Document:

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                                                                   EXHIBIT 10.14

                                 PUBLICARD, INC.
                             1999 STOCK OPTION PLAN
                           FOR NON-EMPLOYEE DIRECTORS

        1.     PURPOSE.

               The purpose of the Plan is to promote the interests of the
Company and its shareholders by increasing the proprietary and personal interest
of nonemployee members of the Board in the growth and continued success of
PubliCARD, Inc. (the "Company") by granting them Options to purchase shares of
the Company's stock.

        2.     DEFINITIONS.

               Whenever the following terms are used in this Plan, they shall
have the meaning specified below unless the context clearly indicates to the
contrary.

               "BOARD" shall mean the Board of Directors of the Company.

                "CHANGE IN CONTROL" shall mean the occurrence of any of the
following:

                        (i) any person within the meaning of Sections 13(d) and
14(d) of the Securities Exchange Act of 1934 (other than the Company or any
Subsidiary or any trustee or other fiduciary holding securities under an
employee benefit plan of the Company or any Subsidiary), becoming the beneficial
owner, within the meaning of Rule 13d-3 under the Securities Exchange Act of
1934, directly or indirectly, of securities of the Company representing [thirty
percent (30%)] or more of the combined voting power of the Company's then
outstanding securities;

                      (ii) a majority of the directors elected at any special or
annual meeting of stockholders are not individuals nominated by the Company's
incumbent Board, or individuals who are members of the Company's Board at any
one time shall immediately thereafter cease to constitute a majority of the
Board;

                      (iii) the approval of the Company's stockholders of the
merger or consolidation of the Company with another corporation, the sale of
substantially all of the Company's assets or the liquidation or dissolution of
the Company, unless, in the case of a merger or consolidation, at least
two-thirds (2/3) of the directors in office immediately prior to such merger or
consolidation constitute at least two-thirds (2/3) of the members of the board
of directors of the surviving corporation of such merger and consolidation.
Notwithstanding anything herein to the contrary, unless specifically provided in
advance by the Board, a Change in Control shall not be deemed to have occurred
as a result of any event that occurs on or after the date the Company files a
voluntary petition to reorganize under Chapter 11 of the United States
Bankruptcy Code or to liquidate under chapter 7 of such Code, or following the
filing of an involuntary bankruptcy petition against the Company.

               "CODE" shall mean the Internal Revenue Code of 1986, as amended
from time to time.

                "COMPANY" shall mean PubliCARD, Inc., a Delaware corporation,
and any successor corporation.

               "DISABILITY" shall mean the inability, by reason of bodily injury
or physical or mental disease, or any combination thereof, of the Optionee to
perform his customary duties as a Nonemployee Director for a period of ninety
(90) days (whether or not consecutive) in any period of one hundred and eighty
(180) consecutive days.

               "FAIR MARKET VALUE" per Share as of a particular date shall mean,
unless otherwise determined by the Board:

                      (i) the closing sales price per Share on a national
securities exchange for the business day preceding the exercise date on which
there was a sale of Shares on such exchange;
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                      (ii) if clause (i) does not apply and the Shares are then
quoted on the National Association of Securities Dealers Automated Quotation
system (known as "NASDAQ"), the closing price per Share as reported on such
system for the business day preceding the exercise date on which a sale was
reported;

                      (iii) if clause (i) or (ii) does not apply and the Shares
are then traded on an over-the- counter market, the closing price for the Shares
in such over-the-counter market for the business day preceding the exercise
date; or

                      (iv) if the Shares are not then listed on a national
securities exchange or traded in an over-the-counter market, such value as the
Board in its discretion may determine.

                "NONEMPLOYEE DIRECTOR" shall mean a member of the Board who is
not an employee of the Company.

               "OPTION" shall mean an option to purchase Shares granted pursuant
to the Plan. Options granted under the Plan are not intended to be "incentive
stock options" within the meaning of Section 422 of the Code.

               "OPTION AGREEMENT" shall mean an Option Agreement to be entered
into between the Company and an Optionee, which shall set forth the terms and
conditions of the Options granted to such Optionee.

                "PARTICIPANT" shall mean a Nonemployee Director who is granted
an Option under the Plan.

                "PLAN" shall mean this PubliCARD, Inc. 1999 Stock Option Plan
for Non-employee Directors, as hereinafter amended from time to time.

                "SHARE" shall mean a share of the Company's common stock, .10
par value.

        3.     SHARES SUBJECT TO THE PLAN.

               (a) SHARES SUBJECT TO THE PLAN. Subject to adjustment as set
forth in Section 3(b), the maximum number of Shares that may be issued or
transferred pursuant to Options under this Plan shall be 750,000 which may be
authorized but unissued Shares or Shares held in the Company's treasury, or a
combination thereof. Any Shares subject to an Option that cease to be subject
thereto may again be the subject of Options hereunder.

               (b) CHANGES IN COMPANY'S SHARES. In the event the Board
determines that any stock dividend, extraordinary cash dividend,
recapitalization, reorganization, merger, consolidation, split-up, spin-off,
combination, exchange of shares, warrants or rights offering to purchase Shares,
or other similar corporate event, affects the value of the Shares such that an
adjustment is required in order to preserve the benefits or potential benefits
available under this Plan, the Board shall have the right, in its sole
discretion, and in such manner as it may deem equitable, to: (x) adjust the
number and kind of Shares available for issuance pursuant to the Plan and
subject to outstanding Options, and (y) adjust the grant or exercise price with
respect to any Option or (z) make provision for a cash payment to an Optionee or
a person who has an outstanding Option (in an amount equal to the then
difference between the exercise price and the Fair Market Value of a Share).

        4.     PARTICIPATION.

               Each Nonemployee Director shall be a participant in the Plan.

        5.     TERMS OF OPTIONS AND SHARES.

               (a) Terms. The Options granted hereunder shall have the following
terms and conditions:

                      (i) Exercise Price. The exercise price of any Option shall
be one hundred percent (100%) of the Fair Market Value of a Share as of the date
the Option is granted.

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                      (ii) TERM. Subject to the discretion of the Board, the
term of an Option shall be five
years from the date it is granted.

                      (iii) VESTING. An Option shall become exercisable at the
discretion of the Board, as embodied in the Option Agreement covering such
Option, provided, however, that any Options that are not exercisable prior to a
Change in Control shall become exercisable on the date of such Change in Control
and shall remain exercisable for the remainder of the Term thereof.

                      (iv) NUMBER. Each current Nonemployee Director shall
receive an Option grant of 30,000 Shares as of the Effective Date and an
additional grant of 30,000 Shares each calendar year thereafter so long as he
remains a Nonemployee Director. Any individual who is not an employee of the
Company who is elected to the Board after the Effective Date shall receive an
Option to purchase (a) 30,000 shares as soon as practicable after such election
and (b) an additional 30,000 shares in each calendar year thereafter so long as
he remains a Nonemployee Director. Notwithstanding the foregoing, the Board
shall have the discretion to grant additional Options to any Participant at such
times, in such amounts, and subject to such other terms and conditions, as it
deems appropriate.

               (b) TERMINATION OF SERVICE. All outstanding Options held by an
Optionee shall terminate immediately if such individual ceases to be a member of
the Board for any reason other than death, retirement on or after age 65, or
Disability. If an Optionee ceases to be a member of the Board due to death,
retirement on or after age 65, or Disability, all outstanding Options held by
such Optionee that are exercisable on such date shall remain exercisable for
their Term, and shall thereafter terminate.

               (c) OPTION AGREEMENT. Options shall be granted only pursuant to a
written Option Agreement, which shall be executed by the Optionee and an
authorized officer of the Company and which shall contain such terms and
conditions as the Board shall determine, consistent with the Plan.

               (d) NON-TRANSFERABILITY. No Option granted under the Plan shall
be transferable by the Optionee to whom granted otherwise than by will or the
laws of descent and distribution, and an Option may be exercised during the
lifetime of such Optionee only by the Optionee or his guardian or legal
representative. The terms of such Option shall be binding upon the
beneficiaries, executors, administrators, heirs and successors of the Optionee.
Notwithstanding the foregoing, with the consent of the Board and subject to such
requirements as it shall determine, a Participant may transfer an Option for no
consideration to or for the benefit of his spouse, parents, children (including
step- and adoptive children) and grandchildren, or to a trust for the benefit of
such individuals, or to a partnership or limited liability company for one or
more such individuals.

               (e) METHOD OF EXERCISE. The exercise of an Option shall be made
only by a written notice delivered in person or by first class mail to the
Secretary of the Company at the Company's principal executive office, specifying
the number of Shares to be purchased and accompanied by full payment therefor
and otherwise in accordance with the Option Agreement pursuant to which the
Option was granted. The exercise price for any Shares purchased pursuant to the
exercise of an Option shall be paid in full upon such exercise in cash, by check
or, at the discretion of the Board and upon such terms and conditions as the
Board shall approve, by transferring previously owned Shares to the Company, or
any combination thereof. Any Shares transferred to the Company as payment of the
exercise price shall be valued at their Fair Market Value on the day preceding
the date of exercise of such Option. If requested by the Board, the Optionee
shall deliver the Option Agreement evidencing the Option to the Secretary of the
Company who shall endorse thereon a notation of such exercise and return such
Option Agreement to the Optionee. Not less than one hundred (100) Shares may be
purchased at any time upon the exercise of an Option unless the number of Shares
so purchased constitutes the total number of Shares then purchasable under the
Option or the Board determines otherwise in its sole discretion.

               (f) RIGHTS AS STOCKHOLDER. No Optionee shall be deemed for any
purpose to be or to have the rights and privileges of the owner of any Shares
subject to any Option unless and until (a) the Option shall have been exercised
pursuant to the terms thereof, and (b) the Company shall have issued the Shares
to the Optionee.

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        6.     ADMINISTRATION.

               The Plan shall be administered by the Board. Subject to the
provisions of the Plan, the Board shall be authorized to interpret and construe
the Plan and the Option Agreements, to establish, amend, and rescind any rules
and regulations relating to the Plan, and to make all other determinations
necessary or advisable for the administration of the Plan and to carry out its
purpose. The determinations of the Board in the administration of the Plan, as
described herein, shall be final and conclusive. The Secretary shall be
authorized to implement the Plan in accordance with its terms and to take such
actions of a ministerial nature as shall be necessary to effectuate the intent
and purposes thereof.

        7.     OTHER PROVISIONS.

               (a) EFFECTIVE DATE. The Plan shall become effective as of August
4, 1999, (the "Effective Date"), subject, however, to approval by the
shareholders of the Company within twelve (12) months next following the
Effective Date, and, if such approval is not obtained, any Option grants made
hereunder shall terminate and be of no further force or effect.

               (b) AMENDMENT, SUSPENSION OR TERMINATION OF THE PLAN. The Plan
may be wholly or partially amended or otherwise modified, suspended or
terminated at any time or from time to time by the Board; provided, however,
that, except as provided in Section 3(b), no amendment, suspension nor
termination shall, without the consent of the Optionee, alter or impair any
rights or obligations under any Option theretofore granted, and provided,
further, that unless first duly approved by the stockholders of the Company
entitled to vote thereon at a meeting (which may be the annual meeting) duly
called and held for such purpose or by a consent of stockholders, no amendment
or change shall be made in the Plan that: (a) increases the total number of
shares which may be issued or transferred under the Plan or; (b) changes the
exercise price for an Option. No Options may be granted during any period of
suspension nor after termination of the Plan, and in no event may any awards be
granted under the Plan after August 3, 2009, on which date the Plan shall
terminate unless earlier terminated by action of the Board.

               (c) GOVERNING LAW. The Plan and the rights of all persons
claiming hereunder shall be construed and determined in accordance with the laws
of the State of New York without giving effect to the choice of law principles
thereof.

               (d) REGULATIONS AND OTHER APPROVALS. (i) The obligation of the
Company to sell or deliver Shares with respect to Options granted under the Plan
shall be subject to all applicable laws, rules and regulations, including all
applicable federal and state securities laws, and the obtaining of all such
approvals by governmental agencies as may be deemed necessary or appropriate by
the Board.

                      (ii) The Board may make such changes as may be necessary
or appropriate to comply with the rules and regulations of any government
authority.

                      (iii) Each Option is subject to the requirement that, if
at any time the Board determines, in its sole discretion, that the listing,
registration or qualification of Shares issuable pursuant to the Plan is
required by any securities exchange or under any state or federal law, or the
consent or approval of any governmental regulatory body is necessary or
desirable as a condition of, or in connection with, the grant of an Option or
the issuance of Shares, no Options shall be granted or payment made or Shares
issued, in whole or in part, unless listing, registration, qualification,
consent or approval has been effected or obtained free of any conditions as
acceptable to the Board.

                      (iv) In the event that the disposition of Shares acquired
pursuant to the Plan is not covered by a then current registration statement
under the Securities Act, and is not otherwise exempt from such registration,
such Shares shall be restricted against transfer to the extent required by the
Securities Act or regulations thereunder, and the Board may require any
individual receiving Shares pursuant to the Plan, as a condition precedent to
receipt of such Shares, to represent to the Company in writing that the Shares
acquired by such individual are acquired for investment only and not with a view
to distribution. the certificate for such shall include any legend that the
Board deems appropriate to reflect any restrictions on transfer.

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               (e) WITHHOLDING OF TAXES. No later than the date as of which an
amount first becomes includible in the gross income of an Optionee for federal
income tax purposes with respect to Options granted under this Agreement, the
Optionee shall pay to the Company, or the Optionee (or his designated
beneficiary) shall make arrangements satisfactory to the Company regarding the
payment of, any federal, estate, or local taxes of any kind required by law to
be withheld with respect to such amount. The obligations of the Company under
this Agreement shall be conditioned on such payment or arrangements, and the
Company shall, to the extent permitted by law, have the right to deduct any such
taxes from any payment of any kind otherwise due to the employee.

               (f) TITLES; CONSTRUCTION. Titles are provided herein for
convenience only and are not to serve as a basis for interpretation or
construction of the Plan. The masculine pronoun shall include the feminine and
neuter and the singular shall include the plural, when the context so indicates.

                                        5<PAGE>   1
                   MASTER DISTRIBUTION AND OFF-TAKE-AGREEMENT

                                 ("Agreement")

                                    between

                       Integrated Surgical Systems, Inc.
                            1850 Research Park Drive
                                Davis, CA 95616
                                      USA

                                    ("ISS")

                                      and

                          SPARK 1 VISION GmbH & Co. KG
                          Grosse Bockenheimer Strasse 50
                                60313 Frankfurt
                                    Germany

                             ("Marketing Company")

         - both hereinafter individually and jointly referred to as "Party"
         or "Parties" -

with regard to the marketing, sales and off-take of ISS technology and products
in Europe, the Middle East and Africa.

WHEREAS, ISS is a prestigious medical robotics company and the world leader in
image-directed, semi-autonomous software and robotic products for surgical
applications, and

WHEREAS, ISS wishes to substantially increase the market share of its technology
and products in Europe, the Middle East and Africa, and

WHEREAS, the Marketing Company is in a position to use its marketing and
business resources with the intention to increase the sale of ISS products in
such regions under the terms and conditions set forth in this Agreement, and

WHEREAS, the Marketing Company wishes to be granted an exclusive right to
distribute ISS products in the above regions,

NOW THEREFORE, the Parties agree as follows:

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ARTICLE 1 - DEFINITIONS

12.1   "ISS" shall mean ISS and any of its Affiliates, unless expressly set
       forth otherwise.

12.2   "ISS Products" shall mean any current or future products, materials,
       appliances, devices, supplies or services of ISS and its Affiliates and
       the underlying technology relating thereto, including but not limited to
       the Robodoc(R), the Orthodoc(R) and the NeuroMate(TM) systems, any parts
       thereof, or any improvements to or adaptions thereof. For the avoidance
       of doubt, even products as defined above in new areas of business of ISS,
       such as but not limited to custom-made prosthesis, shall be part of this
       Agreement.

12.1   "Territory" shall include all European countries (including the C.I.S.),
       the Middle East (Lebanon, Syria, Jordan, New-Palestine, Iraq, Dubal, Abu
       Dhabi, Oman, Bahrain, Qatar, Kuwait, Iran, Saudi Arabia and Yemen) and
       Africa.

12.2   "ISS Affiliates" shall include IMMI S.A., Lyon, France; ISS B.V.,
       Amsterdam, The Netherlands; IMMI Inc., Davis, CA, U.S.A. as well as any
       other companies ISS directly or indirectly has a controlling interest or
       majority of the voting rights in.

12.3   "Customers" shall mean any customers with regard to ISS Products or ISS
       Sub-Licenses within the Territory.

12.4   "ISS Sub-Licenses" shall mean any licenses granted to third parties by
       the Marketing Company after prior written approval of ISS with regard to
       ISS Products.

ARTICLE 2 - SCOPE OF AGREEMENT AND GRANT OF RIGHTS, NON-COMPETE

12.1   ISS herewith appoints the Marketing Company as the exclusive distributor
       with regard to ISS Products and ISS Sub-Licenses within the Territory on
       the terms and conditions set forth herein. The Marketing Company accepts
       such appointment.

12.2   For the term of this Agreement, ISS shall not appoint any other
       distributors, agents or marketing companies in the Territory. ISS shall
       neither directly nor indirectly solicit any sales to Customers. The
       Marketing Company shall neither directly nor indirectly sell any ISS
       Products or ISS Sub-Licenses to Customers outside the Territory. The
       Parties shall inform each other of all business opportunities in the
       respective other marketing territories, however, no commission shall be
       payable to the respective other Party.

12.3   The Marketing Company shall import and distribute the ISS Products by
       purchasing them from ISS under the terms and conditions of this Agreement
       and selling them to Customers in the Territory. The full commercial risk
       with regard to the possibility and profitability of the sale of any ISS
       Products or ISS Sub-Licenses to Customers shall be vested in the
       Marketing Company as set forth herein.

12.4   During the term of this Agreement, the Marketing Company shall not
       distribute, market or sell any products, equipment, devices, supplies or
       services that may compete with ISS Products or ISS Sub-Licenses.

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12.5   For the purposes and during the term of this Agreement, ISS hereby grants
       to the Marketing Company the exclusive, irrevocable and royalty-free
       license to use the ISS firm name, as well as any trademarks, trade names,
       logotypes with regard to ISS Products or ISS Sub-Licenses within the
       Territory. The firm name, the trademarks, the trade names and the
       logotypes shall remain the sole property of ISS and shall not be used by
       the Marketing Company other than with regard to the ISS Products and ISS
       Sub-Licenses. The Marketing Company shall promptly notify ISS of any
       counterfeits, imitations thereof used by third parties as well as any
       unfair competition activities of competitors with regard thereto.

ARTICLE 3 - MARKETING EFFORTS IN EUROPE AND OPTION TO RE-ASSUME MARKETING
RESPONSIBILITIES IN FAVOR OF ISS

12.1   As of January 1, 2000, ISS shall make available all qualified sales and
       marketing personnel in Europe (i.e. the respective employees of ISS
       B.V., The Netherlands, and IMMI S.A., France) to the Marketing Company
       by assigning them on a contractual basis to the Marketing Company for
       the term of this Agreement, as far as permitted under applicable law.
       The Marketing Company shall be responsible for obtaining official
       approvals, if any, and shall bear all associated cost in connection
       therewith. Upon request of the Marketing Company, the Parties shall use
       best efforts to transfer the employment contracts of any such employees
       to the Marketing Company. The Marketing Company may reject individual
       employees it deems to be not qualified and such employees shall remain
       with ISS B.V. or IMMI S.A., respectively. Where qualified employees do
       not wish to enter into an employment agreement with the Marketing
       Company, the consideration payable to ISS for their services shall be
       calculated on an at-cost-basis based on current salaries including any
       social security payments and fringe benefits as well as reimbursement of
       cost and expenses incurred in connection with such services, to be
       agreed upon in more detail between the Parties.

12.2   Upon request of the Marketing Company, ISS and its Affiliates shall
       render additional services (e.g. accounting, assistance with customs and
       import formalities etc.) for a transitional period from January 1, 2000
       until at least March 31, 2000 so as to enable the Marketing Company to
       smoothly commence its activities hereunder and to best comply with any
       Customers' requirements. Upon request of the Marketing Company, ISS and
       its Affiliates shall also agree if and to what extent any assets of any
       ISS Affiliates necessary for the Marketing Company to perform its
       obligations hereunder shall be made available to the Marketing Company.

12.3   ISS shall at its own cost provide a sufficient number of qualified
       technical and Customer support staff (training, after-sales-services
       etc.) as well as supply any spare parts or consumables so as to always
       ensure compliance with any Customers' needs or requests in the Territory.
       Any service or maintenance agreements with any Customers shall be
       entered into between ISS and any Customers directly.  Where a Customer
       requests the Marketing Company to enter into such agreements, the
       agreement shall be transferred to or internally be performed by ISS.
       With regard to any of the a.m. services, the Marketing Company shall be
       entitled to a 10% commission, based on the net value of the respective
       services. Any material non-compliance with this Article 3.3 by ISS shall
       entitle the Marketing Company to terminate this Agreement for cause as
       per Article 3.6 below.

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       The Marketing Company shall have no obligation to render any technical
       services to any Customers.

12.4   Any additional cost incurred by ISS or ISS Affiliates apart from the
       above shall be borne by ISS or the respective ISS Affiliates.

12.5   In due course, prior to December 31, 2001 the Parties shall discuss if
       and how to modify the terms of this Agreement for the time period
       commencing on January 1, 2002. In case the Marketing Company foresees an
       annual increase of at least 10% with regard to ISS Products or ISS
       Sub-Licenses the Marketing Company shall continue its services under a
       similar agreement. If the Parties do not agree, this Agreement shall
       automatically terminate as of December 31, 2001. In such case all
       marketing activities, employees and assets shall be re-transferred to ISS
       or the respective ISS Affiliates. Any cost arising out of in connection
       with such re-transfer shall be borne by ISS.

12.6   Upon effectiveness of the termination under Article 3.3 or 3.5 above or
       4.3 below, all rights and licenses granted under this Agreement by one
       Party to the other Party shall automatically terminate and all marketing
       activities within the Territory with regard to ISS Products or ISS
       Sub-Licenses shall be performed by ISS or any ISS Affiliates. Any related
       cost arising after effectiveness of such termination shall be borne by
       ISS.

12.7   Upon effectiveness of the termination, the profit or loss with regard to
       any contracts with Customers entered into by the Marketing Company with
       regard to ISS Products or ISS Sub-Licenses that have not been fully
       performed shall be realized by the Marketing Company. Upon effectiveness
       of the termination, any warranty or guaranty obligations assumed by the
       Marketing Company with regard to any ISS Products or ISS Sub-Licenses
       shall be assumed by ISS and ISS shall fully indemnify and hold the
       Marketing Company harmless from any and all loss, claims, damage or cost
       out of or in connection with its activities under this Agreement.

ARTICLE 4 - OBLIGATIONS OF THE PARTIES

12.1   Both Parties shall cooperate with each other at all times in good faith
       and shall keep each other fully informed with regard to marketing
       strategies and any other developments that might be relevant for their
       successful cooperation.

12.2   ISS shall fulfil all orders with regard to ISS Products within reasonable
       delivery times in a way so as to enable the Marketing Company to fully
       comply with its obligations towards the Customers, whether in time,
       quality, quantity and otherwise.

12.3   ISS shall render any and all training or other technical support services
       on terms to be agreed upon between ISS and the respective Customers. ISS
       shall closely cooperate with any Customers so as to further its
       reputation as a leading manufacturer and developer of complex and
       sophisticated medical systems. ISS shall constantly and at its own cost
       update or upgrade the ISS Products and Licenses so as not to jeopardize
       such reputation of ISS with any Customers or the market in general. Both
       Parties acknowledge that any material non-compliance with

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<PAGE>   5
       this obligation by ISS may severely and adversely affect the sales
       targets of the Marketing Company as set forth in Article 5.2. In such
       case Article 3.6 shall apply.

12.4   ISS shall provide the Marketing Company with all reasonable documentation
       (leaflets, brochures, manuals etc.) with regard to ISS Products which
       shall be returned to ISS promptly after expiry of this Agreement.

12.5   The Marketing Company shall promote and distribute any ISS Products in
       the Territory to its best ability and shall maintain satisfactory
       organizational infrastructure to professionally conduct its marketing and
       sales efforts. Any marketing strategy and marketing or promotional events
       or campaigns and the attendance of any congresses shall be discussed with
       the CEO of ISS and agreed in good faith beforehand. In general, all cost
       for marketing within the Territory shall be borne by the Marketing
       Company, subject however, to different arrangements on a case-by-case
       basis.

ARTICLE 5 - REMUNERATION AND OFF-TAKE OBLIGATION

12.1   In consideration of the rights and licenses granted to the Marketing
       Company under Article 2 above with respect to the ISS Products and ISS
       Sub-Licenses, the Marketing Company shall pay to ISS a fixed monthly
       license fee at an amount of EUR 192,300.00 from January 1, 2000 until
       June 30, 2000, at an amount of EUR 288,450.00 from July 2000 until
       December 2000, and at an amount of EUR 384,600.00 from January 1 until
       December 31, 2001 on an account to be designated by ISS. The license fee
       shall be the minimum remuneration payable irrespective of the meeting of
       any marketing targets by the Marketing Company with regard to ISS
       Products. There shall be no license fee beyond December 31, 2001
       irrespective of whether or not the Marketing Company acts as exclusive
       distributor for ISS Products under this Agreement beyond such date or
       not.

12.2   Furthermore, the Marketing Company is contractually obligated to buy from
       ISS the following minimum number of Robodoc/NeuroMate systems (the
       current minimum sales targets based on reasonable assumptions of ISS and
       the Marketing Company) at competitive sales prices, to be reviewed and
       agreed upon between the Parties regularly in accordance with standard
       business practices and as in more detail set forth below:

              2000:  24 Robodoc-Systems                 4 NeuroMate-Systems
              2001:  32 Robodoc-Systems                 6 NeuroMate-Systems

       In case ISS and the Marketing Company cannot find an agreement with
       regard to competitive pricing or an adjustment of the prices, the matter
       shall be referred to the Board of Directors of ISS for evaluation and
       shall be decided by simple majority of the votes.

       In reward of the Marketing Company's efforts under this Agreement, the
       payments for the supply of the above systems may be applied and set off
       against any license fees payable or previously paid under Article 5.1
       above to ISS, and the Marketing Company shall be released from any
       off-take or payment obligations under the

                                                                               5

<PAGE>   6

       supply contracts for ISS Products accordingly. There shall not be any
       off-take commitments for ISS Products beyond December 31, 2001.

       In case regulatory changes or the market conditions in general within the
       Territory (including but not limited to the introduction of competitive
       products by any competitors) have an adverse effect on the sales targets
       of the Marketing Company as above, the Parties agree to re-negotiate the
       above sales targets for 2000 and 2001 and to adapt them to such
       developments.

12.3   Should the sales of the Marketing Company exceed the off-take obligations
       set forth above, ISS will supply any additional systems promptly within
       reasonable delivery times so as to allow the Marketing Company to fully
       comply with its obligations in time, quality and quantity towards any
       Customers.

12.4   The Parties shall agree on a schedule for the projected supply of ISS
       Products so as to both satisfy Customer's needs and to constantly make
       best use of the assembly capacities and facilities of ISS.

12.5   The Marketing Company shall be entitled to a commission of 10% of the net
       sales on any consumables or spare parts by ISS with Customers in the
       Territory.

ARTICLE 6 - ORDERING AND DELIVERY PROCEDURES, GOVERNMENTAL APPROVALS

12.1   Sales to the Marketing Company shall be made CIF destination within the
       Territory, to be designated by the Marketing Company.

12.2   The ISS Products shall be invoiced for each delivery of ISS Product in
       accordance to the current ISS price list as per Attachment 2 to this
       Agreement which may be amended from time to time. Unless agreed upon
       otherwise, all payments shall be made in DEM/EUR.

12.3   The Marketing Company shall assist with and carry out at the cost of ISS
       any customs formalities required to import the ISS Products into the
       Territory.

12.4   The Marketing Company shall assist ISS in complying with all licensing
       and regulatory requirements in the Territory. All decisions which
       permits, licenses or clinical testing with regard thereto shall be
       initiated, conducted or undertaken, shall be taken by ISS. ISS shall
       maintain all licenses, approvals and permits necessary for the Marketing
       Company to comply with its obligations under this Agreement during the
       term of this Agreement at the cost of ISS. Any non-compliance of ISS in
       any material respect shall entitle the Marketing Company to terminate
       this Agreement as per Article 11.2 below.

ARTICLE 7 - INTELLECTUAL PROPERTY RIGHTS, PATENT AND COPY RIGHT INFRINGEMENT

12.1   Any intellectual property rights with regard to any inventions or
       technical or design improvements relating to ISS Products, made by the
       Marketing Company shall be the sole property of ISS, as far as permitted
       under mandatory law. The Marketing Company shall inform ISS immediately
       on any such improvements or inventions.

                                                                               6

<PAGE>   7
12.1   Should the Marketing Company become aware of any patent, copyright or
       other intellectual property right infringement or potential infringement
       with regard to any ISS Products it shall accordingly advise ISS thereof.
       The Parties shall mutually agree on the strategy to be taken, ISS
       undertakes to prosecute any infringement in its own name and at its own
       cost.

12.2   In case any claims, suits or actions are brought against the Marketing
       Company with regard to any intellectual property rights relating to the
       ISS Products or ISS Sub-Licenses, the Marketing Company shall provide all
       reasonable assistance to ISS in the defense. ISS shall indemnify and
       hold the Marketing Company harmless against any and all damage, loss or
       cost incurred by the Marketing Company in connection therewith.

ARTICLE 8 - WARRANTIES AND GENERAL TERMS AND CONDITIONS

12.1   ISS shall use general terms and conditions that include warranties
       ("Gewahrieistungen und Garantien") to the Marketing Company with regard
       to any ISS Products as in more detail set forth in Attachment 1 to this
       Agreement.

12.2   The Marketing Company shall use best efforts to make any Customers agree
       to such terms and conditions including the warranties in the contracts
       with such Customers and to pass them on a back-to-back basis. In case
       specific Customers refuse to accept to enter into contracts on such items
       ISS and the Marketing Company shall in good faith discuss and - if
       necessary - adapt the conditions of their contract so as to match the
       terms finally agreed between the Marketing Company and the Customer. The
       Parties agree that ISS shall indemnify and save the Marketing Company
       harmless from any loss, cost or damage out of or in connection with any
       guaranty obligations or claims from any Customers of third parties.

12.3   In case ISS fails to supply any ISS Products within the delivery schedule
       to be included in each supply contract between ISS and the Marketing
       Company, the Marketing Company shall be entitled to claim liquidated
       damages for each completed two weeks of delay of 2% of the purchase price
       for the delayed ISS Product up to a maximum of 20% of such purchase
       price. The Marketing Company shall be entitled to claim any proven
       damages exceeding such amount. If ISS proves to the reasonable
       satisfaction of the Marketing Company that the actual damages incurred by
       the Marketing Company are lower than the liquidated damages, ISS shall
       only be liable for the lower amount.

ARTICLE 9 - LIMITATION OF LIABILITY

12.1   The Parties shall in no case be liable towards each other for any
       indirect or consequential damage or loss, such as but not limited to loss
       of business opportunity, loss of profit or increased cost of financing.

12.2   The aggregate liability of the Parties towards each other out of or in
       connection with this Agreement shall be limited to 1 million USD,
       however, this shall not apply to the payment obligations of the Marketing
       Company for supplies under Article 5.2.

                                                                               7
<PAGE>   8

ARTICLE 10 - CONFIDENTIALITY

12.1   The Parties shall keep  the contents of this Agreement as well as
       any technical or commercial information exchanged or received hereunder
       confidential and shall not disclose it to any third parties for the term
       of this Agreement and for a period of 2 years thereafter.

12.2   The confidentiality obligation shall not apply insofar as the
       disclosure of any information is required to comply with filing or
       notification requirements under applicable capital markets regulations.

ARTICLE 11 - TERM AND TERMINATION

12.1   This Agreement shall come into force upon January 1, 2000, provided
       however that The Marketing Company has received a legal opinion from
       ISS's attorneys that all Conditions to Closing as set forth in Section 5
       of the Stock and Warrant Purchase Agreement between ISS and the
       Purchasers dated.... have been fulfilled by such time. If the Closing has
       not been reached by December 31, 1999 this Agreement shall become null
       and void and the Parties shall have no claims, rights or remedies against
       each other in connection therewith.

12.2   The Agreement shall have a fixed term until December 31, 2001. During
       such term it may only be terminated by either Party for cause ("aus
       wichtigem Grund"), e.g. in case one Party files for insolvency or is
       subject to any voluntary or judicial reorganization or protection from
       creditors proceedings (Chapter 11 in the U.S.) or is in danger thereof or
       in case the Marketing Company is in material breach of its payment
       obligations hereunder, in which cases each Party shall be entitled to
       terminate the Agreement with immediate effect.

12.3   In case of termination of this Agreement as above the Parties shall be
       released from their obligations hereunder, unless expressly set forth
       otherwise herein.  They shall not be precluded from bringing any claims
       or actions against the Party in default. Irrespective thereof, any
       outstanding warranty or guaranty obligations with regard to ISS Products
       or ISS Sub-Licenses shall be assumed by ISS upon effectiveness of such
       termination. Furthermore, the Parties shall cooperate in good faith to
       ascertain that the Marketing Company shall be in a position to comply
       with all obligations towards Customers.

ARTICLE 12 - GENERAL PROVISIONS

12.1   This Agreement shall be governed by the laws of Germany without regard to
       its conflict of laws provisions. Exclusive place of jurisdiction shall be
       Frankfurt am Main, Germany.

12.2   This Agreement constitutes the entire understanding and agreement of the
       Parties with regard to the subject matter hereof and supersedes all prior
       agreements, negotiations, correspondence and understandings between the
       Parties.

12.3   Any changes to or amendments to this Agreement shall require written
       form. This Agreement may not be assigned by either Party without the
       prior written consent of the other Party.

                                                                               8
<PAGE>   9
12.4   In case any provision of this Agreement is either invalid or
       not enforceable the validity of the remaining provisions of this
       Agreement shall not be affected thereby. The Parties undertake to
       replace the invalid or unenforceable provision by a provision coming as
       close as possible to the intended commercial purpose of the replaced
       provision.

Attachments:
------------

Attachment 1 - Standard Warranty Terms
Attachment 2 - Current Prices for Systems

Davis, this 12 day of November, 1999
           ---

             [SIG]
-----------------------------------
              ISS

Frankfurt, this 12 day of November, 1999
               ---

               [SIG]
----------------------------------
         Marketing Company

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