Document:

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                                                                    Exhibit 4.10

                              UNILENS VISION INC.

                       INCENTIVE STOCK OPTION PLAN - 2004
                                 (Rolling Plan)

                          Approved by the Shareholders
                               December 19, 2003

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                                TABLE OF CONTENTS

PART 1 GENERAL PROVISIONS......................................................1

   1.1   Interpretation........................................................1
   1.2   Purpose...............................................................3
   1.3   Administration........................................................3
   1.4   General Limits........................................................4
   1.5   Limits with respect to Consultants....................................4
   1.6   Limits with respect to Persons involved in Investor Relations
         Activities............................................................4
   1.7   Non-Exclusivity.......................................................4
   1.8   Shareholder Approval, Plan Amendment and Termination..................5
   1.9   Compliance with Legislation...........................................5
   1.10  Representation........................................................5
   1.11  Effective Date........................................................5

PART 2 OPTIONS.................................................................6
   2.1   Grants................................................................6
   2.2   Option Price..........................................................6
   2.3   Exercise of Options...................................................6
   2.4   Amendments to Option Grants...........................................8

PART 3 MISCELLANEOUS PROVISIONS................................................8

<PAGE>

                               UNILENS VISION INC.

                           INCENTIVE STOCK OPTION PLAN

                                     PART 1
                               GENERAL PROVISIONS

1.1  Interpretation
     --------------

For the purposes of this Plan, the following terms shall have the following
meanings:

     a.   "Affiliate" means any corporation that is an affiliate of the
          Corporation within the meaning set forth in the policies of the
          Exchange, as amended from time to time. For greater certainty
          Affiliate includes all Subsidiaries of the Corporation;

     b.   "Board" means the Board of Directors of the Corporation;

     c.   "Common Shares" means the common shares of the Corporation;

     d.   "Consultant" means an individual who:

          i.   provides ongoing consulting, technical, management or other
               services to the Corporation or an Affiliate under a written
               contract with the Corporation or an Affiliate;

          ii.  possesses technical, business or management expertise of value to
               the Corporation or an Affiliate;

          iii. in the opinion of the Corporation, spends or will spend a
               significant amount of time and attention on the business and
               affairs of the Corporation or an Affiliate;

          iv.  has a relationship with the Corporation or an Affiliate that
               enables the Consultant to be knowledgeable about the business and
               affairs of the Corporation; and

          v.   includes a Consultant Company or a Consultant Partnership.

     e.   "Consultant Company" means, for an individual Consultant, a company of
          which the individual consultant is an employee or shareholder;

     f.   "Consultant Partnership" means, for an individual Consultant, a
          partnership of which the individual Consultant is an employee or
          partner;

     g.   "Corporation" means Unilens Vision Inc.;

     h.   "Disinterested Shareholders" means all of the Shareholders of the
          Corporation except Insiders of the Corporation who are Eligible
          Persons, and such Insiders' associates;

     i.   "Director" means a director of the Corporation or Affiliate, and
          includes an issuer all of the voting securities of which are owned by
          one or more Officers, Directors or employees of the Corporation or an
          Affiliate;

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                                      - 2 -

     j.   "Eligible Person" means, subject to all applicable laws, any employee,
          Officer, Director, Management Company Employee or Consultant of the
          Corporation or of any Affiliate;

     k.   "Employee" means,

          i.   an individual who is considered an employee under the Income Tax
               Act (i.e. for whom income tax employment insurance and CPP
               deductions must be made at source);

          ii.  an individual who works full-time for the Corporation providing
               services normally provided by an employee and who is subject to
               the same control and direction by the Corporation over the
               details and method of work as an employee of the Corporation, but
               for whom income tax deductions are not made at source; or

          iii. an individual who works for the Corporation on a continuing and
               regular basis for a minimum amount of time per week providing
               services normally proved by an employee and who is subject to the
               same control and direction by the Corporation over the details
               and methods of work as an employee of the Corporation, but for
               whom income tax deductions are not made at source; and

          iv.  includes an issuer all of the voting securities of which are
               owned by one or; more Officers, Directors or employees of the
               Corporation or an Affiliate;

     l.   "Exchange" means the TSX Venture Exchange;

     m.   "Insider" means an insider as defined under the policies of the
          Exchange, as amended from time to time;

     n.   "Management Company Employee" means, an individual employed by a
          person providing management services to the Corporation, which are
          required for the ongoing successful operation of the business
          enterprise of the Corporation, but excluding a person engaged in
          investor relations activities;

     o.   "Officer" means an officer of the Corporation, or an Affiliate, and
          includes an issuer all of the voting securities of which are owned by
          one or more Officers, Directors or employees of the Corporation or an
          Affiliate;

     p.   "Option" means a non-transferable or non-assignable option to purchase
          Common Shares granted to an Eligible Person pursuant to the terms of
          the Plan;

     q.   "Participant" means Eligible Persons to whom Options have been
          granted;

     r.   "Plan" means this Incentive Stock Option Plan - 2004 of the
          Corporation;

     s.   "Share Compensation Arrangement" means any stock option, stock option
          plan, employee stock purchase plan or other compensation or incentive
          mechanism involving the issuance or potential issuance of Common
          Shares, including a share purchase from treasury which is financially
          assisted by the Corporation by way of a loan, guarantee or otherwise;

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                                      - 3 -

     t.   "Subsidiary" means any company that is a subsidiary of the Corporation
          as defined under section 1(1) of the Securities Act (British
          Columbia); and

     u.   "Termination Date" means the date on which a Participant ceases to be
          an Eligible Person.

In this Plan, words imparting the singular number only shall include the plural
and vice versa and words imparting the masculine shall include the feminine.

This Plan and all matters to which reference is made herein shall be governed by
and interpreted in accordance with the laws of the Province of British Columbia
and the laws of Canada applicable therein.

1.2  Purpose
     -------

The purpose of this Plan is to advance the interests of the Corporation by:

     a.   providing Eligible Persons with additional incentive;

     b.   encouraging stock ownership by such Eligible Persons;

     c.   increasing the proprietary interest of Eligible Persons in the success
          of the Corporation;

     d.   encouraging Eligible Persons to remain with the Corporation or its
          Affiliates; and

     e.   attracting new employees, directors and officers.

1.3  Administration
     --------------

     a.   The Plan shall be administered by the Board or a committee of the
          Board duly appointed for this purpose by the Board and consisting of
          not less than 3 directors. If a committee is appointed for this
          purpose, all references herein to the Board will be deemed to be
          references to the Committee.

     b.   Subject to the limitations of the Plan, the Board shall have the
          authority to:

          i.   grant Options to purchase Common Shares to Eligible Persons;

          ii.  determine the terms, limitations, restrictions and conditions
               respecting such grants;

          iii. interpret the Plan and adopt, amend and rescind such
               administrative guidelines and other rules and regulations
               relating to the Plan as it shall from time to time deem
               advisable; and

          iv.  make all other determinations and take all other actions in
               connection with the implementation and administration of the Plan
               including without limitation for the purpose of ensuring
               compliance with Section 1.10 hereof as it may deem necessary or
               advisable.

     c.   The Board's guidelines, rules, regulations, interpretations and
          determinations shall be conclusive and binding upon the Corporation
          and all other persons.

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                                      - 4 -

1.4  General Limits
     --------------

     a.   The aggregate number of Common Shares to be reserved for exercise of
          all options granted under the Plan and any other Share Compensation
          Arrangement shall not exceed 10% of the issued shares of the
          Corporation at the date the Plan is approved by the shareholders of
          the Corporation (the "Shareholder Approval Date"). No fractional
          shares shall be issued and the Board may determine the manner in which
          fractional share values shall be treated.

     b.   The maximum number of Common Shares which may be reserved for issuance
          to any one individual under the Plan in any 12 month period shall be
          5% of the Common Shares outstanding at the time of the grant (on a
          non-diluted basis) less the aggregate number of Common Shares reserved
          for issuance to such person under any other option to purchase Common
          Shares from treasury granted as a compensation or incentive mechanism,
          unless the consent of Exchange is first obtained.

     c.   No individual can be granted options pursuant to this Plan if, at the
          time of the grant, the individual owns in excess of 10% of the issued
          and outstanding shares of the Company, or any of its affiliates,
          unless the exercise price of the option is 110% of the Market Price.

     d.   If there is a change in the outstanding Common Shares by reason of any
          stock dividend or split, recapitalization, amalgamation,
          consolidation, combination or exchange of shares, or other corporate
          change, the Board shall make, subject to the prior approval of the
          relevant stock exchange(s) if required, appropriate substitution or
          adjustment in:

          i.   the number or kind of shares or other securities reserved for
               issuance pursuant to the Plan; and

          ii.  the number and kind of shares subject to unexercised Options
               theretofore granted and in the option price of such shares;
               provided however that no substitution or adjustment shall
               obligate the Corporation to issue or sell fractional shares. If
               the Corporation is reorganized, amalgamated with another
               corporation, or consolidated, the Board shall make such provision
               for the protection of the rights of Participants as the Board in
               its discretion deems appropriate.

     e.   The Corporation shall at all times during the term of the Plan reserve
          and keep available such number of shares as will be sufficient to
          satisfy the requirements of the Plan.

1.5  Limits with respect to Consultants
     ----------------------------------

The number of options granted to any one Consultant under the Plan in any 12
month period shall not exceed 2% of the outstanding Common Shares at the time of
grant, less the aggregate number of Common Shares reserved for issuance to
Consultants pursuant to any other Share Compensation arrangement, unless the
consent of the Exchange is first obtained.

1.6  Limits with respect to Persons involved in Investor Relations Activities
     ------------------------------------------------------------------------

The aggregate number of options granted under the Plan to all Employees involved
in investor relations activities within a 12 month period shall not exceed 2% of
the outstanding Common Shares at the time of grant, less the aggregate number of
Common Shares reserved for issuance to such Employees under any other Share
Compensation Arrangement, unless the consent of Exchange is first obtained.

1.7  Non-Exclusivity
     ---------------

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                                      - 5 -

Nothing contained herein shall prevent the Board from adopting other or
additional compensation arrangements, subject to any required approvals.

1.8  Shareholder Approval, Plan Amendment and Termination
     ----------------------------------------------------

Before any options granted pursuant to the Plan can be exercised, the Plan must
be approved by the shareholders of the Corporation. Unless the Plan terminates
earlier pursuant to the terms of this section, this Plan terminates (the "Plan
Termination Date') on the earlier of (i) ten years from the Shareholder Approval
Date and (ii) the date of the next annual general meeting of the shareholders
immediately subsequent to the Shareholder Approval Date. In accordance with
applicable legislation and subject to any required approval, the Board may
amend, suspend or terminate the Plan or any portion thereof at any time prior to
the Plan Termination Date. No such amendment, suspension or termination shall
alter or impair any Options or any rights pursuant thereto granted previously to
any Participant without the consent of such Participant. If the Plan is
terminated, the provisions of the Plan and any administrative guidelines and
other rules and regulations adopted by the Board and in force at the time of the
Plan shall continue in effect during such time as an Option or any rights
pursuant thereto remain outstanding.

1.9  Compliance with Legislation
     ---------------------------

The Plan, the grant and exercise of Options hereunder and the Corporation's
obligation to sell and deliver Common Shares upon exercise of Options shall be
subject to all applicable federal, provincial and foreign laws, rules and
regulations, the rules and regulations of any stock exchange(s) on which the
Common Shares are listed for trading and to such approvals by any regulatory or
governmental agency as may, in the opinion of counsel to the Corporation, be
required. The Corporation shall not be obligated by any provision of the Plan or
the grant of any Option hereunder to issue or sell Common Shares in violation of
such laws, rules and regulations or any condition of such approvals. No Option
shall be granted and no Common Shares issued or sold hereunder where such grant,
issue or sale would require legislation of the Plan or of Common Shares under
the securities laws of any foreign jurisdiction and any purported grant of any
Option or issue or sale of Common Shares hereunder in violation of this
provision shall be void. In addition, the Corporation shall have no obligation
to issue any Common Shares pursuant to the Plan unless such Common Shares shall
have been duly listed, upon official notice of issuance, with all stock
exchanges on which the Common Shares are listed for trading. Common Shares
issued and sold to Participants pursuant to the exercise of Options may be
subject to limitations on sale or resale under applicable securities laws.

1.10 Representation
     --------------

The Corporation represents that any Employee, Consultant or Management Company
Employee who is granted an Option or Options is a bona fide Employee, Consultant
or Management Company Employee, as the case may be, of the Corporation or an
Affiliate.

1.11 Effective Date
     --------------

The Plan shall be subject to the approval of any relevant regulatory authority
whose approval is required. Any Options granted under the Plan prior to such
approvals and acceptances shall be conditional upon such approvals and
acceptances being given and no such Options may be exercised unless such
approvals and acceptance is given.

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                                      - 6 -

                                     PART 2
                                     OPTIONS

2.1  Grants
     ------

Subject to the provisions of the Plan, the Board shall have the authority to
determine the limitations, restrictions and conditions, if any, in addition to
those set forth in Section 2.3 hereof, applicable to the exercise of an Option,
including without limitation, the nature and duration of the restrictions, if
any, to be imposed upon the sale or other disposition of Common Shares acquired
upon exercise of the Option, and the nature of the events, if any, and the
duration of the period in which any Participant's rights in respect of Common
Shares acquired upon exercise of an Option may be forfeited. An Eligible Person
may receive Options on more than one occasion under the Plan and may receive
separate Options on any one occasion.

2.2  Option Price
     ------------

     a.   Subject to a minimum price of $0.10 per share, the option price shall
          not be less than the closing price (the "Market Price") of the Common
          Shares on the Exchange immediately preceding the day on which the
          Board grants and provides notice to the Exchange of the Option(s).

     b.   If the options are granted within ninety days of a public
          distribution, then the option price shall not be less than the greater
          of the price calculated in 2.2(a) or the price per share paid by the
          public investors pursuant to the public distribution. The ninety day
          period will commence on the day a receipt is issued for the (final)
          prospectus.

     c.   The option price shall be subject to adjustment in accordance with the
          provisions of Section 1.4(c) hereof.

2.3  Exercise of Options
     -------------------

     a.   Options granted must be exercised no later than 5 years after the date
          of grant or such lesser period as the regulations made pursuant to the
          Plan may require.

     b.   Options shall not be transferable by the Participants otherwise than
          by will or the laws of descent and distribution, and shall be
          exercisable during the lifetime of a Participant only by the
          Participant and after death only by the Participant's legal
          representative (subject to the limitation that Options may not be
          exercised later than 5 years from their date of grant).

     c.   Except as otherwise determined by the Board and subject to the
          limitation that Options may not be exercised later than 5 years from
          their date of grant:

          i.   if a Participant ceases to be an Eligible Person for any reason
               whatsoever other than death, each Option held by the Participant
               other than a Participant who is involved in investor relations
               activities will cease to be exercisable 90 days after the
               Termination Date. For Participants involved in investor relations
               activities, Options shall cease to be exercisable 30 days after
               the Termination Date. If any portion of an Option is not vested
               by the Termination Date, that portion of the Option may not under
               any circumstances be exercised by the Participant.

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                                      - 7 -

               Without limitation, and for greater certainty only, this
               provision will apply regardless of whether the Participant was
               dismissed with or without cause and regardless of whether the
               Participant received compensation in respect of dismissal or was
               entitled to a period of notice of termination which would
               otherwise have permitted a greater portion of the Option to vest
               with the Participant;

          ii.  if a Participant dies the legal representative of the Participant
               may exercise the Participant's Options within one year after the
               date of the Participant's death, but only to the extent the
               Options were by their term exercisable on the date of death.

     d.   Subject to the provisions of this Section 2.3(d), the Board shall
          determine the manner in which Options shall vest and become
          exercisable. Options granted to Consultants providing investor
          relations services shall vest at a minimum over a period of 12 months
          with no more than 1/4 of such Options vesting in any 3 month period.
          The Board may impose such other restrictions or limitations or
          requirements upon the exercise of Option as the Board, in its absolute
          discretion, may determine on the date of grant.

     e.   Each Option shall be confirmed by an option agreement executed by the
          Corporation and by the Participant.

     f.   The exercise price of each Common Share purchased under an Option
          shall be paid in full in cash or by bank draft or certified cheque at
          the time of such exercise, and upon receipt of payment in full, but
          subject to the terms of the Plan, the number of Common Shares in
          respect of which the Option is exercised shall be duly issued as fully
          paid and non-assessable.

     g.   Subject to the provisions of the Plan, an Option may be exercised from
          time to time by delivery to the Corporation at its registered office
          of a written notice of exercise addressed to the Secretary of the
          Corporation specifying the number of Common Shares with respect to
          which the Option is being exercised and accompanied by payment in full
          of the Option Price of the Common Shares to be purchased. Certificates
          for such Common Shares shall be issued and delivered to the Optionee
          within a reasonable period of time following the receipt of such
          notice and payment.

     h.   Notwithstanding any of the provisions contained in the Plan or in any
          Option, the Corporation's obligation to issue Common Shares to a
          Participant pursuant to the exercise of an Option shall be subject to:

          i.   completion of such registration or other qualification of such
               Common Shares or obtaining approval of such governmental or
               regulatory authority as counsel to the Corporation shall
               reasonably determine to be necessary or advisable in connection
               with the authorization, issuance or sale thereof;

          ii.  admission of such Common Shares to listing on any stock exchange
               on which the Common Shares may then be listed; and

          iii. the receipt from the Participant of such representations,
               agreements and undertakings, including as to future dealings in
               such Common Shares, as counsel to the Corporation reasonably
               determines to be necessary or advisable in order to safeguard
               against the violation of the laws of any jurisdiction.

     i.   In this connection the Corporation shall, to the extent necessary,
          take all reasonable steps

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                                      - 8 -

          to obtain such approvals, registrations and qualifications as may be
          necessary for issuance of such Common Shares in compliance with
          applicable laws and for the admission to listing of such Shares on any
          stock exchange on which the Common Shares are then listed.

2.4  Amendments to Option Grants
     ---------------------------

Subject to the policies of Exchange, the Board may amend any Option with the
consent of the affected Participant. If an amendment reducing the exercise price
of the Option is made to an Option held by an Insider, the amendment shall only
be made effective after the approval of the Disinterested Shareholders at a
general meeting of the Shareholders of the Corporation is received.

                                     PART 3
                            MISCELLANEOUS PROVISIONS

3.1  The holder of an Option shall not have any rights as a shareholder of the
Corporation with respect to any of the Common Shares covered by such Option
until such holder shall have exercised such Option in accordance with the terms
of the Plan (including tendering payment in full of the Option Price of the
Common Shares in respect of which the Option is being exercised).

3.2  Nothing in the Plan or any Option shall confer upon a Participant any right
to continue in the employ of the Corporation or any Affiliate or affect in any
way the right of the Corporation or any Affiliate to terminate his employment at
any time; nor shall anything in the Plan or any Option be deemed or construed to
constitute an agreement, or an expression of intent, on the part of the
Corporation or any Affiliate to extend the employment of any Participant beyond
the time which he would normally be retired pursuant to the provisions of any
present or future retirement plan of the Corporation or any Affiliate, or beyond
the time at which he would otherwise be retired pursuant to the provisions of
any contract of employment with the Corporation or any Affiliate.<PAGE>

                                                                    Exhibit 4.11

                              SETTLEMENT AGREEMENT

     AGREEMENT, dated as of October 17, 2003 (the "Agreement"), among
COMPETITIVE TECHNOLOGIES, INC., a Delaware corporation formerly known as
University Patents, Inc. ("CTI"), UNILENS CORP. USA, a Delaware corporation
("Unilens USA"), and UNILENS VISION INC., a British Columbia corporation
formerly known as Unilens Optical Corp. ("Unilens Vision" and, together with
Unilens USA, the "Unilens Companies").

                              W I T N E S S E T H:
                              - - - - - - - - - --

     WHEREAS, the parties and University Optical Products Co. are parties to an
Asset Purchase Agreement, dated January 23,1989 (the "Asset Purchase Agreement")
and the parties are parties to a Settlement and Forbearance Agreement, dated
July 15, 1993 (as amended by the Amendment and Modification Agreement dated
September 27, 1993, the "1993 Agreement");

     WHEREAS, there have been disputes among the parties with respect to the
Asset Purchase Agreement and the 1993 Agreement (together, the "Prior
Agreements");

     WHEREAS, on or about August 22, 2003, CTI commenced an action against the
Unilens Companies in the United States District Court for the Middle District of
Florida entitled Competitive Technologies, Inc. v. Unilens Vision, Inc. and
Unilens Corp., Index No. 8:03 CV 1783-T23EAJ;

     WHEREAS, CTI withdrew such federal court action on or about September 3,
2003 and, on or about September 4, 2003, filed an action in the Circuit Court of
the 13th Judicial District (Hillsborough County), Florida Civil Division (the
"Court"), with the same title, Case No. 03-8216 (the "Action"); and

     WHEREAS, the parties now wish to settle and dispose of all claims and
disputes among them, provide for the dismissal with prejudice of the Action and
set forth their complete understanding of their remaining respective rights and
obligations;

     NOW, THEREFORE, in consideration of the mutual promises and releases set
forth below, the parties agree as follows:

     1.   Settlement of Claims and Dismissal of the Action.

     (a)  In consideration of the payments being made and to be made by the
Unilens Companies pursuant to Section 3 and the other agreements set forth in
this Agreement, as of the Effective Date (as defined in Section 3(a)(i)), CTI
shall dismiss with prejudice the Action and settle all Claims (as defined in
Section 5) against the Unilens Companies other than any that may arise under
this Agreement. It is agreed that as used in this Agreement, "Claims" shall be
construed as broadly as possible and shall include, without limitation, all
Claims based on

<PAGE>

conduct prior to the Effective Date that have, or could have been, asserted in
the Action and all Claims arising from, or relating in any way to, the Prior
Agreements.

     (b)  Promptly following the Effective Date, CTI shall arrange for dismissal
of the Action by the filing with the Court a Notice of Voluntary Dismissal with
prejudice and without costs to any party (the "Stipulation") and do whatever
additional things that may be necessary to effect promptly such dismissal and
discontinuance of the Action. The parties shall cooperate and direct their
attorneys to prepare such documents and take such actions as may be necessary to
achieve such dismissal promptly. The failure by CTI to cause the filing of the
Stipulation with the Court shall not affect the releases provided for in this
Agreement or prevent the Unilens Companies from unilaterally submitting this
Agreement as a basis for moving the Court to dismiss the Action.

     2.   Termination of the Prior Agreements. As of the Effective Date, each
Prior Agreement shall be irrevocably terminated and canceled in its entirety and
no party shall have any further obligation or liability under either Prior
Agreement.

     3.   Payments.

     (a)  The Unilens Companies shall make payments to CTI in the aggregate
amount of US$1,250,000.00 (subject to certain adjustments as provided in this
Agreement) as follows:

     (i)  On the date that this Agreement is executed by each of the Unilens
Companies, they shall pay US$100,000.00 to CTI by wire transfer of US dollars in
good federal funds to the account specified in Section 3(f) (the "First
Payment"). The date that the First Payment is received and retained by CTI is
referred to as the "Effective Date"; and

     (ii) Until an aggregate of US$1,150,000.00 has been paid as provided in
this Section 3(a)(ii) without default, on March 31, June 30, September 30 and
December 31 of each year, beginning December 31, 2003, the Unilens Companies
shall pay to CTI by wire transfer of US dollars in good federal funds to the
account designated in or pursuant to Section 3(f), installment payments in
amounts that are each the greater of (i) US$100,000.00 or (ii) an amount equal
to 50% of the royalties received by Unilens USA from Bausch & Lomb Incorporated
during the three calendar months ending on the relevant date of payment,
pursuant to the License Agreement, dated October 25, 2001, between Unilens USA
and Bausch & Lomb Incorporated (the "License Agreement").

     (b)  If any installment payment required to be made pursuant to Section
3(a)(ii) is not made to CTI on or before the second business day after the date
it is due, time being of the essence, such installment shall accrue interest at
the rate of 8% per annum from the original due date for such installment payment
until paid in full and all such accrued interest shall be paid to CTI together
with such installment.

     (c)  If any installment payment required to be made pursuant to Section
3(a)(ii) is not made to CTI on or before the second business day after the date
it is due, and is not paid in full (together with all interest payable thereon
pursuant to Section 3(b)) to CTI within 45 days following the date of CTI's
written notice of default to the Unilens Companies with respect thereto, then
the Default Amount (as defined below) shall immediately become due and payable

                                        2

<PAGE>

by the Unilens Companies to CTI without further notice or demand by CTI.
Further, if any two consecutive installment payments required to be made
pursuant to Section 3(a)(ii) are not made on or before the second business day
after the date they are due, time being of the essence, then the Default Amount
(as defined below) shall immediately become due and payable by the Unilens
Companies to CTI without further notice or demand by CTI. In either such event,
the Default Amount shall accrue interest at the rate of 8% per annum until paid
in full and all such accrued interest shall be paid to CTI together with the
Default Amount. For purposes of this Agreement, "Default Amount" means an amount
equal to US$1,150,000.00, less all amounts paid by the Unilens Companies to CTI
pursuant to Section 3(a)(ii) (and excluding any interest amounts paid to CTI
pursuant to Section 3(b)) prior to the date of CTI's notice of default.

     (d)  The Unilens Companies shall furnish to CTI, together with each
installment payment made pursuant to Section 3(a)(ii), a certification by
Unilens USA's Chief Financial Officer setting forth the total amount of
royalties received by Unilens USA under the License Agreement during the three
calendar months ending on the relevant date of payment and the calculation of
the accompanying payment being made to CTI. The Unilens Companies shall
concurrently furnish to CTI a copy of the related royalty report received from
Bausch & Lomb Incorporated under the License Agreement.

     (e)  The Unilens Companies shall have the right, at their option and at any
time, to prepay all or any portion of their obligation to CTI under Section
3(a)(ii), without penalty or premium.

     (f)  All wire transfers made to CTI pursuant to this Section 3 shall be
made in accordance with the following wire transfer instructions (unless and
until CTI notifies the Unilens Companies in writing of different wire
instructions, and then in accordance with such new instructions):

          Bank: Fleet Bank
          Bank Address: One Landmark Square, Stamford, Connecticut 06904
          ABA Number: 011900571
          For further credit to: Competitive Technologies, Inc.
          Account Number: 93698 11621

     4.   Security.

     (a)  To secure the full performance of all of the obligations of the
Unilens Companies under this Agreement, including, without limitation, the
payment to CTI of the amounts specified in Section 3 of this Agreement, the
Unilens Companies grant, convey, assign and transfer to CTI a lien on, and
security interest in, all of the Collateral (as defined below). As used in this
Agreement, the term "Collateral" means all of the real property and all of the
personal property and other goods of the Unilens Companies, or either of them,
wherever located, whether now owned or existing or hereafter acquired or
arising, including without limitation all of the Unilens Companies' (or either
company's) now owned or existing or hereafter acquired or arising (i) accounts
receivable, (ii) chattel paper, (iii) contracts, (iv) deposit accounts, (v)
documents, (vi) equipment, (vii) fixtures, (viii) general intangibles, (ix)
instruments, (x) inventory, (xi) investment property, (xii) letter-of-credit
rights, (xiii) supporting obligations, (xiv) money, (xv)

                                        3

<PAGE>

patents, (xvi) licenses or license agreements, (xvii) additions, accessions and
attachments to any of the foregoing and (xviii) renewals, substitutions,
replacements, rental payments, products and proceeds of any of the foregoing.

     (b)  Upon CTI's request, the Unilens Companies shall execute, acknowledge,
deliver and/or cause to be filed all such additional and further documents,
agreements and instruments, and shall take such other actions as may be
reasonably necessary or appropriate, to better assure, preserve, protect and
perfect the security interest granted to CTI hereunder and the rights and
remedies created hereby, including, without limitation (i) executing and
delivering to CTI a separate security agreement in a form that is satisfactory
to CTI, (ii) delivering and, where appropriate, filing financing statements and
continuation statements under the Uniform Commercial Code (the "UCC"), (iii)
obtaining governmental and other third party consents and approvals, (iv)
obtaining waivers and consents from mortgagees, warehousemen, landlords, lessees
and licensees and (v) joining with CTI in notifying any person that is in
possession of any Collateral of CTI's security interest therein and obtaining an
acknowledgement from such person that it is holding such Collateral for the
benefit of CTI. To the extent permitted by applicable law, until such time as
the amounts due to CTI as set forth in Section 3 are paid in full, the Unilens
Companies authorize CTI to execute and/or file financing or continuation
statements as required under the UCC or filings with the United States Patent
and Trademark Office or United States Copyright Office (or any successor officer
or any similar office in any other country), in each case without the Unilens
Companies' signature appearing thereon, for the purpose of perfecting,
confirming, continuing, enforcing or protecting CTI's security interest granted
hereunder. The Unilens Companies agree that a carbon, photographic, photostatic
or other reproduction of this Agreement or of a financing statement is
sufficient as a financing statement.

     (c)  The Unilens Companies represent and warrant that the lien and security
interest granted to CTI as provided in this Agreement is valid and enforceable
and is subordinate only to the security interest granted by the Unilens
Companies in favor of UNIINVEST Holding AG (formerly known as EBC Zurich AG)
which secures an existing debt owed by the Unilens Companies to UNIINVEST
Holding AG in the amount of US$450,000.00, plus interest. CTI agrees that the
security interest granted to CTI hereunder is subordinate to that of UNIINVEST
Holding AG described above. On or prior to the Effective Date, the Unilens
Companies shall deliver to CTI true and complete copies of the documents
evidencing the debt owed by the Unilens Companies to UNIINVEST Holding AG and
the security interest securing such debt, as well as a certification by Unilens
USA's Chief Financial Officer setting forth the current amount of the debt owed
to UNIINVEST Holding AG. From and after the Effective Date the Unilens Companies
shall not, without the prior written consent of CTI, (i) grant or agree to any
lien or security interest in favor of any person or entity other than CTI and
the existing lien and security interest in favor or UNIINVEST Holding AG, except
in connection with the entry by either of the Unilens Companies into equipment
leases having an aggregate value of not more than US$25,000.00 per year, or (ii)
permit the debt (including both principal and interest) owed by the Unilens
Companies to UNIINVEST Holding AG to exceed in total US$500,000.00.

     (d)  Following payment in full of all of the obligations of the Unilens
Companies under Sections 3 and 11, CTI, on request of the Unilens Companies,
shall execute and deliver to the Unilens Companies such termination statements
or other instruments in proper form under the UCC, the rules and regulations of
the United States Patent and Trademark Office and United

                                        4

<PAGE>

States Copyright Office and any relevant laws of the Province of British
Columbia as are necessary or desirable to evidence the termination of the
security interest and lien created pursuant to this Section 4.

     5.   Release of Unilens Companies. Effective on the Effective Date, CTI, on
behalf of itself and its subsidiaries, shareholders and affiliates and its and
their successors and assigns and any other parties who may purport to claim
through them (together, the "CTI Releasors"), releases and forever discharges,
Unilens USA, Unilens Vision and their respective officers, directors, employees,
agents, shareholders, affiliates and attorneys, and their respective successors
and assigns (together, the "Unilens Releasees"), from any and all actions,
causes of action, proceedings, suits, debts, dues, sums of money, accounts,
covenants, controversies, agreements, promises, damages, judgments, executions,
costs, claims, liabilities and demands of any nature whatsoever (together,
"Claims"), in law or equity, which the CTI Releasors ever had, now have or
hereafter can, shall or may have against the Unilens Releasees for, by reason
of, arising out of, or in connection with, any matter, cause or thing whatsoever
from the beginning of the world to the date of this Agreement, including,
without limitation, the Prior Agreements; provided, however, that the foregoing
release shall not apply to the respective obligations of the Unilens Companies
under this Agreement.

     6.   Release of CTI. Effective on the Effective Date, each of Unilens USA
and Unilens Vision, on behalf of itself and its subsidiaries, shareholders and
affiliates and its and their successors and assigns and any other parties who
may purport to claim through them (together, the "Unilens Releasors"), releases
and forever discharges, CTI and its officers, directors, employees, agents,
shareholders, affiliates and attorneys, and their respective successors and
assigns (together, the "CTI Releasees"), from any and all Claims, in law or
equity, which the Unilens Releasors ever had, now have or hereafter can, shall
or may have against the CTI Releasees for, by reason of, arising out of, or in
connection with, any matter, cause or thing whatsoever from the beginning of the
world to the date of this Agreement, including, without limitation, the Prior
Agreements; provided, however, that the foregoing release shall not apply to
CTI's obligations under this Agreement.

     7.   Scope of Releases. The releases set forth in Sections 5 and 6 extend
to all Claims based on conduct that occurred prior to the Effective Date,
whether now known or unknown, existing or non-existing, mature or unmatured,
asserted or unasserted. The effect of such releases is without territorial
limitation and applies in all jurisdictions. Following the Effective Date, none
of the parties shall institute or prosecute any action or proceeding based on
any Claim released in Sections 5 or 6. Nothing in this Agreement shall be
construed as an admission of any liability by either party. Further, nothing in
this Agreement shall act as a discharge or release of any claim that may arise
with respect to the provisions of this Agreement or shall prevent any party from
commencing any action or proceeding to enforce any such provision.

     8.   Intentions of the Parties. It is the intention of the parties that
this Agreement be a full and final accord and satisfaction and mutual, general
release of any Claims that any of the CTI Releasors or the Unilens Releasors
have against any of the Unilens Releasees or the CTI Releasees, respectively. In
order to implement a full release of all Claims, each party acknowledges that
this Agreement is intended to include in its effect any Claim which it does not
know or suspect to exist in its favor that are based on conduct that occurred
prior to the Effective

                                        5

<PAGE>

Date, that this Agreement contemplates the extinguishing of any such Claim and
that the provisions of Sections 5 and 6 shall remain in effect as full releases
notwithstanding any discovery of any additional or different facts.

     9.   Confidentiality. The parties agree that the content and existence of
this Agreement and all information and communications pertaining thereto, shall
be held in strict confidence; except (i) as may be required to be disclosed by
any party pursuant to applicable securities laws or the rules and regulations of
any stock exchange, (ii) as may be required by the parties' respective
institutional lenders, auditors, financial consultants and insurance carriers,
(iii) as may be disclosed to a party's counsel for purposes of seeking legal
advice; (iv) as may be appropriate by a party to enforce its rights under this
Agreement or (v) as required by subpoena or an order of a court, tribunal or
governmental authority of competent jurisdiction; provided, however, that at
least five days prior to any such disclosure pursuant to this clause (v) of this
Section 9, the party of whom information is requested notifies the others in
writing, of the specific information, if any, that it proposes to disclose in
order to afford the other parties an opportunity to challenge the disclosure
requirement or seek an appropriate protective order.

     10.  Representations and Warranties. Each party represents and warrants to
the others that (a) it owns all right, title and interest in and to all Claims
released by it hereunder and has not assigned any such Claim or any interest
therein to any other party, (b) no third party is currently claiming or
threatening to claim any right, title or interest in or to any of the Claims
released by it hereunder (including in the case of CTI, Optical Associates,
Limited Partnership), (c) it has full power and authority, and has taken all
corporate action necessary to authorize it, to enter into, and perform its
obligations under, this Agreement and (d) it has received independent legal
advice from its attorneys with respect to the advisability of making the
settlement, release and waivers provided in this Agreement. Each party shall
indemnify, defend and hold harmless the others from any loss or liability
arising from any breach of any of its representations or warranties set forth in
this Section 10.

     11.  Payment of Costs. If the Unilens Companies, or either of them, breach
any of their obligations under this Agreement, including, without limitation,
any of their payment obligations set forth in Section 3, CTI shall be entitled
to recover from the Unilens Companies any costs and expenses, including
reasonable attorneys' fees, that CTI incurs in connection with any legal
proceedings or other action that CTI takes to enforce its rights under this
Agreement.

     12.  Miscellaneous.

     (a)  Entire Agreement. This Agreement sets forth the entire understanding
of the parties with respect to its subject matter, merges and supersedes any
prior or contemporaneous understandings with respect to its subject matter, and
shall not be modified or terminated except by a written instrument executed by
CTI and each of the Unilens Companies. Failure of any party to enforce any
provision of this Agreement shall not be construed as a waiver of its rights
under such or any other provision.

     (b)  Successors and Assigns. This Agreement shall be binding on,
enforceable against and inure to the benefit of the parties and their respective
successors and permitted assigns, and nothing herein is intended to confer any
right, remedy or benefit on any other person. No party

                                        6

<PAGE>

may assign its rights or delegate its obligations hereunder without the written
consent of the others.

     (c)  Expenses. Each of the parties shall bear and pay, without any right of
reimbursement from any other party, all costs, expenses and fees incurred by it
or on its behalf incident to the preparation, execution and delivery of this
Agreement and the performance of such party's obligations hereunder, including,
without limitation, the fees and disbursements of attorneys retained by such
party in connection with the transactions contemplated in this Agreement, and
shall indemnify and hold harmless the other parties from and against all such
fees, costs and expenses; provided, however, that nothing herein shall in any
way effect CTI's rights under Section 11.

     (d)  Communications. All notices and other communications given under this
Agreement shall be in writing and shall be deemed to have been duly given (a)
when delivered by hand or by Fedex or a similar overnight courier to, (b) five
days after being deposited in any United States post office enclosed in a
postage prepaid registered or certified envelope addressed to, or (c) when
successfully transmitted by fax (with a confirming copy of such communication to
be sent as provided in (a) or (b) above) to, the party for whom intended, at the
address or fax number for such party set forth below, or to such other address
or fax number as may be furnished by such party by notice in the manner provided
herein; provided, however, that any notice of change of address or fax number
shall be effective only upon receipt.

If to CTI:                                If to either Unilens Company:

Competitive Technologies, Inc.            Unilens Corp. USA.
1960 Bronson Road                         10431 72nd Avenue North
Fairfield, Connecticut 06824              Largo, Florida 33777
Attention: President                      Attention: Mr. Alfred W. Vitale
Fax No.: (203) 254-1102                   Fax No.: (727) 545-1883

with a copy to:                           with a copy to:

David B. Zabel, Esq.                      Salans
Cohen and Wolf, P.C.                      620 Fifth Avenue
1115 Broad Street                         New York, New York 10020
Bridgeport, Connecticut 06604             Attention: Laurence S. Markowitz, Esq.
Fax No.: (203) 394-9901                   Fax No.: (212) 632-5555

     (e)  Governing Law. This Agreement shall in all respects be governed by and
construed and enforced in accordance with the laws of the State of Connecticut
applicable to agreements made and fully to be performed in such state, without
giving effect to conflicts of law principles.

     (f)  Jurisdiction and Venue. The parties agree that any legal action or
proceeding concerning this Agreement or its enforcement shall only be brought in
the Federal or State courts in Connecticut, and accordingly, the parties consent
to the jurisdiction and exclusive venue of such courts with respect to any legal
action or proceeding concerning this Agreement or its enforcement.

                                        7

<PAGE>

     (g)  Savings Clause. If any provision of this Agreement is held to be
invalid or unenforceable by any court or tribunal of competent jurisdiction, the
remainder of this Agreement shall not be affected thereby, and such provision
shall be carried out as nearly as possible according to its original terms and
intent to eliminate such invalidity or unenforceability, the parties intending
that any otherwise invalid provision of this Agreement may be judicially
reformed so as to be carried out as nearly as possible according to its original
terms.

     (h)  Counterparts. This Agreement may be executed in multiple counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. Signatures transmitted by facsimile
shall have the same force and effect as original signatures.

     (i)  Construction. Headings contained in this Agreement are for convenience
only and shall not be used in the interpretation of this Agreement. References
herein to Sections are to the sections of this Agreement. As used herein, the
singular includes the plural, and the masculine, feminine and neuter gender each
includes the others where the context so indicates.

     IN WITNESS WHEREOF, each of the parties has executed this Agreement as of
the date first set forth above.

COMPETITIVE TECHNOLOGIES, INC.            UNILENS CORP USA.

By       /s/ John Nano                    By        /s/ Alfred W. Vitale
  ------------------------------------      ------------------------------------
         John Nano, President                    Alfred W. Vitale, President

                                          UNILENS VISION, INC.

                                          By        /s/ Alfred W. Vitale
                                            ------------------------------------
                                                 Alfred W. Vitale, President

                                          8

<PAGE>

                                ACKNOWLEDGEMENTS

STATE OF CONNECTICUT     )
                         ) ss.:
COUNTY OF FAIRFIELD      )

     The foregoing instrument was acknowledged before me this 17/th/ day of
October 2003, by John Nano, President of Competitive Technologies, Inc., a
Delaware corporation, on behalf of the corporation. John Nano is _____
personally known to me or has _____ produced _________________________ as
identification.

                                            /s/ Lorraine Frauenhofr
                                          --------------------------------------
                                                     Notary Public

STATE OF FLORIDA         )
                         ) ss.:
COUNTY OF PALM BEACH     )

     The foregoing instrument was acknowledged before me this 17/th/ day of
October 2003, by Alfred W. Vitale, President of Unilens Corp. USA, a Delaware
corporation, on behalf of the corporation. Alfred W. Vitale is _____ personally
known to me or has produced Florida Drivers License as identification.

                                            /s/ April Anne Newswander
                                          --------------------------------------
                                                     Notary Public

STATE OF FLORIDA         )
                         ) ss.:
COUNTY OF PALM BEACH     )

     The foregoing instrument was acknowledged before me this 17/th/ day of
October 2003, by Alfred W. Vitale, President of Unilens Vision, Inc., a British
Columbia corporation, on behalf of the corporation. Alfred W. Vitale is _____
personally known to me or has produced Florida Drivers License as
identification.

                                            /s/ April Anne Newswander
                                          --------------------------------------
                                                     Notary Public

                                        9

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