and Mentor will each be entitled to dividends in relation to their respective interests in domestic or international patent fees.