Document:

Exhibit 10.6
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                              AMENDED AND RESTATED

                              EMPLOYMENT AGREEMENT
                              --------------------

     This AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this "Agreement"), dated as
of August 1, 2004 ("Effective Date"), is between Competitive Technologies, Inc.,
a Delaware corporation (the "Company") and John B. Nano (the "Executive").

                                    RECITALS:

     1.  The  Company  and  Executive  previously  entered  into  an  Employment
Agreement dated June 17, 2002 (the "Prior Agreement").

     2. The Company and Executive desire to make certain  revisions to the terms
and  conditions of  Executive's  employment  by Company,  such revised terms and
conditions to be effective as of the date of this Agreement.

     NOW, THEREFORE,  in consideration of the mutual covenants contained in this
Agreement,   and  other  good  and  valuable  consideration,   the  receipt  and
sufficiency of which is acknowledged, the parties agree as follows:

     1. Employment.  The Company hereby employs the Executive, and the Executive
hereby  continues  his  employment  with the  Company,  upon all the  terms  and
conditions set forth below.  Executive  represents and warrants that: (a) he has
full power and authority to enter into this Employment Agreement,  (b) he is not
restricted in any manner  whatsoever from performing the duties described below,
and (c) no agreement,  covenant or other matter  prohibits or limits his ability
or authority to enter into this Agreement or perform all of the duties described
below.  Executive's  employment  with the Company shall include  service for the
Company's  direct  and  indirect   subsidiaries  and  affiliated  entities  (the
"Subsidiaries").

     2. Employment Term. The "Employment Term" and Executive's  employment under
this  Agreement  shall  commence on the Effective  Date and shall continue for a
period of three years from the Effective  Date,  ending at the close of business
on  July  31,  2007,   provided,   however,   that  the  Employment  Term  shall
automatically extend for successive one-year periods (such extensions also being
referred  to as the  "Employment  Term"),  as long as  neither  party  has given
written  notice to the other  party at least  sixty days prior to the end of the
then  current term that such term shall not be  extended,  and further  provided
that the  Agreement  has not been  earlier  terminated  in  accordance  with the
provisions of Section 8 below. If the Executive's  employment terminates for any
reason,  with or without  Cause,  the  Executive  shall not be  entitled  to any
payments,  benefits,  damages, awards, or compensation other than as provided in
Section 8 below or as otherwise  provided by law or by any  applicable  employee
benefit  plan in which he  participates.  The parties  acknowledge  that certain
obligations under this Agreement survive the end of Executive's employment.

<PAGE>

     3. Position and Duties.

        (a) President  and Chief  Executive  Officer.  The Company shall  employ
the Executive as its  President and Chief  Executive  Officer.  Executive  shall
report  to the  Company's  Board  of  Directors  (the  "Board")  or the  Board's
designee. Under the terms of the Prior Agreement, Executive was appointed to the
Board, and without any additional compensation, Executive will continue to serve
as a member of the Board and as an officer and/or director of any  Subsidiaries.
Executive shall have such  responsibilities  and duties as are commensurate with
the position of chief executive  officer in an entity comparable to the Company,
including, without limitation,  developing and implementing an overall strategic
plan for the  company  and annual  business  plans,  raising  new  capital,  and
supervising day-to-day operations of the Company. The Board shall have the right
to modify Executive's duties and responsibilities from time to time as the Board
may deem necessary or appropriate.

        (b)  Manner  of  Employment.   Executive  shall  faithfully,  diligently
and competently  perform his  responsibilities  and duties.  The Executive shall
devote his  exclusive and full  business  efforts and time to the Company.  This
Section 3(b), however, shall not preclude the Executive, outside normal business
hours,  from engaging in  appropriate  civic or charitable  activities,  or from
serving as a director of any not-for profit entity,  as long as such  activities
do not interfere or conflict with his responsibilities to the Company.  With the
Board's  written  consent,  Executive  may serve as a director  of a  for-profit
entity.

     4. Base  Compensation.  Commencing on the Effective Date, the Company shall
pay the Executive  base  compensation  in the gross amount of $350,000 per year,
subject to reviews and  increases  in the sole  discretion  of the Board  ("Base
Compensation").  Base compensation shall be paid periodically in accordance with
normal Company payroll practices.

     5. Employment  Benefits.  Executive  shall be  entitled  to  the  following
benefits during the Employment Term:

        (a) Expense  Allowance.  Executive  shall  be  reimbursed  for  business
related expenses  reasonably and necessarily  incurred and advanced by Executive
in performing  his duties for the Company,  subject to review by the Chairman of
the Board or his designee  and in  accordance  with Company  policy as it exists
from time to time.

        (b) Car  Allowance.  The Company will provide  Executive a car allowance
or lease for his use a car equal to a 5-Series BMW or other  vehicle  reasonably
acceptable to the parties.

        (c) Other Benefits. Executive may  participate  in  all  other  employee
benefit plans and programs as the Company may,  from time to time,  offer to its
executive  employees,  subject to the same terms and conditions as such benefits
are  generally  provided by the Company.  All such  benefits are subject to plan
documents (where applicable) and the Company's policies and procedures.  Nothing
in this Section 5(c)  guarantees  that any specific  benefit will be provided or
offered by the Company which has the right to add, modify, or terminate benefits
at any time.

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<PAGE>

        (d) Reimbursement for  Post-Retirement  Health Coverage.  In  the  event
that Executive  remains  employed by the Company through his 65th birthday,  and
thereafter his employment with the Company  terminates for any reason other than
Cause (as defined below), the Company shall, at that time,  reimburse  Executive
in an amount not to exceed  $120,000.00  for the  one-time  premium  expended by
Executive for the purchase of post-retirement health insurance for Executive and
his family,  such reimbursement to be made upon receipt by the Company of a copy
of the premium statement therefor.

     6. Bonus.  For fiscal years during the Employment  Term commencing with the
Effective  Date,  Executive shall be eligible to receive a bonus of up to 50% of
his Base  Compensation for such year,  based upon the Company's  performance and
Executive's  performance of objectives  during that time period as determined by
the  Compensation  Committee of the Board,  in its reasonable  discretion.  Such
objectives  will be  established  by the  Compensation  Committee  of the Board,
subject to Board approval, after consultation with Executive, and may relate to,
without  limitation,  financial  performance,  raising new  capital,  successful
resolution  of  certain  outstanding  matters  that  have  been  discussed  with
Executive, development and implementation of a strategic plan, and management of
the Company.

     7. Stock Options and Other Equity  Grants.  It is the intent of the Company
that  Executive  shall  have  the   opportunity  to  acquire,   whether  through
incremental  grants  of  stock  options  or  other  forms of  equity  grants  as
determined by the Compensation Committee of the Board, an "ownership percentage"
equal to or  greater  than  five  percent  (5%) of the  Company's  common  stock
("Common  Stock")  issued  and  outstanding  from  time  to  time.   Executive's
"ownership  percentage"  shall be computed from time to time by dividing (a) the
sum of the shares previously  acquired by Executive pursuant to prior options or
other equity grants plus shares covered by then currently outstanding options or
equity  grants  held by  Executive  by (b) the number of shares of Common  Stock
issued and  outstanding.  Any future options or equity grants to Executive shall
be subject to (i) such action being lawfully  permitted,  (ii) evaluation of the
performance  of  Executive  by the  Compensation  Committee,  and  (iii)  in the
reasonable  determination of the Compensation Committee,  not detrimental to the
Company or its  shareholders  in any  significant  manner.  Any options  granted
hereunder to Executive  shall be granted at the mean average of the high and low
price for such shares on the date of grant, and shall vest  twenty-five  percent
(25%) on each of the first four  anniversaries  of the date of grant and in each
twenty-five  percent (25%) which may vest, the maximum number of such options as
permitted by law shall be Incentive  Stock  Options  ("ISOs") and the  remainder
shall be Non-statutory  Stock Options ("NSOs").  The grant and exercisability of
the options  described  in this  Section 7 shall be pursuant and subject to: (a)
the terms  and  conditions  contained  in any  Company  stock  option  plan then
maintained by the Company,  as such plan may be amended from time to time in the
Company's sole discretion ("Option Plan"); and (b) the terms and conditions of a
definitive Stock Option Agreement (the "Option Agreement") to be entered into as
of the date of grant  between the parties  pursuant to the Option Plan that will
set forth all of the rights, duties and obligations regarding such options.

     8. Termination and Severance Benefits.

        (a) Death.  The  death  of  Executive  shall   automatically   terminate
the Company's obligations under this Agreement;  provided however, that: (i) the
Company  shall pay to  Executive's  estate  Executive's  Base  Compensation  and
accrued  benefits  through the date of  termination;  and (ii) any unvested Plan
Options  granted  under this  Agreement  or the Prior  Agreement  will upon such
termination become fully vested and immediately exercisable.

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<PAGE>

        (b) Disability.  If Executive is unable, in the reasonable determination
of the Board, to render services of  substantially  the kind and nature,  and to
substantially  the  extent,  required to be  rendered  by  Executive  under this
Agreement  due to  illness,  injury,  physical  or  mental  incapacity  or other
disability,  for 120  days,  whether  consecutive  or not,  within  any 12 month
period,  Executive's  employment  may be  terminated by the Company and: (i) the
Company's sole obligation shall be to pay to Executive his Base Compensation and
accrued  benefits  through the date of  termination;  and (ii) any unvested Plan
Options  granted  under this  Agreement  or the Prior  Agreement  will upon such
termination become fully vested and immediately exercisable.

        (c) Resignation.    If  Executive  resigns  his  employment  during  the
Employment Term other than for Good Reason (as defined below), the Company shall
have no liability to Executive except to pay Executive's  Base  Compensation and
any accrued  benefits  through his last day worked,  and Executive  shall not be
entitled to receive  severance or other  benefits.  Notice given by Executive of
non-renewal of this Agreement as provided for in Section 2 shall be treated as a
resignation for purposes of this Section 8.

        (d) Resignation for Good Reason.  If Executive  resigns  his  employment
for Good Reason,  he shall be entitled to receive all accrued but unpaid  salary
and benefits  through the date of  termination  plus the  Severance  Benefit (as
defined below).

        (e) Termination  By Company for Cause.  If  the  Executive's  employment
is terminated for Cause (as defined below),  the Company shall have no liability
to Executive except to pay Executive Base  Compensation and any accrued benefits
through  his last day  worked and  Executive  shall not be  entitled  to receive
severance or other benefits.

        (f) Termination  By  Company  Without  Cause.  If the Company terminates
Executive's employment during the Employment Term without Cause (and for reasons
other than death,  Disability or Change in Control as provided for in subsection
(g) immediately  following),  Executive shall be entitled to receive all accrued
but  unpaid  salary  and  benefits  through  the  date of  termination  plus the
Severance Benefit.  Notice given by the Company of non-renewal of this Agreement
as provided for in Section 2 shall be treated as a  termination  without  Cause,
unless the Notice  specifically  sets forth a basis for Cause,  for  purposes of
this Section 8.

        (g) Termination  Due to  Change  in  Control.  If the Company terminates
Executive's  employment  without  Cause  (and for  reasons  other  than death or
Disability)  in  conjunction  with a  Change  in  Control  (as  defined  below),
Executive  shall be  entitled  to receive  all  accrued  but  unpaid  salary and
benefits  through the date of termination plus the Change in Control Benefit (as
defined below).

        (h) Cause.  The following acts by Executive,  as determined by the Board
in its reasonable discretion, shall constitute "Cause" for termination:

                                     - 4 -
<PAGE>

        (i) theft or embezzlement,  or attempted theft or embezzlement, of money
or material  tangible or  intangible  assets or  property  of the  Company,  its
Subsidiaries or its employees or business relations;

        (ii) a  violation of any law or any act or acts of moral turpitude which
negatively affects the interests,  property, business,  operations or reputation
of the Company or its Subsidiaries;

        (iii) other than as a result  of  a  disability,  a material  failure to
carry out  effectively  Executive's  duties and  obligations to the Company,  or
failure to devote to the  Company's  business the time  required in Section 3(b)
above,  upon not less than ten (10) days' advance written notice of the asserted
problem and a reasonable opportunity to cure;

        (iv)  gross  negligence  or  willful  misconduct in the  performance  of
Executive's duties;

        (v)  Executive's material breach of this Agreement which, after  written
notice by the Company of such breach,  is not cured within ten (10) days of such
notice.

        (i) Resignation for  Good  Reason.   Resignation  by  Executive  of  his
employment  for "Good Reason" shall mean a resignation  by Executive  with sixty
(60) days after any of the  following  events  which occur  without  Executive's
consent:

        (i)  a   material   diminution   in   Executive's  position,  duties  or
responsibilities;

        (ii) a relocation of the Company's headquarters more than 50 miles from
its present location;

        (iii) a reduction in Executive's then Base Compensation; or

        (iv) the Company's material breach of this Agreement.

Prior to a Resignation for Good Reason, Executive shall give the Company written
notice  of the  basis for his claim  that he has Good  Reason to  terminate  his
employment and 10 days to cure.

        (j)  Change in Control.  For purposes of this Agreement,  a  "Change  in
Control" shall mean the occurrence of any of the following events:

        (i) a merger or  consolidation  involving the Company or any  subsidiary
of the Company after the completion of which: (A) in the case of a merger (other
than  a  triangular  merger)  or a  consolidation  involving  the  Company,  the
stockholders of the Company  immediately  prior to the completion of such merger
or consolidation  beneficially own (within the meaning of Rule 13d-3 promulgated
under the Securities  Exchange Act of 1934, as amended (the "Exchange  Act"), or
comparable  successor  rules),   directly  or  indirectly,   outstanding  voting
securities  representing  less than fifty percent  (50%) of the combined  voting
power of the surviving  entity in such merger or  consolidation,  and (B) in the
case of a  triangular  merger  involving  the  Company  or a  subsidiary  of the
Company,  the stockholders of the company immediately prior to the completion of
such merger beneficially own (within the meaning of Rule 13d-3 promulgated under
the  Exchange  Act, or  comparable  successor  rules),  directly or  indirectly,
outstanding voting securities  representing less than fifty percent (50%) of the
combined voting power of the surviving entity in such merger and less than fifty
percent (50%) of the combined voting power of the parent of the surviving entity
in such merger;

                                     - 5 -
<PAGE>

         (ii) an acquisition by any person, entity or "group" (within the
meaning of Section 13(d) or 14(d) of the Exchange Act or any comparable
successor provisions), other than any employee benefit plan, or related trust,
sponsored or maintained by the Company or an affiliate of the Company and other
than in a merger or consolidation of the type referred to in clause "(i)" of
this Section 7(b), of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act, or comparable successor rules) of
outstanding voting securities of the Company representing more than fifty
percent (50%) of the combined voting power of the Company (in a single
transaction or series of related transactions); or

        (iii) in the event that the individuals who, as of the  Effective  Date,
are  members  of the Board  (the  "Incumbent  Board"),  cease for any  reason to
constitute  at  least  fifty  percent  (50%)  of  the  Board.  (However,  if the
subsequent  election,  or  nomination by the Board for election by the Company's
stockholders,  of any new member of the Board is  approved by a vote of at least
fifty percent (50%) of the Incumbent  Board,  such new member of the Board shall
be considered as a member of the Incumbent Board.)

        (k) Severance  Benefit.   The  "Severance  Benefit"  shall   mean:   (i)
continuation of Executive's  Base  Compensation in effect  immediately  prior to
such  termination  or  resignation  for a period  of twelve  months  ("Severance
Benefit Period");  (ii) continuation of Executive's group insurance benefits (to
the extent such can be continued under the terms of the governing plans) for the
Severance  Benefit Period;  and (iii)  continued  vesting of the Options granted
under  this  Agreement  or any  unvested  but  outstanding  options  granted  to
Executive under the Prior  Agreement,  through the end of the Severance  Benefit
Period or the next employment anniversary date, whichever is longer.

        (l) Change in Control Benefit.  The "Change in  Control  Benefit"  shall
mean: (i)  continuation of Executive's Base  compensation in effect  immediately
prior to such termination or resignation for a period equal to the longer of the
Severance  Benefit Period or the remainder of the then current  Employment  Term
("Change in Control Benefit  Period");  (ii)  continuation of Executive's  group
insurance  benefits (to the extent such can be continued  under the terms of the
governing  plans)  for the  Change  in  Control  Benefit  Period;  and (iii) any
unvested but  outstanding  Options granted under this Agreement and any unvested
but  outstanding  options  granted to Executive  under the Prior  Agreement will
become fully vested and immediately exercisable.

        (m)  Resignations.   Upon the end of  Executive's   employment  for  any
reason,  Executive  shall be deemed to have resigned from any positions which he
holds as a director  or officer of the Company  and any of its  Subsidiaries  or
affiliates.

                                      - 6 -
<PAGE>

        (n)  Release.  Payment of the Severance Benefit or the Change in Control
Benefit  will be subject to  Executive  signing an  agreement  reconfirming  his
post-employment  obligations  contained  in this  Agreement  and  releasing  the
Company and all Subsidiaries and related parties from any claims, such agreement
to be prepared by the Company or its designee.

     9. Key Executive Insurance.  The Company, at its discretion,  may apply for
and procure in its own name for its own benefit life and/or disability insurance
on  Executive  in any  amount  specified  by the  Company.  Executive  agrees to
cooperate in any medical or other  examination,  supply  information and execute
such  applications  as may be  reasonably  necessary to obtain and continue such
insurance at the Company's expense.  Executive  represents that he has no reason
to believe his life is not insurable at prevailing rates for men of his age.

     10. Confidential and Proprietary Information.

        (a)  Executive agrees that he will not use or  disclose  to any  person,
entity,  association,  firm or  corporation,  any of the Company's  Confidential
Information,  except with the written authorization of the Board or as necessary
to perform his duties under this Agreement. The term "Confidential  Information"
means information and data not generally known outside of the Company (unless as
a  result  of  Executive's  breach  of any of the  obligations  imposed  by this
Agreement  or the Prior  Agreement  or the duties  imposed by any then  existing
statute, regulation,  ordinance or common law) concerning the Company's business
and  technical  information,  and  includes,  without  limitation,   information
relating to: (i) the  identities  of clients and the  Company's  other  Business
Relations  (as  defined  below) and their  purchasing  habits,  needs,  business
information,  contact  personnel  and other  information;  (ii)  suppliers'  and
vendors' costs, products, contact personnel and other information; and (iii) the
Company's  trade  secrets,  products,  research and  development,  financial and
marketing  information,  personnel and  compensation  information,  and business
plans.  Executive  understands  that this Section 10 applies to  computerized as
well as written information and to other information,  whether or not in written
form. It is expressly understood,  however, that the obligations of this Section
10 shall  only  apply  for as long as and to the  extent  that the  Confidential
Information has not become generally known to or available for use by the public
other than by  Executive's  act(s) or omission(s) in violation of this Agreement
or the Prior Agreement.

        (b) Executive agrees that upon  the  end  of  his  employment  with  the
Company for any reason,  he will not take with him any Confidential  Information
that is in written, computerized, machine readable, model, sample, or other form
of capable of physical delivery, without the prior written consent of the Board.
The Executive also agrees that upon the end of his  employment  with the Company
for any  reason  or at any other  time that the  Company  may  request,  he will
deliver  promptly and return to the Company all such  documents and materials in
his  possession or control,  along with all other  property and documents of the
Company or  relating  to the  Company's  employees,  suppliers,  customers,  and
business.

     11.  Non-Solicitation.  Executive  agrees that he will not through the date
one year  after  the end of his  employment  with the  Company  for any  reason,
directly or  indirectly,  on his own behalf or on behalf of any other  person or
entity,  without the express  written  permission  of the Board:  (a) solicit or
attempt to solicit any employee or representative of the Company to terminate or
modify  his or her  relationship  with the  Company  or to work for or  provides
services to another person or entity; or (b) solicit or attempt to solicit,  any
client, vendor, service provider or other business relation of the Company (each
a "Business Relation"),  about whom he learned or with whom he came into contact
during his  employment  with the Company on behalf of any entity or with respect
to any service or products  which is or may be  competitive  with the Company or
its services or products.

                                     - 7 -
<PAGE>

     12. Non-Competition.

        (a) Executive agrees that during  the  Restrictive  Period  (as  defined
below),  he will not,  without  the  express  written  consent of the Board,  be
associated with or engage in, directly or indirectly,  as employee,  consultant,
proprietor, stockholder, partner, agent, representative,  officer, or otherwise,
the  operation  of any  business  that  directly  competes  with the  Company in
business  activities that are the same or substantially  similar to the business
activities  engaged in by the  Company  within  the  United  States or any other
geographic area in which the Company does business during the Restrictive Period
(the "Restricted Territory").

        (b) The term "Restrictive Period" shall mean the Employment Term plus  a
period of twelve months after the end of the Employment Term;  provided that the
twelve month period following the end of the Employment Term shall not apply if:
(i)  Executive's  employment is terminated by the Company for reasons other than
death,  Disability or cause,  or (ii) Executive  resigns his employment for Good
Reason.

        (c) Passive investment in less  than  two  percent  of  the  outstanding
equity  securities  of an  entity  which is  listed on a  national  or  regional
securities exchange shall not, in itself, constitute a violation of this Section
12.

     13. Intellectual Property Rights.  Executive will, during the period of his
employment, disclose to the Company promptly and fully all Intellectual Property
made or conceived by Executive  (either solely or jointly with others) including
but not limited to  Intellectual  Property  which  relate to the business of the
Company or the  Company's  actual or  anticipated  research or  development,  or
result from work performed by him for the Company. All Intellectual Property and
all records related to Intellectual Property,  whether or not patentable,  shall
be and remain the sole and  exclusive  property  of the  Company.  "Intellectual
Property"  means  all  copyrights,   trademarks,  trade  names,  trade  secrets,
proprietary information,  inventions,  designs, developments, and ideas, and all
know-how related  thereto.  Executive hereby assigns and agrees to assign to the
Company all his rights to Intellectual Property and any patents,  trademarks, or
copyrights which may be issued with respect to Intellectual Property.  Executive
further acknowledges that all work shall be work made for hire. During and after
the Employment Term,  Executive agrees to assist the Company,  without charge to
the  Company  but at its request  and  expense,  to obtain and retain  rights in
Intellectual Property, and will execute all appropriate related documents at the
request of the Company.

     Executive  understands  that  this  Paragraph  13  shall  not  apply to any
Intellectual  Property  for  which no  equipment,  supplies,  facilities,  trade
secrets, or other confidential information of the Company was used and which was
developed  entirely on his own time,  and does not relate to the business of the
Company, its actual or anticipated  research,  and does not result from any work
performed by him for the Company.

                                     - 8 -
<PAGE>

     14. Successors and Assignees. This Agreement may be assigned by the Company
to any  successor  or assignee of a  substantial  portion of the business of the
Company  (whether  by  transfer  of assets or  stock,  merger or other  business
combination).  Executive  may not assign his  rights or  obligations  under this
Agreement.

     15. Binding  Effect.  This  Agreement  shall inure to the benefit of and be
binding  upon  the  parties  and  their  respective  heirs,  successors,   legal
representatives and permitted assigns.

     16.  Notices.  Any notice  required  or  permitted  to be given  under this
Agreement  shall be sufficient  if in writing and either  delivered in person by
reputable   messenger  or  overnight   delivery   service,   by  telecopy  (with
confirmation of receipt) or sent by certified mail,  postage prepaid,  if to the
Company at the Company's principal place of business, c/o Chairman of the Board,
and if to the  Executive,  at his home  address  most  recently  filed  with the
Company,  or to such other  address as either  party  shall have  designated  in
writing to the other party.

     17. Law  Governing.  This  Agreement  shall be governed by and construed in
accordance  with  the laws of the  State  of  Connecticut  for  contracts  to be
performed in that State.

     18.  Severability and  Construction.  If any provision of this Agreement is
declared void or unenforceable or against public policy, such provision shall be
deemed  severable  and  severed  from this  Agreement  and the  balance  of this
Agreement  shall  remain  in full  force  and  effect.  If a court of  competent
jurisdiction  determines  that any restriction in this Agreement is overbroad or
unreasonable  under the  circumstances,  such  restriction  shall be modified or
revised by such court to include the maximum reasonable  restriction  allowed by
law.

     19.  Reasonable  Restrictions/Remedies.  Executive  acknowledges  that  the
provisions  contained in Sections 10 through 13 of this Agreement are reasonable
in scope,  area and  duration and are  necessary  for the company to protect its
legitimate  business  interests,  including  its  confidential  information  and
business relationships. Executive and Company acknowledge and agree that damages
would not adequately  compensate  Company if Executive were to breach any of his
covenants  contained  in Sections 10 through 13 above.  Consequently,  Executive
agrees  that in the  event of any such  breach,  Company  shall be  entitled  to
enforce this Agreement by means of an injunction or other equitable  relief,  in
addition to any other remedies  including without  limitation  monetary damages,
set off  against  any  amounts  due  Executive  by Company  and  termination  of
Executive's employment for Cause.

     20. Waiver. Failure to insist upon strict compliance with any of the terms,
covenants  or  conditions  hereof  shall not be  deemed a waiver  of such  term,
covenant or condition.

     21. Entire Agreement;  Modifications. This Agreement constitutes the entire
agreement of the parties with respect to its subject  matter and  supersedes all
prior  agreements,  oral and  written,  between the parties  with respect to the
subject matter of this Agreement. This Agreement may be modified or amended only
by an instrument in writing signed by both parties.

                                     - 9 -
<PAGE>

     22.  Employment  and Income  Taxes.  All payments  made to Executive by the
Company will be subject to withholding of income and employment  taxes and other
lawful deductions, as applicable.

EXECUTIVE                                       COMPETITIVE TECHNOLOGIES, INC.

      /s/ John B. Nano                          By: /s/ Richard E. Carver
-------------------------------------               ----------------------------
      John B. Nano                                  Richard E. Carver, Chairman

                                     - 10 -Exhibit 10.23
                                                                   -------------

THIS  WARRANT  AND THE SHARES OF COMMON  STOCK  ISSUABLE  UPON  EXERCISE OF THIS
WARRANT HAVE NOT BEEN  REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
AND MAY NOT BE SOLD,  TRANSFERRED  OR  ASSIGNED  UNLESS  THERE  IS AN  EFFECTIVE
REGISTRATION STATEMENT UNDER SUCH ACT COVERING SUCH SECURITIES, THE SALE IS MADE
IN ACCORDANCE  WITH RULE 144 UNDER SUCH ACT, OR THE COMPANY  RECEIVES AN OPINION
OF COUNSEL  FOR THE HOLDER OF SUCH  SECURITIES  REASONABLY  SATISFACTORY  TO THE
COMPANY STATING THAT SUCH SALE, TRANSFER,  ASSIGNMENT OR HYPOTHECATION IS EXEMPT
FROM THE  REGISTRATION  AND PROSPECTUS  DELIVERY  REQUIREMENTS OF SUCH ACT. THIS
WARRANT IS SUBJECT TO CERTAIN  ADDITIONAL  TRANSFER  RESTRICTIONS  PROVIDED  FOR
HEREIN.

                        WARRANT TO PURCHASE COMMON STOCK
                                       of
                         COMPETITIVE TECHNOLOGIES, INC.

1. Number of Shares  Subject to Warrant.  FOR VALUE  RECEIVED,  on and after the
issuance date hereof,  and subject to the terms and conditions herein set forth,
Holder (as defined below) is entitled to purchase from Competitive Technologies,
Inc., a Delaware  corporation (the "Company"),  at any time before 5:00 p.m. New
York time on February 25, 2009 ("Termination  Date"), at a price per share equal
to the Warrant Price (as defined below), the Warrant Stock (as defined below and
subject to  adjustments  as  described  below)  upon  exercise  of this  Warrant
pursuant to Section 6 hereof.

2.  Definitions.  As used in this Warrant,  the  following  terms shall have the
definitions ascribed to them below:

     a)  "Affiliate"  shall mean any person or entity who is an  "affiliate"  as
defined in Rule 12b-2 of the General  Rules and  Regulations  under the Exchange
Act.

     b) "Common  Stock" shall mean fully paid and  non-assessable  shares of the
Company's common stock, par value $0.01 per share.

     c)  "Exchange  Act"  shall mean the  Securities  Exchange  Act of 1934,  as
amended.

     d)  "Holder"  shall  mean  Brooks  Houghton & Company,  Inc.,  or  Holder's
permitted successors and assigns, as applicable.

     e) "Securities" shall mean the Common Stock.

     f) "Securities Act" shall mean the Securities Act of 1933, as amended.

<PAGE>

     g)  "Warrant  Price"  shall be equal to four and three  hundred  forty-five
thousandths dollars ($4.345) per share of Common Stock, subject to adjustment as
described in Section 3 below.

     h) "Warrant Stock" shall mean the Common Stock purchasable upon exercise of
this Warrant.  The total number of shares issuable upon exercise of the Warrant,
subject to  adjustment  as  described in Section 3 below,  shall be  fifty-seven
thousand five hundred thirty-seven (57,537) shares of Common Stock.

3.  Adjustments  and Notices.  The Warrant  Price shall be subject to adjustment
from time to time in accordance with the following provisions:

     a) Subdivision,  Stock Dividends or Combinations. In case the Company shall
at any time subdivide the outstanding  shares of the Common Stock or shall issue
a stock  dividend with respect to the Common Stock,  the Warrant Price in effect
immediately  prior to such subdivision or the issuance of such dividend shall be
proportionately decreased, and in case the Company shall at any time combine the
outstanding  shares of the Common Stock, the Warrant Price in effect immediately
prior to such combination shall be proportionately  increased,  effective at the
close of business on the date of such subdivision,  dividend or combination,  as
the case may be. From and after the time at which such  adjusted  Warrant  Price
becomes effective by reason of such subdivision or stock dividend, the number of
shares of Warrant  Stock  issuable  upon the exercise of this  Warrant  shall be
increased in proportion to such increase in outstanding  shares.  From and after
the time at which such adjusted  Warrant  Price  becomes  effective by reason of
such  combination of outstanding  shares,  the number of shares of Warrant Stock
issuable  upon the exercise of this Warrant  shall be decreased in proportion to
such decrease in outstanding shares.

     b) Reclassification, Exchange, Substitution, In-Kind Distribution. Upon any
reclassification,  exchange,  substitution,  or other  event  (other than events
described in Section  3(a) above) that results in a change of the number  and/or
class of the  securities  issuable  upon  exercise  of this  Warrant or upon the
payment of a dividend in  securities or property  other than Common  Stock,  the
Holder shall be entitled to receive,  upon exercise of this Warrant,  the number
and kind of securities  and property that the Holder would have received for the
Common Stock if this Warrant had been  exercised  immediately  before the record
date for  such  reclassification,  exchange,  substitution,  or  other  event or
immediately  prior to the  record  date for such  dividend.  The  Company or its
successor  shall  promptly issue to Holder a new Warrant for such new securities
or other property.  The new Warrant shall provide for adjustments which shall be
as nearly  equivalent as may be practicable to the  adjustments  provided for in
this Section 3 including,  without limitation,  adjustments to the Warrant Price
and to the number of  securities  or property  issuable  upon  exercise  the new
Warrant. The provisions of this Section 3(b) shall similarly apply to successive
reclassifications,  exchanges,  substitutions,  or other  events and  successive
dividends.

     c) Reorganization,  Merger etc. In case of any (i)  reorganization,  or any
merger or  consolidation  of the Company into or with another  Company where the
Company is not the  surviving  Company,  (ii) sale,  transfer  or lease (but not
including a transfer  or lease by pledge or  mortgage to a bona fide  lender) of
all or  substantially  all of the  assets of the  Company,  or (iii) sale by the
Company's shareholders of 50% or more of the Company's outstanding securities in
one or more related  transactions,  the Company, or such successor or purchasing
Company, as the case may be, shall, upon the closing of any such reorganization,
merger or sale,  duly execute and deliver to the Holder  hereof a new warrant so
that the Holder shall have the right to receive,  at a total  purchase price not
to exceed that  payable  upon the  exercise of the  unexercised  portion of this
Warrant, and in lieu of the shares of the Common Stock theretofore issuable upon
exercise  of this  Warrant,  the kind and  amount  of  shares  of  stock,  other
securities,  money and property receivable upon such  reorganization,  merger or
sale by the  Holder of the  number of shares of Common  Stock  then  purchasable
under this Warrant. Such new warrant shall provide for adjustments that shall be
as nearly  equivalent as may be practicable to the  adjustments  provided for in
this Section 3. The provisions of this subparagraph (c) shall similarly apply to
successive reorganizations, mergers and sales.

<PAGE>

     d) No Impairment. The Company shall not, by amendment of its Certificate of
Incorporation or through a  reorganization,  transfer of assets,  consolidation,
merger, dissolution,  issue or sale of securities or any other voluntary action,
avoid or seek to avoid the  observance or  performance of any of the terms to be
observed or performed under this Warrant by the Company,  but shall at all times
in good faith assist in carrying out of all the provisions of this Section 3 and
in taking all such  action as may be  necessary  or  appropriate  to protect the
Holder's rights under this Section 3 against impairment.

     e) Notice.  Upon any  adjustment  of the Warrant  Price and any increase or
decrease  in the  number of  shares of the  Common  Stock  purchasable  upon the
exercise of this Warrant,  then, and in each such case, the Company, as promptly
as  practicable  thereafter,  shall give written notice thereof to the Holder of
this Warrant at the address of such Holder as shown on the books of the Company,
which  notice  shall state the Warrant  Price as adjusted  and the  increased or
decreased  number of  shares  purchasable  upon the  exercise  of this  Warrant,
setting  forth in  reasonable  detail the  method of  calculation  of each.  The
Company  further  agrees to notify  the  Holder of this  Warrant in writing of a
reorganization,  merger or sale  described  in Section  3(c) hereof at least ten
(10) days prior to the effective date thereof.

     f) Fractional  Shares. No fractional shares shall be issuable upon exercise
of the  Warrant and the number of shares to be issued  shall be rounded  down to
the nearest whole share. If a fractional share interest arises upon any exercise
of the Warrant,  the Company shall eliminate such  fractional  share interest by
paying the Holder an amount computed by multiplying  the fractional  interest by
the fair market value of a full share.

4. No Shareholder  Rights.  This Warrant,  by itself, as distinguished  from any
shares purchased hereunder, shall not entitle its Holder to any of the rights of
a shareholder of the Company.

5. Reservation of Stock; Taxes.

     a) On and after the issuance date hereof, the Company will reserve from its
authorized  and unissued  Common Stock a sufficient  number of shares to provide
for the issuance of Warrant Stock upon the exercise of this Warrant. Issuance of
this Warrant shall  constitute full authority to the Company's  officers who are
charged with the duty of executing  stock  certificates to execute and issue the
necessary certificates for shares of Warrant Stock issuable upon the exercise of
this Warrant.

<PAGE>

     b) The Company  covenants that all Common Stock that may be issued upon the
exercise of rights represented by this Warrant will, upon exercise in accordance
with this  Warrant,  be fully  paid and  nonassessable  and free from all taxes,
liens and  charges in respect of the issue  (other  than taxes in respect of any
transfer occurring contemporaneously with such issue). The Company shall pay any
and all United States federal,  state and local taxes and other charges that may
be payable in  connection  with the  preparation,  issuance  and delivery of the
certificates representing Common Stock issued hereunder.

6. Exercise of Warrant.

     a) This  Warrant may be  exercised  in whole or part by the Holder,  at any
time after the date hereof and prior to the  Termination  Date, by the surrender
of  this  Warrant,   together  with  the  Notice  of  Exercise  and   Investment
Representation  Statement in the forms  attached  hereto as Attachments 1 and 2,
respectively,  duly  completed  and  executed  at the  principal  office  of the
Company,  specifying the portion of the Warrant to be exercised and  accompanied
by payment in full of the Warrant Price in accordance with Section 6(b) hereof.

     b) The Holder may elect to pay the  payment  in full of the  Warrant  Price
with respect to the shares of Warrant  Stock being  purchased  (i) in cash or by
cashier's or bank check,  (ii) by  converting  the Warrant  into  Warrant  Stock
("Cashless  Exercise"),  or (iii) a combination  of the methods  provided for in
sub-clauses  (i) and (ii). If the Holder elects to pay the Warrant Price through
Cashless  Exercise,  upon the exercise  hereof,  the Holder shall specify in the
Notice of Exercise  that the Company is  authorized  to withhold from issuance a
number of shares of Warrant  Stock,  which,  when  multiplied by the fair market
value (as  determined in good faith by the Board of Directors of the Company and
agreed  to by the  Holder)  per  share  of the  Warrant  Stock,  is equal to the
aggregate Warrant Price to be paid for all shares of Warrant Stock for which the
Cashless  Exercise  payment method is being  utilized (and such withheld  shares
shall no longer be issuable under this Warrant).

     c) This Warrant shall be deemed to have been exercised immediately prior to
the close of  business  on the date of its  surrender  for  exercise as provided
above,  and the person  entitled to receive the shares of Warrant Stock issuable
upon such  exercise  shall be  treated  for all  purposes  as the holder of such
shares of record  as of the close of  business  on such  date.  As  promptly  as
practicable  after such date,  the Company shall issue and deliver to the person
or persons  entitled to receive the same a certificate or  certificates  for the
number of full  shares of Warrant  Stock  issuable  upon such  exercise.  If the
Warrant  shall be exercised  for less than the total number of shares of Warrant
Stock then issuable upon exercise,  promptly after surrender of the Warrant upon
such  exercise,  the Company will  execute and deliver a new Warrant,  dated the
date  hereof,  evidencing  the right of the Holder to the balance of the Warrant
Stock purchasable hereunder upon the same terms and conditions set forth herein.

7. Transfer of Warrant.  This Warrant may not be  transferred or assigned by the
Holder hereof in whole or in part, except to an Affiliate of the Holder, without
the prior written consent of the Company.

<PAGE>

8.  Termination.  This Warrant shall terminate on 5:00 p.m. New York time on the
Termination Date.

9. Piggyback Registration Rights.

     a) If the Company  shall  determine to register any Common Stock either for
its own  account  or for  the  account  of any  stockholders  exercising  demand
registration  rights,  other than a  registration  relating  solely to  employee
benefit plans, or a corporate  reorganization  or other  transaction  covered by
Rule 145 (or its successor  rule)  promulgated  by the  Securities  and Exchange
Commission (the "Commission") under the Securities Act, or a registration on any
registration  form that does not permit  secondary sales, or on a form that does
not  include  substantially  the same  information  as would be  required  to be
included in a registration  statement covering the sale of the shares of Warrant
Stock, then the Company will:

        i) at least thirty (30) days  prior  to  filing  any  such  registration
statement under the Securities Act, give to the Holder written notice thereof;

        ii) subject to Sections 9(b) and (d) hereof, use commercially reasonable
efforts to include in such  registration  (and any related  qualification  under
blue sky laws or other compliance;  provided, that in no event shall the Company
be required in connection  therewith or as a condition  thereto to qualify to do
business  or file a general  consent to service of process in any such states or
jurisdictions  unless  the  Company  is  already  subject  to  service  in  such
jurisdictions  and except as may be required by the Securities  Act), and in any
underwriting  involved  therein,  all the shares of Warrant Stock specified in a
written  request or  requests,  made by the Holder and  received  by the Company
within twenty (20) days after the written  notice from the Company  described in
clause (a) above is mailed or delivered by the Company. Such written request may
specify all or a part of the Warrant Stock;

        iii) The registration rights set forth in this  Section  9(a)  hereunder
shall be afforded to the Holder in accordance  with the  priorities set forth in
Section 9(b) hereof; and

        iv) If the Common Stock  is  then  listed  on  any  national  securities
exchange  (as  defined in the  Exchange  Act) or is then  quoted on NASDAQ,  use
commercially  reasonable  efforts  to list all  Warrant  Stock  covered  by such
registration  statement on the national  securities exchange on which the Common
Stock is then  listed,  and if not so  listed,  to be  quoted  on NASDAQ if then
quoted.

     b) Allocation of Registration  Opportunities.  In any circumstance in which
all  of  the  shares  of  Warrant  Stock  and  other  Company   securities  with
registration  rights (such other  Company  securities  being  referred to as the
"Other  Shares")  requested to be included in a registration  on behalf of other
selling persons cannot be so included due to marketing factors or other reasons,
the Company may limit, to the extent so advised by the managing  underwriter(s),
the amount of Company  securities  to be  included  in the  registration  by the
holders  of Company  securities  (including  the  Holder)  as  discussed  in the
following  sentence.  The  Company  shall  so  advise  all  holders  of  Company
securities requesting registration,  and, subject to the preceding sentence, the
number of shares of Company  securities  that are entitled to be included in the
registration  and  underwriting  shall be allocated (A) first to the Company for

<PAGE>

Company  securities being sold for its own account;  (B) thereafter to the Other
Shares of any persons  holding demand  registration  rights  electing to include
such  securities in the  registration  (unless the terms of such person's demand
rights permit such person to be included  before the Company,  in which case the
terms of such demand rights shall  control with respect to the priority  between
such holder and the Company), (C) thereafter to the Other Shares held by persons
holding piggyback registration rights electing to include such securities in the
registration,  on a pro rata fully  diluted  basis;  and (D)  thereafter  to the
Warrant Stock held by persons holding piggyback  registration rights electing to
include such securities in the registration,  on a pro rata fully diluted basis.
If other selling persons do not request inclusion of the maximum number of Other
Shares  allocated  to  them  pursuant  to  the  above-described  procedure,  the
remaining  portion of such person's  allocation  shall be reallocated  among the
other selling  persons whose  allocations  did not satisfy their requests in the
order described in subsections  (A), (B), (C) and (D) above, pro rata under each
such  subsection on the basis of the number of shares of Warrant Stock and Other
Shares,  as  applicable,  held by such  persons,  and  this  procedure  shall be
repeated  until  all of the  shares  of  Warrant  Stock  and  Other  Shares,  as
applicable,  that may be  included  in the  registration  on behalf of the other
selling persons have been so allocated.

     c)  Underwriting.  If the registration of which the Company gives notice is
for a registered public offering involving an underwriting, the Company shall so
advise the Holder as a part of the written notice given pursuant to Section 9(a)
hereof. In such event, the right of the Holder to registration  pursuant to this
Section  9  shall  be  conditioned  upon  the  Holder's  participation  in  such
underwriting   and  the  inclusion  of  the  shares  of  Warrant  Stock  in  the
underwriting to the extent provided in Section 9 of this Warrant.  To the extent
the Holder  proposes to  distribute  the shares of Warrant  Stock  through  such
underwriting  the Holder shall  (together with the Company and the other holders
of  Company   securities  with  registration   rights  to  participate   therein
distributing their Company  securities through such underwriting)  enter into an
underwriting agreement in customary form for offerings of the type proposed with
the representative of the underwriter or underwriters selected by the Company.

     d) Procedures.  Notwithstanding  any other  provision of this Section 9, if
the  managing  underwriter(s)  advises  the  Company in writing  that  marketing
factors  require a limitation  on the number of shares to be  underwritten,  the
managing  underwriter(s)  may limit the number of shares of Warrant  Stock to be
included in the  registration  and  underwriting in accordance with Section 9(b)
hereof. If the Holder does not agree to the terms of any such underwriting,  the
Holder  shall be excluded  therefrom  by written  notice from the Company or the
underwriter. Any shares of Warrant Stock or other Company securities excluded or
withdrawn from such underwriting shall be withdrawn from such registration.

     e)  Indemnification.  In the event any shares of Warrant Stock are included
in a registration statement under this Section 9:

        i) To the extent permitted by law, the Company will  indemnify  and hold
harmless the Holder, the partners, members, managers, or officers, directors and
stockholders of the Holder,  legal counsel and  accountants for the Holder,  any
underwriter  (as defined in the Securities  Act) for the Holder and each person,
if any,  who  controls  the  Holder or  underwriter  within  the  meaning of the
Securities  Act or the  Exchange  Act,  against any losses,  claims,  damages or
liabilities  (joint or  several)  to which  they may  become  subject  under the

<PAGE>

Securities Act, the Exchange Act or any state securities  laws,  insofar as such
losses,  claims,  damages,  or liabilities (or actions in respect thereof) arise
out  of or  are  based  upon  any  of the  following  statements,  omissions  or
violations:  (i) any untrue  statement or alleged untrue statement of a material
fact  contained  in  such  registration  statement,  including  any  preliminary
prospectus  or  final  prospectus   contained   therein  or  any  amendments  or
supplements  thereto,  (ii) the omission or alleged  omission to state therein a
material fact required to be stated therein, or necessary to make the statements
therein not  misleading,  or (iii) any  violation  or alleged  violation  by the
Company of the Securities  Act, the Exchange Act, any state  securities  laws or
any rule or regulation  promulgated under the Act, the Exchange Act or any state
securities  laws  (collectively,  a "Company  Violation");  and the Company will
reimburse the Holder for any legal or other expenses  reasonably  incurred by it
in connection  with  investigating  or defending any such loss,  claim,  damage,
liability or action;  provided,  however, that the indemnity agreement contained
in this Section  9(e)(i)  shall not apply to amounts paid in  settlement  of any
such loss,  claim,  damage,  liability or action if such  settlement is effected
without the  consent of the Company  (which  consent  shall not be  unreasonably
withheld),  nor shall the  Company be liable in any such case for any such loss,
claim,  damage,  liability  or action to the extent  that it arises out of or is
based upon a Company  Violation  that occurs in reliance  upon and in conformity
with written  information  furnished  expressly for use in connection  with such
registration  by the Holder;  provided,  further,  however,  that the  foregoing
indemnity  agreement with respect to any preliminary  prospectus shall not inure
to the  benefit of the Holder if a copy of the  prospectus  (as then  amended or
supplemented  if the Company shall have  furnished any amendments or supplements
thereto) was not sent or given by or on behalf of the Holder to such person,  if
required  by  law  so to  have  been  delivered,  at or  prior  to  the  written
confirmation of the sale of the shares to such person, and if the prospectus (as
so amended or  supplemented)  would  have cured the defect  giving  rise to such
loss, claim, damage or liability.

        ii) To the extent permitted by law, the Holder will  indemnify  and hold
harmless the Company, each of its directors, each of its officers who has signed
the registration statement, each person, if any, who controls the Company within
the  meaning of the  Securities  Act,  legal  counsel  and  accountants  for the
Company, any underwriter, any other selling holder of Company securities in such
registration statement (an "Other Selling Holder") and any controlling person of
any such  underwriter  or Other  Selling  Holder,  against any  losses,  claims,
damages or liabilities  (joint or several) to which any of the foregoing persons
may become  subject,  under the  Securities  Act,  the Exchange Act or any state
securities  laws,  insofar as such losses,  claims,  damages or liabilities  (or
actions in respect  thereto) arise out of or are based upon any of the following
statements,  omissions or violations: (i) any untrue statement or alleged untrue
statement of a material fact contained in such registration statement, including
any  preliminary  prospectus  or  final  prospectus  contained  therein  or  any
amendments  or  supplements  thereto,  (ii) the omission or alleged  omission to
state  therein a material fact  required to be stated  therein,  or necessary to
make the statements  therein not  misleading,  or (iii) any violation or alleged
violation by the Holder or its  Affiliates of the  Securities  Act, the Exchange
Act, any state securities laws or any rule or regulation  promulgated  under the
Securities Act, the Exchange Act or any state securities laws  (collectively,  a
"Holder  Violation");  in each case to the extent (and only to the extent)  that
such Holder  Violation  occurs in reliance upon and in  conformity  with written
information  furnished by the Holder  expressly for use in connection  with such
registration; and the Holder will reimburse the Company, and each such director,
officer,  underwriter  or  controlling  person,  for any legal or other expenses
reasonably  incurred by the Company,  such  director,  officer,  underwriter  or
controlling  person in connection with investigating or defending any such loss,
claim,  damage,  liability  or action;  provided,  however,  that the  indemnity
agreement  contained in this Section 9(e)(ii) shall not apply to amounts paid in
settlement  of any  such  loss,  claim,  damage,  liability  or  action  if such
settlement is effected  without the consent of the Holder  (which  consent shall
not be unreasonably  withheld);  provided,  further,  however,  that in no event
shall any indemnity under this subsection  9(e)(ii) exceed the net proceeds from
the offering  received by the Holder,  unless such liability arises out of or is
based  upon  the  Holder's  willful  misconduct,  in which  case  the  foregoing
limitation of liability shall not apply.

<PAGE>

        iii) Promptly after receipt by an indemnified party under  this  Section
9(e) of notice of the  commencement  of any action  (including any  governmental
action),  such  indemnified  party will, if a claim in respect  thereof is to be
made  against any  indemnifying  party under this Section  9(e),  deliver to the
indemnifying  party  a  written  notice  of the  commencement  thereof  and  the
indemnifying  party shall have the right to  participate  in, and, to the extent
the indemnifying  party so desires,  jointly with any other  indemnifying  party
similarly  noticed,   to  assume  the  defense  thereof  with  counsel  mutually
satisfactory  to the  parties;  provided,  however,  that an  indemnified  party
(together with all other  indemnified  parties that may be  represented  without
conflict by one counsel)  shall have the right to retain one  separate  counsel,
with  the  fees  and  expenses  to  be  paid  by  the  indemnifying   party,  if
representation  of  such  indemnified  party  by  the  counsel  retained  by the
indemnifying  party would be inappropriate due to actual or potential  differing
interests between such indemnified party and any other party represented by such
counsel  in such  proceeding.  The  failure  to  deliver  written  notice to the
indemnifying  party within a  reasonable  time of the  commencement  of any such
action  shall  not  relieve  such  indemnifying  party of any  liability  to the
indemnified  party  under  this  Section  9(e),  except to the  extent  that the
indemnifying  party is  actually  prejudiced  by such  failure  to give  notice.
Furthermore,  the omission to deliver written notice to the  indemnifying  party
will not relieve the indemnifying party of any liability that it may have to any
indemnified party otherwise than under this Section 9(e).

        iv) If the  indemnification provided for in this Section 9(e) is held by
a court of competent jurisdiction to be unavailable to an indemnified party with
respect to any loss,  liability,  claim,  damage or expense  referred to herein,
then the  indemnifying  party, in lieu of indemnifying  such  indemnified  party
hereunder,  shall  contribute to the amount paid or payable by such  indemnified
party as a result of such  loss,  liability,  claim,  damage or  expense in such
proportion as is appropriate  to reflect the relative fault of the  indemnifying
party  on the  one  hand  and of the  indemnified  party(ies)  on the  other  in
connection  with  the  statements  or  omissions  that  resulted  in such  loss,
liability,  claim,  damage or expense,  as well as any other relevant  equitable
considerations  including  the  relative  benefits  received  as a result of the
offering.  The relative fault of the  indemnifying  party and of the indemnified
party shall be  determined  by  reference  to, among other  things,  whether the
untrue or alleged untrue statement of a material fact or the omission to state a
material fact relates to information  supplied by the  indemnifying  party or by
the indemnified  party and the parties'  relative intent,  knowledge,  access to
information,  and  opportunity to correct or prevent such statement or omission.
No person guilty of fraudulent  misrepresentation  within the meaning of Section
11(f) of the  Securities Act shall be entitled to  contribution  from any Person
who was not guilty of such fraudulent misrepresentation.

<PAGE>

        v)  Notwithstanding the foregoing, to the extent that the  provisions on
indemnification and contribution contained in the underwriting agreement entered
into in connection  with the  underwritten  public offering are in conflict with
the foregoing  provisions,  the provisions in the  underwriting  agreement shall
control.

        vi) The obligations of the Company and the  Holder  under  this  Section
9(e) shall survive the  completion of any offering of shares of Warrant Stock in
a registration statement under this Section 9, and otherwise.

10.  Miscellaneous.  This Warrant  shall be governed by the laws of the State of
Delaware, as such laws are applied to contracts to be entered into and performed
entirely  in  Delaware.  The  headings  in  this  Warrant  are for  purposes  of
convenience  and  reference  only,  and shall not be deemed to constitute a part
hereof.  Neither  this  Warrant  nor any term  hereof  may be  changed or waived
orally,  but only by an  instrument  in writing  signed by the  Company  and the
Holder of this Warrant. All notices and other communications from the Company to
the Holder of this Warrant shall be delivered personally, by facsimile or mailed
by first class mail, postage prepaid, to the address furnished to the Company in
writing by the last Holder of this  Warrant who shall have  furnished an address
to the Company in writing,  and if mailed shall be deemed given three days after
deposit in the United States mail.

     ISSUED: February 25, 2004

                                           COMPETITIVE TECHNOLOGIES, INC.

                                           By: /s/ John B. Nano
                                               _________________________________

                                           Name: John B. Nano
                                                 _______________________________

                                           Its: President & CEO
                                                ________________________________

<PAGE>

                                  Attachment 1
                                  ------------

                               NOTICE OF EXERCISE

TO:      COMPETITIVE TECHNOLOGIES, INC.

     o The  undersigned  hereby elects to purchase  _____________  shares of the
Warrant Stock of  Competitive  Technologies,  Inc.  pursuant to the terms of the
attached  Warrant,  and tenders  herewith payment of the purchase price in full,
together with all applicable transfer taxes, if any.

     o DELETE IF NOT APPLICABLE[The  undersigned,  pursuant to the provisions of
the  attached  Warrant,  hereby  irrevocably  elects  to  exercise  the right of
cashless exercise for ___ shares of Warrant Stock and as payment therefor hereby
directs Competitive  Technologies,  Inc., to withhold ________ shares of Warrant
Stock that the undersigned would otherwise be entitled to under the Warrant].

     o Please issue a certificate or  certificates  representing  said shares of
Warrant  Stock  in the  name  of the  undersigned  or in such  other  name as is
specified below:

                    ________________________________________
                                     (Name)

                    ________________________________________
                                    (Address)

___________________________________          ___________________________________
(Date)                                       (Name of Warrant Holder)

                                             By:
                                                 _______________________________

                                             Title:
                                                    ____________________________

<PAGE>

                                  Attachment 2
                                  ------------

                       INVESTMENT REPRESENTATION STATEMENT

                             Shares of Warrant Stock
                     (as defined in the attached Warrant) of
                         COMPETITIVE TECHNOLOGIES, INC.

     In  connection  with  the  purchase  of the  above-listed  securities,  the
undersigned hereby represents to Competitive Technologies,  Inc. (the "Company")
as follows:

1.  The  securities  to be  received  upon  the  exercise  of the  Warrant  (the
"Securities")  will be acquired for  investment  for its own  account,  not as a
nominee or agent,  and not with a view to the sale or  distribution  of any part
thereof,  and the  undersigned  has no present  intention  of selling,  granting
participation in or otherwise distributing the same, but subject,  nevertheless,
to any  requirement  of law that the  disposition  of its property  shall at all
times be within its  control.  By  executing  this  Statement,  the  undersigned
further represents that it does not have any contract, undertaking, agreement or
arrangement with any person to sell,  transfer,  or grant participations to such
person or to any third  person,  with respect to any  Securities  issuable  upon
exercise of the Warrant.

2. The undersigned understands that the Securities issuable upon exercise of the
Warrant at the time of issuance may not be registered  under the  Securities Act
of 1933, as amended (the  "Securities  Act"),  and applicable  state  securities
laws, on the ground that the issuance of such  securities is exempt  pursuant to
Regulation  D under the  Securities  Act and state law  exemptions  relating  to
offers  and  sales  not by means of a public  offering,  and that the  Company's
reliance on such exemptions is predicated on the  undersigned's  representations
set forth herein.

3. The undersigned hereby represents and warrants to the Company that, as of the
date  hereof,  the  undersigned  (i) is an  Accredited  Investor as that term is
defined in Rule 501 of Regulation D promulgated  under the Securities  Act; (ii)
has the  ability to bear the  economic  risks of the  undersigned's  prospective
investment in the  Securities,  including a complete  loss of the  undersigned's
investment in the  Securities;  and (iii) has not been offered the Securities by
any form of advertisement,  article,  notice or other communication published in
any newspaper, magazine, or similar media or broadcast over television or radio,
or any seminar or meeting whose attendees have been invited by any such media.

4. Except for a transfer by the  undersigned to an Affiliate of the  undersigned
which agrees in writing,  in form and substance  satisfactory to the Company, to
be bound  by this  paragraph  4 as if it was the  undersigned,  the  undersigned
agrees that in no event will it make a disposition  of any  Securities  acquired
upon the exercise of the Warrant unless and until (i) it shall have notified the
Company of the proposed  disposition and shall have furnished the Company with a
statement of the circumstances surrounding the proposed disposition, and (ii) it
shall have furnished the Company with an opinion of counsel  satisfactory to the
Company  and  Company's  counsel  to the  effect  that  (A)  appropriate  action
necessary  for  compliance  with the  Securities  Act and any  applicable  state
securities   laws  has  been  taken  or  an  exemption  from  the   registration
requirements  of the  Securities  Act and such  laws is  available,  and (B) the
proposed transfer will not violate any of said laws.

<PAGE>

5. The undersigned acknowledges that an investment in the Company involves risks
and  represents  that  it is  able  to  fend  for  itself  in  the  transactions
contemplated by this  Statement,  has such knowledge and experience in financial
and business  matters as to be capable of evaluating the merits and risks of its
investments,  and has the ability to bear the economic risks (including the risk
of a total loss) of its investment.  The undersigned  represents that it has had
the  opportunity  to ask  questions  of the  Company  concerning  the  Company's
business and assets and to obtain any additional information which it considered
necessary to verify the accuracy of or to amplify the Company's disclosures, and
has had all questions which have been asked by it satisfactorily answered by the
Company.

6.  The  undersigned  acknowledges  that  each  certificate  or  other  document
represents  shares of the Securities  shall bear a legend in  substantially  the
following  form until such time as the  Securities  represented  thereby  are no
longer subject to the provisions hereof:

THE SECURITIES  REPRESENTED BY THIS  CERTIFICATE  HAVE NOT BEEN REGISTERED UNDER
THE  SECURITIES  ACT OF 1933,  AS AMENDED (THE "ACT") AND MAY NOT BE SOLD UNLESS
THERE IS AN  EFFECTIVE  REGISTRATION  STATEMENT  UNDER  SUCH ACT  COVERING  SUCH
SECURITIES,  THE SALE IS MADE IN ACCORDANCE WITH RULE 144 UNDER SUCH ACT, OR THE
COMPANY  RECEIVES  AN  OPINION  OF  COUNSEL  FOR THE  HOLDER OF SUCH  SECURITIES
REASONABLY  SATISFACTORY  TO THE  COMPANY  STATING  THAT  SUCH  SALE,  TRANSFER,
ASSIGNMENT,  OR  HYPOTHECATION  IS EXEMPT FROM THE  REGISTRATION  AND PROSPECTUS
DELIVERY REQUIREMENTS OF SUCH ACT.

7. The undersigned  acknowledges  that the Securities  issuable upon exercise of
the Warrant must be held indefinitely unless  subsequently  registered under the
Securities  Act  or an  exemption  from  such  registration  is  available.  The
undersigned  is  aware  of the  provisions  of Rule 144  promulgated  under  the
Securities  Act which  permit  limited  resale of shares  purchased in a private
placement subject to the satisfaction of certain  conditions,  including,  among
other things,  the existence of a public market for the shares, the availability
of certain current public  information  about the Company,  the resale occurring
not less than one year after a party has  purchased and paid for the security to
be sold,  the sale being  through a "broker's  transaction"  or in  transactions
directly  with a "market  makers" (as provided by Rule 144(f)) and the number of
shares  being  sold  during  any  three-month  period  not  exceeding  specified
limitations.

<PAGE>

     Dated: _______________________

                                             ___________________________________
                                             (Typed or Printed Name)

                                             By: _______________________________
                                                     (Signature)

                                             ___________________________________
                                             (Title)

<PAGE>

                      [COMPETITIVE TECHNOLOGIES LETTERHEAD]

June 17, 2004

Brooks Houghton & Company, Inc.
444 Madison Avenue, 25th Floor
New York, NY  10022
Attn: Gerald H. Houghton
      President

Dear Mr. Houghton:

We understand that at some point in the future Brooks  Houghton & Company,  Inc.
("Brooks  Houghton")  may desire to transfer all or some portion of the right to
purchase  shares of the Common  Stock of  Competitive  Technologies,  Inc.  (the
"Company")  represented by that certain  Warrant issued by the Company to Brooks
Houghton,  dated  February  25, 2004 (the  "Warrant"),  to  employees  of Brooks
Houghton who are  Accredited  Investors  (as defined in Rule 501 of Regulation D
under the  Securities  Act of 1933,  as  amended).  This letter  confirms  that,
pursuant to Section 7 of such Warrant, the Company will consent, and hereby does
consent, to the transfer of all or any portion of the Warrant to such employees.

Sincerely,

/s/ John Nano
_____________
John Nano
President and Chief Executive Officer

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