Document:

[CONFIDENTIAL TREATMENT REQUESTED. CERTAIN
PORTIONS OF THIS AGREEMENT HAE BEEN REDACTED AND
SEPARATELY FILED WITH THE COMMISSION.]

                          LICENSE AND ROYALTY AGREEMENT

                                     BETWEEN

                           MANHATTAN SCIENTIFICS, INC.

                                       AND

                            NOVINT TECHNOLOGIES, INC.

                            DATED AS OF MAY 16, 2001

<PAGE>

                          LICENSE AND ROYALTY AGREEMENT

      THIS LICENSE AGREEMENT, made as of this 9th day of May, 2001 by and
between MANHATTAN SCIENTIFICS, INC., a public Delaware corporation having
offices located at 641 Fifth Avenue, New York, New York, USA ("MHTX") and NOVINT
TECHNOLOGIES, INC., a private New Mexico corporation having offices located in
Albuquerque, New Mexico ("NOVINT").

                              W I T N E S S E T H:

      WHEREAS, MHTX is engaged in, among other things, research, development and
marketing of certain proprietary technologies, and products incorporating such
technologies; and

      WHEREAS, Novint is engaged in the research and development of certain
proprietary technologies and products in the area of Haptics (collectively the
"Novint Technologies"); and

      WHEREAS, as used in this agreement, "Haptics" refers to a developing
science of computer software and hardware technology that enables human users to
experience sensations having to do with the sense of touch in the form of (1)
force feedback (forces that are displayed to a user), (2) tactile feedback
(force sensations that are displayed to a user's skin), and (3) kinesthesia (the
sense of spatial location and internal physical sensation); and

      WHEREAS, MHTX desires to acquire an exclusive worldwide license to the
existing and developing Novint Technologies in the Licensed Field of Use,
subject to this License Agreement; and

      WHEREAS, Novint and MHTX signed and delivered (i) a Research and
Development and License Agreement dated as of June 24, 2000 (the "R&D
Agreement"), a photocopy of which is attached to this Agreement as Exhibit B,
and (ii) a Sublicense Agreement dated as of June 23, 2000 (collectively, the
"Prior Agreements") relating, in part, to (i) the performance of services by
Novint in the research and development of Novint Technologies and (ii) the grant
of certain license and sublicense rights to MHTX by Novint in the Novint
Technologies in prescribed fields of use; and,

      WHEREAS, pursuant to an Agreement dated as of May 16, 2001, between MHTX,
John Ranta, Walter A. Aviles, and Teneo Computing, Inc. a Delaware corporation
("Teneo"), a copy of which Agreement is hereby incorporated herein by reference
(the "Teneo Agreement"), MHTX now owns all of the issued and outstanding shares
of Teneo ; and,

XXX-Confidential Treatment Requested.

                                       2
<PAGE>

      WHEREAS, Teneo owns or is the licensee of certain proprietary technologies
and products in the area of Haptics and virtual reality (collectively the "Teneo
Technologies"), including but not limited to dental simulation software (the
"Dental Simulation Software").

      NOW, THEREFORE, upon good and valuable consideration, the receipt and
legal sufficiency of which are hereby acknowledged, the parties hereto do hereby
agree as follows:

ARTICLE I: DEFINITIONS. As used in this License Agreement:

      1.1 Licensed Field of Use:
            1.1.1 Licensed Field of Use means XXXX
            1.1.2 Licensed Field of Use does not include: XXXX

      1.2 "XXXX Field of Use" shall mean XXXX.

            1.2.1 "Web Browser Applications" shall have the meaning given that
term in the R&D Agreement.

            1.2.2 "Content Creation Applications" shall have the meaning given
that term in the R&D Agreement.

            1.2.3 "Computer Network" shall have the meaning given that term in
the R&D Agreement.

            1.2.4 "Content" shall have the meaning given that term in the R&D
Agreement.

      1.3 "Net Revenue" shall have the meaning given that term in the R&D
Agreement, as applied to the XXXX Field of Use and the Licensed Field of Use.

      1.4 "Sandia-Novint License" shall mean the License Agreement dated as of
April 11, 2000 between Sandia Corporation and Novint, a photocopy of which is
attached to this License Agreement as Exhibit A.

ARTICLE 2: GRANT OF LICENSE BY NOVINT TO MHTX.

      2.1 Within the Licensed Field of Use, and subject to the terms,
conditions, and restrictions of (i) this License Agreement and (ii) the
Sandia-Novint License, Novint hereby grants to MHTX an exclusive, worldwide
license ( the "MHTX License") in and to all of the existing worldwide
intellectual property rights arising out of or relating to the Novint
Technologies, including without limitation patents, patent applications,
trademarks, trademark applications, copyrights, copyright applications,
software, computer programs, source code, computer hardware, know-how, trade
secrets, discoveries, ideas, concepts, techniques, designs, specifications, and
the like.

                                       3

XXX-Confidential Treatment Requested.

<PAGE>

      2.2 The MHTX License includes, without limitation, the right of MHTX to
develop, upgrade, manufacture, distribute and sell in all market segments,
products incorporating the Novint Technologies within the Licensed Field of Use,
as well as the right to further develop, upgrade, and make derivative works
based upon the Novint Technologies within the Licensed Field of Use; provided
that MHTX shall pay Novint royalties upon such works in accordance with this
Agreement and that all other rights of Novint under this Agreement shall apply
to such works.

      2.3 The MHTX License includes, without limitation, the right of MHTX to
sublicense and to sub-sublicense all of its rights under this Agreement;
provided, however, that each such sub-licensee or sub-sub-licensee (together
"Sub-Licensees") agrees to be subject to and bound by all of the terms and
conditions of this License Agreement and of the Sandia-Novint License to the
same extent as MHTX. Novint shall be a third party beneficiary of any agreement
between MHTX and any sub-licensee or of any agreement between any sub-licensee
and sub-sub-licensee.

      2.4 With respect to the Novint Technologies, and within the Licensed Field
of Use, all discoveries, improvements, derivative works, inventions, patents,
copyrightable expressions, trademarks, computer programs, software, upgrades,
source code, computer hardware, research and development results, trade secrets
and the like, conceived or first reduced to practice or fixed, know-how, ideas,
concepts, techniques, designs, specifications, and the like, whether now known
or hereinafter created, conceived or otherwise developed by Novint and/or its
employees, contractors or affiliates in the performance of any research and
development, are included (without limitation) for all purposes in the MHTX
License.

      2.5 MHTX shall not disclose source code or technical information about the
Novint Technologies to any third party without prior written approval of Novint.

      2.6 MHTX will use its reasonable best efforts to actively commercialize,
and bring to market, products and services incorporating the Novint Technologies
within the Licensed Field of Use. Novint acknowledges that MHTX is a technology
incubator, that MHTX is and will continue to be actively involved in the
development and commercialization of several technologies other than the Novint
Technologies, and that MHTX will not be devoting its exclusive attention to the
Novint Technologies. MHTX and Novint will negotiate in good faith an agreement
relating to research and development services to be performed by Novint, or
Novint's designee with MHTX's approval, for the further development of the
Novint Technologies in the Licensed Field of Use according to milestone
timetables and budgets acceptable to the parties.

      2.7 Pursuant to the requirements of the Sandia-Novint License, MHTX agrees
to pay directly to Sandia Corporation the running royalty otherwise due from
Novint to Sandia Corporation under the Sandia-Novint License if Novint for any
reason does not or is not able to pay Sandia Corporation.

                                       4

XXX-Confidential Treatment Requested.

<PAGE>

ARTICLE 3: MHTX ROYALTIES FOR LICENSED FIELD OF USE. In consideration for the
MHTX License, MHTX shall pay Novint a perpetual license royalty of XXXX of Net
Revenue (as defined in this Agreement) from the use, sublicensing or
sub-sublicensing of the Novint Technologies within the Licensed Field of Use,
the granting of any rights in or with respect to the Novint Technologies within
the Licensed Field of Use, and/or from sales or lease of products incorporating
or using the Novint Technologies or the sale or lease of services within the
Licensed Field of Use (the "License Royalty").

ARTICLE 4: BREACH. If at any time (i) MHTX is obligated and fails to pay Novint
any portion of the License Royalty that is due and payable, or (ii) breaches
this License Agreement, or (iii) if MHTX fails to use its reasonable best
efforts to actively commercialize the Novint Technologies within the Licensed
Field of Use (each, a "MHTX Breach"), then in any such case Novint shall serve
written notice of same to MHTX. If, within 60 days of receipt of such notice,
MHTX fails to (a) cure such MHTX Breach, or (b) reasonably and in good faith,
controvert such MHTX Breach in writing, then MHTX's License shall become
non-exclusive. If MHTX controverts any MHTX Breach and it is finally determined
that an MHTX Breach was committed, then MHTX's License shall become
non-exclusive if such breach is not cured within 30 days of such final
determination.

ARTICLE 5: GRANT OF LICENSE BY MHTX TO NOVINT.

      5.1 Subject to the terms, conditions, and restrictions of this License
Agreement, and for good and valuable consideration (including without limitation
the granting of additional shares of Novint common stock to MHTX, and the
termination of MHTX's funding obligations under the R&D Agreement), MHTX hereby
grants to Novint, and will cause Teneo to grant to Novint, an exclusive,
worldwide license ( the "Novint License") in and to all of the existing
worldwide intellectual property rights arising out of or relating to the Teneo
Technologies in all fields of use, including without limitation patents, patent
applications, trademarks, trademark applications, copyrights, copyright
applications, software, computer programs, source code, computer hardware,
know-how, trade secrets, discoveries, ideas, concepts, techniques, designs,
specifications, and the like.

      5.2 The Novint License includes, without limitation, the right of Novint
to develop, upgrade, manufacture, distribute and sell in all market segments,
products incorporating the Teneo Technologies, as well as the right to further
develop, upgrade, and make derivative works based upon the Teneo Technologies.

      5.3 The Novint License includes, without limitation, the right of Novint
to sublicense and to sub-sublicense all of its rights under this Agreement;
provided, however, that each such sub-licensee or sub-sub-licensee (together
"Sub-Licensees") agrees to be subject to and bound by all of the terms and
conditions of this License Agreement. MHTX and/or Teneo shall be a third party
beneficiary of any agreement between Novint and any sub-licensee or of any
agreement between any sub-licensee and sub-sub-licensee.

                                       5

XXX-Confidential Treatment Requested.

<PAGE>

      5.4 Beginning with the date of this agreement, and with respect to the
Teneo Technologies, all discoveries, improvements, derivative works, inventions,
patents, copyrightable expressions, trademarks, computer programs, software,
upgrades, source code, computer hardware, research and development results,
trade secrets and the like, conceived or first reduced to practice or fixed,
know-how, ideas, concepts, techniques, designs, specifications, and the like,
conceived or otherwise developed by Novint and/or its employees, contractors or
affiliates in the performance of any research and development, are owned by
Novint.

      5.5 MHTX and Novint acknowledge that MHTX has an interest in actively
commercializing the Dental Simulation Software through a venture with Moyco
Technologies. If Novint participates in a venture with Moyco Technologies or its
affiliates, it is presently intended that MHTX will receive appropriate equity
in Moyco or its affiliates.

      5.6 In consideration of, among other things, the Novint License, Novint
hereby: (a) assumes and agrees to timely pay and/or perform, on an ongoing
basis, all liabilities and obligations of Teneo of any kind or nature, whether
now known or hereinafter created, including without limitation the liabilities
and obligations of Teneo referenced in the Teneo Agreement (collectively, "Teneo
Obligations"); and (b) agrees to indemnify, defend, and hold MHTX harmless from
and against the Teneo Obligations. In connection with the foregoing, it shall be
Novint's responsibility to ascertain the substance and timing of the Teneo
Obligations, and MHTX makes no representation or warranty to Novint with respect
to same. Novint acknowledges that it has had the opportunity to conduct due
diligence with respect to the Teneo Obligations, has been represented by counsel
with respect to same, and undertakes its obligations under this paragraph freely
and without coercion or duress.

ARTICLE 6: NOVINT ROYALTIES FOR XXXX FIELD OF USE; ASSUMPTION OF LIABILITIES.
Novint shall pay MHTX a perpetual license royalty of XXXX of Net Revenue (as
defined in this Agreement) from the use, sublicensing or sub-sublicensing of the
Novint Technologies within the XXXX Field of Use, the granting of any rights in
or with respect to the Novint Technologies within the XXXX Field of Use, and/or
from sales or lease of products incorporating or using the Novint Technologies
or the sale or lease of services within the XXXX Field of Use.

ARTICLE 7.  REPRESENTATIONS, WARRANTIES AND COVENANTS.

      7.1 Novint covenants, represents and warrants that, to the best of its
knowledge, information and belief, without independent investigation:

            7.1.1 that the Novint Technologies are and will be original, are
solely owned by, or are licensed to, Novint, are not subject to claims by any
third parties, other than licensors, and do not infringe upon the rights of any
third parties;

                                        6

XXX-Confidential Treatment Requested.

<PAGE>

            7.1.2 that Novint believes in good faith (and is aware of no
contradictory facts) that the Novint Technologies are patentable, copyrightable
or otherwise protectable;

            7.1.3 that entry into this agreement (and all related documents)
with MHTX has been duly authorized and approved by the directors, officers, and
shareholders of Novint, and that Novint has all requisite authority to make the
License and enter into this agreement;

            7.1.4 that the existing employees of Novint have executed
confidentiality and non-competition agreements in favor of Novint and MHTX (and
acceptable to MHTX), or will do so within a reasonable time after execution of
this Agreement, and that no employees will be hired in the future who have not
signed such an agreement in favor of Novint and MHTX;

            7.1.5 that there are no claims, whether actual or threatened,
against Novint, and that Novint is in compliance with all laws, rules, and
regulations to which it is subject;

            7.1.6 that there are no liens, judgments or security interests of
record to which Novint and/or the Novint Technologies are subject, except those
granted to MHTX;

            7.1.7 that Novint has no agreements with any third parties that
would (a) prevent Novint from entering into this agreement and granting the
License; (b) be breached by this agreement becoming effective or the fulfillment
of the obligations of Novint; and/or (c) invalidate this agreement in any
respect;

            7.1.8 that Novint is a corporation duly organized, existing and in
good standing under the laws of New Mexico. It is acknowledged that Novint
intends to reincorporate in Delaware at an appropriate time;

            7.1.9 that Novint shall employ all reasonable and available means to
invoke formal protection of the intellectual property arising out of or relating
to the Novint Technologies in all appropriate jurisdictions to which the parties
agree;

            7.1.10 that Novint believes in good faith (and is aware of no
contradictory facts) that the inventions and products to be derived from the
Novint Technologies within the Licensed Field of Use will work, that they will
be commercially mass-producible at reasonable cost, and that they are practical
and safe.

      7.2 MHTX covenants, represents and warrants that to the best of its
knowledge, information and belief, without independent investigation:

            7.2.1 that MHTX is a corporation duly organized, existing and in
good standing under the laws of the state of Delaware;

                                       7

XXX-Confidential Treatment Requested.

<PAGE>

            7.2.2 that entry into this Agreement (and all related documents)
with Novint has been duly authorized and approved by the directors and officers
of MHTX, and MHTX has the requisite authority to enter into this Agreement;

            7.2.3 that there are no claims, whether actual or threatened,
against MHTX, and that MHTX is in compliance with all laws, rules and
regulations to which it is subject;

            7.2.4 that MHTX does not have any agreements with any third parties
that would (a) prevent MHTX from entering into and performing this Agreement;
(b) be breached by this Agreement becoming effective or the fulfillment of the
obligations of MHTX; and/or (c) invalidate this Agreement in any respect;

ARTICLE 8: INDEMNIFICATION.

      8.1 Novint hereby agrees to indemnify, defend and hold MHTX harmless from
and against any and all liability, damage, claims (whether actual or threatened)
or expense (including without limitation reasonable legal fees) arising out of
or relating to the breach by Novint of any representation, warranty, covenant,
or provision of this agreement.

      8.2 MHTX hereby agrees to indemnify, defend and hold Novint harmless from
and against any and all liability, damage, claims (whether actual or threatened)
or expense (including without limitation reasonable legal fees) arising out of
or relating to the breach by MHTX of any representation, warranty, covenant, or
provision of this agreement.

ARTICLE 9: NOTICES. Any notice or other communication in connection with this
agreement shall be in writing and delivered by overnight courier and facsimile
addressed to a party hereto at the addresses provided below (or to such person
or address as such party shall specify in writing to the other parties hereto):

                                    If to Novint:

                                    Mr. Thomas Anderson
                                    Novint Technologies, Inc.
                                    8500 Menaul Blvd NE, Suite A210
                                    Albuquerque, New Mexico  87112

                                    If to MHTX:

                                    Marvin Maslow, CEO
                                    Manhattan Scientifics, Inc.
                                    641 Fifth Avenue, Suite 36F
                                    New York, New York 10022

                                       8

XXX-Confidential Treatment Requested.

<PAGE>

                                            And

                                    Jack Harrod, COO
                                    Manhattan Scientifics, Inc.
                                    127 Eastgate Drive

                                    Los Alamos, New Mexico 87544

                                        With a Copy to

                                    Scott L. Bach, Esq.
                                    Bach & Associates
                                    One Rockefeller Plaza, Suite 210
                                    New York, New York 10020

            Each party may designate a change of address by notice to the other
party, given at least five (5) days before such change of address is to become
effective.

            Any written notice shall be deemed to have been served forty-eight
(48) hours after the date it was transmitted in accordance with the foregoing
provisions.

ARTICLE 10: MISCELLANEOUS.

      10.1 MODIFICATION. This agreement contains the entire understanding
between the parties with respect to the subject matter hereof, and any promises,
representations, warranties or guarantees not herein contained shall have no
force or effect unless in writing, signed by all parties. Neither this agreement
nor any portion or provision hereof may be changed, modified, amended, waived,
supplemented, discharged, cancelled or terminated orally or by any course of
dealing, or in any manner other than by an agreement in writing, signed by the
party to be charged.

      10.2 GOVERNING LAW AND OTHER MATTERS. This agreement and the rights and
obligations of the parties hereunder shall be governed by and construed in
accordance with the laws of the State of New York. Novint and MHTX hereby (i)
waive any right to trial by jury in any legal proceeding related in any way to
this agreement; (ii) agree that venue of all disputes shall be in New York
County; and (iii) waive any objection and consent to personal jurisdiction,
subject matter jurisdiction and venue of and in the courts located in New York
County.

      10.3 INVALIDITY. If any part of this agreement is contrary to, prohibited
by, or deemed invalid under applicable laws or regulations, such provision shall
be inapplicable and deemed omitted to the extent so contrary, prohibited or
invalid, but the remainder hereof shall not be invalidated thereby and shall be
given effect so far as possible.

                                       9

XXX-Confidential Treatment Requested.

<PAGE>

      10.4 BENEFIT OF AGREEMENT. This agreement shall be binding upon and inure
to the benefit of the parties hereto and their respective successors and assigns
only and is not intended for the benefit of any other party.

      10.5 CAPTIONS. The captions of the various sections and paragraphs of this
agreement have been inserted only for the purpose of convenience. Such captions
are not a part of this agreement and shall not be deemed in any manner to
modify, explain, enlarge or restrict any of the provisions of the agreement.

      10.6 INCORPORATION BY REFERENCE. All of the "Whereas" clauses at the
beginning of this agreement, and all of the Schedules and Exhibits annexed
hereto, are hereby incorporated by reference and made a part hereof.

      10.7 COUNTERPARTS; WHEN EFFECTIVE. This agreement may be executed in
counterparts. This agreement shall become effective and enforceable upon MHTX's
receipt of a fully and properly executed original copy hereof bearing complete
and mutually agreed copies of all schedules referenced herein.

      10.8 PROHIBITION OF ASSIGNMENT. None of the parties may assign this
agreement to any third party without the prior written consent of all the
parties hereto. Notwithstanding the foregoing, nothing shall prohibit any party
from assigning its right to receive monies pursuant to this agreement to any
third party, provided that the third party agrees that its right to receive
monies is subject to the terms and conditions of this Agreement.

      10.9 FURTHER ASSURANCES. Novint and MHTX agree to promptly execute any and
all documents and instruments necessary to effect, register, update and/or
document the Sublicense. Further, MHTX agrees that it will place, or will
require others with MHTX contracts, to place the trademark/service mark
"e-Touch" on or within each product manufactured or service provided
incorporating Novint Technology within reasonable guidelines to be specified by
Novint.

      10.10 SUPERCESSION OF PRIOR AGREEMENTS. This License supercedes the Prior
Agreements. Each of the Prior Agreements is terminated, including but not
limited to, with respect to any license of Novint Technologies (as defined in
the Prior Agreements).

            IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed as of the day and year first above written.

                                       10

XXX-Confidential Treatment Requested.

<PAGE>

              THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.

XXX-Confidential Treatment Requested.

                                       11
<PAGE>

                                    MANHATTAN SCIENTIFICS, INC.

                                    By:
                                       --------------------------------------

                                    NOVINT TECHNOLOGIES, INC.

                                    By:
                                       --------------------------------------
                                           Thomas Anderson, President

                                       12

XXX-Confidential Treatment Requested.

<PAGE>

                                    EXHIBIT A

                              SANDIA-NOVINT LICENSE

                                       13

XXX-Confidential Treatment Requested.

<PAGE>

                                    EXHIBIT B

                       RESEARCH AND DEVELOPMENT AGREEMENT

XXX-Confidential Treatment Requested.

                                       14[CONFIDENTIAL TRATMENT REQUESTED.  CERTAIN PORTIONS OF THIS AGREEMENT
HAVE BEEN REDACTED AND SEPARATELY FILED WITH THE COMMISSION.]

                            RESEARCH AND DEVELOPMENT
                              AND LICENSE AGREEMENT
                              ---------------------

      THIS  AGREEMENT,  made as of this  24th day of June,  2000 by and  between
MANHATTAN  SCIENTIFICS,  INC.,  a public  Delaware  corporation  having  offices
located  at  641  Fifth  Avenue,  New  York,  New  York,  USA  ("MHTX"),  Novint
Technologies,  Inc., a private New Mexico  Corporation having offices located at
4900 Cutting Avenue NW, Albuquerque, New Mexico 87114 ("NOVINT"), and Mr. Thomas
G. Anderson,  residing at 4900 Cutting Avenue NW, Albuquerque,  New Mexico 87114
("ANDERSON").

                              W I T N E S S E T H:

      WHEREAS, MHTX is engaged in, among other things, research, development and
marketing of certain proprietary  technologies,  and products incorporating such
technologies; and

      WHEREAS,  Novint and Anderson are engaged in the research and  development
of certain  proprietary  technologies  and  products  in the area of Haptics not
including the Sandia Haptics Technologies, as hereinafter defined (collectively,
the "Novint Technologies"); and

      WHEREAS,  as used in this  agreement,  "Haptics"  refers  to a  developing
science of computer  software and hardware1  technology that enables human users
to experience sensations having to do with the sense of touch in the form of (1)
force  feedback  (forces  that are  displayed to a user),  (2) tactile  feedback
(force sensations that are displayed to a user's skin), and (3) kinesthesia (the
sense of spatial location and internal physical sensation); and

      WHEREAS, from January, 1996 through May, 2000, Anderson was an employee of
Sandia  Corporation and/or the Sandia National  Laboratories  through the United
States Department of Energy, located in Albuquerque,  New Mexico ("Sandia"), and
has previously  researched and developed certain Haptics technologies for Sandia
which are Sandia's property (the "Sandia Haptics Technologies"); and

      WHEREAS,  pursuant to agreement dated April 11, 2000,  Novint licensed the
Sandia Haptics  Technologies from Sandia under terms and conditions set forth in
such license;

      WHEREAS,  pursuant to agreement of even date  herewith,  MHTX  exclusively
sublicensed   the  Sandia   Haptics   Technologies   from  Novint  (the  "Sandia
Sublicense") with respect to the Field of Use (as hereinafter defined); and

      WHEREAS,  Anderson  left the  employ  of  Sandia  in order to  pursue  the
continued  research  and  development  of the  Novint  Technologies  exclusively
through Novint,  and upon his departure from Sandia,  Anderson ceased to perform
research  and  development  activities  for  Sandia  with  respect to the Sandia
Haptics Technologies; and

----------------
 1
    It is understood that Novint and Anderson are not presently developing any
Haptics hardware.

                                       1
<PAGE>

      WHEREAS,  Anderson  controls Novint and owns a majority of Novint's common
stock; and

      WHEREAS,  MHTX  desires to engage the  services of Novint and  Anderson in
connection  with the  further  research  and  development,  and the  bringing to
market, of the Novint Technologies within the Field of Use; and

      WHEREAS,  MHTX  desires to acquire an exclusive  worldwide  license to the
existing  and  developing  Novint  Technologies  in the  Field of Use,  it being
understood  that  such  license  may be  used in  conjunction  with  the  Sandia
Sublicense; and

      WHEREAS,  MHTX desires to acquire an ownership  interest in Novint, and to
assist  Novint in  becoming  a public  company,  should  that be  desirable  and
appropriate; and

      WHEREAS, Anderson desires to acquire an ownership interest in MHTX; and

      WHEREAS, prior to the execution of this Agreement, on April 28, 2000, MHTX
paid $100,000 to Novint as an advance for  scientific  research and  development
services to be performed hereunder,  as well as to secure the services of Novint
pending consummation of this Agreement;

      NOW,  THEREFORE,  upon good and  valuable  consideration,  the receipt and
legal sufficiency of which are hereby acknowledged, the parties hereto do hereby
agree as follows:

      1. Research and Development.

            (a)  MHTX  hereby   engages  Novint  and  Anderson  to  conduct  all
reasonable  and  appropriate  research,  development,  and  product  support and
upgrade efforts with respect to the Novint  Technologies within the Field of Use
to (i) achieve and realize the Haptics  products and milestones set forth in the
Milestone  Timetable (as  hereinafter  defined,  and as same may be amended from
time to time) as soon as reasonably  possible,  including without limitation the
First Major Milestone (as hereinafter  defined);  (ii) on a continuing basis, to
further develop,  advance,  evolve,  upgrade and support the Novint Technologies
within  the  Field  of Use,  and  products  incorporating  same,  for MHTX on an
accelerated  basis,  pursuant  to  the  Milestone  Timetable;  and  (iii)  on  a
continuing  basis,  to reasonably  collaborate  with MHTX and its  affiliates as
needed  on other  Haptics  related  products  and  projects  (collectively,  the
"Research and Development").

            (b) MHTX shall fund (or procure the  funding  of) the  Research  and
Development  in the amount of  $1,500,000  or such other  amount(s) to which the
parties may agree from time to time (the  "Research and  Development  Fee").  At
execution  of this  agreement,  MHTX has paid  Novint the first  $300,000 of the
Research and Development Fee (consisting of the first $100,000 paid on April 28,
2000 and an additional  $200,000 paid  contemporaneously  with execution of this
Agreement),  receipt of which is hereby  acknowledged by Novint.  MHTX shall pay
Novint the balance of the Research and  Development  Fee in accordance  with the
Milestone  Timetable (as hereinafter  defined).  Research and Development  costs
include any supporting  costs  necessary to conduct normal  business  operations
supporting  the  Research  and   Development.   These  costs  include,   without
limitation,   office  and  leasing,   utilities,   equipment,   travel,   phone,
consultants,  printing, web development, legal and accounting fees, intellectual
property protection, bookkeeping, recruiters, market research, public relations,
technical staff,  management staff,  administrative staff, other staff, customer
support, and marketing.

                                       2

XXXX - CONFIDENTIAL TREATMENT REQUESTED
<PAGE>

            (c) Novint and  Anderson  shall  conduct and direct the Research and
Development,  and  shall do so in  accordance  with  the  milestone  and  budget
timetable annexed hereto as Schedule A, as same may be amended from time to time
by written agreement of the parties (the "Milestone Timetable"). Upon completion
of each  milestone set forth in the Milestone  Timetable,  Novint shall render a
written  report to MHTX detailing the  particulars of the milestone  completion,
including  without  limitation  the technical  particulars  (each,  a "Milestone
Report").  Receipt and  acceptance by MHTX of each  Milestone  Report shall be a
condition of MHTX's  obligation to continue to fund the Research and Development
pursuant to the Milestone  Timetable,  it being  understood  that MHTX shall not
unreasonably withhold its acceptance of any Milestone Report.

            (d)  (1)  Until  Novint  and   Anderson   deliver  the  Web  Browser
Applications  (as hereinafter  defined) and Content  Creation  Applications  (as
hereinafter defined) to MHTX in finished,  professional,  commercially appealing
and visually  appealing form suitable for  manufacture and public use, sale, and
license (the "First Major Milestone"),  Novint and Anderson personally shall use
their best and  exclusive  full-time  efforts in  conducting  the  Research  and
Development,  and shall use their best  efforts to  expedite  the  Research  and
Development.  After Novint has delivered the First Major  Milestone to MHTX, and
for so long  thereafter  as Novint and  Anderson  shall  continue to perform the
Research and  Development for MHTX pursuant to the Milestone  Timetable,  Novint
and Anderson shall use their best efforts in conducting  and expediting  further
Research and Development.  Anderson personally will have primary  responsibility
for performing, directing and overseeing all of the Research and Development. At
MHTX's  reasonable  request and expense,  Novint and Anderson  shall also assist
MHTX generally in  commercializing  the Novint  Technologies,  including without
limitation by (i) assisting in raising  capital;  (ii)  participating  in public
relations   events,    press   conferences,    media   interviews,    technology
demonstrations,  and similar  events;  and (iii)  prototyping  applications  for
specific potential users of the Novint Technologies within the Field of Use on a
case-by-case basis, subject to agreement of the parties as to the particulars of
such applications.  Novint and Anderson shall disclose and introduce to MHTX all
third  parties  with  whom  they  previously  have or  subsequently  shall  have
discussions regarding the Novint Technologies within the Field of Use.

                  (2)  Notwithstanding  the first sentence of paragraph  1(d)(1)
immediately  above,  MHTX  acknowledges that Novint and Anderson intend to use a
portion of the  Research and  Development  Fee to conduct  Haptics  research and
development  outside  of the  Field of Use,  for  purposes  independent  of this
Agreement  which are  intended  to  complement  the  Research  and  Development.
Additionally,   notwithstanding   the  first   sentence  of  paragraph   1(d)(1)
immediately  above, MHTX acknowledges that Novint may receive additional funding
from third  parties,  with  Novint's  board  approval,  which may fund  projects
complementary  to this agreement.  MHTX consents to such activity  provided that
(i) such activity does not  materially  interfere  with the  performance  of the
obligations  of Novint and  Anderson  under this  Agreement  (including  without
limitation timely  attainment of the milestones  established under the Milestone
Timetable);  (ii) Novint and Anderson use a substantial  portion of the Research
and Development Fee directly for the Research and Development;  (iii) Novint and
Anderson  devote  a  substantial  portion  of  their  time to the  Research  and
Development;  and (iv) MHTX has previously  approved in writing Novint's written
budget for the proposed  expenditure of portions of the Research and Development
Fee for matters other than the Research and  Development,  which  approval shall
not be unreasonably withheld. The budget attached hereto as Schedule C is hereby
approved in principle by MHTX. It is intended that MHTX will indirectly  benefit
from research and development outside the Field of Use by reason of, among other
things, MHTX's ownership interest in Novint (see paragraph 3(a), below).

XXXX - CONFIDENTIAL TREATMENT REQUESTED

                                       3
<PAGE>

            (e) (1) After Novint and Anderson  deliver the First Major Milestone
to MHTX,  Novint and  Anderson  shall  continue  to  perform  the  Research  and
Development for MHTX in accordance  with the Milestone  Timetable as same may be
amended, or as otherwise agreed by the parties.

                  (2)  Funding  for  the  continuing  Research  and  Development
described in the immediately  preceding paragraph shall be provided to Novint by
MHTX in the form of a research  and  development  royalty  (the "R&D  Royalty"),
which shall be their entire fee for all such continued Research and Development,
subject to the  provisions  of  paragraph  1(e)(3)  immediately  below.  The R&D
Royalty shall be separate and independent from, and shall be in addition to, the
License Royalty (as hereinafter  defined).  The R&D Royalty shall consist of the
following percentages of Net Revenue (as hereinafter defined):

         Cumulative Net Revenue             R&D Royalty
         TO MHTX (millions)                 to Novint
         ------------------                 ---------

         $0 to $1                            3%
         $1 to $2                            6%
         $2 to $3                            9%
         $3 to $4                           12%
         $5 to $6                           15%
         $6 to $7                           18%
         $7 to $8                           21%
         $8 to $9                           24%
         $9 to $10                                   27%
         Above $10mm                        30%

                  (3) Until such time as the R&D  Royalty is  sufficient  to pay
for the costs of Novint that are reasonably  necessary to perform the continuing
Research and Development  ("Costs"),  MHTX will use its best efforts to fund (or
cause to be funded) the  Research  and  Development,  to the extent that the R&D
Royalty is  insufficient to cover the costs of same, in amounts to be reasonably
agreed by the parties.

                  (4) Novint and  Anderson  shall use the R&D Royalty (and other
amounts  paid  by  MHTX)  exclusively  to  fund  the  continuing   Research  and
Development for MHTX.  Novint and MHTX will jointly determine how to expend such
funds up to the amount of Novint's  Costs.  Expenditure of such funds  exceeding
Novint's  Costs  shall be  determined  in  MHTX's  sole  reasonable  discretion,
provided that such funds are expended in connection with the Novint Technologies
within the Field of Use.

            (f) Novint  shall be the  exclusive  company to perform all Research
and Development for MHTX with respect to the Novint Technologies,  unless Novint
and/or Anderson shall have committed a material breach ("Novint Breach") of this
Agreement or this Agreement shall have been terminated by the parties,  in which
event MHTX shall be free to engage  third  parties to perform the  Research  and
Development with respect to the Novint Technologies if Novint fails to cure such
breach within 90 days after receiving  written notice of same from MHTX.  Novint
Breach includes,  without limitation,  failure to meet the Milestone  Timetable,
failure of the Novint  Technologies  to work or to work as intended,  failure to
provide adequate support for the Novint Technologies, failure of the First Major
Milestone to be delivered timely or in the  commercially and visually  appealing
configurations  described in the  Milestone  Timetable,  failure to pay MHTX any
royalties due, death disability or incapacity of Anderson, and/or failure of any
of the  representations  and  warranties  by Novint and  Anderson to be true and
correct.

                                       4

XXXX - CONFIDENTIAL TREATMENT REQUESTED

<PAGE>

      2. Intellectual Property License to MHTX

            (a) (1)  Within the Field of Use,  and  subject to the terms of this
Agreement,  Novint and Anderson  hereby grant to MHTX an  exclusive,  worldwide,
perpetual  license  (the  "License")  in and to  all of the  existing  worldwide
intellectual   property  rights  arising  out  of  or  relating  to  the  Novint
Technologies,   including  without  limitation  patents,   patent  applications,
trademarks,   trademark   applications,   copyrights,   copyright  applications,
software,  computer programs,  source code, computer hardware2,  know-how, trade
secrets, discoveries, ideas, concepts, techniques, designs, specifications,  and
the like. The Novint Technologies include, without limitation,  the technologies
described on Schedule B attached hereto.

                  (2) Subject to paragraph 1(f) of this  Agreement,  the License
includes,   without  limitation,   the  right  of  MHTX  to  develop,   upgrade,
manufacture,  distribute and sell in all market segments, products incorporating
the Novint Technologies within the Field of Use, as well as the right to further
develop,  upgrade,  and make derivative works based upon the Novint Technologies
within the Field of Use, provided that MHTX shall pay Novint royalties upon same
in accordance with this Agreement and that all other rights of Novint under this
Agreement shall apply to same.

                  (3) The License  includes,  without  limitation,  the right of
MHTX to sublicense and to sub-sublicense all of its rights under this Agreement;
provided,  however,  that each such sub-licensee or  sub-sub-licensee  (together
"Sub-Licensees")  agrees  to be  bound by all of the  terms  and  conditions  of
Novint's and Anderson's License to MHTX to the same extent as MHTX. Novint shall
be  a  third  party   beneficiary   of  any  agreement   between  MHTX  and  any
Sub-Licensees.

            (b) With respect to the Novint Technologies, and within the Field of
Use, all  discoveries,  improvements,  derivative  works,  inventions,  patents,
copyrightable expressions,  trademarks,  computer programs,  software, upgrades,
source code, computer hardware3, Research and Development results, trade secrets
and the like, conceived or first reduced to practice or fixed, know-how,  ideas,
concepts, techniques, designs,  specifications,  and the like, whether now known
or hereinafter  created,  conceived or otherwise developed by Novint,  Anderson,
and/or their  employees,  contractors  or affiliates in the  performance  of the
Research and Development,  are included (without limitation) for all purposes in
the  License.  Anderson and Novint  shall,  on a monthly and  continuing  basis,
update Schedule B to identify and describe all new intellectual property and the
like developed by Anderson and Novint that is covered by the License,  and shall
provide copies of such updated Schedule B as and when it is updated.

            (c) In  consideration  for the  License,  MHTX  shall  pay  Novint a
perpetual  license royalty of XXXX of Net Revenue (as hereinafter  defined) from
the use,  sublicensing or sub-sublicensing of the Novint Technologies within the
Field of Use,  the  granting  of any  rights in or with  respect  to the  Novint
Technologies  within the Field of Use,  and/or  from sales or lease of  products
incorporating or using the Novint  Technologies or the sale or lease of services
(the "License  Royalty").  The License Royalty shall be separate and independent
from,  and in addition  to, the R&D  Royalty.  Any monies paid by MHTX to Novint
shall not be considered Net Revenue to Novint.  Subject to paragraph  5(b), "Net
Revenue"  means total  revenue  received  from the  aforesaid  activities,  less
shipping, returns, sales taxes, and duties for import or export.

--------------------
    2
         See footnote 1, above.
    3
         See footnote 1, above.

                                       5

XXXX - CONFIDENTIAL TREATMENT REQUESTED

<PAGE>

            (d)  Novint  and  Anderson  agree to  promptly  execute  any and all
documents and instruments necessary to effect, register,  update and/or document
the License.  Further,  MHTX agrees that it will place,  or will require  others
with MHTX  contracts,  to place the  trademark/service  mark  "e-Touch"  on each
product manufactured or service provided incorporating Novint Technology.

            (e) (1) As used herein, the "Field of Use" means XXXX.

                  (2) "Web Browser  Applications" means any and all computer and
electronics applications, whether now known or hereafter developed, which permit
the user to view, access, browse, retrieve,  utilize,  navigate,  interface with
and/or interact with Content (as hereinafter  defined) on a Computer Network (as
hereinafter   defined).   Web  Browser   Applications   only  include   computer
applications that can access varied Content that is placed on a Computer Network
by many Content  creators.  Web Browser  Applications do not include any type of
computer program or application that can be used without a computer network. For
the sake of clarification, common examples of Web Browser Applications currently
in use  by the  public  include,  without  limitation,  Netscape  Navigator  and
Microsoft Internet Explorer. For the sake of further  clarification,  an example
of a program that would not  constitute a Web Browser  Application is a computer
game that can be run standalone on a personal computer but can also be played by
multiple players across a Computer Network.  Although such a computer game would
not constitute a Web Browser  Application,  it would nevertheless  constitute an
Overlapping Application (as hereinafter defined).

                  (3) "Content Creation Applications" means any and all computer
and electronics applications, tools, programming instructions, programs, and the
like, whether now known or hereafter developed,  which permit the user to create
Content on a Computer  Network for access using a Web Browser  Application.  For
the sake of  clarification,  common  examples of Content  Creation  Applications
currently in use by the public include, without limitation,  Microsoft Frontpage
and Adobe Pagemill.

                  (4)  "Computer   Network"  means  any  and  all  computer  and
electronics  networks,  whether now known or hereafter  developed,  of any size,
nature or  location,  whether  public or private,  wherein one or more users may
connect to the network via one or more  connection  points.  The term  "Computer
Networks" includes,  without limitation,  the Internet,  the World Wide Web, the
National  Technology  Grid,  cable  television  systems,   satellite  television
systems, intranets, public and private networks, and the like.

                  (5) "Content"  means any and all types of data and information
that is capable of being  placed on a Computer  Network and  accessed by others.
For the sake of clarification,  examples of Content include, without limitation,
web pages, email systems,  bulletin boards, chat rooms, search engines, applets,
games,  visual images,  sound  recordings,  interactive and other  applications,
documents, words, numbers, and the like.

            (f) MHTX shall not  disclose  source code or  technical  information
about the

                                       6

XXXX - CONFIDENTIAL TREATMENT REQUESTED

<PAGE>

Novint Technologies to any third party without prior written approval of Novint.
Nothing in the  preceding  sentence  shall be  construed  to (i) require MHTX to
obtain  approval  from Novint  prior to  licensing  the Novint  Technologies  to
Sub-Licensees  and  providing  such  Sub-Licensees  with  copies of Web  Browser
Applications  and Content Creation  Applications  created by Novint and Anderson
for  replication;  or (ii)  preclude  MHTX  from  exercising  its  rights  under
paragraph 1(f) of this Agreement.

            (g)  MHTX  will  use  its   reasonable   best  efforts  to  actively
commercialize,  and bring to market,  products  and services  incorporating  the
Novint  Technologies  within the Field of Use.  Novint and Anderson  acknowledge
that  MHTX is a  technology  incubator,  that  MHTX is and will  continue  to be
actively   involved  in  the  development  and   commercialization   of  several
technologies  other  than the  Novint  Technologies,  and that  MHTX will not be
devoting its exclusive attention to the Novint Technologies.

            (h) If at any time MHTX is obligated and fails to pay Novint (i) any
portion of the Research and  Development  Fee that is due and payable,  (ii) any
portion of the License Royalty that is due and payable,  or (iii) any portion of
the R&D Royalty that is due and payable;  or if MHTX fails to use its reasonable
best efforts to actively  commercialize the Novint Technologies within the Field
of Use; or if MHTX otherwise  commits a material breach of this Agreement (each,
a "MHTX  Breach"),  then in any such case Novint shall serve  written  notice of
same to MHTX.  If,  within 90 days of receipt of such notice,  MHTX fails to (a)
cure such MHTX Breach, or (b) reasonably and in good faith, controvert such MHTX
Breach in writing,  then MHTX's  License  shall  become  non-exclusive.  If MHTX
controverts any MHTX Breach and it is finally determined that an MHTX Breach was
committed,  then MHTX's License shall become non-exclusive if such breach is not
cured within 30 days of such final determination.

      3. Ownership of Novint

            (a) Contemporaneously with the execution of this Agreement, and as a
condition to the effectiveness of this agreement, Anderson shall have taken such
actions as are necessary and  appropriate to effectively  apportion and transfer
ownership of Novint's issued and outstanding shares of common stock as follows:

         Anderson:                       53.52%   44,739 shares

         MHTX:                           43.79%   36,606shares ("Novint Stock")

         Other Shareholders         2.69%   2,250 shares

It is understood  and agreed that, in addition to the  foregoing,  there will be
options to purchase 1405 shares of Novint  Common Stock,  4,000 shares of Novint
Preferred Stock with certain rights,  restrictions,  preferences and limitations
set forth in Novint's  organizing  documents,  and a number of shares subject to
the terms of an employee  incentive  stock option plan adopted by Novint's Board
of Directors.

            (b) It is  agreed  that,  other  than the  securities  described  in
paragraph  3(a)  above,  no  other  securities  of  Novint  shall be  issued  or
authorized  in the  absence  of formal  approval  of the board of  directors  of
Novint,  except that MHTX shall consent and shall not object if Novint issues an
additional  24,272  shares (or options  for shares) of common  stock to Anderson
upon  Novint's   realization  of  at  least  $10,000,000  in  Net  Revenue  from
exploitation of the Novint Technologies outside the Field of Use.

            (c) There shall be five (5) seats on the Novint  board of  directors
elected

                                       7

XXXX - CONFIDENTIAL TREATMENT REQUESTED

<PAGE>

by  Novint's  shareholders  in  accordance  with its  Bylaws.  MHTX and
Anderson  agree to vote their  shares to elect  Anderson  and  Marvin  Maslow as
Directors and to elect  Anderson as Chairman of the Board.  Initially MHTX shall
be  entitled  to specify  two (2)  directors,  and Novint  shall be  entitled to
specify two (2) directors,  it being understood that the fifth director shall be
selected by the other (4) directors.  As of the date of this  Agreement,  Thomas
Anderson and Edwin H. Barsis are the two directors  specified by Novint.  Marvin
Maslow and Scott L. Bach are the two directors specified by MHTX.

            (d) Novint is presently considering becoming a public company either
through an initial  public  offering or through a  transaction  by which  Novint
(and/or its successors  and assigns) are acquired by an existing  public company
whose  sole  purpose  subsequent  to such  acquisition  shall be to carry on the
affairs of Novint  ("Novint  Public  Co.").  MHTX shall act as an  uncompensated
facilitator and advisor to Novint in connection with the foregoing. Anderson and
MHTX agree to vote their  shares in Novint to  maintain  the ratio of  ownership
percentages in Novint owned by Anderson and MHTX.

            (e) MHTX  shall not sell,  assign,  transfer,  pledge,  hypothecate,
mortgage or dispose of, by gift or otherwise, or in any way encumber, all or any
part of the Novint Shares (as  hereinafter  defined)  owned or to be owned by it
except in  compliance  with the terms of this  Agreement.  For  purposes of this
Agreement, the term "Shares" shall mean and include any portion of the shares of
stock of Novint of any class or any other  share or shares of capital  stock (or
rights,  options  or  warrants  to  acquire  such  shares)  of  Novint  (or  its
successors) owned by MHTX, whether presently held or hereafter acquired.

            (f) Prior to the time that Novint  becomes  Novint  Public Co., MHTX
may not sell,  assign,  transfer or otherwise dispose of any or all Shares owned
by it to a third  party  unless (i) MHTX  shall have  received a bona fide arm's
length offer to purchase such Shares from such third party,  and (ii) MHTX first
submits a written offer (the "Offer") to Novint  identifying  the third party to
whom such Shares are proposed to be sold and the terms of the proposed  sale and
offering  to  Novint  the  opportunity  to  purchase  such  Shares  on terms and
conditions,  including  price,  not less favorable to Novint than those on which
MHTX proposes to sell such Shares to any other purchaser.

            Novint shall act upon the Offer as soon as practicable after receipt
thereof,  and in no event later than thirty (30) days after receipt thereof.  In
the event  that  Novint  shall  elect to  purchase  all or a part of the  Shares
covered by the Offer,  Novint  shall,  within such  thirty (30) day period,  (i)
communicate  in writing such election to purchase to MHTX,  which  communication
shall be  delivered  by hand or mailed to MHTX at the address  shown by Novint's
records or at such other  address  furnished to Novint and shall,  when taken in
conjunction with the Offer, be deemed to constitute a valid, legally binding and
enforceable  agreement for the sale and purchase of the Shares covered  thereby;
and (ii) pay (or cause to be paid) to MHTX the purchase price in full.

            In the event that Novint  does not  purchase  the Shares  offered by
MHTX  pursuant to the Offer,  all of such Shares may be sold by MHTX at any time
following  the  thirtieth  (30th)  day after  receipt  of the  Offer by  Novint,
provided that the purchaser of the Shares shall agree in writing to abide by all
of the provisions  hereof. Any such sale shall be to the person originally named
in the Offer as the proposed  purchaser or  transferee  and shall be at not less
than the price and upon other terms and  conditions,  if any, not more favorable
to such purchaser than those specified in the Offer.  Any Shares sold after such
30-day period, to a different  purchaser,  at a lower price or otherwise on more
favorable  terms shall be subject to the  requirements of a prior offer pursuant
to this Section.

            The provisions of this Section 3(f) shall terminate immediately upon
the

                                       8

XXXX - CONFIDENTIAL TREATMENT REQUESTED

<PAGE>

effectiveness  of an  underwritten  initial public offering on a firm commitment
basis pursuant to an effective  registration  statement under the Securities Act
of 1933,  as amended  (the  "Securities  Act"),  covering  the offer and sale of
Voting Common Stock for the account of the Company, in which the aggregate gross
proceeds  to  Novint  are  acceptable  to its  Board of  Directors,  or upon the
occurrence of any other procedure whereby Novint becomes Novint Public Co.

            (g) [Intentionally Omitted].

            (h) If Novint  becomes  Novint Public Co., then upon  expiration and
deletion of any restrictions  upon the Novint Stock, and as a measure to protect
Novint  Public  Co.'s  shareholders,  MHTX agrees not to sell more than 3,000 of
such shares per trade upon the open market,  nor more than 15,000 shares per day
upon the open  market,  without the prior  written  consent of Novint.  MHTX may
privately  transfer all or any portion of the Novint  Stock,  provided  that the
transferee(s)  agree to the  aforesaid  restrictions  in writing.  This covenant
shall survive termination of this Agreement.

            (i) Prior to Novint  becoming  Novint Public Co., any  transferee of
Novint stock originally  issued to MHTX,  whether through purchase or otherwise,
shall  agree to abide by any voting  restrictions  described  in this  contract,
including  but not limited to voting with respect to the board of directors  and
its  chairman,  prior to transfer of said stock.  This  covenant  shall  survive
termination of this Agreement.

      4. Consideration to Anderson

            (a) As  consideration  for  Anderson's  transfer  to  MHTX of all of
Anderson's shares of no par value common stock of Anderson Technologies, Inc., a
New  Mexico   corporation   ("Newco")  pursuant  to  the  terms  of  a  plan  of
reorganization  adopted by Newco and as  additional  consideration  for entering
into  this  Agreement,  MHTX  will  issue to  Anderson  500,000  shares  of MHTX
restricted  common  stock (the "MHTX  Stock").  The  transfer by Anderson of his
Newco stock  solely in exchange for the MHTX stock is intended by the parties to
be a tax-free  reorganization under applicable federal and state income tax laws
and regulations.  Anderson and Novint (a) acknowledge that MHTX is consenting to
such  tax-free  reorganization  at the  request  of  Anderson  and  Novint,  (b)
represent  and warrant that MHTX shall have no tax  consequences  as a result of
such  reorganization  (other  than  ordinary  tax  consequences  as a result  of
receiving  Novint  Stock),  and (c)  indemnify and agree to defend MHTX from and
against  any tax  liability  resulting  from  such  reorganization  (other  than
ordinary tax consequences as a result of receiving Novint Stock).

            (b) At such time  that MHTX  realizes  at least  $10,000,000  in Net
Revenue from its exploitation of the License,  MHTX shall provide to Anderson an
additional 250,000 shares of MHTX restricted common stock (the "Bonus Stock").

            (c) With  respect  to the MHTX Stock and the Bonus  Stock,  Anderson
agrees that he shall  ascertain and comply with all applicable  laws,  rules and
regulations,  whether  state or federal,  including  without  limitation  United
States   securities  laws,  rules  and  regulations,   pertaining  to  receiving
information  such as the Information  from publicly traded  companies and/or the
improper  trading  of  securities  of  such  companies  (the  "Laws").  Anderson
acknowledges that he may be deemed to be an "insider" according to the Laws, and
that he is aware of and shall  ascertain  and comply with all Laws that apply to
insiders.  Investor  acknowledges  that the Laws provide both civil and criminal
penalties  for  violating  the Laws.  Investor has or  immediately  shall retain
counsel for the purpose of advising  him as to how he is required to comply with
the Laws.

                                       9

XXXX - CONFIDENTIAL TREATMENT REQUESTED

<PAGE>

            (d) Upon expiration and deletion of any  restrictions  upon the MHTX
Stock and the Bonus  Stock,  and as a measure  to protect  MHTX's  shareholders,
Anderson  agrees not to sell more than  3,000 of such  shares per trade upon the
open  market,  nor more than 15,000  shares per day,  without the prior  written
consent of MHTX.  Anderson may privately transfer all or any portion of the MHTX
Stock  and/or the Bonus  Stock,  provided  that the  transferee(s)  agree to the
aforesaid  restrictions in writing.  This covenant shall survive  termination of
this Agreement.

      5. Non-Competition; Overlapping Fields of Use; Royalties to MHTX

            (a) For the sake of  clarification,  MHTX  agrees  that it shall not
compete with Novint and Anderson with respect to the Novint Technologies outside
of the Field of Use; and Novint and  Anderson  agree that they shall not compete
with MHTX with  respect  to the  Novint  Technologies  within  the Field of Use,
except as the  parties may agree in a  subsequent  writing.  The parties  hereby
agree that Novint  retains the right to use the Novint  Technologies  internally
for any purpose except competition with MHTX.

            (b) MHTX  acknowledges  that Novint and Anderson are  reserving  for
themselves  all  fields of use for the Novint  Technologies  other than the MHTX
Field of Use  defined in this  Agreement  (collectively,  the  "Novint  Reserved
Applications").  The parties  acknowledge  that  certain of the Novint  Reserved
Applications may, of necessity, contain elements that utilize a Computer Network
(the "Overlapping  Applications").  Novint and Anderson shall pay MHTX a royalty
of  5%  (five  percent)  of  the  Net  Revenue  from  any  and  all  Overlapping
Applications.  Any  monies  paid by Novint to MHTX shall not be  considered  Net
Revenue to MHTX.

            (c)  It  is  the  intent  of  the   parties  to  avoid   Overlapping
Applications,  and Novint  and  Anderson  will use their  best  efforts to avoid
creating Overlapping Applications, to create them only when absolutely necessary
with  respect to a  particular  application,  and to  minimize  the  overlapping
elements as much as possible where  Overlapping  Applications  are  unavoidable.
Nothing in this Agreement shall be construed in any way to be authorization  for
Novint  and  Anderson  to  materially  infringe  on MHTX's  Field of Use,  or to
actively and  intentionally  compete within MHTX's Field of Use. For the sake of
clarification,  and without limiting the foregoing,  at the time of execution of
this Agreement,  the only Overlapping  Applications  contemplated by the parties
are (i) standalone packaged software products of Novint ("Standalone  Products")
that  utilize  the  internet,  where the use of the  internet is not the primary
purpose of the application (for example,  a computer game might run both with or
without the use of the internet.  The added  utilization  of the internet  would
make it more entertaining and more  interactive,  but the primary purpose of the
game is for entertainment  rather than solely accessing the internet);  and (ii)
Standalone Products that of necessity  incorporate content creation applications
that could be adapted by the user to create content on a Computer  Network.  For
example,  in a  two-dimensional  analogy,  there can be some  overlap in content
creation  applications  and  imaging   applications.   To  extend  the  analogy,
specifically,  there is some overlap in usage with Microsoft Frontpage and Adobe
Photoshop.  One can use Adobe  Photoshop to create  images that can be placed on
the  Internet.  In  practice,  Photoshop  is  not  a  competitive  product  with
Frontpage,  however,  because the primary  purpose of Frontpage is to create web
sites rather than specific images (although  Frontpage has some  capabilities to
create images).  These two  applications  can be used  cooperatively to create a
fuller and more robust web site. Novint shall not create any Standalone Products
which enable the user to create web pages or internet browsers.

      6. Representations, Warranties and Covenants.

                                       10

XXXX - CONFIDENTIAL TREATMENT REQUESTED

<PAGE>

      (a) Novint and Anderson each covenant,  represent and warrant that, to the
best  of  their   knowledge,   information  and  belief,   without   independent
investigation:

                  (i) that the Novint Technologies are and will be original, are
solely  owned by Novint  and  Anderson,  are not  subject to claims by any third
parties, and do not infringe upon the rights of any third parties;

                  (ii) that Novint and  Anderson  believe in good faith (and are
aware of no  contradictory  facts) that the Novint  Technologies are patentable,
copyrightable or otherwise protectable;

                  (iii)  that  entry  into  this   agreement  (and  all  related
documents)  with MHTX,  has been duly  authorized and approved by the directors,
officers,  and  shareholders  of Novint,  and that Novint and Anderson  have all
requisite authority to make the License and enter into this agreement;

                  (iv) that Anderson will devote his best efforts on a full-time
basis to the activities of Novint;

                  (v) that  Novint has secured (or  promptly  shall  secure) the
services of all key personnel to continue the Research and Development;

                  (vi)  that the  existing  employees  of Novint  have  executed
confidentiality and non-competition  agreements in favor of Novint and MHTX (and
acceptable to MHTX),  or will do so within a reasonable  time after execution of
this  Agreement,  and that no employees will be hired in the future who have not
signed such an agreement in favor of Novint and MHTX;

                  (vii) that there are no claims,  whether actual or threatened,
against Novint and Anderson, and that Novint and Anderson are in compliance with
all laws, rules, and regulations to which they are subject;

                  (viii)  that  there  are  no  liens,   judgments  or  security
interests of record to which Novint,  Anderson,  and/or the Novint Technologies,
are subject, except those granted to MHTX;

                  (ix) that  Novint and  Anderson  have no  agreements  with any
third parties that would (a) prevent Novint and Anderson from entering into this
agreement,  granting the License,  and conducting the Research and  Development;
(b) be breached by this agreement  becoming  effective or the fulfillment of the
obligations of Novint and Anderson;  and/or (c) invalidate this agreement in any
respect;

                  (x) that Novint is a corporation duly organized,  existing and
in good standing under the laws of New Mexico.  It is  acknowledged  that Novint
intends to reincorporate in Delaware at an appropriate time;

                  (xi) that Novint and Anderson  shall employ all reasonable and
available means to invoke formal protection of the intellectual property arising
out of or relating to the Novint  Technologies in all appropriate  jurisdictions
to which the parties agree;

                  (xii) that Novint and Anderson  believe in good faith (and are
aware of no contradictory  facts) that the inventions and products to be derived
from the Novint  Technologies  within the Field of Use will work, that they will
be commercially  mass-producible  at low cost, that they are practical and safe,
and that they  will  substantially  perform  to the  standards  set forth in the
Milestone Timetable; and

                                       11

XXXX - CONFIDENTIAL TREATMENT REQUESTED

<PAGE>

                  (xiii) that all Novint Stock,  when issued to MHTX,  will have
been  validly  issued,  will be fully  paid,  and  will be free of any  liens or
encumbrances,  other than those  created by or imposed upon the holders  thereof
voluntarily by agreement or otherwise through no action of Novint or Anderson.

            (b) MHTX covenants,  represents and warrants that to the best of its
knowledge, information and belief, without independent investigation:

                  (i) that MHTX is a corporation duly organized, existing and in
good standing under the laws of the state of Delaware;

                  (ii)  that  entry  into  this   Agreement   (and  all  related
documents) with Novint and Anderson has been duly authorized and approved by the
directors and officers of MHTX,  and MHTX has the  requisite  authority to enter
into this Agreement;

                  (iii) that there are no claims,  whether actual or threatened,
against  MHTX,  and  that  MHTX  is in  compliance  with  all  laws,  rules  and
regulations to which it is subject;

                  (iv)  that MHTX  does not have any  agreements  with any third
parties  that would (a) prevent  MHTX from  entering  into and  performing  this
Agreement;  (b)  be  breached  by  this  Agreement  becoming  effective  or  the
fulfillment of the obligations of MHTX;  and/or (c) invalidate this Agreement in
any respect;

                  (v) that MHTX  shall use its best  efforts to raise the monies
necessary to fund the Research and Development Fee; and

                  (vi) that all MHTX Stock,  when issued to Anderson,  will have
been  validly  issued,  will be fully  paid,  and  will be free of any  liens or
encumbrances,  other than those  created by or imposed upon the holders  thereof
voluntarily  by  agreement  or  otherwise  through no action of MHTX;  provided,
however,  that the MHTX Stock will be subject to  restrictions on transfer under
applicable state and/or federal securities laws and regulations.

      7. Other Provisions.

            (a)  Within 30 days of the date this  agreement  becomes  effective,
Novint and Anderson shall provide MHTX with a key-man life  insurance  policy on
the life of Anderson,  at MHTX's expense, in the amount of US$2,000,000.00  (two
million  dollars)  listing MHTX as the owner and beneficiary of such policy.  In
addition,  as  soon as  reasonably  practicable  after  this  agreement  becomes
effective,  Novint  shall  obtain (at MHTX's  expense),  or shall assist MHTX in
obtaining,  patent and  copyright  infringement  insurance  covering any and all
patents and copyrights related to the Novint Technologies.

            (b) The initial term of this agreement  shall be the sooner of (i) 3
(three) years from the date this agreement becomes effective;  and (ii) the date
that Novint and Anderson  complete the  Milestone  Timetable.  Thereafter,  this
agreement  shall  automatically  renew in perpetuity for  successive  terms of 1
(one) year each,  unless  terminated  by  agreement  of the parties or by either
party upon not fewer than 6 (six) months' prior written notice.  The termination
of this agreement  shall not affect the obligation of any party to pay royalties
to any other party hereto,  except as set forth in the next sentence.  If Novint
and Anderson  terminate  this  Agreement in the absence of an MHTX Breach,  then
MHTX shall  have no  further  obligation  to pay  Novint  and  Anderson  the R&D
Royalty.  If MHTX  terminates  this Agreement in the absence of a Novint Breach,
then the License shall become nonexclusive.

                                       12

XXXX - CONFIDENTIAL TREATMENT REQUESTED

<PAGE>

            (c) It is  understood  and  agreed  that  Novint  and  Anderson  are
independent contractors of MHTX and not employees, officers, or agents, nor will
they hold themselves out as such.

      8. Indemnification.

            (a) Novint and Anderson  hereby agree to indemnify,  defend and hold
MHTX harmless from and against any and all liability,  damage,  claims  (whether
actual or threatened) or expense (including without limitation  reasonable legal
fees)  arising out of or relating to the breach by Novint and/or the Anderson or
either of them of any representation,  warranty,  covenant, or provision of this
agreement.

            (b) MHTX  hereby  agrees to  indemnify,  defend and hold  Novint and
Anderson  harmless  from  and  against  any and all  liability,  damage,  claims
(whether  actual  or  threatened)  or  expense   (including  without  limitation
reasonable  legal fees)  arising out of or relating to the breach by MHTX of any
representation, warranty, covenant, or provision of this agreement.

      9. Notices.  Any notice or other  communication  in  connection  with this
agreement  shall be in writing and delivered by overnight  courier and facsimile
addressed to a party hereto at the addresses  provided  below (or to such person
or address as such party shall specify in writing to the other parties hereto):

                                    If to Novint or Anderson:

                                    Mr. Thomas Anderson
                                    Novint Technologies, Inc.
                                    4900 Cutting Avenue NW
                                    Albuquerque, New Mexico 87114

                                    If to MHTX:

                                    Marvin Maslow, CEO
                                    Manhattan Scientifics, Inc.
                                    641 Fifth Avenue, Suite 36F
                                    New York, New York 10022

                                            And

                                    Jack Harrod, COO
                                    Manhattan Scientifics, Inc.
                                    127 Eastgate Drive

                                    Los Alamos, New Mexico 87544

                                       13

XXXX - CONFIDENTIAL TREATMENT REQUESTED

<PAGE>

                                        With a Copy to

                                    Scott L. Bach, Esq.
                                    Bach & Associates
                                    One Rockefeller Plaza, Suite 210
                                    New York, New York 10020

      Each party may designate a change of address by notice to the other party,
given at least  five (5)  days  before  such  change  of  address  is to  become
effective.

      Any written  notice shall be deemed to have been served  forty-eight  (48)
hours  after  the date it was  transmitted  in  accordance  with  the  foregoing
provisions.

      10. Miscellaneous.

            (a) MODIFICATION.  This agreement contains the entire  understanding
between the parties with respect to the subject matter hereof, and any promises,
representations,  warranties or guarantees  not herein  contained  shall have no
force or effect unless in writing, signed by all parties. Neither this agreement
nor any portion or provision hereof may be changed,  modified,  amended, waived,
supplemented,  discharged,  cancelled or  terminated  orally or by any course of
dealing,  or in any manner other than by an agreement in writing,  signed by the
party to be charged.

            (b) GOVERNING LAW AND OTHER  MATTERS.  This agreement and the rights
and  obligations of the parties  hereunder shall be governed by and construed in
accordance  with the laws of the State of New York.  Novint,  Anderson  and MHTX
hereby (i) waive any right to trial by jury in any legal  proceeding  related in
any way to this agreement; (ii) agree that venue of all disputes shall be in New
York County; and (iii) waive any objection and consent to personal jurisdiction,
subject matter  jurisdiction  and venue of and in the courts located in New York
County.

            (c)  INVALIDITY.  If any  part of this  agreement  is  contrary  to,
prohibited  by, or deemed invalid under  applicable  laws or  regulations,  such
provision  shall be  inapplicable  and deemed omitted to the extent so contrary,
prohibited or invalid, but the remainder hereof shall not be invalidated thereby
and shall be given effect so far as possible.

            (d) BENEFIT OF AGREEMENT.  This agreement  shall be binding upon and
inure to the benefit of the parties hereto and their  respective  successors and
assigns  only  and  is  not  intended  for  the  benefit  of  any  other  party.
Notwithstanding the foregoing,  it is understood and agreed that the services of
Anderson  hereunder are personal and unique,  are not  assignable,  and the loss
thereof would irreparably injure MHTX.

            (e) CAPTIONS. The captions of the various sections and paragraphs of
this  agreement  have been  inserted only for the purpose of  convenience.  Such
captions are not a part of this  agreement and shall not be deemed in any manner
to modify, explain, enlarge or restrict any of the provisions of the agreement.

            (f) INCORPORATION BY REFERENCE.  All of the "Whereas" clauses at the
beginning of this  agreement,  and all of the  Schedules  and  Exhibits  annexed
hereto, are hereby incorporated by reference and made a part hereof.

                                       14

XXXX - CONFIDENTIAL TREATMENT REQUESTED

<PAGE>

            (g) COUNTERPARTS;  WHEN EFFECTIVE. This agreement may be executed in
counterparts  and/or via facsimile.  This agreement  shall become  effective and
enforceable  upon  MHTX's  receipt  of a fully and  properly  executed  original
notarized  copy  hereof  bearing  complete  and  mutually  agreed  copies of all
schedules referenced herein.

            (h)  PROHIBITION OF ASSIGNMENT.  None of the parties may assign this
agreement  to any third  party  without  the prior  written  consent  of all the
parties hereto.  Notwithstanding the foregoing, nothing shall prohibit any party
from  assigning its right to receive  monies  pursuant to this  agreement to any
third  party,  provided  that the third  party  agrees that its right to receive
monies is subject to the terms and conditions of this Agreement.

            (i) RETURN OF STOCK.  Prior to August 1,  2000,  the  parties  shall
create  and  attach as  Schedule D to this  Agreement,  a schedule  of terms and
provisions  regarding the return of certain  portions of the Novint Stock and/or
the  MHTX  Stock  in  the  event  of an  MHTX  Breach  or a  Novint  Breach,  as
appropriate.

            (j)  NON-DISCLOSURE.  None  of  the  parties  (or  their  respective
officers,  directors and  employees,  as  appropriate)  shall  disclose to third
parties the terms of this Agreement,  or the fact that it has been entered into,
prior to August 1, 2000 or such other time to which the parties may agree.

      IN WITNESS  WHEREOF,  the parties  hereto have caused this Agreement to be
duly executed as of the day and year first above written.

                                       15

XXXX - CONFIDENTIAL TREATMENT REQUESTED

<PAGE>

               MANHATTAN SCIENTIFICS, INC.

               By:
                  -------------------------------
               Marvin Maslow, Chairman, President and CEO (on his 63rd Birthday)

               NOVINT TECHNOLOGIES, INC.

               By:
                  -------------------------------
                  Thomas Anderson, President

               THOMAS ANDERSON, Individually

NOTARIZATION OF PARTY SIGNATURES:

                  MHTX:

                  NOVINT:

                  ANDERSON:

                                       16

XXXX - CONFIDENTIAL TREATMENT REQUESTED

<PAGE>
                         SCHEDULE A: MILESTONE TIMETABLE

MILESTONES: (THE MILESTONE WILL BE MET BY THE END OF THE MONTH GIVEN)
THIS DOCUMENT IS CONFIDENTIAL.

<TABLE>
<CAPTION>

----------------------------------------------------------------------------- --------------- --------------
CONTRACTUAL MILESTONES                                                        FINANCING       CUMULATIVE
                                                                              (RECEIVED AT
                                                                              END OF MONTH)
----------------------------------------------------------------------------- --------------- --------------
<S>                                                                           <C>             <C>
Start                                                                         $300,000        $300,000
----------------------------------------------------------------------------- --------------- --------------
Month 2 - submit at least 2 more patents.                                     $200,000        $500,000
----------------------------------------------------------------------------- --------------- --------------
Month 3 - beta release of e-Touch haptic programming tools.                   $200,000        $700,000
----------------------------------------------------------------------------- --------------- --------------
Month 6 - Have ability to demonstrate Web Browser Application. The Web        $400,000        $1.1 m
Browser Application will have all the basic functionality needed including
reading in objects, intuitive user interface for mainstream markets, and a
working prototype web site.
----------------------------------------------------------------------------- --------------- --------------
Month 9 - Web Browser Application beta release. This will be a professional   $400,000        $1.5 m
looking product that is easy to use. We will work with many beta testers
for feedback. The Web Browser Application will work through a virtual city
to demonstrate playing a game, email, saving files, interacting with others
online, e-commerce, and advertising.
----------------------------------------------------------------------------- --------------- --------------
Month 12 - Content Creation Application beta release. This will include a $TBD
standard set of modeling tools, a reader for a data format (to be likely will
determined), texture application tools, dynamics simulation tools, and be around
store development tools. Overall this will be the core base necessary to $2-4
million create content on the web. for year 2
----------------------------------------------------------------------------- --------------- --------------
Month 15 - Web Browser Application product release                            $TBD
----------------------------------------------------------------------------- --------------- --------------
Month 18 - Content Creation Application product release                       $TBD
----------------------------------------------------------------------------- --------------- --------------

----------------------------------------------------------------------------- --------------- --------------
Note: Continuing at month 12 (short term)- Additional Milestones will be $TBD
determined in good faith by Novint and MHTX. MHTX will pay for reasonably
necessary Novint costs (in amounts to be mutually agreed) that are used to
continue to grow and develop applications within MHTX's Field of Use while
royalties are not sufficient to support those costs.
----------------------------------------------------------------------------- --------------- --------------
Note: Continuing (long term) - Additional Milestones will be determined in     $0
good faith by Novint and MHTX. MHTX will pay Novint a 30% R&D Royalty as
described in the contract, which will cover R&D and support costs.
----------------------------------------------------------------------------- --------------- --------------
</TABLE>

INTERNAL DESCRIPTION OF MILESTONES FOR YEAR 1:
--------------------------------------------------------------------------------
EXPECTED MILESTONES
--------------------------------------------------------------------------------
Month 0: Hire Bill Anderson, a student programmer. Research office space.
Trademark work. Obtain web domain names IP. Reimburse outstanding fees. Pay
Sandia up front Royalty. Travel to New York and Boston to do demos for MSI board
and SensAble Technologies. Finish setting up company - accounting and legal
documentation, payroll, etc. Begin to convert Sandia code to Novint code.
--------------------------------------------------------------------------------
Month 1: Continue interactions with AOL. Begin initial patent assessments with
Gerald Grafe. Help MHTX with PR, marketing, and video work. Buy initial
equipment for programmers. Reincorporate in Delaware. Begin technical
exploration for new IP relevant to our business model. Hire Jake Jones as a
graphics programmer. Travel to California for Sony demo and AOL demo. Work on
creating a mainstream user interface with a commercial feel and look. Finish
porting e-Touch to C++ classes. Hire Doug Harless as VP of sales to help begin
to develop e-Touch as a standard in the haptics market. Travel to Siggraph 2000
at the end of July. Explore relationship with Sandia National Laboratories.
--------------------------------------------------------------------------------
Month 2: Fly Steve Venema down from Washington State to visit New Mexico and
explore employment at Novint. Submit patent(s) which would be covered under the
Sandia license (i.e. was developed at Sandia,
--------------------------------------------------------------------------------

<PAGE>

--------------------------------------------------------------------------------
but  Novint  will  still  own  exclusively.  There are over  thirty  potentially
patentable  concepts  described  in the  Sandia  License  to  Novint).  Continue
development on e-Touch,  the haptic  programming API. Develop  technologies that
will  be  patentable  and  owned  by  Novint  to  help  secure  IP  base.   Hire
administrative  assistant.  Begin work to allow many  programmers to use e-Touch
API  utilizing  a modular  structure.  Explore  hiring  additional  programmers.
Contact  Tom  Caudell at UNM to  explore a  relationship.  Hire Steve  Venema if
appropriate.
--------------------------------------------------------------------------------
Month 3 - Submit several  patents on Novint owned  technologies  (It is expected
that given  Novint's  technical  expertise  in the field of haptics and the fact
that we are working within a new mass market domain, the first three months will
produce patentable technologies. At the time of the contract signing, one of the
patents that we expect to file allows users to easily  utilize  buttons in a new
way and to use them in a 3D domain in a similar way to how  toolbars are used in
a 2D domain).  Find Beta testers for e-Touch API beta release.  Finalize e-Touch
for both internal usage and for outside developers. Beta release of e-Touch API.
Fully move into office space. Have proof of concept demo ready for AOL or others
if needed to show off interface.  Continue relationship with IBM, Sony, and AOL.
Possibly  obtain  funding  for  complementary  technology  to  the  Web  Browser
Application.
--------------------------------------------------------------------------------
Month 4 - Begin Web  Browser  Application  as primary  development  application.
Integrate e-Touch into the Web Browser  Application.  Begin to create networking
capabilities through sockets, CGI scripts, etc. after researching pros and cons.
Create proof of concept pool, chess, or 3D pong games to demonstrate  networking
capabilities. Begin to create 3D city for use in Web Browser Application. Create
a reader for reading in 3D data sets. Do  comprehensive  research on existing 3D
sites that have no force  feedback.  Hire network  programmer.  Begin to try and
establish e-Touch as a standard programming  interface in the haptics community.
Do a  presentation  at the Phantom Users Group workshop early October in Boston.
--------------------------------------------------------------------------------
Month 5 - Continue  development of 3D city. Create easy to use connection to log
onto virtual city.  Upload virtual city to a server for initial  testing.  Begin
Avatar  development  (an  avatar  is a  representation  of a person in a virtual
environment).  Begin to develop specific buildings in the virtual city such as a
pool  hall,  a mall,  and a post  office.  Create  3D  analogies  of  common  2D
interactions  such as  moving  back a page  (in 3D this  would  be a  teleporter
system,  for  example),  hyperlinks,  search  engines,  and  downloading  files.
Continue work on the user interface as it specifically  relates to a Web Browser
Application.  Begin  relations  with a potential  partner for creating the first
real  e-Touch  web page  (this  will  likely  be a toy  company,  an  automobile
manufacturer,  or  a  similar  company).  Production  release  of  e-Touch  API.
--------------------------------------------------------------------------------
Month 6 - Finalize  3D city.  Have  initial  avatars  and a system for  creating
artificial avatars. Finalize usable proof-of-concept  buildings in primary areas
of  interest  such as gaming  area,  post  office,  and mall.  Have  available a
proof-of-concept  demo to show off Web Browser Application.  Meet with AOL again
and demonstrate a compelling use of the technology. Begin comprehensive research
on how companies can effectively  incorporate  large amounts of data (i.e. their
catalog) into this new type of web site and perhaps approach a potential partner
for this problem.  Begin to interact with potential beta testers.  Over the next
year, Doug Harless travel to various  companies to work on establishing  e-Touch
as a standard API.
--------------------------------------------------------------------------------
Month 7 - Continue  development of further buildings in virtual city and the Web
Browser Application's  interactions with them such as meeting places like coffee
shops or lecture halls and buildings such as movie theatres.  Begin to look into
2D capabilites  such as mouse control and viewing of  conventional 2D web sites.
Further develop networking  capabilities.  Also, do further research on existing
3D file formats and determine  which formats  should be able to be utilized with
the Web Browser Application. Submit further patents on Novint IP.
--------------------------------------------------------------------------------
Months 8,9 - Do market research on Web Browser Application  usability.  Based on
market  research and our milestone  history,  determine which areas are the most
important to enhance in the Web Browser  Application.  Finalize the polished Web
Browser Application and make it publicly available off our web site for its Beta
release.
--------------------------------------------------------------------------------
Month 10 - Based on  feedback  from Beta  testers  continue  to enhance  the Web
Browser  Application.  Take existing  software that was used in creating initial
content for the virtual city and begin to create  Content  Creation  Application
for web masters.  Begin interface for easily incorporating content from existing
3D packages and libraries,  and adding haptic  feedback to these objects.  Begin
VAR sales from SensAble  technologies.  Begin work on initial modeling tools and
possibly  integration with SensAble  technology's  Freeform product or a lighter
version.  Begin to more actively  seek a source for  financing  beyond year one,
given      the      Web      Browser       Application       beta       release.
--------------------------------------------------------------------------------
Months  11,12 - Continue to improve Web  Browser  Application  based on customer
feedback.  Beta release of Content  Creation  Application.  Obtain financing for
beyond  year one  either  from MSI or  cooperatively  with MSI from a 3rd party.
--------------------------------------------------------------------------------

<PAGE>

SUMMARY OF TIMELINE.
Months 1-3: develop e-Touch haptic programming interface.
Months 4-6: develop Web Browser Application demo.
Months 7-9: develop Web Browser Application for beta release.
Months 10-12: develop Content Creation Application demo.
WEB BROWSER APPLICATION MINIMUM FEATURES AND CONFIGURATION:

o     Mainstream,  professional user interface that is easily used by an average
      person and is polished, visually appealing, and commercially appealing.

o     Compatability with existing  interaction  metaphors to maximize consumer's
      familiarity  with current  interfaces  and to minimize the learning  curve
      associated with moving to our 3D technology.

o     Ability to easily log into a virtual  web site that is  supported  through
      standard  internet domain names.  Novint will create a virtual web site at
      www.touchcity.com  that  will be able to be  accessed  by the Web  Browser
      Application.

o     Strong  metaphor  of a personal  space  including  analogies  to  everyday
      objects that people easily  understand.  Ability to tie a user's  personal
      space into a 3D environment.

o     Compatibility with the Phantom haptic interface and a typical mouse.

o     Ability  to  read in a 3D  data  format  for  virtual  objects,  textures,
      dynamics,  etc.  The  3D  format  will  allow  the  creation  of  virtual,
      touch-enabled environments.

o     Capabilities  for interactions  between many people.  This includes avatar
      support and personal interaction between avatars.

o     Capability  to  read  content  for the  purposes  of  e-commerce,  gaming,
      personal interaction, advertising, communication, and general content.

o     Strong emphasis on utilization of Novint Patents.

o     Foundation  based  on  both  the  e-Touch  API  (Application   Programming
      Interface) and a large amount of consumer testing.

o     Compatibility with existing 2D Internet sites and protocols.  The level of
      compatibility will in large part be determined by user testing.

CONTENT CREATION APPLICATION MINIMUM FEATURES AND CONFIGURATION:

o     Mainstream,   professional  user  interface  that  is  easily  used  by  a
      professional web developer.

o     Ability  to  create an entire  web site  that can be  accessed  by the Web
      Browser  Application.  The  Content  Creation  Application  will  have the
      ability to create a finished, useful, commercially appealing, and visually
      appealing web site.

o     Ability to create a virtual web site that is  supported  through  standard
      internet domain names.

o     Use of the same IP base,  and  general  look and feel  utilized in the Web
      Browser Application.

o     Compatibility with Phantom haptic interface and the mouse.

o     Ability  to  read in  virtual  objects,  create  virtual  objects,  create
      textures,  create dynamics,  etc., and save the data into a 3D format. The
      3D format will represent virtual, touch-enabled environments.

o     Capability  to create  content  for the  purposes of  e-commerce,  gaming,
      personal interaction, advertising, communication, and general content.

EXPLANATION OF IP STRATEGY.

The general IP strategy is to create a base of patentable concepts that would
help to prevent a future competitor from copying our Web Browser Application and
haptic user interface. IP protection through patents is a core aspect to
Novint's strategy. Additionally, we will strongly market the e-Touch trademark
as a standard for all haptic user interfaces - the future of how people will use
computers. Currently there are two patents pending from Sandia National
Laboratories and the existing copyrighted FLIGHT source code, which were
licensed exclusively to Novint in the field of use, human-computer interfaces.
As part of the license, Novint will have the same exclusive rights to any
additional patents that are issued which were based on the initial work done at
Sandia. In a technology advance disclosure submitted to Sandia, there are

<PAGE>

34 additional  potentially  patentable concepts in existence now. These concepts
were determined with the criteria that they be useful, non-obvious,  and reduced
to practice. A majority of the concepts relate to making the user interface,  3D
windowing system, and navigation intuitive to a user. Several of the potentially
patentable  ideas  relate  to  haptic  rendering  techniques  and  other  haptic
concepts.  In working with a patent council, we expect that the most valuable of
the concepts will lead to strong additional patents.

It is also expected that soon after receiving funding, Novint will develop and
reduce to practice other areas of IP, which will add strong value to its
existing base. This is expected due to the expertise in the field of haptics
present within Novint, the new challenges that will be presented when moving
into a commercial area such as internet applications, and Novint's technical
team's ability and history in solving such problems. Again, a large part of the
IP protection will be focused on the human-computer interface which will help to
protect the ease of use for the Web Browser Application (an essential component
to a mainstream market) from competitors, and will help to protect the e-Touch
programming interface.

                                       17

XXXX - CONFIDENTIAL TREATMENT REQUESTED
<PAGE>

                                   SCHEDULE B

                         DESCRIPTION OF EXISTING NOVINT
                              INTELLECTUAL PROPERTY
                   (subsequently developed IP to be included)

TRADEMARKS:

1.  Application  for  Mark  "e-Touch".
2.  Application  for Mark  "Novint".
3.  Application for Logo.

PATENTS:

COPYRIGHTS:

                                       18

XXXX - CONFIDENTIAL TREATMENT REQUESTED

<PAGE>

SCHEDULE C: DETAILED BUDGET

<TABLE>
<CAPTION>

MILESTONES                                          timeline begins - July, 2000                   Web Browser beta release (2/2001)

EXPENSE CATEGORY                EXPENSE NAME                        RATE      FT   PT   WHEN              1              2
----------------                ------------                        ----      --   --   ----     ----------       --------
<S>                                                                <C>        <C>  <C>  <C>     <C>            <C>
EMPLOYEES
Engineering                     Chief Technology Officer           110,000.00  1         15               -              -
                                Programmer - Haptics               85,000.00   1          2               -       7,083.33
                                Programmer - Graphics              80,000.00   1          1        6,666.67       6,666.67
                                Programmer - Network               65,000.00   1          4               -              -
                                Student                            20,000.00       1      1        1,666.67       1,666.67
                                Student                            20,000.00       1      2               -       1,666.67
                                Hardware Tech                      45,000.00   1          9               -              -
                                QA / Test                          65,000.00   1         18               -              -
                                Sys Admin                          50,000.00   1         13               -              -
                                SDK Tech Writer                    45,000.00   1         18               -              -

Marketing / Biz Dev             VP Marketing                       125,000.00  1         14               -              -
                                Product Manager                    100,000.00  1         18               -              -
                                VP Sales/Biz Dev Mgr               125,000.00  1          1       10,416.67      10,416.67
                                PR/Marcom/Programs                 48,000.00   1         13               -              -

Administration                  CE0                                90,000.00   1          1        7,500.00       7,500.00
                                President                          135,000.00  1          8               -              -
                                Office Mgr                         45,000.00   1         18               -              -
                                Controller                         75,000.00   1         20               -              -
                                Administrative Assistant           30,000.00   1          2               -       2,500.00

Total Heads                                                                   17                          4              7
Total NEW Heads                                                                                           4              3
Total Direct Headcount                                                        17                  26,250.00      37,500.00
Fringe @ 30%                                                                                       7,875.00      11,250.00
TOTAL HEADCOUNT                                                                                   34,125.00      48,750.00
TOTAL CUM HEADCOUNT                                                                               34,125.00      82,875.00

OTHER EXPENSES
Licensing fees                                                                                            -              -
Cash for initial VAR purchases                                                                            -              -
Rent                                                                                                      -       5,000.00
Equipment                                                                                         20,000.00      15,000.00
Furniture                                                                                                 -       1,000.00
Travel & Entertainment                                                                             4,000.00       8,000.00
Phone/Fax                                                                                            300.00         500.00
Printing                                                                                             200.00         200.00
Consultants                                                                                        2,000.00       2,000.00
Web Development                                                                                    3,000.00              -
Legal                                                                                             20,000.00       5,000.00
Reimbursements                                                                                            -              -
Patents                                                                                           15,000.00      15,000.00
Bookkeeping                                                                                          200.00         200.00
Recruiters                                                                                                -       5,000.00
Market Research                                                                                           -       3,000.00
PR                                                                                                 2,000.00       2,000.00

TOTAL OTHER EXPENSES                                                                              66,700.00      61,900.00
TOTAL CUM OTHER                                                                                   66,700.00     128,600.00

PREVIOUS EXPENSES                                                                                 80,000.00
EMPLOYEES + OTHER                                                                                100,825.00     110,650.00

CUMULATIVE TOTAL                                                                                 180,825.00     291,475.00

FINANCING (START AT $300,000).
RECEIVED AT BEGINNING OF GIVEN
MONTH.
CUMULATIVE FINANCING (NOTE:
MUST BE MORE THAN CUMULATIVE
TOTAL ABOVE)                                                                                     300,000.00     300,000.00

<CAPTION>
EXPENSE CATEGORY                EXPENSE NAME                                3               4              5               6
----------------                ------------                         --------        --------       --------        --------
<S>                                                                <C>              <C>            <C>             <C>
EMPLOYEES
Engineering                     Chief Technology Officer                    -               -              -               -
                                Programmer - Haptics                 7,083.33        7,083.33       7,083.33        7,083.33
                                Programmer - Graphics                6,666.67        6,666.67       6,666.67        6,666.67
                                Programmer - Network                        -        5,416.67       5,416.67        5,416.67
                                Student                              1,666.67        1,666.67       1,666.67        1,666.67
                                Student                              1,666.67        1,666.67       1,666.67        1,666.67
                                Hardware Tech                               -               -              -               -
                                QA / Test                                   -               -              -               -
                                Sys Admin                                   -               -              -               -
                                SDK Tech Writer                             -               -              -               -

Marketing / Biz Dev             VP Marketing                                -               -              -               -
                                Product Manager                             -               -              -               -
                                VP Sales/Biz Dev Mgr                10,416.67       10,416.67      10,416.67       10,416.67
                                PR/Marcom/Programs                          -               -              -               -

Administration                  CE0                                  7,500.00        7,500.00       7,500.00        7,500.00
                                President                                   -               -              -               -
                                Office Mgr                                  -               -              -               -
                                Controller                                  -               -              -               -
                                Administrative Assistant             2,500.00        2,500.00       2,500.00        2,500.00

Total Heads                                                                 7               8              8               8
Total NEW Heads                                                             0               1              0               0
Total Direct Headcount                                              37,500.00       42,916.67      42,916.67       42,916.67
Fringe @ 30%                                                        11,250.00       12,875.00      12,875.00       12,875.00
TOTAL HEADCOUNT                                                     48,750.00       55,791.67      55,791.67       55,791.67
TOTAL CUM HEADCOUNT                                                131,625.00      187,416.67     243,208.33      299,000.00

OTHER EXPENSES
Licensing fees                                                              -               -              -               -
Cash for initial VAR purchases                                              -               -              -               -
Rent                                                                 5,000.00        5,000.00       5,000.00        5,000.00
Equipment                                                           15,000.00        4,000.00       4,000.00        4,000.00
Furniture                                                            1,000.00        1,000.00       1,000.00        1,000.00
Travel & Entertainment                                              10,000.00       10,000.00      10,000.00       10,000.00
Phone/Fax                                                              500.00          500.00         500.00          500.00
Printing                                                               200.00          200.00         200.00          200.00
Consultants                                                          2,000.00        2,000.00       2,000.00        2,000.00
Web Development                                                        300.00          300.00         300.00          300.00
Legal                                                                3,000.00        3,000.00       3,000.00        3,000.00
Reimbursements                                                              -               -              -               -
Patents                                                             15,000.00               -              -               -
Bookkeeping                                                            200.00          200.00         200.00          200.00
Recruiters                                                                  -               -      10,000.00               -
Market Research                                                      3,000.00        3,000.00       3,000.00        3,000.00
PR                                                                   2,000.00        2,000.00       2,000.00        2,000.00

TOTAL OTHER EXPENSES                                                57,200.00       31,200.00      41,200.00       31,200.00
TOTAL CUM OTHER                                                    185,800.00      217,000.00     258,200.00      289,400.00

PREVIOUS EXPENSES
EMPLOYEES + OTHER                                                  105,950.00       86,991.67      96,991.67       86,991.67

CUMULATIVE TOTAL                                                   397,425.00      484,416.67     581,408.33      668,400.00

FINANCING (START AT $300,000).
RECEIVED AT BEGINNING OF GIVEN
MONTH.                                                             200,000.00      200,000.00
CUMULATIVE FINANCING (NOTE:
MUST BE MORE THAN CUMULATIVE
TOTAL ABOVE)                                                       500,000.00      700,000.00     700,000.00      700,000.00

<CAPTION>
EXPENSE CATEGORY                EXPENSE NAME                                  7              8               9             10
----------------                ------------                          ---------      ---------       ---------      ---------
<S>                                                                   <C>            <C>             <C>            <C>
EMPLOYEES
Engineering                     Chief Technology Officer                      -              -               -              -
                                Programmer - Haptics                   7,083.33       7,083.33        7,083.33       7,083.33
                                Programmer - Graphics                  6,666.67       6,666.67        6,666.67       6,666.67
                                Programmer - Network                   5,416.67       5,416.67        5,416.67       5,416.67
                                Student                                1,666.67       1,666.67        1,666.67       1,666.67
                                Student                                1,666.67       1,666.67        1,666.67       1,666.67
                                Hardware Tech                                 -              -        3,750.00       3,750.00
                                QA / Test                                     -              -               -              -
                                Sys Admin                                     -              -               -              -
                                SDK Tech Writer                               -              -               -              -

Marketing / Biz Dev             VP Marketing                                  -              -               -              -
                                Product Manager                               -              -               -              -
                                VP Sales/Biz Dev Mgr                  10,416.67      10,416.67       10,416.67      10,416.67
                                PR/Marcom/Programs                            -              -               -              -

Administration                  CE0                                    7,500.00       7,500.00        7,500.00       7,500.00
                                President                                     -      11,250.00       11,250.00      11,250.00
                                Office Mgr                                    -              -               -              -
                                Controller                                    -              -               -              -
                                Administrative Assistant               2,500.00       2,500.00        2,500.00       2,500.00

Total Heads                                                                   8              9              10             10
Total NEW Heads                                                               0              1               1              0
Total Direct Headcount                                                42,916.67      54,166.67       57,916.67      57,916.67
Fringe @ 30%                                                          12,875.00      16,250.00       17,375.00      17,375.00
TOTAL HEADCOUNT                                                       55,791.67      70,416.67       75,291.67      75,291.67
TOTAL CUM HEADCOUNT                                                  354,791.67     425,208.33      500,500.00     575,791.67

OTHER EXPENSES
Licensing fees                                                                -              -               -              -
Cash for initial VAR purchases                                                -              -               -      40,000.00
Rent                                                                   5,000.00       5,000.00        5,000.00       5,000.00
Equipment                                                              4,000.00       4,000.00        4,000.00       4,000.00
Furniture                                                              1,000.00       1,000.00        1,000.00       1,000.00
Travel & Entertainment                                                10,000.00      15,000.00       15,000.00      15,000.00
Phone/Fax                                                                500.00         500.00          500.00         500.00
Printing                                                                 200.00         200.00          200.00         200.00
Consultants                                                            4,000.00       4,000.00        4,000.00       4,000.00
Web Development                                                          300.00         300.00          300.00         300.00
Legal                                                                  3,000.00       3,000.00        3,000.00       3,000.00
Reimbursements                                                                -              -               -              -
Patents                                                               15,000.00              -       15,000.00              -
Bookkeeping                                                              500.00         500.00          500.00         500.00
Recruiters                                                                    -              -               -              -
Market Research                                                        3,000.00       3,000.00        3,000.00       3,000.00
PR                                                                     2,000.00       2,000.00        4,000.00       6,000.00

TOTAL OTHER EXPENSES                                                  48,500.00      38,500.00       55,500.00      82,500.00
TOTAL CUM OTHER                                                      337,900.00     376,400.00      431,900.00     514,400.00

PREVIOUS EXPENSES
EMPLOYEES + OTHER                                                    104,291.67     108,916.67      130,791.67     157,791.67

CUMULATIVE TOTAL                                                     772,691.67     881,608.33    1,012,400.00   1,170,191.67

FINANCING (START AT $300,000).
RECEIVED AT BEGINNING OF GIVEN
MONTH.                                                               400,000.00                                    400,000.00
CUMULATIVE FINANCING (NOTE:
MUST BE MORE THAN CUMULATIVE
TOTAL ABOVE)                                                       1,100,000.00   1,100,000.00    1,100,000.00   1,500,000.00

<CAPTION>
EXPENSE CATEGORY                EXPENSE NAME                                11              12            TOTALS
----------------                ------------                         ---------        --------          ----------
<S>                                                                  <C>             <C>                <C>
EMPLOYEES
Engineering                     Chief Technology Officer                     -               -                   -
                                Programmer - Haptics                  7,083.33        7,083.33           77,916.67
                                Programmer - Graphics                 6,666.67        6,666.67           80,000.00
                                Programmer - Network                  5,416.67        5,416.67           48,750.00
                                Student                               1,666.67        1,666.67           20,000.00
                                Student                               1,666.67        1,666.67           18,333.33
                                Hardware Tech                         3,750.00        3,750.00           15,000.00
                                QA / Test                                    -               -                   -
                                Sys Admin                                    -               -                   -
                                SDK Tech Writer                              -               -                   -

Marketing / Biz Dev             VP Marketing                                 -               -                   -
                                Product Manager                              -               -                   -
                                VP Sales/Biz Dev Mgr                 10,416.67       10,416.67          125,000.00
                                PR/Marcom/Programs                           -               -                   -

Administration                  CE0                                   7,500.00        7,500.00           90,000.00
                                President                            11,250.00       11,250.00           56,250.00
                                Office Mgr                                   -               -                   -
                                Controller                                   -               -                   -
                                Administrative Assistant              2,500.00        2,500.00           27,500.00

Total Heads                                                                 10              10
Total NEW Heads                                                              0               0                  10
Total Direct Headcount                                               57,916.67       57,916.67          558,750.00
Fringe @ 30%                                                         17,375.00       17,375.00          167,625.00
TOTAL HEADCOUNT                                                      75,291.67       75,291.67          726,375.00
TOTAL CUM HEADCOUNT                                                 651,083.33      726,375.00

OTHER EXPENSES
Licensing fees                                                               -               -                   -
Cash for initial VAR purchases                                               -               -           40,000.00
Rent                                                                  5,000.00        5,000.00           55,000.00
Equipment                                                             4,000.00        4,000.00           86,000.00
Furniture                                                             1,000.00        1,000.00           11,000.00
Travel & Entertainment                                               15,000.00       15,000.00          137,000.00
Phone/Fax                                                               500.00          500.00            5,800.00
Printing                                                                200.00          200.00            2,400.00
Consultants                                                           4,000.00        4,000.00           36,000.00
Web Development                                                         300.00          300.00            6,000.00
Legal                                                                 3,000.00        3,000.00           55,000.00
Reimbursements                                                               -               -                   -
Patents                                                                      -       15,000.00           90,000.00
Bookkeeping                                                             500.00          500.00            4,200.00
Recruiters                                                                   -               -           15,000.00
Market Research                                                       3,000.00        3,000.00           33,000.00
PR                                                                    4,000.00        4,000.00           34,000.00

TOTAL OTHER EXPENSES                                                 40,500.00       55,500.00          610,400.00
TOTAL CUM OTHER                                                     554,900.00      610,400.00

PREVIOUS EXPENSES                                                                                        80,000.00
EMPLOYEES + OTHER                                                   115,791.67      130,791.67        1,336,775.00
                                                                                                      1,416,775.00
CUMULATIVE TOTAL                                                  1,285,983.33    1,416,775.00

FINANCING (START AT $300,000).
RECEIVED AT BEGINNING OF GIVEN
MONTH.
CUMULATIVE FINANCING (NOTE:
MUST BE MORE THAN CUMULATIVE
TOTAL ABOVE)                                                      1,500,000.00    1,500,000.00

</TABLE>
                                       19

XXXX - CONFIDENTIAL TREATMENT REQUESTED

<PAGE>

                                   SCHEDULE D

                      PROVISIONS REGARDING RETURN OF STOCK
                      (To Be Established by July 30, 2000)

A.    Return of Novint  Stock.  The  Novint  Stock  delivered  to MHTX  shall be
      subject to return by MHTX in accordance with the following:

            If MHTX fails to fund (or procure  the  funding of) $1.5  million of
            the Research and  Development  Fee within 9 months of June 24, 2000,
            then MHTX shall return the Novint Stock ratably in proportion to the
            amount of such $1.5 million that MHTX has not funded by such time

Accordingly, until such time as such $1.5 million has been funded, MHTX shall
hold and not transfer any portion of the Novint Stock that could become
returnable pursuant to the foregoing.

B.    Return of MHTX  Stock.  The MHTX  Stock  delivered  to  Anderson  shall be
      subject to return by Anderson in accordance with the following:

      (1)   250,000 shares of the MHTX Stock shall be returned to MHTX if Novint
            fails to deliver the Web Browser  Applications  portion of the First
            Major Milestone within 15 months of June 24, 2000.

      (2)   250,000 shares of the MHTX Stock shall be returned to MHTX if Novint
            fails to deliver the Content  Creation  Applications  portion of the
            First Major Milestone within 18 months of June 24, 2000.

Accordingly, until such time as Novint and Anderson complete the First Major
Milestone, Anderson shall hold and not transfer any portion of the MHTX Stock
that could become returnable pursuant to the foregoing.

                                       20

XXXX - CONFIDENTIAL TREATMENT REQUESTED

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]