Document:

Unassociated Document

    Exhibit
      10.1

    ESCROW
      AGREEMENT

    

    THIS
      ESCROW AGREEMENT (the “Agreement”)
      is
      made and entered into as of the 26th
      day of
      January, 2007, by and between Competitive
      Technologies, Inc.,
      a
      Delaware corporation having an address of 777 Commerce Drive, Suite 100,
      Fairfield, Connecticut (“CTT”); John
      Nano,
      of
      Stamford, Connecticut (“Nano”); and Commerce
      Bank, N.A.,
      a
      national banking association having an address of 121 South Broad Street,
      Philadelphia, PA 19107, as escrow agent (the "Escrow Agent").

    

    RECITALS

    

    A. Nano
      and
      CTT are parties to that certain civil action pending in United States District
      Court, District of Connecticut (the “Court”), under title and docket number of
Nano
      v. Competitive Technologies, Inc.,
      Case No.
      3:06-CV-00817 (CFD) (the “Litigation”).

    

    B. On
      January 24, 2007, Nano and CTT agreed, and upon their agreement the Court
      (Smith, Mag. J.) ordered, that by the close of business on January 26, 2007,
      CTT
      shall cause a bond in the amount of $2.5 million to be posted by a reputable
      insurance company to serve as security in the Litigation.

    

    C. On
      January 24 and 25, 2007, CTT was advised by several insurance companies that
      such a bond cannot be posted within the time provided in the order.

    

    D. In
      lieu
      of a bond, CTT and Nano have agreed to execute and deliver this Agreement
      whereby CTT shall deliver to the Escrow Agent cash in the amount $2.5 million
      to
      be held and distributed by the Escrow Agent in accordance with the terms and
      conditions of this Agreement. 

    

    AGREEMENT

    

    In
      consideration of the mutual agreements, covenants and other premises set forth
      herein, the mutual benefits to be gained by the performance thereof, and for
      other good and valuable consideration, the receipt and sufficiency of which
      are
      hereby acknowledged and accepted, the parties hereby agree as
      follows:

    

    1.  Appointment
      and Agreement of the Escrow Agent.
      Nano
      and CTT hereby appoint Commerce Bank, N.A. as escrow agent and Commerce Bank,
      N.A. hereby agrees to perform the duties of escrow agent under this Agreement.
      The Escrow Agent acknowledges that it has been furnished with a copy of this
      Agreement.

    

    2.  Deposit
      of Escrowed Amount; Setoff; Interest. CTT
      has
      delivered to the Escrow Agent in immediately available funds an amount of TWO
      MILLION FIVE HUNDRED THOUSAND and 00/100 DOLLARS ($2,500,000.00) (such amount,
      together with interest thereon, the “Escrowed Amount”) to be held by the Escrow
      Agent in escrow in an interest-bearing account pursuant to the terms and
      conditions of this Agreement. All interest earned in the account established
      hereunder shall be payable to CTT. The Escrow Agent is hereby directed to invest
      the entire deposit in the Goldman Sachs Institutional Liquid Asset Treasury
      Obligations Money Market Fund.

    

    3.  Purpose
      of the Escrow.
      This
      Agreement has been executed and delivered for the purpose of securing the
      respective rights of Nano, on the one hand, and CTT, on the other hand,
      regarding the Escrowed Amount.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    4.     
      Distribution of the Escrowed Amount. 
      The Escrow Agent shall
      hold the Escrowed Amount and shall not distribute it, or any portion thereof,
      unless and until one of the following occurs:

           
      

    (a)     Receipt
      of any joint written instructions delivered to the Escrow Agent
      and executed
      by (i) Nano, (ii) an authorized representative of CTT, and (iii) their
 
      respective counsel of record in the Litigation; or 

    

    (b)     Receipt
      of any final, non-appealable order of the Court in the
      Litigation.

    

    In
      no
      event shall the amount distributed to Nano hereunder exceed the sum of
      $2,500,000.00.

     

    5. Concerning
      the Escrow Agent.

     

    (a) Limited
      Duties.
      The
      Escrow Agent undertakes to perform only such duties as are expressly set forth
      in this Agreement. The Escrow Agent shall incur no liability whatsoever to
      any
      other party hereunder, except for its own fraud, gross negligence or willful
      misconduct in its capacity as escrow agent.

     

    (b) Reliance
      on Instructions and Orders.
      The
      Escrow Agent may reasonably rely and shall be protected in acting or refraining
      from acting upon any joint written instruction or Court order furnished to
      it
      hereunder and reasonably believed by it to be genuine and to have been signed
      or
      presented by the proper party or parties.

     

    (c) Action
      in Good Faith.
      The
      Escrow Agent shall not be liable for any action taken by it in good faith and
      believed by it to be authorized or within the rights or powers conferred upon
      it
      by this Agreement, and may consult with counsel of its own choice and shall
      have
      full and complete authorization and protection for any action taken or suffered
      by it hereunder in good faith and in accordance with the opinion of such
      counsel.

     

    (d) Resignation.
      The
      Escrow Agent may resign and be discharged from its duties or obligations
      hereunder by giving notice of such resignation to Nano and CTT specifying a
      date
      upon which such resignation shall take effect, whereupon a successor escrow
      agent shall be appointed by Nano and CTT. The Escrow Agent shall be entitled
      to
      deliver the Escrowed Amount in escrow to any successor escrow agent so appointed
      or to the Court.

     

    (e) Indemnification.
      Except
      with respect to claims based upon the Escrow Agent’s willful misconduct, gross
      negligence or fraud, CTT will indemnify and hold harmless the Escrow Agent
      from
      any claims made against the Escrow Agent by Nano arising out of or relating
      to
      this Agreement. CTT will indemnify and hold the Escrow Agent harmless from
      any
      claim made by any third party arising out of or relating to this Agreement,
      such
      indemnification to include all costs and expenses incurred by the Escrow Agent,
      including reasonable attorneys’ fees.

     

    (f) No
      Consequential Damages.
      In no
      event shall the Escrow Agent be liable for special, indirect or consequential
      loss or damage of any kind whatsoever (including but not limited to lost
      profits), even if the Escrow Agent has been advised of the likelihood of such
      loss or damage and regardless of the form of action.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (g) Compensation. CTT
      shall
      pay the Escrow Agent an acceptance fee of $1,000.00 and an administrative fee
      of
      $3,500.00 upon the closing of this Agreement. Any
      additional compensation or charges payable to the Escrow Agent for the services
      to be rendered by the Escrow Agent hereunder, if any, shall be paid by
      CTT.

     

    (h) Deposit
      into Court Registry.
      In the
      event that any third party makes any claim or commences litigation arising
      out
      of or relating to this Agreement or the distribution of the Escrowed Amount,
      Nano and CTT promptly shall submit written instructions to the Escrow Agent
      (pursuant to Section 4(a), above) to deposit the Escrowed Amount into the
      Registry of the Court.

    

    6. Term
      of Agreement/Survival.The
      term
      of this Agreement shall be for the period beginning as of the date first above
      written and ending as of the date on which all of the Escrowed Amount has been
      distributed by the Escrow Agent pursuant to Section 4 hereof. The provisions
      of
      Section 5(e) shall survive the term and termination of this Agreement.

    

    7. Tax
      Identification Number, Allocation of Interest. Each
      party hereto, except the Escrow Agent, has listed his or its Tax Identification
      Number (TIN) as assigned by the Internal Revenue Service in Section 8, below.
      Interest shall be allocated to and reported by CTT in accordance with the
      provisions of Section 2, above.

    

    8. Notices.All
      notices, consents and other communications under this Agreement shall be in
      writing and delivered personally or sent by registered or certified mail,
      postage prepaid or delivered to a recognized overnight courier service (such
      as
      Federal Express) with shipping charges prepaid, addressed as
      follows:

    

    If
      to
      Nano, to:

    John
      Nano

    30
      Stone
      Fence Lane

    Stamford,
      CT 06903

     

    With
      a copy to:

    Ethan
      Levin-Epstein, Esq.

    Garrison,
      Levin-Epstein, Chimes & Richardson, P.C.

    405
      Orange Street

    New
      Haven, CT 06511

    

    If
      to
      CTT, to:

    Competitive
      Technologies, Inc.

    777
      Commerce Drive, Suite 100

    Fairfield,
      CT 06825

    TIN:
      36-2664428

    

    With
      a copy to:

    Douglas
      J. Varga, Esq.

    Zeldes,
      Needle & Cooper, P.C.

    1000
      Lafayette Boulevard

    P.O.
      Box
      1740

    Bridgeport,
      CT 06601-1740

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    If
      to
      the Escrow Agent, to:

    Commerce
      Bank, N.A.

    Corporate
      Trust Services

    121
      South
      Broad Street

    Philadelphia,
      PA 19107

    Attn:
      Stephen R. Schaaf 

    

    or
      such
      other persons or such other addresses as may be designated in writing by the
      parties, by a notice given as aforesaid. All notices shall be deemed given
      when
      received or upon refusal of receipt.

     

    9. Miscellaneous.

     

    (a) Applicable
      Law.
      This
      Agreement will be governed by the laws of the State of Connecticut without
      regard to any conflict of laws principles and as applicable to contracts to
      be
      entered into and performed entirely within the State of
      Connecticut.

     

    (b) Headings.
      The
      headings of the several sections of this Agreement are inserted for convenience
      of reference only and are not intended to affect the meaning or interpretation
      of this Agreement.

     

    (c) Entire
      Agreement, Amendments.
      This
      Agreement constitutes the entire agreement among the parties hereto with respect
      to the subject matter hereof and thereof and supersede all prior agreements,
      understandings, negotiations and discussions, whether oral or written, of the
      parties with respect thereto. No amendment, modification or rescission of this
      Agreement will be effective unless set forth in a writing signed by Nano, and
      duly authorized officers of CTT and the Escrow Agent.

     

    (d) Binding
      Nature.
      This
      Agreement will be binding upon, and inure to the benefit of, the personal
      representatives, executors, administrators, heirs, successors, legal guardians
      and permitted assigns of the parties hereto, and any personal representatives,
      executors, administrators, heirs, successors, legal guardians or permitted
      assigns of such party. This Agreement may not be assigned by any party without
      the written consent of the other parties hereto.

     

    (e) Counterparts.
      This
      Agreement may be executed in one or more counterparts, all of which shall be
      considered one and the same agreement, and shall become a binding agreement
      when
      one or more counterparts have been signed by each party and delivered to the
      other parties. Each such original or facsimile copy of this Agreement signed
      in
      counterpart by any of the Parties shall be deemed to be an original for all
      purposes.

    

    [signature
      page follows]

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the parties have executed and delivered this Agreement as
      of
      the date first set forth above.

    
      	 	 	 
	 	
              COMPETITIVE
                TECHNOLOGIES, INC.

            
	 
 	 
 	 
 
	
            	BY:  	/s/
              Michael D. Davidson
	 	 	
              

              Michael
                D. Davidson

              Senior
                Vice-President and Chief Financial Officer

            
	 	 	 
	 	 	 
	 	 	/s/ John Nano
	 	 	
              
JOHN
              NANO
	 	 	 
	 	 
	 	
              COMMERCE
                BANK, N.A.

            
	 	 
	 	 
	 	BY:	/s/
              Stephen R. Schaaf
	 	
              

              Stephen
                R. Schaaf

              Vice
                President

            

    
      
        
        

      

      
        5NOTE

     

    ___________,
      2007

    New
      York,
      NY

     

    FOR
      VALUE
      RECEIVED, Ad.Venture
      Partners, Inc.
      (the
“Obligor”),
      HEREBY PROMISES TO PAY to the order of _______________
      (the
“Lender”),
      on
      demand made at any time the aggregate unpaid principal amount of all loans,
      advances, or financial accommodations made or granted by the Lender to, or
      for
      the benefit of, the Obligor, on such dates as shown in Schedule
      A
      attached
      hereto. Payments are to be made in lawful currency of the United States of
      America in same-day or immediately available funds.

     

    The
      Obligor may prepay any amount owing pursuant to this Note at any time and from
      time to time without premium or penalty. The holder of this Note is authorized
      to, and prior to any transfer of this Note shall, endorse on Schedule
      A
      hereto
      and made a part hereof the date, type and amount of each loan, advances or
      financial accommodations made pursuant to this note and the date and amount
      of
      each payment made by the Obligor. Each such endorsement shall constitute prima
      facie evidence of the accuracy of the information endorsed. The failure to
      make
      any such endorsement shall not affect the obligations of the Obligor in respect
      of any such loans, advances or financial accommodations. 

     

    The
      Obligor will reimburse the Lender for any tax liabilities in
      connection with any imputed interest income of the Lender in connection with
      this Note.

     

    Subject
      to the next paragraph, all loans, advances or financial accommodations shall
      be
      payable in full upon demand by the holder of this Note or upon consummation
      of a
      merger, capital stock exchange, asset acquisition or other similar business
      combination (as described in Obligor’s prospectus dated August 25, 2005 and
      filed with the Securities and Exchange Commission).

     

    Lender
      agrees that (i) it has no right, title, interest or claim of any kind whatsoever
      in or to the trust account that Obligor has established at Smith Barney,
      maintained by Continental Stock Transfer & Trust Company acting as trustee,
      initially in the amount of $50,380,000 for the benefit of Obligor’s public
      stockholders (the “Trust
      Account”)
      and
      (ii) it will not seek recourse against the Trust Account for any reason
      whatsoever.

     

    Nothing
      contained in this Note shall affect the obligation of the Obligor to make,
      or
      prevent the Obligor from making, at any time, payments on this
      Note.

     

    This
      Note
      shall be binding upon the Obligor and its successors and assigns, and the terms
      and provisions of this Note shall inure to the benefit of the Lender and its
      successors and assigns, including subsequent holders hereof.

     

    The
      terms
      and provisions of this Note are severable, and if any term or provision shall
      be
      determined to be superseded, illegal, invalid or otherwise unenforceable in
      whole or in part pursuant to applicable law by a governmental authority having
      jurisdiction, such determination shall
      not
      in any manner impair or otherwise affect the validity, legality or
      enforceability of that term or provision in any other jurisdiction or any of
      the
      remaining terms and provisions of this Note in any jurisdiction.

     

     

    
      
        
        

      

      
        1.

        
          

        

      

      
        
        

      

    

     

    Presentment
      for payment, notice of dishonor, protest, notice of protest and any other notice
      are hereby waived. This Note shall be governed by, and construed in accordance
      with, the internal laws of the State of New York without regard to principles
      of
      conflict of laws.

     

    No
      amendment, modification or waiver of any term or provision of this Note, nor
      consent to any departure by the Obligor herefrom, shall be effective unless
      the
      same shall be in writing and signed by each holder of this Note, and then such
      waiver, modification or consent shall be effective only in the specific instance
      and for the specific purpose for which given.

     

    Nothing
      in this Note, expressed or implied, shall give or be construed to give any
      person, firm or corporation any legal or equitable right, remedy or claim under
      or in respect of this Note, or under any covenant, condition or provision herein
      contained; all its covenants, conditions and provisions being for the sole
      benefit of the Obligor and any holder of this Note.

     

     

     

    
      
        
        

      

      
        2.

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Obligor has caused this Note to be executed and delivered
      to the Lender as of the date and year first above written.

     

    
      	 	 	 
	 	
              Ad.Venture
                Partners, Inc.

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name: Howard
              S. Balter
	 	Title: Chief
              Executive Officer

    

     

     

     

    
      
        
        

      

      
        3.

        
          

        

      

      
        
        

      

    

     

     

    Schedule
      A

     

    Loans,
      Advances and Financial Accommodations

     

    
      	
              Date

            	
              Amount
                (repayment)

            	
              Type
                (note if repayment)

            	
              Endorsement
                Notation

            
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

    

     

     

    
      
        
        

      

        4.

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