-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ts88IatQOuOUl86J3nUXiRd1qwEo4Kv6A8kSc8e9smFUlqH2s7+QvElokl3WP4pH NoN/vjmWpGTwpl0FDWPSrw== 0001360865-09-000031.txt : 20090226 0001360865-09-000031.hdr.sgml : 20090226 20090226121548 ACCESSION NUMBER: 0001360865-09-000031 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20090224 ITEM INFORMATION: Entry into a Material Definitive Agreement ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20090226 DATE AS OF CHANGE: 20090226 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COMPETITIVE TECHNOLOGIES INC CENTRAL INDEX KEY: 0000102198 STANDARD INDUSTRIAL CLASSIFICATION: PATENT OWNERS & LESSORS [6794] IRS NUMBER: 362664428 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08696 FILM NUMBER: 09636462 BUSINESS ADDRESS: STREET 1: 777 COMMERCE DRIVE STREET 2: SUITE 100 CITY: FAIRFIELD STATE: CT ZIP: 06825 BUSINESS PHONE: (203) 368-6044 MAIL ADDRESS: STREET 1: 777 COMMERCE DRIVE STREET 2: SUITE 100 CITY: FAIRFIELD STATE: CT ZIP: 06825 FORMER COMPANY: FORMER CONFORMED NAME: UNIVERSITY PATENTS INC DATE OF NAME CHANGE: 19920703 8-K 1 ctt8kdistagmtfeb262009.txt CURRENT REPORT ON FORM 8-K REGARDING DISTRIBUTION AGREEMENT FILED FEBRUARY 26, 2009 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FEBRUARY 26, 2009 (FEBRUARY 24, 2009) DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) COMPETITIVE TECHNOLOGIES, INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) DELAWARE -------- (STATE OR OTHER JURISDICTION OF INCORPORATION) 1-8696 36-2664428 ------ ---------- (COMMISSION FILE NUMBER) (IRS EMPLOYER IDENTIFICATION NO.) 777 COMMERCE DRIVE, SUITE 100, FAIRFIELD, CONNECTICUT 06825 ----------------------------------------------------------- (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)(ZIP CODE) (203) 368-6044 -------------- REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: N/A (FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT Effective February 24, 2009, Competitive Technologies, Inc. (the "Company") entered into a distribution agreement (the "Agreement") with Life Episteme srl granting them exclusive distribution rights in each of 29 countries throughout Europe, Asia, Africa, the Middle East, South America and Oceania for the Company's pain management device. The Company has worldwide rights to the device, and has granted distribution rights to other distributors in India, Korea, Malaysia and Bangladesh. The Agreement's initial term is for three years, but is automatically extended for one year terms provided that Life Episteme purchases a minimum number of units in the preceding period. ITEM 8.01. OTHER EVENTS In conjunction with the above referenced agreement, on February 24, 2009 Competitive Technologies, Inc. issued the following press release: COMPETITIVE TECHNOLOGIES' DISTRIBUTION AGREEMENTS NOW COVER 45% OF WORLD POPULATION CTT SIGNS NEW MEDICAL DEVICE DISTRIBUTION AGREEMENT FAIRFIELD, CT - (FEBRUARY 24, 2009) - COMPETITIVE TECHNOLOGIES, INC. (NYSE ALTERNEXT US: CTT) announced today that it has signed an agreement with Life Epist me srl granting them exclusive distribution rights in each of 29 countries throughout Europe, Asia, Africa, the Middle East, South America and Oceania for CTT's pain management medical device. The device is a non-invasive method for rapid treatment of high-intensity oncologic and neuropathic pain, including pain resistant to morphine and other drugs. [GRAPHIC OMITTED] www.competitivetech.net/pain.html --------------------------------- "We have seen this innovative device successfully used in Italy, and are proud to be able to bring it to other patients around the world," said Dr. Domenico Pecorini, one of the founders of Life Epist me. "The population in the countries included in our contract totals over 1.7 billion people, about 25% of the world's population. Our network of distributors in strategic centers around the world will facilitate the delivery process for the device." "Life Epist me provides CTT with a strong and effective global partner," said John B. Nano, CTT's Chairman, President and CEO. "This represents a remarkable opportunity for our innovative pain management medical device. Our exclusive signed distribution agreements for this device now cover over 45% of the world's population and the contractual minimums have a retail sales value of over $25 million for 2009 and about $50 million for 2010. CTT will share in revenue derived from sales of the device to our distributors and both CTT and our distributors expect sales to exceed the contract minimums." The CTT device has Medical Device CE certification from the European Union allowing sales of the device throughout Europe and several other countries. The review and selection process for additional distributors in other countries is continuing. Approval of CTT's pending FDA 510(k) medical device application will authorize U.S. sales of the device. CTT has exclusive worldwide rights to this patented device. Earlier country-exclusive distribution rights have been granted to Excel Life Sciences, Inc. for India, to GEOMC Co., Ltd. for Korea, to AG Healthcare for Malaysia, and to Biogene Pharma Limited for Bangladesh. Life Epist me is a healthcare distribution company formed by Dr. Domenico Pecorini, Vincenzo de Bustis Figarola, and Paolo Pepe for the purpose of distributing CTT's device. Life Epist me has strong government and entrepreneurial connections providing access to the healthcare industry in the multiple countries on their agreement with CTT. Vincenzo de Bustis Figarola, co-founder of Life Epist me, added, "We are creating a partnership with CTT to revolutionize the treatment of pain in many countries around the world, in line with CTT's strategy of improving healthcare. Our varied experience in business, finance and technology, enables us to work with CTT to accomplish this goal in the contract area. "This strategic initiative is part of our activity in biotech private equity that has in great consideration the actual and future exceptional technological realization of Prof. Marineo. We would pursue economic targets not excluding social-ethic policies in special arrangements with local governments. The distribution strategy will benefit the support of Bridge International Advisory Company, shortly to be transformed in an advisory bank. Bridge will facilitate the international distribution thanks to its global network arranging local JV in the single region and organizing the financial support." Developed in Italy by CTT's client, Prof. Giuseppe Marineo, the device was brought to CTT through the efforts of Prof. Giancarlo Elia Valori of the Italian business development group, Sviluppo Lazio S.p.A., and assistance from the Zangani Investor Community . The device, with a biophysical rather than a biochemical approach, uses a multi-processor able to simultaneously treat multiple pain areas by applying surface electrodes to the skin. CTT partner, GEOMC Co., Ltd. of Korea, is producing the device commercially for worldwide distribution. For more information on the device, visit www.CalmareTT.com. ----------------- The device has been used on over 3,000 patients in Europe, including at the Pain Management Center at Tor-Vergata University Medical Center in Rome (www.ptvonline.it/uo_ter_ant_ing.asp). ----------------------------------- All the training programs for qualified personnel will be held at Fondazione Parco Biomedico San Raffaele in Rome (www.scienceparkrome.eu). ---------------------- Mr. Nano noted, "We believe that revenue and profits from the pain management medical device will significantly increase CTT's market capitalization. This technology is a prime example of our strategy to connect clinical science to patient care, improving healthcare for mankind." ABOUT LIFE EPIST ME SRL The privately held Life Epist me group based in Rome, Italy, was formed in 2009 as a medical device distribution company. The experience of the co-founders, Dr. Domenico Pecorini and Vincenzo de Bustis Figarola, have provided the group with strong relationships in government, business and technology spheres in various countries around the world. Visit Life Epist me's website. ABOUT COMPETITIVE TECHNOLOGIES, INC. Competitive Technologies, established in 1968, provides distribution, patent and technology transfer, sales and licensing services focused on the needs of its customers and matching those requirements with commercially viable product or technology solutions. CTT is a global leader in identifying, developing and commercializing innovative products and technologies in life, electronic, nano, ------------------------------------ and physical sciences developed by universities, companies and inventors. CTT maximizes the value of intellectual assets for the benefit of its customers, clients and shareholders. Visit CTT's website: www.competitivetech.net ----------------------- Statements made about our future expectations are forward-looking statements and subject to risks and uncertainties as described in our most recent Annual Report on Form 10-K for the year ended July 31, 2008, filed with the SEC on October 28, 2008, and other filings with the SEC, and are subject to change at any time. Our actual results could differ materially from these forward-looking statements. We undertake no obligation to update publicly any forward-looking statement. Direct inquiries to: Johnnie D. Johnson, IR Services, LLC Tel: 860 434 2465 E-mail: jdjohnson@corpirservices.com ---------------------------- ITEM 9.01. EXHIBITS. The following exhibits are included and attached hereto and incorporated into this Form 8-K by this reference: 10.1 Distribution Agreement between Competitive Technologies, Inc. and Life Episteme srl dated February 24, 2009. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. COMPETITIVE TECHNOLOGIES, INC. (Registrant) Dated: February 26, 2009 By: \s\ John B. Nano ---------------- John B. 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AND LIFE EPISTEME SRL DATED NOVEMBER 24, 2009. Exhibit 10.1 [Confidential price and quantity information has been redacted] DISTRIBUTION AGREEMENT ---------------------- This DISTRIBUTION AGREEMENT ("Agreement"), effective as of February 24, 2009 ("Effective Date"), is entered into by and between Competitive Technologies, --------------- Inc. ("CTT"), a Delaware corporation having a place of business at: --- Competitive Technologies, Inc. 777 Commerce Drive, Suite 100 Fairfield, CT 06825 And Dr. Domenico Pecorini of Life Episteme srl ("Distributor"), an Italian ----------- corporation with its principal place of business at: Dr. Domenico Pecorini Life Episteme srl Via Bondeno 35 00127 Rome RM ,Italy CTT and Distributor may each be referred to as a "Party" and collectively as the ----- "Parties". ------- Witnesseth WHEREAS, CTT wishes to appoint Distributor as the exclusive sales agent for certain identified products, and Distributor desires to provide such services to CTT, in each case, on the terms and conditions set forth herein. NOW THEREFORE, in consideration of the mutual promises and covenants set forth herein, the Parties agree as follows: 1.0 RIGHT TO DISTRIBUTE OR SUB DISTRIBUTE 1.1 CTT hereby grants Distributor the right to purchase from CTT, and the exclusive right to distribute or sub-distribute solely within the Territory (as defined hereinafter), the products identified on Schedule 1 hereto (the "Product(s)"). "Territory" shall mean the countries identified on Schedule 3. 1.2 Distributor shall purchase the Product(s) for resale from CTT at the price set forth on Schedule 1 hereto, as such Schedule may be amended after two (2) years of the effective date of this Agreement in accordance with the terms hereof. 1.3 All orders for Product(s) by Distributor shall be Ex Works Manufacturer. GEOMC Co. Ltd. of Korea (formerly Daeyang E&C) ("Manufacturer") in Seoul, South Korea is the Manufacturer. 1.4 CTT's and Manufacturer's replacement warranty for normal use with no physical damage to the unit will be for a period of 12 months. EXCEPT FOR THE FOREGOING, CTT MAKES NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO ANY PRODUCTS, EXPRESS, IMPLIED OR STATUTORY, INCLUDING WITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY, NON-INFRINGMENT OR FITNESS FOR A PARTICULAR PURPOSE. All purchases of the Product(s) by Distributor from CTT shall be paid in US Dollars (USD) by wire transfer of immediately available funds due to CTT at Bank of America, with the purchase price due at the time of order by Distributor. 1.5 All sales to Distributor are final. Any damaged Product(s) with the Manufacturer's defects must be returned to the Manufacturer, with any such return being subject to the terms of the applicable one year product warranty. 1.6 Distributor agrees to (i) actively and continually market and promote the Product(s) to appropriate potential customers; (ii) use best efforts to promote the sale of the maximum amount of Product(s); and (iii) accurately advise potential customers of the selection, use and functionality of the Product(s). Distributor will keep CTT informed as to conditions that might affect the sale of the Product(s) in the marketplace. 1.7 Distributor will refrain from taking actions that may tarnish or cause people to hold in poor regard CTT or the Product(s). Distributor shall establish and maintain a marketing program and a sales force, customer training and technical service representatives, who are properly trained in all aspects of the distributed Product. CTT shall have the right to review and discuss with Distributor at reasonable times and with reasonable frequency all aspects of the marketing and service program. Distributor shall be solely responsible for establishing the terms of sale (subject to any limitations set forth herein) including, without limitation, the sale price of the Product(s), consummating the sale of any Product(s), collecting the sale price, and for providing any post-sale service that may be necessary with the exception of manufacturer warranty claims, which shall be handled by the Manufacturer. 1.8 To assist Distributor in marketing the Product(s), CTT shall provide the Distributor with all the technical, medical and economical information regarding the MC-5A and assist the Distributor in the drafting of a comprehensive business model. CTT warrants that any scientific, medical and clinical information provided by CTT to the Distributor regarding the pain management device is accurate. CTT may provide Distributor with such marketing materials as CTT may deem appropriate. CTT shall have the right to revise such marketing materials in its sole discretion at any time and to provide such revised marketing materials to Distributor for all future use. Distributor shall have no obligation to use such materials and any use of such materials is at Distributor's own risk. 1.9 Distributor shall provide a written sales summary of actual and forecasted sales quarterly to CTT (each a "Quarterly Report"). Each Quarterly Report shall be provided to CTT on or before the fifteenth (15th) calendar day of the next quarter. 1.10 The authority granted to Distributor is to distribute or sub-distribute those Product(s) it has purchased from CTT solely within the Territory. Moreover, Distributor shall not sell Product(s) to purchasers outside the Territory or to purchasers inside or outside the Territory that Distributor believes or has reason to believe are primarily intended for use or distribution outside the Territory without written permission from CTT. Distributor shall not have, nor shall it hold itself out as having, either express or implied authority to accept orders for the Product(s) on behalf of CTT or to make contracts in the name of CTT or any other party. 1.11 Distributor is not an employee of CTT or any subsidiary of CTT, and shall not represent himself to be, nor permit himself to be represented as, anything other than a Distributor of the Product(s). Distributor does not and shall not have any power to, nor shall it represent that it has any power to, bind CTT or create or assume any obligation on behalf of CTT. 1.12 Distributor shall not make any representations or warranties with respect to the Product(s) beyond the product warranties given by the Manufacturer of the Product(s). Distributor will comply, at all times, with all foreign, federal, state and local laws and regulations applicable to it, including without limitation, all applicable laws relating to the marketing, sale and distribution of medical devices within the Territory. At no time shall Distributor engage in any high-pressure or unethical sales techniques. 2.0 TERM OF AGREEMENT 2.1 Subject to the other provisions of this Agreement, the term of this Agreement shall be for an initial period of three (3) years from the Effective Date (the "Initial Term"); provided, that the term shall be automatically extended for additional twelve month periods (each a "Renewal Term," and, collectively with the Initial Term, the "Term") so long as Distributor has purchased from CTT (and not returned) Product(s) equal to or in excess of the applicable Product Minimums, as set forth in Schedule 2 hereto, during each Contract Year for the just ended Contract Year (i.e., the Initial Term or Renewal Term, as applicable). Once given, a continuation notice shall become an irrevocable obligation of Distributor. Each of the Initial Term and each Renewal Term may be referred to as a "Contract Year." For clarity, each Contract Year will correspond with an identical period referred to as either the Initial Term or a Renewal Term. Notwithstanding the foregoing, Distributor may prevent any auto-renewal of the Term by providing CTT with written notice of its intent to terminate this Agreement at least ninety (90) days prior to the end of the then-current Term. 2.2 Either Distributor or CTT may terminate this Agreement at any time if the other Party shall breach its obligations hereunder; provided, however, that the non-breaching Party shall give the breaching Party written notice of such breach, and the breaching Party shall have thirty (30) calendar days after receipt of such notice to cure such breach. If such breach is cured to the reasonable satisfaction of the non-breaching party during such period, then this Agreement shall continue in full force and effect. If such breach is not cured to the reasonable satisfaction of the non-breaching party during such period, then this Agreement shall terminate effective upon the close of business on the last day of such period. 2.3 In the event CTT ceases to have the right to sell any of the Product(s), either in whole or in part, Distributor's right to sell such Product(s) shall immediately cease, and CTT shall have no liability whatsoever to Distributor arising from such cessation of sales. To the extent such cessation is to less than all of the Product(s), this Agreement shall continue with respect to the remaining Product(s) in accordance with its terms. 3.0 MINIMUM SALES OBLIGATIONS 3.1 Distributor shall be obligated to purchase from CTT that number of Product(s) during each Contract Year as is set forth in Schedule 2 hereto (for each such Contract Year, the "Product Minimums"). The Product Minimums for each of the first three (3) Contract Years are set forth in Schedule 2 hereto. The Product Minimums for Contract Year 3 and beyond shall be set by CTT in good faith taking into account the number of sales and the Quarterly Product Minimums (on both a quarterly and annual basis) for the prior Contract Year and shall be provided to Distributor at least ninety (90) days prior to the beginning of such new Contract Year. 3.2 The first Contract Year will start after this Agreement is signed and at the expiration of the XX day ramp up period following the effective date of the Agreement. Following this event, the "Selling Clock Starts Ticking" for the minimums required in the Contract Years. Immediately after this Agreement is signed within XX days and after the import license approval is released to the Distributor from the concerned authorities the Distributor will pre-pay for XX units from CTT at XX (USD) per unit. The Distributor shall submit to CTT for approval a XX years comprehensive business plan within XX months from the effective date of the Agreement, which will then indicate the targeted sales for Year 1, 2, 3, 4, 5. The Distributor shall anyway agree to purchase XX devices within 12 months from the approval to import and sell in the concerned territories and XX devices within the end of Year 3 from that approval to import and sell. All the details will be displayed in the business plan. 3.3 For continued exclusivity, the annual minimums will have a tolerance factor of XX of the Contract Year minimum units. For example; Contract Year 1 must be at least XX units to maintain exclusivity. 3.4 This Agreement and Exclusive Distributor status shall be automatically extended for additional XX month period so long as the Yearly Product Minimums as set forth in Schedule 2 are achieved. 4.0 COMPENSATION 4.1 As between CTT and Distributor, subject only to CTT's right to its purchase price from Distributor, Distributor shall be entitled to retain one hundred percent (100%) of all amounts received from the purchaser or sub-distributor of a Product. The Distributor shall organize, through its sub-distributors too, at its own expenses and within the end of Year 1, a roll out and marketing conference in each selected territory in order to present and launch the MC-5A, at which the presence of Prof. Marineo and CTT's top official shall be required. All travel, promotional, entertainment, taxes and other expenses incurred by Distributor in its efforts to market and promote the Product(s) will be the sole obligation of Distributor, and Distributor will not be entitled to reimbursement of any kind from CTT. 5.0 CONFIDENTIALITY; NON-DISPARAGEMENT 5.1 Confidentiality. A. As used herein, "Confidential Information" means private, confidential, trade secret or other proprietary information (whether or not embodied or contained in some tangible form) relating to any actual or anticipated business of CTT or its clients, including, without limitation, any information which, if kept secret, will provide CTT or its clients with an actual or potential economic advantage over others in the relevant trade or industry, such as, but not limited to: business data (including cost data), price lists, strategies and compensation. Confidential Information shall not include information that: (i) at the time of first disclosure by CTT to Distributor was already in the possession of Distributor, as shown by written records existing at such time; (ii) is independently made available to Distributor on a non-confidential basis by an unrelated and independent third party whose disclosure does not constitute a breach of any duty of confidentiality owed to CTT or its clients; or (iii) is generally available to the public in a readily-available document. B. Except as required in considering a potential business relationship with CTT or its clients, in connection with an actual business relationship with CTT or its clients, or with the prior written authorization of CTT, Distributor shall not directly or indirectly use, disclose, disseminate, publish or otherwise reveal any Confidential Information for the benefit of any party other than CTT or its clients. In the event that Distributor is required by legal process (court order, subpoena, etc.) to disclose Confidential Information, Distributor shall first (unless expressly prohibited by law) provide CTT with notice and the opportunity to take appropriate action to preserve the confidential nature of the information; provided, that in the event CTT elects not to seek an order securing, or is unsuccessful, in whole or in part, in securing, the confidentiality of the information to be disclosed, Distributor shall limit such disclosure to the minimum amount of Confidential Information necessary to comply with the applicable legal process as established by the written opinion of Distributor's counsel. C. Upon termination of Distributor's discussions with CTT concerning a potential business relationship or the termination of any actual business relationship, in either case, for any reason, or upon CTT's earlier request, Distributor shall return to CTT or destroy all Confidential Information and any and all copies or reproductions thereof, and any documents or materials containing Confidential Information, in any case, whether tangible or intangible, in Distributor's possession or control. 5.2 Non-Disparagement. Distributor acknowledges that any disparaging comments by Distributor or its principals, employees or agent against CTT or the Product(s) is likely to substantially harm the business reputation of, and depreciate the value of, CTT. As such Distributor agrees to act in good faith so as not to harm the business reputation of CTT or the Product(s) in any way, which includes, Distributor's agreement not to defame or publicly criticize the services, business, integrity, veracity or reputation of the Product(s) or CTT, its officers, directors, managers, members, employees, affiliates or agents thereof, in either a professional or personal manner. The provisions of this Section shall survive any termination or expiration of this Agreement for a period of five (5) years. CTT acknowledges that any disparaging comments by CTT or its principals, employees or agent against Distributor or the Product(s) is likely to substantially harm the business reputation of, and depreciate the value of, Distributor. As such CTT agrees to act in good faith so as not to harm the business reputation of Distributor or the Product(s) in any way, which includes, CTT's agreement not to defame or publicly criticize the services, business, integrity, veracity or reputation of the Product(s) or Distributor, its officers, directors, managers, members, employees, affiliates or agents thereof, in either a professional or personal manner. The provisions of this Section shall survive any termination or expiration of this Agreement for a period of five (5) years. 6.0 CONFLICT OF INTEREST 6.1 Distributor shall not hire any officer or employee of CTT to perform any service covered under this Agreement. 6.2 Distributor shall not sell or distribute identical products in the territories and listed in Schedule 1 under this Agreement. 7.0 ASSIGNMENT OR SUBCONTRACTING 7.1 Distributor may assign or transfer this Agreement or any interest therein or claim hereunder, or subcontract any rights hereunder, with the prior written approval of CTT. CTT will not unreasonably withhold consent to such assignment or transfer, the terms and conditions of this Agreement shall be binding upon any assignee or transferee 8.0 INDEMNIFICATION; LIMITATION OF LIABILITY 8.1 CTT shall provide compensation given proper use of the device and evidence that so far all the treated patients did not suffer from any collateral damage. Distributor will defend, indemnify, reimburse and hold CTT harmless from and against any and all liabilities, losses, damages and costs, including reasonable attorneys' fees (collectively, "Losses"), resulting from or arising out of, or resulting from or arising out of third party claims based upon, (a) the grossly negligent, intentionally wrongful or illegal acts or omissions of Distributor; or (b) any actions of Distributor beyond its authority granted hereby including the making of any representations with respect to Product(s). 8.2 EXCEPT AS PROVIDED UNDER SECTION 8.1 OR WITH RESPECT TO BREACHES OF THE CONFIDENTIALITY PROVISIONS OR SCOPE OF DISTRIBUTOR GRANT, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR ANY INCIDENTAL, INDIRECT, PUNITIVE, CONSEQUENTIAL OR SPECIAL DAMAGES ARISING OUT OF OR IN CONNECTION WITH THE AGREEMENT REGARDLESS OF WHETHER SUCH CLAIMS ARE ASSERTED IN CONTRACT, TORT, WARRANTY, STRICT LIABILITY, NEGLIGENCE, OR OTHERWISE, EVEN IF ADVISED OF THE POSSIBILITIES OF SUCH DAMAGES. IN NO EVENT SHALL THE AGGREGATE LIABILITY OF CTT ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT (OR ANY BREACH OR VIOLATION HEREOF) EXCEED THE AMOUNT PAID BY DISTRIBUTOR TO CTT UNDER THIS AGREEMENT. SUCH LIMITATION IS AN ESSENTIAL PROVISION OF THIS AGREEMENT AND WAS A CONDITION UPON WHICH THE TERMS AND PRICING WERE BASED. 9.0 MISCELLANEOUS 9.1 AMENDMENT AND WAIVER. Any provision of this Agreement may be amended or waived only with the written and signed consent of both Parties. 9.2 SEVERABILITY. If any provision of this Agreement shall be held to be illegal, invalid, or unenforceable, such provision will be enforced to the maximum extent permissible so as to effect the intent of the parties, and the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 9.3 APPLICABLE LAW. This Agreement shall be governed by the laws of the State of Connecticut in the United States or as an option to both parties, arbitration according to international standards such as the International Chamber of Commerce (ICC), Commission on Arbitration 9.4 NOTICE. Any payment, notice, or other communication required or permitted to be made to either Party hereunder shall be sufficiently made or given (i) on the second business day after mailing if sent to such Party by internationally recognized overnight courier, (ii) in the next business day after receipt of confirmation of successful transmission if sent by facsimile, and (iii) upon receipt if sent by hand delivery, in each case, at its address given below, or such other address as it shall hereafter designate to the other Party in writing: IN THE CASE OF COMPETITIVE TECHNOLOGIES, INC.: John B. Nano Chairman, President and CEO Competitive Technologies, Inc. 777 Commerce Drive, Suite 100 Fairfield, CT 06825 203.368.6044 WITH A COPY TO (WHICH SHALL NOT CONSTITUTE NOTICE): Edwards, Angell, Palmer & Dodge, LLP 301 Tresser Blvd Stamford, CT 06901 Attn: John A. Flaherty, Esq. 203.353.6800 IN THE CASE OF DISTRIBUTOR: Dr. Domenico Pecorini Life Episteme srl Via Bondeno 35 00127 Rome RM, Italy 9.5 INTEGRATION. This Agreement expresses the full contract between the Parties, and all other prior or contemporaneous oral or written representations with regard to the subject matter hereof shall be of no effect. 9.6 INTERPRETATION, HEADINGS, NUMBER AND GENDER. The Parties acknowledge and agree that this Agreement has been freely negotiated and shall be deemed to have been drafted by the Parties jointly. Accordingly, no court should construe any provision for or against any Party as a result of such Party being involved in the drafting of this Agreement. The headings of the several sections are inserted for convenience of reference only, and are not intended to be part of or to affect the meaning or interpretation of this Agreement. In this Agreement, where the context so permits, the singular shall include the plural, and vice versa, and references to a particular gender shall include the other genders. The words "include," "includes" and "including" are not limiting and shall be interpreted as if followed by the phase "without limitation." Unless the context indicates otherwise, the term "or" shall be deemed to include the term "and." 9.7 FORCE MAJEURE. No Party hereto shall be liable in damages or have the right to cancel this Agreement for any delay or default in performing hereunder if such delay or default is caused by conditions beyond its control, including but not limited to acts of God, government restrictions, wars, or insurrections. 9.8 EXECUTION. This Agreement will not be binding upon the Parties until it has been duly executed by or on behalf of each Party, in which event it shall be effective on the Effective Date. 9.9 COUNTERPARTS. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Delivery of an executed counterpart of this Agreement by facsimile shall be equally effective as delivery of an original executed counterpart of this Agreement. 9.10 AUTHORIZED SIGNATORIES. The undersigned individuals each represent and warrant that they have the authority to execute this Agreement on behalf of their respective companies or in their individual capacities, as the case may be. [Signature page follows] IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the dates shown below. COMPETITIVE TECHNOLOGIES, INC. Life Episteme srl BY: \s\ John B. Nano BY: \s\ Dr. Domenico Pecorini NAME: JOHN B. NANO NAME: DR. DOMENICO PECORINI TITLE: CHAIRMAN, PRESIDENT & CEO TITLE: CHIEF OPERATING OFFICER DATE: February 24, 2009 DATE: February 24, 2009 SCHEDULE 1 PRODUCT(S) PER UNIT PRODUCT PURCHASE PRICE - --------------------- ---------------- PAIN SCRAMBLER DEVICE $ XX (USD) - --------------------- ---------------- SCHEDULE 2 PRODUCT MINIMUMS I. For Pain Scrambler Device: CONTRACT YEAR CONTRACT YEAR MINIMUMS - ------------- ---------------------- 1 XX - ------------- ---------------------- 2 AND 3 XX UNITS CUMULATIVE - ------------- ---------------------- SCHEDULE 3 TERRITORY Italy France Spain Germany Switzerland United Kingdom Croatia Russia Poland Turkey Israel Egypt Kuwait United Arab Emirates Qatar Saudi Arabia Morocco Libya Algeria Pakistan Thailand Philippines Singapore Indonesia Vietnam South Africa Brazil Argentina Australia -----END PRIVACY-ENHANCED MESSAGE-----